President Ali frequently parrots the “sanctity of contract” in discussions of the Stabroek Block Petroleum Agreement (PSA) to convey that Guyana cannot change the contract. Yet the agreement was amended on April 26, 2019, by President Granger, to ensure that the 2% royalty could not be treated as a recoverable cost (see Stabroek News). Thus,…
If you have a large mortgage, you know how much it can shape every major financial decision. Do you replace a refrigerator that is on its last legs or a noisy washing machine? Do you keep the car for one more year to avoid straining the monthly budget? A large mortgage constrains financial flexibility. When…
Guyana is expected to earn US$6.5 Billion from the country’s share of profit oil and royalties in 2026 (Bank of Guyana (BoG) report section 3.64 on page 21, (https://finance.gov.gy/wp-content/uploads/2026/09/Mid-Year-Report-2026.pdf ). While US$6.5 Billion is a significant amount, and it is much larger than what Guyana has collected in any year in the past, the question…
In the past week, several commentators have stated that the spot price of Brent crude has been between US$120 and US$150 per barrel. This contrasts with the Brent crude futures price, which has been around US$105 per barrel. In its First Half Report for 2026, the Bank of Guyana (BoG) stated that the average price…
On a per capita basis, Guyana is one of the very well-endowed countries in the world; for it has oil and gas, gold and diamonds, and many other minerals, as well as arable lands. Also, Guyana has a rich diversity of plants animals and marine life; and it has many creeks and rivers. Table 1…
It has been reported that Guyana profit share from oil exports will increase from 12.5% to 39.8%).(https://kiskadeewatch.com/opinion/editorial/profit-oil-of-39-8/). This expected increase in profit is because the total investment cost of the oil project (US$55 Billion) has been repaid in full and profits will therefore increase, due to the only cost item being the operating cost of…
Dear Editor, It is generally accepted that within the boundaries of a sovereign state, a government does not pay taxes on behalf of any institution or any individual; but it has the authority to grant tax exempt status to certain groups, including churches, educational institutions, and non-profit organisations. Exxon and its oil consortium in Guyana…
Dear Editor, One of the most important questions in the oil industry is: At what quantity of barrels of oil sold will the investment cost of any project be repaid? The reason for knowing the answer to this question is because the cost recovery formula of 75% of total revenue, which is applied to the…
Dear Editor, As of 2026, there are now 4 deepwater oil operations in production, altogether sometimes pumping 930,000 barrels of oil equivalent (boe) a day, or US$2.4 billion in oil revenue per month, at today’s oil prices. There have been repeated calls for these projects to be ring-fenced. To quote Christopher Ram’s definition of Ring-Fencing,…
Dear Editor, The 2025 Combined Financial Report for the Guyana oil consortium (Exxon, Hess/Chevron, and CNOOC) show that total revenue is US$17.2 Billion; and the total profit is US$12.1 Billion. Given that profits are to be shared equally between the companies and Guyana, it is clear that Guyana and the companies should each receive US$6.05…
