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.

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

The 2016 Petroleum Agreement Compared – Tough Terms

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).