Guyana’s Ministry of Natural Resources (MNR) said on Tuesday the issue of contract disclosures continue to engage the attention of the country’s President and Cabinet, and government will move to publish the full details of all oil and gas agreements at an opportune time.
In a letter sent to the media, MNR said while the calls for full disclosure are grounded on the basis of transparency, they also engender the promotion of related discussions and necessary considerations of national and international importance. “Within this wider framework, the Government of the Cooperative Republic of Guyana has expressed its intent to publish the details of all Production Sharing Contracts as soon as it is opportune to do so,” the letter stated.
MNR said deliberations on the factors related to contract disclosures do not rest solely on the Minister of Natural Resources, “but are reflective of the collective position of His Excellency, the President and the Cabinet of Ministers,” the letter said.
“Minister Trotman’s position is not his own, but that of a Government committed to the best interests of all Guyanese now and in the future,” the letter pointed out.
The release of key financial provisions of the contract, MNR stated, has already been done allowing for anyone to grasp a fundamental understanding of the expected financial returns when production begins in 2020.
“It is with this interest in mind that the Government of Guyana thought it prudent to release key financial provisions of the contract – the royalty (2%), the production sharing percentage (50/50) and the cost recovery ceiling (75%),” MNR pointed out.
OilNOW had previously reported that based on an average market price of US$50 per barrel of oil, Guyana is set to receive close to one million US dollars per day when production gets underway.
“The MNR urges Guyanese to soberly consider what we expect, what opportunities are arising and what arrangements we need to to put in place to properly manage the fortune that is coming our way; even as we work towards further releasing the contents of the contractual engagements in existence, the natural resources ministry stated.