Guyana-type petroleum contracts: Intellectual origins and dynamics

Introduction

At the time of writing this column media reports indicate that a signature bonus of US$18 million has been paid to the Government of Guyana (GoG) by Exxon and its partners. This report had been circulating in Guyana for most of this year, and the failure of the GoG to address it categorically months ago, had led the public, including myself, to believe this was a speculation. When the 2018 Budget did not directly address this matter, that belief became certainty.

The recent public disclosure indicating that a signature bonus had been paid by Exxon Mobil and its partners to the GoG since last year has been stunning, dismaying and deeply distressing to members of the public. I shall address the disclosure immediately on completion of my already announced intention to evaluate Guyana-type Production Sharing Agreements (PSAs) this week and the next. Treatment of the signature bonus will be incorporated into my earlier indicated columns, which would share my reflections on the recent debates on Guyana’s petroleum contracts. As of now, this exercise should commence on the first Sunday of the New Year.

Origins

Informed readers should be cognizant of the