The Production Sharing Agreement (PSA) between the South American country of Guyana and ExxonMobil will see the government earning half the revenue from profit oil and 2 percent royalty, which is applicable from day one of production, now set for December.
Concerns have been raised in the country about the terms of the PSA which some argue is too favourable to the US oil major.
But after cost is recovered at 75 percent of production, and Guyana receives its 2 percent royalty, the profits from oil produced is split 50/50. This has prompted the country’s former Natural Resources Minister, Robert Persaud, to say on Thursday via his facebook page that the oil company is not operating in bad faith.
“ExxonMobil nor no oil and gas company operating in Guyana is the ‘bad guy.’ Their goal is to ensure best returns for shareholders, and notwithstanding concerns about the gaps in the renegotiated PSA, the people of #Guyana will enjoy equal profit sharing after cost of oil plus royalties under the ExxonMobil arrangement…”, Persaud pointed out.
He said Guyanese should focus on the ‘big picture’ and ensure that there is effective regulations and functional government structures in place, as the country is poised to become a major oil producer in the region.
“Let’s not ignore the big and long-term pictures. We cannot be defrauded of the returns on our oil and gas resources once there are adequate laws, regulations and functional governance structures. Let’s instead concentrate our focus and fight for a modern and inclusive oil and gas management framework,” the former minister said.