…Govt, Exxon brief stakeholders
As promised, after mounting pressure from various segments of the population, the Guyana Government on Thursday released the controversial contract with ExxonMobil, CNOOC Nexen, and Hess under which several billion barrels of oil will be produced.
During a high-level presentation on the contract at the Ministry of the Presidency, it was disclosed that Guyana stands to gain some US$7Billion over a twenty-year period from the LIZA Phase One well only.
Minister of State Joseph Harmon hosted the briefing on behalf of government while presentations were made by Minister of Natural Resources Raphael Trotman and Exxon Country Manager Rod Henson. Minister Trotman gave a background and overview of the contract while Henson made a detailed presentation on the terms of the contract, focusing on those aspects which were renegotiated, according to the Department of Public Information
Minister of Natural Resources Raphael Trotman announced a major 3.2 Billion barrels oil reserve by ExxonMobil.
Henson said that the US$18m signing bonus was paid for the 10-year extension of the pact.
The document has indeed confirmed that the government received a US$18 million bonus, paid into a special Bank of Guyana account and it also confirmed the 2% royalty and 50/50 profit sharing between the government and the oil companies after costs are recovered.
After months of public pressure from the Parliamentary Opposition, the Private Sector and other key stakeholders, the Guyana Government agreed to release the contract in December. The Government had expressed concerns that the contents of the document would have compromised the country’s national security.
Opposition Leader Dr Bharrat Jagdeo and other opposition members of parliament were invited to the briefing but did not attend.
To view the full contract, please follow the link below.
http://www.dpi.gov.gy/contracts/
