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.
Indonesia explores new model Indonesia, the country that is credited with giving the petroleum world the petroleum production sharing agreement (PSC) in the nineteen sixties, now seems to be walking away from the model.
Part 22 Oil and the Environment The title of this week’s column is borrowed from a presentation by Annette Arjoon-Martins, Mr.
Part 21 EITI Admission That troublesome confidentiality provision in the law and the Petroleum Agreement has once more attracted attention with the announcement that Guyana is now officially the 53rd candidate country of the Extractive Industries Transparency Initiative (EITI).
Part 19 Disposal of Production Recall that under a production sharing contract, costs are deducted from the value of production to arrive at profit oil to be shared between the contractor and the Government of Guyana in the proportion set out in the contract: Article 11.6.
Trotman and Turbot The good news This column keeps meeting distractions from week to week.
Introduction Today’s column looks at what is called Cost Oil, both in the petroleum industry around the world and in the Petroleum Agreements signed by Guyana with contractors.
Trotman’s new Agreement Today’s column seeks to address an issue which has largely gone under the radar because Mr.