Whether Guyana becomes “immensely rich or just another Trump-hole” from oil revenues depends largely on its ability to attract specialty experience and competencies in industry and sectors here, says business website Bloomberg. “Guyana could attenuate the brain drain by reaching out to its diaspora,” Bloomberg yesterday reported. “There are more than 100 reported expatriate organizations,…
Despite noting that there is “no prospect” at this time for a review of the controversial Production Sharing Agreement (PSA) between the government and a subsidiary of oil giant, ExxonMobil, President David Granger said yesterday that the matter is engaging the attention of Cabinet “These matters are before Cabinet and it depends on what determination…
Chartered Accountant Nigel Hinds is pleading, once again, with the Government of Guyana and ExxonMobil to negotiate the “lopsided” Petroleum Sharing Contract (PSA) that they signed in 2016. Hinds said that along with the many ills of the contract, the APNU+AFC government needs to realise that if it does not fix the contract, other companies…
Reuters reported that oil prices edged up on January 10, 2018 to a near two-and-a-half year high after data showed strong demand for crude imports in China and increased US refining activity that drew more crude from inventories. The current price of WTI crude oil was US$66.15 per barrel. Pipeline outages in Libya and the North Sea…
The hottest new prospect for the world’s oil industry is Guyana, a small, relatively poor, country on the north-eastern coast of Latin America. Over the past year, a series of discoveries by ExxonMobil have identified 3.2bn barrels of oil in the Stabroek block around 120 miles offshore. Given Exxon’s traditional caution, the actual reserves could…
Without doubt this is a crucial juncture in the country’s history as it relates to securing a better future for each of its citizens and for succeeding generations. The moment has been made even more poignant by the deep distress that the sugar industry is in, a fitting warning that a prosperous industry that commands…
I have just read an interesting account of Cost Recovery as provided for by the Profit Sharing Agreement between GoG and the Oil Company. (KN Feb. 10th, Pre-contract cost… US$460M seem to have been pulled from an alternate universe – Nigel Hinds). It appears every penny incurred by the Oil Company – including interest cost…
Using Dr Mangal’s royalty and profit sharing figures, we calculated Guyana is giving away $US 23 billion to Exxon under the current contract. This is based on oil price of $US 80 a barrel and 3.2 billion reserves. We used the upper range of Dr Mangal’s royalty range which is 20%. The reason for the…
Stating that the 2% royalty on oil from ExxonMobil was way below global standards and that the tax regime should have been greater, Presidential Advisor on Petroleum, Dr Jan Mangal says pressure from the citizenry has the potential to influence government to revise the contract with the American company. “Don’t underestimate the power that people…
PARIS (Reuters) – French oil and energy group Total has bought stakes in some offshore Guyana oil production blocks, boosting its presence in the potentially lucrative Guyana basin. Total said it was buying a 35 percent working interest in the Canje Block, in an agreement signed with an affiliate of Canadian company JHI Associates Inc….
