There are basically four (sometimes interrelated) mechanisms for “corrupt” privatisations, besides the obvious ones – just giving the resource to one’s cronies, or, having a first-come system in which those already in the field are in a better position...
The fact that privatisation did not solve the problem of resource diversion should not have come as a surprise: profit-maximizing private enterprises naturally seek to minimize what they give to the government for their rights to control the use...
Too often countries do not get the full value of their resources. A government would genuinely be interested in using its good luck of an abundant resource endowment for the benefit of its people. However, first, it must somehow...
The Association of International Petroleum Negotiators (AIPN) has a definition of crude oil which is wide enough to include condensates, natural gas liquids and other forms of liquid hydrocarbons. Increasingly, economic and political pressures require the parties to extract...
The Guyanese government under the contract is likely to have its own share of profit hydrocarbons to lift, including natural gas. A state-owned oil and gas company (‘the government oil & gas company’) will be appointed to lift such...
The parties will commit to dedicating their natural gas entitlement to joint gas sales and will authorize the operator to conduct various activities on their behalf in a coordinated manner such as preparing a marketing strategy, designing and constructing...
Assuming that the joint venture will have limited facilities for the reinjection or storage of natural gas, the ability of the parties to take their natural gas entitlement directly affects the ability of the operator to maintain expected levels...
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...