| Table 1: New OGGN Equity Proposal | ||
| Old PSA 100 barrels | OGGN Proposal | |
| No. of Barrels (No. B) | 100 | 100 |
| Cost of oil OPEX (a) | 20 | 0 |
| Capex (b) | 55 | 0 |
| Cost recovery (CR) = a+b | 75 | 0 |
| Total Profit (TP) = N0.B – CR | 25 | 0 |
| Royalty (e ) | 2 | 0 |
| Guyana Profit Share (f) | 12.5 | 0 |
| Profit Tax (d) | 0 | 0 |
| EEPGL Profit Take (g) | 10.5 | 0 |
| Guyana Share of barrels (N) = f +e | 14.5 | See below |
| Decommissioning and climate Change Fund (Z) | 0 | 10 |
| Monitoring of the Environment & Patrimony (V) | 0 | 45 |
| Guyana Share of barrels (new Gross Split PSA) = Z +V | 0 | 55 |
| EEPGL Share of barrels (M) = b+g | 65.5 | See below |
| Cost of oil OPEX (a) and EEPGL Share | 20 (a) | 45 |
| Total No. of Barrels (No.B) = N+M+a | 100 | 100 |
In order to have clear and accountable benchmarks, the following conditions must be included but not limited to these requirements in the new oil contract:
- Must have ring fencing.
- Each reservoir must be a separate project, with an amortization and production schedule.
- Investment cost must be known upfront; this along with other data will establish the breakeven level in each reservoir.
- There must be a Parent Company Guarantee for all oil spills.
- Monitoring by the GOG of the environment to ensure the Ocean and fishermen are protected.
- Decommissioning and Environmental Fund.
- Financial statements must be presented within 90 days of new year.
- Daily extraction record to be presented to the GOG Agency for oil Monitoring.
- No issue of fake tax receipts; and no tax receipts are required.
- Real Time extraction (24/7) monitoring by Guyanese on the oil platform.
- All extraction information should be transferred in real-time to the Georgetown office.
- The New Gross Split PSA must be applied to the Stabroek Block.
- There is co-management between GoG and the oil companies on all projects.
- An Auction must be used to identify new winning bids for drilling and exploration.
References:
How Guyana’s oil contract compared to other oil contracts.
- Picture from IMF November 2017 report commissioned by the then government, see page 24.
2. Picture from2020 Global Witness report, see Stabroek Actual Fiscal Regime.
