In part 3 we showed that oil companies seemed to have no trouble providing insurance to protect foreign stakeholders and how moral hazard featured in banking, so much so that it helped bring down the financial system in 2007/8. We also showed that the extent of the Deepwater Horizon damage far exceeded “astounding”. In this…
In part 1 we showed that insurance companies knew how to mitigate the risk of ‘moral hazard’ so that while the tendency of the insured to benefit financially from information asymmetry existed, it could never ever be enough to frustrate a properly functioning insurance market. In part 2 we presented the quote Dr CYT should…
0.00 Intro by Moderator8:50 DR VINCENT ADAMS (comparing 1999 and 2016 agreements)[14:47 Dr Adams: Liability and insurance][21:08 Dr Adams: Absence of data][24:25 Dr Adams: Absence of specifics in the contract]27:44 FREDERICK COLLINS [TIGI][32:15 Fred Collins: Critical contract issues][36:49 Fred Collins: Annex A and Annex B][38:54 Fred Collins: Area Limits for a Single Licence]40:11 DARSH KHUSIAL [OGGN] How Much is Guyana losing on Stabroek Block…
In Part 1 of our response to Dr. CYT, we pointed out that he had neglected to take into account some fundamental points concerning the nature of the insurance business. We pointed out that, even if the oil company decided to indulge in more risky behaviour as a result of taking out the insurance, the…
Dr. C.Y Thomas, in his column of Sunday 17th April last (https://www.stabroeknews.com/2022/04/17/sunday/guyana and the wider world/critiques-2-3-exxonmobil in the courts of law and public-opinion/) under the guise of a critique of ExxonMobil, continued his ridicule of those of us calling for guaranteed compensation in the form of insurance against any damage to the environment of Guyana and that…
Dear Editor, Guyana’s profits taxes that are required under the 2016 Stabroek Contract should count as tax revenues. Here are the relevant points from the contract: ● Tax is required to be calculated for the contractor, Article 15.2. ● Tax is required to be paid by the Minister of Natural Resources on behalf of the…
A month ago, a letter writer in the Guyana Chronicle made false claims upon which he accused me and other members of civil society of being treasonous and betraying the country. I enclose the link to that letter (see below writer’s name), which was also published in the Guyana Times. I wrote a response, which…
When Guyana’s oil contract was signed in 2016 world market prices per barrel averaged $65. All indications today are that future prices (next 5 -10 years) may average $110. The portion of higher average price ($110 minus $65 = $45) can be called the Russia-Ukraine war premium. Who gets to keep most of the $45…
The hidden costs of the gas-to-power projects are slowly bubbling up: GPL has to find 50 MW of heavy fuel oil generation; and they are looking for some other company to deliver seamless connections without transmission and distribution problems. GPL is caught in an inefficiency trap, because it still only aims to deliver electricity at…
