Exxon the American oil giant recently reported their 13th oil discovery in Guyana’s Stabroek block. The confirmed barrels of oil in the Stabroek block is 5.5 billion barrels. UK’s Tullow estimates that the Orinduik block holds 4 billion barrels of oil. There are more blocks like Canje and Kaieteur yet to be explored. Even if no more…
In my opinion this contract should be considered null and void for the following interim reasons:1)This contract was not made in good faith, good intention, is biased and is not consistent with minimum international contracting requirements, practice, guidelines, procedures and laws.2)This contract is a production sharing contract/royalty (PSA), where Guyana is technically a partner, a…
Several weeks ago I started a series of columns on the ethnic security dilemmas (ESDs). I also briefly reviewed Minister Carl Greenidge’s book on land settlements, and discussed the issues of income and wealth (asset) distribution. All these issues are connected. Before I close the series, I want to share some findings on land ownership…
Would you sell your most valuable resource for about 25% of the price of what it was worth? That is what Canada was doing in November when they allowed the oil companies to sell Alberta crude oil for US$13 a barrel when the market price was US$54. This landlocked oil was costing the government millions…
This is in reference to Clement Smith’s letter in Kaieteur News on October 27 titled “Guyana’s take from oil is larger than many countries”. Clement Smith stated my recent letter is inconsistent with the facts. A copy of this letter can be found here: http://www.oggn.website/2018/10/23/flawed-oil-contract-is-giving-up-more-than-investment-bank-likely-to-generate-in-future-returns. In his letter, the only source of information cited was…
In February 2018, Exxon produced a 20-minute Facebook video in which its stated purpose was to address questions concerning the Oil Contract, Revenues and Taxes. At minute 10, the presenter declaims: Guyana is a frontier country. And, further states that the Guyanese people should be satisfied with the oil contract. Pronouncing Guyana as a “frontier…
On Thursday October 18th, 2018 the Stabroek News published an article entitled `Merrill Lynch interested in sovereign wealth fund’. The investment world has taken notice of the potential wealth that lays offshore in Guyana. The government should study the history of those who seek to bestow advice on how to manage Guyana’s potential windfall. The flawed oil contract…
On Friday August 17th, the Stabroek News published a letter by Business Minister Gaskin titled, `Mr Hinds completely omitted the profit sharing component of the Esso deal’. The Minister’s math does not compute. His cost per barrel is significantly more than what both Hess and the IMF have stated. I will work backwards from the…
Here is an idea that should be given top priority. Guyana needs to build up an entrepreneurial class. Guyana needs to develop a class of Guyana’s Product Brands. (Currently Guyana has only one such brand -15-year-old rum. Europe and North America cannot get enough of Guyana’s rum). Guyana needs a dozen new export products not…
I hope the Green Paper on the proposed Sovereign Wealth Fund (SWF) is a work in progress. The paper outlines a fiscal rule for withdrawals and the passive investment strategies for the foreign assets that will make up the Natural Resource Fund (NRF). It is quite intuitive why a NRF is necessary. It’s like a…
