It has been reported that Guyana receives 52 percent of oil profits from ExxonMobil Guyana Limited (EMGL) oil extraction operations. Given that Guyana is not a shareholder in EMGL, this is overly generous of a company that is expected to minimize cost and maximize profits for its shareholders. In fact, nowhere in the Production Sharing…
A distinguishing feature of the Production Sharing Agreement (PSA) between ExxonMobil Guyana Limited (EMGL) and the Government of Guyana (GOG) is the contrived way in which total cost is specified in the business. In particular, the total cost (TC) is specified as: TC = 0.75TR = 0.75PQ, where TR is total revenue, P is the…
On October 23, 2023, Chevron announced that it had purchased Hess shares in the ExxonMobil Guyana Limited (EMGL) for US$53.0 Billion. Recalling that Hess owned 30 percent of the company, this ownership implied that the total equity in the company is now estimated to be US$176.7B, with the remainder distributed as US$79.5B for ExxonMobil, and…
President Irfaan Ali ring-fencing is an important concern that has engaged the attention of the Guyanese people; but Guyanese policymakers do not want to take any action to establish ring-fencing in each of the oil projects that are currently extracting and exporting oil from Guyana. When there is no ring-fencing, the people of Guyana are…
Reference is made to Elder Green’s letter titled, “This mad rush to have foreigners develop all they can find in our waters is senseless” (SN August 16th). Mr. Green is onto something here. “Go easy on exploiting our non-renewable oil resource”, he says. When it’s done, it’s done. Further he cautions, “In other words, don’t…
