In keeping with Article 15.6, page 42 of the Production Sharing Agreement (PSA), the Government of Guyana is assigned the burdensome task of paying the taxes of the oil consortium (EMGL, Hess, and CNOOC) from its share of oil profits and royalties. This contractual arrangement is unheard-of; as it discriminates against other local companies which…
See video here: https://youtu.be/Vj_086ZqiVU?t=3428
I refer to an SN article (December 23, 2024) captioned ‘President talks tough again on GuySuCo amid poor results, ongoing subventions’ (https://www.stabroeknews.com/2024/12/23/news/guyana/president-talks-tough-again-on-GuySuCo-amid-poor-results-ongoing-subventions/). In that article, President Ali is quoted as saying “…if …the target for 2025; the first crop target, and the second crop target, if the target is not achieved, then heads will roll.” May…
Reference is made to my letter published in Kaieteur News on October 22, 2024 and captioned ‘Measuring oil profits in Liza One’. In response, Mr. Dominic Gaskin in his letter published in Stabroek News on Oct. 23, 2024 disagreed with some of the points I made in my letter, as identified above. Permit me, Editor,…
With your permission, permit me to explain how total revenue, total cost, and profits are identified in the Guyana oil business, and in particular Liza One. In this regard, knowing the selling price (P) and the average total cost (ATC) of a barrel of oil signals the first decision point of any investment. The average…
Recently, Ambassador Samuel Hinds reminded Guyanese of the notion that ‘A bird in the hand is worth more than two in the bush’. I contend that this statement is only true when one does not have ownership of both the bird and the bush; and therefore, one has to manage both bird and bush and other…
I refer to a letter captioned, ‘Let’s feel good about what we are getting from our oil’ written by His Excellency Samuel Hinds, Ambassador, Former Prime Minister, and Former Acting Preisident of the Cooperative Republic of Guyana. In that letter, it is stated… ‘If we have troubles absorbing the US $4.4 billion according to some…
It has been reported that Guyana received $336 billion in 2023 from oil, and had to pay $306 billion in taxes for Exxon Mobil and partners (KN: Sept. 13, 2024). The implication which can be drawn from this distribution of total revenue is that Guyana only received G$30 billion ($336 B – $306 B) from…
In a recent presentation by Mr. Glenn Lall, he asked the following question: What is the average cost of a barrel of oil? In reply, I will present some information on the cost of a barrel of oil, based on the combined 2023 Financial Statements of the consortium: EMGL, Hess and CNOOC. Additionally, a comparison…
