Introduction
For clarity, my re-cap this week juxtaposes the ruling Stabroek Production Sharing Agreement, PSA alongside the proposed template by the authorities that has been designed to replace it, as and when the public auctions take place. I begin with re-stating the ruling PSA.
Stabroek PSA
Basically, the key fiscal metrics of the ruling Stabroek PSA were represented as follows:
Signature Levy, US$ 18 mln. [A single non-recoverable lump sum payment to the Government of Guyana, GoG, on granting the licence for oil exploration].
Royalty, 2 percent. The Guyana Revenue Authority, GRA has declared that under Article15.6 of the PSA the Contractor pays a Royalty of two percent to the GoG on the value of all petroleum produced and sold.
