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…
In keeping with the 2016 PSA, Article 15.4, the published reports by the consortium (EMGL, Chevron and CNOOC) for the period 2020 to 2024 show that Guyana paid from its oil receipts US$5.2 billion in taxes for the consortium (KN https://kaieteurnewsonline.com/2026/04/26/oggn-writes-berkshire-hathaway-inc-on-chevrons-guyana-operations/). Published reports also show that for the period 2020 to 2024, Guyana only received US$6.3…
In a recent KN Article (https://kaieteurnewsonline.com/2026/04/19/exxon-and-partners-profits-soar-to-us29b-in-5-years-while-guyana-received-us5-4b-in-50-50-partnership/), it was pointed out that during the period 2020 to 2024, Guyana’s share of profit oil, which should have amounted to 50 percent of total profit (Article 11.4, 2016 PSA), was far less than expected. In fact, instead of Guyana receiving US$14.5 Billion, Guyana only received US$5.4 Billion, a shortfall of…
Dear Editor, According to a BBC press release, https://www.bbc.co.uk/mediacentre/2026/world-questions-guyana, it was announced that on Tuesday, March 10, BBC World Questions will travel to Guyana to debate the nation’s political and economic future. The discussion will focus heavily on Guyana’s vast oil and gas reserves. Panelists will include Dr. Ashni Singh, Minister of Finance, and Ms. Tabitha…
The 2016 Stabroek PSA allows the operator, ExxonMobil Guyana Ltd. (EMGL) to deduct massive expenses against current production—including costs from unsuccessful exploration elsewhere (due to lack of ring-fencing). Because the contract permits up to 75% of oil produced, on a monthly basis, to be used to pay off these Recoverable Contract Costs, we show below…
The Bank of Guyana (BoG) half-year report (Jan to June 2025, page 81: https://tinyurl.com/bdd829ec) shows that Guyana received a total of US$1.08 Billion as payments for profit oil (US$ 907.94 Million) and Royalty (US$ 169.6 Million). In keeping with the 2016 PSA Contract, it is stipulated that Guyana must receive 2 percent of Total Revenue…
