Exxon’s uncapped delivery costs will significantly affect Guyana’s 2% royalty

Is there any clause in the ExxonMobil Agreement that is in Guyana’s favour?
In the eyes of the fledgling coalition Government, the “generous” two percent royalty and a 50/50 split of profit oil was one. But a closer look by local commentators shows that even this is a poisoned chalice.
In his continued analysis of the ExxonMobil-Guyana agreement, Chartered Accountant, Nigel Hinds has found that even when it comes to the two percent royalty, Guyana will not get its fair share.
Hinds said that this is evident in Article 15.6 of the Agreement which deals with taxation and royalty.

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Nigel Hinds

March 15, 2018