Introduction Readers will recall that Article 27 – Applicable Law, was addressed in Column 29 which is available on the website of the Stabroek News as well as on chrisram.net.
Just a reminder that this series within a series seeks to compare the Janet Jagan administration’s 1999 Agreement with the Trotman 2016 Agreement and as we closed last week’s column we were on Article 20.
Part 33 Local Content Article 18 which deals with local content has been subject to a number of modifications, the first of which recognises that the activities will be carried out not by the Contractor but by an Operator appointed by the three companies making up the Contractor.
The March of Folly The 2016 Agreement places greater emphasis on “gas”, or more correctly, “associated gas”, compared with the 1999 Agreement, including superficially minor, but no less significant, changes to Article 11 – Cost Recovery and Production Sharing and Article 12 – Associated and Non – Associated Gas.
Part 31 Introduction I must start this week’s column by publicly complimenting the painstaking and excellent work done by the technical staff of Ram & McRae in comparing, line by line and word by word, the 1999 Janet Jagan’s Agreement with Esso and the Raphael Trotman’s 2016 Agreement with Esso (not Exxon), Hess and CNOOC.
Introduction The final, belated and reluctant admission by the Government of Guyana that it received a signing bonus from ExxonMobil, seems to have caused increasing curiosity, not least because the amount disclosed is a rather odd-sounding US$18 million.
New Account On the day this column appeared last week, the press in Guyana, in an outstanding case of enterprising journalism, confirmed that Guyana had indeed received a signing bonus from ExxonMobil.
Introduction This Column touched earlier on what the Model Petroleum Contract describes as a Stability Clause, the objective of which is to provide assurance to international oil companies that they will be protected from any variation in fiscal or economic policies by governments for a period of as much as thirty years.
Kudos, Cabinet Notwithstanding its extreme reluctance to release the contract signed by Natural Resources Minister Raphael Trotman with Esso Exploration and Production (Guyana) Limited and two Joint Partners some eighteen months ago, Cabinet deserves credit for its decision to make the contract public in December.
Focus on Guyana’s National Budget 2018 represents the twenty-eighth edition of this Ram & McRae annual publication which highlights, reviews and comments on the major issues surrounding and raised in the National Budget.
Focus 2018 begins with a correction of a statement in Focus 2017 that Budget 2017 was the earliest national budget ever been presented in post-independence Guyana.
2017 FactsGrowth in Real GDP of 2.9% compared with initial and revised targets of 3.8% and 3.1% respectively.
Financial Review Current Revenue for 2017 is projected at $192,673 million, exceeding budget by $6,651 million or 4%.
Introduction The Minister of Finance, Mr. Winston Jordan, presented the fourth budget of the APNU/AFC Coalition – with “The Journey to the Good Life Continues” as its theme.
The current balance projects a surplus of $6,741 million, a decrease of $3,537 million or 34% over revised 2017.
Current Non-Interest Expenditure Expenditure in the National Budget is incurred under a number of categories.
In this section we consider the measures announced by the Minister, analyse them, evaluate their impact and discuss the extent to which they provide useful economic benefits to stakeholders.
The existing floating Demerara Bridge built forty years ago has outlived its technical and economic life.
It is now just over the halfway stage of the life of the current Parliament.
Introduction Taxation without representation was one of the causes of the American Revolution and has ever since been an emotive appeal for those who consider themselves aggrieved by injustice.
Once again, Finance Minister Winston Jordan has delivered an early Budget which should be passed before the beginning of the new year.
In Part 23 this column noted that Indonesia which had taken a lead role in the Production Sharing Contract (PSC) had moved to the Gross Sharing Production Sharing Contract.