OGGN Members
Developmental planning should not add to taxpayers’ burdens
It is heartening to note that Private Sector Projects would be supported in national development: In reading ‘Ali stumps for private sector during talks with visiting CDB president’ (SN – July 11, 2021): ‘Ali, the statement noted, has been adamant that the government would support private sector initiatives, especially when it comes to developmental projects’. …
The stability of Guyana’s Wealth Fund is predicated on slippery unknowns
Guyana’s Assessed Tax Liability, GY$5.391 billion for the Petroleum Contractors is an outrage. Instead of securing funds for floods, sea defenses, and compensation to farmers for crop losses, the money deposited at the Federal Reserve of New York must now be used to pay Guyana’s tax bill, a situation that will reduce Guyana’s Petroleum share…
Which Of Guyana’s Oil Blocks Lacks A Production Sharing Agreement?
Attorney General of Guyana, Mohabir Nandlall, is currently on a visit to New York. On July 2nd, he appeared at two meetings – one at Villa Russo to an audience of 60 and second, at Royal Restaurant on Rockaway Blvd. in Queens, NY to an audience of 150. At the Villa Russo meeting, I asked…
It’s now 3 months TIGI has asked for oil production data
You do not buy a bottle of water that is not properly full, because you can see through the container. But if you buy a bottle of cooking gas, you cannot see if you are getting value unless the bottle is weighed on a standard scale, or unless you believe the seal has been properly…
Scale of investment is not a reason for tax waivers
I refer to Mr. Reggie Bhagwandin’s letter, “Oil deal was designed to cater for the nature of the industry” and wish to comment as follows: An argument for tax waivers for Foreign Companies – Profits are not guaranteed. Business is very competitive. Therefore, it makes good sense for host governments to grant tax waivers for…
How much taxes should Exxon and the oil companies have paid?
As per the 2016 Stabroek Block contract, for the oil production lifecycle, from the preparation for oil production to when the oil is finally sold, the oil companies pay no taxes (see Article 15.1). The applicable income tax laws assess the Contractor’s tax due on taxable income (Article 15.3) and the Minister agrees to pay…
Gas to shore and the pesky outlet flange
Today’s column explores the proposed gas-to-shore project. Off the bat, I must declare that converting the present heavy fuel power plants to natural gas makes sense. Indeed, in June 2015, I wrote a column, then under Development Watch, arguing for the transition from high-polluting heavy fuel to less-polluting natural gas power plants. However, the same…
Time for Guyana to consider hedging as oil prices recover
December 20th marked the one-year anniversary of oil being lifted from Guyana’s ocean floor. Who has benefitted the most from our oil? Is it the people of Guyana or the oil companies? Certainly, there doesn’t appear to be any significant oil benefits to the more than 30 percent of Guyanese living on US$2 a day….
Which of Guyana’s laws may have been violated by the Stabroek Block Contract
The 2016 Stabroek Block oil contract between the oil companies and the Government of Guyana violates many of Guyana’s laws compared to the original 1999 contract, according to local legal experts. The Government seems content to ignore our own national laws. None of the violations in this oil contract have been challenged in court as…