The Extractive Industries Transparency Initiative (EITI) is encouraging Guyana to disclose sales agreements related to the country’s share of oil production.
In an article published on May 21 focusing on the next steps for Guyana as it relates to contract transparency, EITI said while the contract governing the Stabroek Block is public, the demand for more information persists, citing local media reports in the new oil producing country.
“In addition to disclosing contracts, the EITI Standard also encourages EITI implementing countries to disclose sales agreements related to sales of the state’s share of production or other revenues collected in kind,” EITI said.
According to EITI requirements, where the sale of the state’s share of production or other revenues collected in kind is material, the government, including state-owned enterprises, are required to disclose the volumes sold and revenues received.
“There is a clear opportunity for Guyana EITI to play a role in shedding light on this issue, through collaboration with the EITI International Secretariat and its work on commodity trading transparency,” EITI said.
The transparency body said Guyana EITI has received a commitment from the Department of Energy that the required data on oil production and trades will be provided for the preparation of the country’s second EITI Annual Report.
The country became the 53rd candidate of the global transparency body in 2017 and its first report was submitted to the International Secretariat on April 25, 2019.
On Thursday, the country lifted its second 1 million barrels of oil from the Liza Destiny FPSO at the Stabroek Block. Three more lifts of 1 million barrels of oil each are expected this year, representing a total of five lifts.
Shell Western Supply and Trading Limited was contracted to lift the country’s first three cargoes. The Department of Energy is in the process of finalizing a Shortlist of Firms which are to be invited to submit full Technical and Financial Proposals for the long-term marketing of the Liza Crude.
The country has already received close to US$60 million in profit oil and royalty from its first lift according to information released by the Ministry of Finance on petroleum production and revenue.