Latest update January 18th, 2025 4:41 AM
Energy Director clarifies aspects of oil and gas sector
Director of the Department of Energy, Dr. Mark Bynoe is dispelling claims that the two percent royalty fee is all Guyana will receive for its oil.
Director of the Department of Energy, Dr. Mark Bynoe
The Director appeared on the National Communication Network’s “Context” on Monday and reiterated that under the Production Sharing Agreement, Guyana was receiving more than just the royalties.
“The contract provides for two percent royalties on gross production. So, all petroleum products that are produced, Guyana gets two percent. Additionally, we have something which is called profit oil.”
Dr. Bynoe explained that profit oil was the remaining 25 percent of total production after the investment cost recovery was deducted. That 25 percent was further divided in half with the operators – ExxonMobil, Hess and CNOOC – receiving 12.5 percent and Guyana receiving 12.5 percent.
He also noted that with Guyana’s first lift, which was executed last week, the country would start receiving revenues which would be deposited into the Sovereign Wealth Fund.
Touching on the country’s Local Content Policy, Dr. Bynoe stated that it seeks to align closely with the Production Sharing Agreement.
The Local Content Policy was completed and printed in early February. It promotes education, inclusion and advancement of Guyanese who demonstrate the expertise and experience required to participate in the petroleum industry.
The document also seeks to ensure Guyanese participation in the industry.
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