Clive Thomas’ Cash Payments

Every Man, Woman and Child Must Become Oil-Minded  Part 55

Introduction Recall that Column # 54 published in this column last week cited two Emancipation Day speeches, one from President Granger which was discussed at some length in the same column.

Getting the work done

Every Man, Woman and Child Must Become Oil-Minded (Part 53)

  Introduction Surprise would be a mild word to describe the reaction of many Guyanese to the report by Minister of State Joseph Harmon that President Granger had appointed Dr.

Every Man, Woman and Child Must Become Oil-Minded (Part 52)

Getting the work done

Introduction I will resume the piece on Getting the work done next week to allow me in today’s column to address the outpouring of anger and hurt expressed by politicians, columnists, letter writers and contributors in the print and social media over an article in the New York Times one week ago.

Every Man, Woman and Child Must Become Oil-Minded (Part 51)

- Getting the work done

Introduction In the previous column in which I examined whether Guyana was prepared for First Oil in 2020, I wrote that the situation is not irretrievable but that “there need[ed] to be manpower changes and more leadership from the President.” I suggested that President Granger needed “to take charge before it is too late.” As if on cue, the President was reported on the same day expressing a high level of confidence that “by the end of August or thereabouts the Guyanese people will see a Department of Energy with which they are satisfied”.

Every Man, Woman and Child Must Become Oil-Minded (Part 50)

Three years on – is our country ready?

Introduction Inspired by the May 20, 2015 announcement by ExxonMobil that it had made the largest discovery of petroleum resources for that year off the coast of Guyana, this column with the title Road to First Oil began, coincidentally, on May 26, 2017 and was expected to run for approximately twenty-five weeks.

Time to think of a Sovereign Wealth Fund for Guyana – Part 2

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 49

Introduction We continue and conclude today on what is known as Sovereign Wealth Funds, essentially special purpose state-owned investment funds to achieve financial objectives using investment strategies, tools and instruments.

Time to think of a Sovereign Wealth Fund for Guyana

Every Man, Woman and Child in Guyana Must Become Oil-Minded - Part 48  

  Introduction Column 40 noted that in practice, any Sovereign Wealth Fund for Guyana has to take a whole host of factors into account, including the country’s recurring deficits which are financed by loans; the deficit in its infrastructure; future revenue gains and losses; commodity prices including that of oil; and citizens’ rising expectations.

The 2016 Agreement and the Environment (Continued)

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 47

Introduction This column turns attention to the Environment Impact Assessment (EIA) for the Liza Phase 1 Develop-ment Project done by Environmental Resources Management (ERM) an external consultancy firm which describes itself as is a leading global provider of environmental, health, safety, risk, social consulting services and sustainability related services.

The 2016 Agreement and the Environment

Every Man, Woman and Child in Guyana Must Become Oil-Minded - Part 46  

Introduction For a country that will soon become petroleum dependent, Guyana’s petroleum legislation is not particularly expansive.

Non-Associated Gas in the Esso/Hess/CNOOC-Nexen Contract

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 45

Introduction After the major financial issue last week, we return today to the mundane issue of the provisions on non-associated gas in the 2016 Agreement which the three oil companies signed in June 2016.

Gas

Every Man, Woman and Child in Guyana Must Become Oil-Minded

Part 43   One feature of the Esso/Hess/CNOOC 2016 Agreement – as indeed the 1999 Esso Agreement signed by President Janet Jagan – which has received little public attention is Gas which is addressed in Article 12 of both Agreements.

Absence of rules on thin capitalisation will hurt Guyana

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 41

Introduction Regulations made under the Petroleum Exploration and Production Act require the application for a prospecting licence to be accompanied by a statement giving particulars of the applicant’s financial status while in the case of a production licence, the application must give full information as to the applicant’s financial status.

Excessive spending (and borrowing) can undermine Sovereign Wealth Fund

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 40  

Introduction In the course of his presentation of Budget Speech 2018 delivered on November 27, 2017, the Minister of Finance announced that the Government of Guyana would be partnering with the Islamic Development Bank (IsDB/the Bank), through the Malaysia Agricultural Research and Development Institute (MARDI), to update the expertise and technology in rice production through a Reverse Linkage Project to the tune of US$863,000.

The 2016 Petroleum Agreement Compared – Insurance

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 34

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.

The 2016 Petroleum Agreement Compared – Tough Terms

Every Man, Woman and Child in Guyana Must Become Oil-Minded

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.

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 32

The 2016 Petroleum Agreement Compared – Tough Terms

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.

Every Man, Woman and Child in Guyana Must Become Oil-Minded

The 2016 Petroleum Agreement compared – More than mere tweaks

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.

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 26

Stability of Agreement Clauses in Oil Contracts

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.

Every Man, Woman and Child in Guyana Must Become Oil-Minded Part 25

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.

Every Man, Woman and Child in Guyana Must Become Oil-Minded

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).