Over 2.7 million barrels of oil have been produced to date from the Liza Phase 1 Development and the Guyana government is gearing up to lift its first 1 million barrels by early next week.
Director of the Department of Energy (DE), Dr. Mark Bynoe, told reporters on Monday the government’s first lift will represent part of Guyana’s profit oil allocation of 12.5 percent. Additionally, he reminded that Guyana will receive two percent royalty on gross production of all oil produced.
He said the Department is continuing to work with the operators and co-venturers to complete Article 13 of the Production Sharing Agreement before Guyana’s first lift. This article speaks to the valuation of crude oil and natural gas. Reaching consensus is important, he said, as it has implications on entitlement scheduling and liquidation of the cost pool such as costs incurred by the operators during exploration and production activity.
The DE Director was at the time updating the media on developments in the oil and gas sector at a press conference held at the Ministry of the Presidency in Georgetown.
The proceeds of the sale of Guyana’s crude and the cash-based royalty will be deposited in the Natural Resource Fund account opened with the Federal Reserve Bank of New York, Dr. Bynoe said.
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