The Production Sharing Agreement (PSA) that Guyana has with ExxonMobil is fraught with opportunities for abuse. In fact, these very loopholes could result in a significant dent in the revenue Guyana is supposed to get from the oil find by the operator. This was noted by the International Monetary Fund (IMF) in a report that…
Former Auditor General Anand Goolsarran says that the agreement between Guyana and ExxonMobil should be renegotiated to give this country a royalty of 7% on oil produced instead of the current 2% and he also said that there should be a switch from a profit-sharing arrangement to a revenue-sharing one. See more here
If one is to believe Mr. Trotman then it means that the Preamble to the Agreement is false and misleading. On the other hand, if the Preamble is accurate, then we have Mr. Trotman once again lying to the country. See more here
A contract was signed in June 2016 between the coalition government, ExxonMobil and its partners in the Stabroek block. Why did this contract dealing with the exploitation of the nation’s natural resources remain a secret for over a year? This does not augur well for the future transparency of the oil industry. In Article 15…
Minister of Natural Resources, Raphael Trotman yesterday distanced himself from negotiating the modified ExxonMobil contract last year saying it was a team of professionals that conducted the discussions and even in hindsight his government is satisfied with the terms reached. See more here
In keeping with a recent undertaking, the Government of Guyana yesterday released the Petroleum Agreement entered into on its behalf by Mr. Raphael Trotman with American oil companies Esso Exploration and Production Guyana Limited and Hess Guyana Exploration Limited and CNOOC NEXEN Production Guyana Limited, from China. The Agreement is dated 27 June 2016 and…
The Government of Guyana has released the petroleum agreement as promised. Here is the agreement.
After months of evasion, the government today released the production sharing agreement with ExxonMobil’s subsidiary, EEGLP and the company’s local head, Rod Henson said that the the US$18m signing bonus was paid for the 10-year extension of the pact. See more here
Dear Editor, Quote from the December 24th Sunday Stabroek news report: “A key finding of the report after assessing similar PSAs from around the world is that the Stabroek PSA has the lowest Average Effective Tax Rate (AETR) of “government take”.
Cost Recovery limit The report said that PSAs here limit the value of production (after royalty) that can be used to recover costs. The mission says it understands that the cost recovery limit in the Stabroek PSA is fixed at 75 percent. “When there is a cost recovery limit and the minimum government share is…
