BOOT illusions and Amaila

The build-own-operate-transfer (BOOT) financial arrangement has been used around the world to fund important infrastructure in partnership between government and private investors. In this financing model, the private investor upfronts the initial investment cost and expects to be repaid over some time period. The investor has an expected rate of return before underwriting the project….

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Exxon had agreed in writing to full liability coverage but PPP/C halted finalisation

I have followed with deep interest, the recent warranted upsurge in public outcry from experts and affected populations of all walks of life in Guyana, the Region, and other international communities calling for full insurance coverage in the event of an oil spill. However, there appears to be some confusion, misinformation, and missing facts in…

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Rough Estimate of Gas in Guyana-Suriname Basin

US Geological Survey – ‘Assessment of undiscovered oil and gas resources in Central and South America’ USGS Fact Sheet FS-037-01, March 2001 Guyana-Suriname Basin – total undiscovered resources with ‘fully risked estimates’ – Gas – trillion cubic feet – 7.035 at 95% confidence level, 36.802 at 50% confidence level, 95.909 at 5% confidence level, arithmetic…

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Canada Has A Golden Opportunity To Condemn Corruption At Guyana Energy Conference But Will It?

The Canadian High Commissioner to Guyana, Mark Berman, is one of the featured speakers at the inaugural Energy Conference & Expo to be held in the oil-rich South American CARICOM nation from February 15th to 18th, 2022. This is a pivotal opportunity for the Canadian ambassador to state Canada’s commitment to companies needing to pay taxes…

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Arguing the Local Content Policy will recoup losses from the Stabroek Block is not grounded in reality and logic

In a press release this past Saturday, the government admitted that the Stabroek Block contract is lopsided. The Department of Public Information article further states, “…with the passage of the local content legislation, Vice President, Dr. Bharrat Jagdeo, said the law now recoups the benefits lost from the Exxon deal.” It is astounding that the…

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Gov’t’s oil production reports should be released in a timely manner and in one location

Major Guyanese newspapers have been exposing numerous issues surrounding the oil contracts. One positive change, as a result of their relentless efforts, was having the Ministry of Natural Resources publish Guyana’s oil lift data. Additionally, it appears that the Extractive Industries Transparency Initiative (EITI) reviews have had some impact because a new website has appeared…

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Macroeconomic issues relating to the large early withdrawal from the NRF

In the previous column, I noted several positive features of the Natural Resource Fund (NRF) Act of 2021. I also outlined several potential downsides such as the possibility for employing unnecessary financial consulting in the face of a legally-mandated passive investment strategy, the power relations between the officers of the Fund and government given the…

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