Damning report published about Guyana’s oil earnings

Aug 08, 2021 News

Kaieteur News – A damning report has emerged about Guyana’s Production Sharing Agreement with ExxonMobil, Hess and CNOOC. Commissioned by the Institute for Energy Economics and Financial Analysis (IEEFA) – a United States non-profit corporation – the report was authored by Tom Sanzillo, an American investment banker and financial analyst.
The July 2021 report paints a frightening picture of Guyana’s gains from its oil reserve. Entitled, “Lack of Ring-Fencing Provision means Guyana won’t realise Oil Gains before 2030s, if at all” – the report highlights how the contract leaves Guyana at the mercy of the oil companies.
Sanzillo’s report dissects the oil contract and shows how it allows the oil companies to charge Guyana 100% for exploration in the Stabroek Block and make these charges against active blocks. He explains how the oil companies will end up receiving more than Guyana in the early years of production and details how the absence of ring fencing reduces the profits which Guyana earns. The author argues that in the short-term Guyana’s oil earnings will be insufficient to cover its Budget deficit and in the long-term would unlikely provide robust revenues.
The report is a must-read for all Guyanese. Read the full report on pages 58 to .

Lack-of-Ring-Fencing-Provision-Means-No-Oil-Gains-for-Guyana-Before-2030_July-2021

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News