A distinguishing feature of the Production Sharing Agreement (PSA) between ExxonMobil Guyana Limited (EMGL) and the Government of Guyana (GOG) is the contrived way in which total cost is specified in the business. In particular, the total cost (TC) is specified as: TC = 0.75TR = 0.75PQ, where TR is total revenue, P is the…
A few years ago, oil companies would bombard the Guyanese people with “frontier country” to justify an embarrassing Stabroek Block contract that is currently paying us a paltry 14.5% or less of total oil revenues. The oil companies seem to have retreated from marketing us the “frontier country” tune after pushback from those in the…
Details, including the full terms of reference or scope, remain unpublished regarding the 2018-2020 ExxonMobil Guyana US$7.3B cost recovery audit report, leaving Guyanese to speculate on the political, economic, and military influences on Guyanese-led RVHE Consulting and international firms: Martindale Consultants Inc. and SGS. Kaieteur News released an article on November 12th, titled, ‘How ExxonMobil…
President Irfaan Ali ring-fencing is an important concern that has engaged the attention of the Guyanese people; but Guyanese policymakers do not want to take any action to establish ring-fencing in each of the oil projects that are currently extracting and exporting oil from Guyana. When there is no ring-fencing, the people of Guyana are…
According to a Bank of Guyana Report, the share of Total Revenue that Guyana received for profit oil and royalty between January 2020 and June 2023 is US$2.68 billion. And from this amount, it can be derived that total Revenue (TR) is US$18.47 billion, the total cost recovery is US$13.85 billion, and the share of…
There is a clause in the contract that deals with the subject of renegotiation. To paraphrase: it says it can only be done with the agreement of both parties. How does one party (GoG) secure the agreement of the other (Exxon)? Robin Singh (SN, Oct 8th) says you must have “bargaining chips” to induce Exxon…
