Every Man, Woman and Child in Guyana Must Become Oil-Minded

Part 16

Trotman’s new Agreement

Today’s column seeks to address an issue which has largely gone under the radar because Mr. Raphael Trotman, the Minister of Natural Resources has been less than forthcoming in disclosing his actions in relation to ExxonMobil since the APNU+AFC Government took office in 2015. On every occasion that Mr. Trotman was asked about ExxonMobil (Exxon) he has always answered rather evasively, and only that he had negotiated an increase in the royalty from 1 % to 2%. In my research for a Moray House presentation last Friday on the challenges and opportunities posed by the discovery of oil in offshore Guyana, I realised Mr. Trotman actually did more than that.

Some background would be useful from the following timeline.

– June 14, 1999: Petroleum Agreement and Prospecting Licence signed by President Janet Jagan as responsible Minister for approximately 600 blocks.

–  Sept. 29, 2001: Exxon declares force majeure due to hostile action by Surinamese naval vessels against the CGX oil rig and drillship C.E.Thornton.

–  Sept. 7, 2007 UN pronounces on Guyana/Suriname dispute…..

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Every Man, Woman and Child in Guyana Must Become Oil-Minded

Introduction Column 19 last week summarised how petroleum produced is shared between the Contractor and Guyana represented by the Minister.

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Every Man, Woman and Child in Guyana Must Become Oil-Minded

Part 19 Disposal of Production Recall that under a production sharing contract, costs are deducted from the value of production to arrive at profit oil to be shared between the contractor and the Government of Guyana in the proportion set out in the contract: Article 11.6.

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Every Man, Woman and Child in Guyana Must Become Oil-Minded

Trotman and Turbot The good news This column keeps meeting distractions from week to week.

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Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 17

Introduction Today’s column looks at what is called Cost Oil, both in the petroleum industry around the world and in the Petroleum Agreements signed by Guyana with contractors.

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Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 15

There is a wide variety of petroleum contracts which countries, with the single exception of the USA, may choose to adopt.

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