2017
Competitive bidding is the best approach for the award of oil exploration leases
A recent article in the Guyana Times ‘Minister’s relatives, friends now applying for oil licences, 2017-09-14’ makes reference to Dr Jan Mangal, Petroleum Adviser in the Ministry of the Presidency. The article raises concerns with a type of process used in the award of petroleum leases or blocks, that is the “one-on-one negotiation” or “open…
Journalists need to become more adept at investigating conflicts of interest in the oil sector
My term as Petroleum Adviser to President Granger began in March 2017, whereas the re-negotiation of the contract for the Stabroek Block was performed about a year earlier (early part of 2016). I have not negotiated contracts between any oil company and the Co-operative Republic of Guyana. President Granger has been clear that his priority…
Creativity in oil contracts?
Who is the owner of the “proven oil reserves” once the contract is signed between the oil company and the host country? In a typical contract, the “reserves” are monetized and this value is entered on the balance sheet of the Oil Company. The share price of the Company is maintained and traded based on…
The gusher in Guyana: Will oil corrupt a small Caribbean state?
SOUTH AMERICA’S only English-speaking country is one of its poorest. But perhaps not for much longer: Guyana has struck black gold. By 2020 ExxonMobil, the world’s biggest private oil firm, expects to be pumping oil in Guyanese waters, with Hess and Nexen, its American and Chinese partner firms. In the past two years they have…
Guyana lacks capacity to handle huge influx of invoices from Exxon – Visiting experts
To protect the country’s interest, the Government of Guyana would do well to make swift moves to hire trained professionals in the legal and financial fields. These should have experience working with big oil companies or for oil-producing countries. See more here at Kaieteur News
The government is engaged with oil companies whose interests are very different from their own
There is a joke that you may have heard in some accounting classes. During an interview, prospective candidates were asked what was 2+2. The engineer answered 4, the journalist 4, and the lawyer 4. The accountant leaned over and whispered, “I can make it any number you want”. There is a great point behind this…
Government should ensure Exxon contract has provisions to allow Guyanese to develop expertise in the oil business
Many new graduates searching for a job lack the experience they need to get their dream job. They have spent years studying and have good grades. However, without the relevant industry experience, many employers are not willing to take the risk on them, especially for highly technical positions. Usually it takes 10 years to develop…
More global lessons on local content policies for Guyana’s coming oil and gas sector
Introduction Today’s column continues the effort to provide for readers’ guidance a response to the burning question: What are the lessons to be learned from oil and gas producing countries that have implemented policies/regimes for local content requirements (LCRs)? As previously indicated, such countries are many, and, unsurprisingly, their experiences are varied. Beyond question, LCRs…