The Government of Guyana is to release another Petroleum Agreement shortly; this time for Nabi Oil and Gas Inc., signed in 2012.
This is according to sources close to Cabinet. OilNOW understands that the Nabi contract could be released to the public as early as today.
The June 4, 2012 agreement signed by former President Donald Ramotar is said to feature a 70 percent cost recovery ceiling pegged on the price of oil being US$100 and above per barrel and 75 percent if the price falls below US$100.
The remaining portion, or profit oil, will be split between the contractor and Government on a 50/50 basis, unless production rises to 50,000 barrels per day, which will see the ratio being 55/45 in favour of Government.
Royalty is said to be one percent payable from Government’s share of profit.
Nabi Oil & Gas Inc. is a Guyanese-owned company that started in 2010 as a project management, logistical support, drilling and energy, construction company. In June 2012, the company was granted a lease for 2,300 square kilometers onshore in the Mahaica-Mahaicony area. During the last quarter of 2013, the company conducted a geochemistry survey and was in the process of analyising the data it had gathered.