Under the agreement the APNU+AFC government signed with Tullow Guyana B.V. and Eco (Atlantic) Oil and Gas Incorporated, Guyana will receive a 1% royalty and a greater share of profits with increased production.
The Ministry of Natural Resources released the agreement on Friday in keeping with a commitment by the administration to make petroleum agreements public after initial criticism over the secrecy that attended the agreement signed with ExxonMobil subsidiary Esso Exploration and Production Guyana Limited and its joint venture partners.
The 69-page agreement, which was signed in January, 2016, commits the two contractors to pay a royalty of 1%, while profits will be shared on a sliding scale.
Article 11 of agreement, which addresses “Cost Recovery and Production Sharing,” explains that the government will receive 50% of profits earned from the first 25,000 barrels of oil, 52.5% from the next 25,000 barrels, 55% from the next 15,000 barrels, 57.5% from the next 15,000 barrels and 60% for production above 80,000 barrels.
