My term as Petroleum Adviser to President Granger began in March 2017, whereas the re-negotiation of the contract for the Stabroek Block was performed about a year earlier (early part of 2016). I have not negotiated contracts between any oil company and the Co-operative Republic of Guyana. President Granger has been clear that his priority…
Who is the owner of the “proven oil reserves” once the contract is signed between the oil company and the host country? In a typical contract, the “reserves” are monetized and this value is entered on the balance sheet of the Oil Company. The share price of the Company is maintained and traded based on…
SOUTH AMERICA’S only English-speaking country is one of its poorest. But perhaps not for much longer: Guyana has struck black gold. By 2020 ExxonMobil, the world’s biggest private oil firm, expects to be pumping oil in Guyanese waters, with Hess and Nexen, its American and Chinese partner firms. In the past two years they have…
To protect the country’s interest, the Government of Guyana would do well to make swift moves to hire trained professionals in the legal and financial fields. These should have experience working with big oil companies or for oil-producing countries. See more here at Kaieteur News
There is a joke that you may have heard in some accounting classes. During an interview, prospective candidates were asked what was 2+2. The engineer answered 4, the journalist 4, and the lawyer 4. The accountant leaned over and whispered, “I can make it any number you want”. There is a great point behind this…
Many new graduates searching for a job lack the experience they need to get their dream job. They have spent years studying and have good grades. However, without the relevant industry experience, many employers are not willing to take the risk on them, especially for highly technical positions. Usually it takes 10 years to develop…
Introduction Today’s column continues the effort to provide for readers’ guidance a response to the burning question: What are the lessons to be learned from oil and gas producing countries that have implemented policies/regimes for local content requirements (LCRs)? As previously indicated, such countries are many, and, unsurprisingly, their experiences are varied. Beyond question, LCRs…
Introduction Last week’s column had indicated that, starting today, I would seek to draw lessons arising from global experiences with national local content requirement (LCR) regimes, which are aimed at maximizing economic benefits derived from the creation of export-oriented oil and gas extraction industries, based on significant domestic resource finds. I shall further indicate these…
IntroductionMy aim has been in recent columns to lay out carefully the economic rationale in support of the proposition that, if Guyana’s coming oil and gas extraction industry is to play a transformative role in its economic development, then the dynamic integration of whatever economic benefits are derived from the industry into other economic sectors…
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…
