Minister of Natural Resources, Raphael Trotman yesterday distanced himself from negotiating the modified ExxonMobil contract last year saying it was a team of professionals that conducted the discussions and even in hindsight his government is satisfied with the terms reached. See more here
In keeping with a recent undertaking, the Government of Guyana yesterday released the Petroleum Agreement entered into on its behalf by Mr. Raphael Trotman with American oil companies Esso Exploration and Production Guyana Limited and Hess Guyana Exploration Limited and CNOOC NEXEN Production Guyana Limited, from China. The Agreement is dated 27 June 2016 and…
The Government of Guyana has released the petroleum agreement as promised. Here is the agreement.
After months of evasion, the government today released the production sharing agreement with ExxonMobil’s subsidiary, EEGLP and the company’s local head, Rod Henson said that the the US$18m signing bonus was paid for the 10-year extension of the pact. See more here
Dear Editor, Quote from the December 24th Sunday Stabroek news report: “A key finding of the report after assessing similar PSAs from around the world is that the Stabroek PSA has the lowest Average Effective Tax Rate (AETR) of “government take”.
Cost Recovery limit The report said that PSAs here limit the value of production (after royalty) that can be used to recover costs. The mission says it understands that the cost recovery limit in the Stabroek PSA is fixed at 75 percent. “When there is a cost recovery limit and the minimum government share is…
Production sharing agreements or contracts (PSAs), have been, from the time of their earliest introduction to the oil and gas sector, subjected to in-depth critical analyses and/or evaluations from economic, legal, and institutional perspectives. Among the most rigorous and perceptive of these evaluations, in my view, are: 1) K. Bindemann, Production-Sharing Agreements: An Economic Analysis,…
Investors are reportedly unhappy with Hess’s projection that it won’t generate free cash flow through 2020 due to spending tied to its offshore oil project in Guyana and its U.S. shale fields. See more here
The fact that Government collected a legitimate US$18 million signing bonus from oil giant ExxonMobil but failed to disclose this transaction to the nation has not gone unnoticed by international watchdog Extractive Industries Transparency Initiative (EITI). Guyana became a member of the group just two months ago, with its candidature application submitted in August in…
The oil sector is known for its ability to compromise some of the most “upstanding” politicians on earth. Instances of this irrefutable fact can be found in many countries such as Chad, Equatorial Guinea, Tanzania and Indonesia. As Guyana moves ahead with becoming an oil producing nation, many critics have expressed concern that Guyana’s politicians…
