Opinions

By Bobby Gossai, Jr. - Economist The expected high growth rate of the Guyanese economy will be reduced by several factors outside of the limits of the coronavirus. Guyana had an expected exponential growth from 2020 to 2028 which would...

Unlike the principles for the crude oil lifting agreement that could be in the disposition of crude oil, the disposition of natural gas must go to the trouble of clarifying that any amount of natural gas actually taken by...

The host government contracts should have separate provisions for the disposition of natural gas. It is debatable whether this is necessary. As between the lifting parties, the arrangements necessary to ensure that all forms of crude oil are timely...

This provision is inevitably controversial because it provides for the parties not simply to overlift crude oil that may have been scheduled to be lifted by one party, but for the parties to take a party’s entitlement and sell...

Guyana must address the need for the investing parties to agree on the allocation of risk in relation to tanker loading, whether at an offshore platform, Floating Production Storage and Offloading (FPSO) facility or any future onshore jetty. In...

Efficient use of lifting and transportation capacity requires planning. By nominating to the operator acceptance of their entitlements, the parties confirm that they have arranged the required offtake capacity in time to lift their entitlements in accordance with the...

Production forecasts are a workmanlike description of the forecasting and reporting activities which must be performed by the operator under the lifting agreement. The lifters will require adequate notice of the expected quantity and timing of their entitlements; typically,...

The Government of Guyana Agreement may identify the Delivery Point or Points, putting the actual location of the Delivery Point beyond discussion. However, the investing parties should also agree to the procedures for measurement and calibration of measurement equipment...

Crude oil to be produced from an Exploitation Area shall be taken and disposed of in accordance with the rules set out in the agreed lifting procedures. Arguably, this is the best and the hardest option. It presupposes that...

In offering an exploration opportunity in a block, the motivation of the government largely is to encourage investment in the form of exploration activities, such as shooting seismic and exploration drilling. The prime objective of the oil company is...