In order to capitalize on oil discovery here, the Government of Guyana must renegotiate the current petroleum agreement with ExxonMobil and its affiliates to reflect an increase from a two percent royalty to 10 per cent.
This view was shared by Chartered Accountant, Nigel Hinds, who provided Kaieteur News with a detailed breakdown of opportunity losses from Guyana’s acceptance of a two percent royalty.
Hinds cited the recent comments from Dr. Jan Mangal, Advisor on Petroleum to President David Granger, who outlined that globally, royalty is more between 10 percent and 20 percent. Dr. Mangal had noted that in some countries, the royalty is much higher than 20 percent.
Nigel Hinds
February 25th, 2018