The Official Gazette of 11 May 2023 published two documents – a Guarantee and Indemnity Agreement dated 9th June 2023 (GIA) and a Contract of Insurance effective 1st. February 2024. The first deals with the Environmental Obligations of the three Contractors – Exxon, Hess and CNOOC – and the second, with third party insurance taken…
By Stabroek News September 21, 2022 Dear Editor, In a SN article dated 8/15/2022 and captioned, ‘Guyana set to receive 12 lifts of profit oil for 2022 – Ministry’, it is reported ‘…that the expected total production of oil in 2022 is 93.6 million barrels of oil… (from which) …Guyana will get an estimated 12…
Recently, an audit that encompassed 260,000 transactions, totaling US$7.3 billion, for the Stabroek Block for the period 2018 to 2020 was completed in 4 months. The size of the audit team appeared to be about 12 people; a few members were Guyanese. We assume the Guyanese members had no prior experience in auditing oil &…
I am responding to your article ‘EPA says impact study needed of new proposed Exxon drilling programme in Stabroek Block – cites possible cumulative effect’ (SN 18 July 2022). In this article you state, “`With respect to fishery operations there are no impacts that are anticipated due to the distance of the project location and…
There are times in life when we have to make declarations in order to move to the next desired stage. Declarations of insolvency or of bankruptcy, and of assets come to mind. However, our intrepid Vice-President volunteered a declaration of incompetence – and he doesn’t even seem to realize it! Here is someone, who was…
The PNC is in a bad place right now. Following the heels of its failed attempt to rig the 2020 elections, in full view of a watching world, the two top candidates running for Party Leader were leaders of the extreme wing claiming dead people flew to Guyana and voted and sneaked back out and…
Continuing my analysis of the Petroleum Production Agreement signed between the Government and ESSO, CNOOC and HESS, I would like to touch on a few more Articles in the contract. I recommend: Mr. President, this contract is massively flawed and MUST be renegotiated. As a matter of fact, the existing contract should be rescinded and…
Guyana is responsible for paying the interest on the oil companies’ loans. This fact is buried in the Production Sharing Agreements (PSA). (Stabroek Block PSA, Annex C Section 3.1 part (l)). The interest rate to be paid is loosely noted as “market rate”. This flaw may cost Guyana billions of US dollars. It takes just…
Introduction In last week’s discussion of Guyana’s proposed local content requirements (LCRs) policy for its coming oil and gas extraction industry, I had introduced three key concepts, which require further elaboration. Those concepts are 1) the enclave economy; 2) the potential for transmission of economic linkages and spillovers from a successful oil and gas industry…
There seems to be some confusion around what was actually approved with Payara in recent days, or what it means. Simply, the approval of the Payara project (or development), which is the third project in the Stabroek Block, is not an oil agreement nor an improvement of an oil agreement, and does not improve the…
