Weakness in PSA…Production timeline left to whims of Exxon Mobil

The fact that Guyana will begin to reap benefits from royalties and profit from oil only after ExxonMobil beings production is reason enough to ensure that a production timeline is in the Production Sharing Agreement (PSA) that the country signed with ExxonMobil.
This was noted recently by Chartered Accountant, Nigel Hinds.
Hinds said that with each discovery of oil ExxonMobil makes offshore Guyana, the company reaps good financial benefits on the stock market.
He said that it is normal for a production timeline to be set in the PSA.
“Otherwise, Exxon could continue at infinitum with their exploration of the 6.6 million acres making up the Stabroek Block.”

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Nigel Hinds

February 12th, 2018