You found out that your backyard has gold. Someone comes along and tells you he can dig up your gold. So you sign a contract with him that stipulates you are only entitled to 10 percent of your own gold. The gold digger finds 10,000 bars of gold, therefore according to the provisions of the contract, you can only get 1,000 bars of gold while the contractor gets 9000 bars.
That illustration was used by Chartered Accountant, Nigel Hinds, as he explained the situation that Guyana has found itself in, following the signing of the 2016 Production Sharing Agreement (PSA).
Nigel Hinds
February 4th, 2018