In follow-up to your editorial ‘Critics’ in the Sunday Stabroek for March 06, 2022, I suggest that the leadership of the PPP/C should re-read its 2020 election manifesto, to remind itself that it still has some important promises to act upon. One of these is its commitment to re-negotiate the Production Sharing Agreement with ExxonMobil:…
In part 3 we showed that oil companies seemed to have no trouble providing insurance to protect foreign stakeholders and how moral hazard featured in banking, so much so that it helped bring down the financial system in 2007/8. We also showed that the extent of the Deepwater Horizon damage far exceeded “astounding”. In this…
As Guyana continues to avoid solving long-standing and ingrained problems, as the political and business elites of all stripes continue to keep the majority suffering and poor, all this forfeiting much value for future generations, I reflect on the last few years as Guyanese achieved first oil and are approaching elections. Below are some of…
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
Guyana’s Production Sharing Agreement (PSA) with ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), for the Stabroek Block has fielded major criticisms for a range of provisions, or the lack thereof, which are disastrous for Guyana.Now, Darshanand Khusial has stated that a failure to define “market rate” as it is stated in the Contract…
It has been reported that the Guyana Revenue Authority (GRA) will review contract costs proposed by ExxonMobil for its work as a contractor to the Government in the Stabroek Block. If the Government intends to undertake a rigorous review of the contract costs, this is not the optimal route. Instead, the Government will be taking…
Today’s column continues consideration of the likely cost-price relation that might be anticipated during Guyana’s coming time of oil and gas production and export. So far, the discussion has established both indicative cost and indicative price estimates for Guyana’s oil circa 2025. It has also strongly argued: 1) 2025 is too far out into the…
Every Man, Woman and Child in Guyana Must Become Oil-Minded – Part 89 – June 18, 2021 Introduction This second part of a mini-series on the three oil companies which operate the Liza 1 project under the Stabroek Block reviews the 2020 financial statements of the Guyana branch of Hess Guyana Exploration Limited (Hess). For…
Introduction Today I begin to address the third and final sub-sector in this long-running series of columns on the extractive industries sector of Guyana. That is, the coming time of oil and natural gas production and export, which are about 5-7 years away. So far, I have considered 1) the mining sub-sector (December 27, 2015-February…
I refer to Mr. Joel Bhagwandin’s letter in SN dated June 14, 2024 submitted in response to my letter dated June 12, 2024 on the shortage of royalty paid by EMGL. Mr. Bhagwandin claims, among other unrelated issues, that the shortage observed in royalty was associated with the following: ’(I) royalties …(being) deposited every quarter…
