The government can easily control the impact of the absence of ring-fencing provisions in the agreement with ExxonMobil’s subsidiary by attaching conditions in each Petroleum Production Licence issued, according to commentator Christopher Ram.
The government recently expressed concerns about the lack of ring-fencing to the International Monetary Fund (IMF)
According to the Concluding Statement of the 2019 IMF Article IV Mission “authorities have indicated their concerns that the absence of a ring-fencing arrangement in the Stabroek Production Sharing Agreement (PSA) could potentially affect the projected flow of government oil revenues.”
The government has been pilloried for poor negotiation of the 2016 PSA when critics say that ring-fencing and other matters should have been addressed.
