Guyana News Updates from Manchester Trade – November 7, 2022
Transforming Guyana, Episode VI: Guyana’s role in a world that still needs oil
Caribbean Policy Consortium & Guyana Business Journal
Wednesday, November 9, 2022 @ 10:30amEST
https://guyanabusinessjournal.com/blog/
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
ExxonMobil Guyana Joins as Event Partner for the GCCI’s Business Development Forum
November 11-12, 2022
Georgetown Chamber of Commerce & Industry
Guyana/Venezuela Border Controversy
ICJ to hear oral submissions on Nov 17, 2022 from both countries
Oil is just a ‘means to an end’ in Guyana’s story – Ali | OilNOW
Guyana’s forests provide massive legroom for development of oil resources – VP Jagdeo | OilNOW
Guyana to play ‘active’ role in climate-change negotiations – Guyana Chronicle
Guyana to get €5M grant from EU to preserve its forest | INews Guyana
Guyana to get €5M to protect rainforest, support indigenous communities – News Room Guyana
Don’t rejoice over new PSA terms yet; wait to see the fine print – Patterson cautions Guyanese: Kaieteur News
The Alliance For Change (AFC) has not given the new Production Sharing Agreement (PSA) a passing grade just yet, based on the preliminary provisions announced by Vice President Bharrat Jagdeo last Thursday. In fact, the political party believes that the entire deal must be scrutinized in-depth, before Guyanese laud the contract a ‘better deal’ compared to the 2016 ExxonMobil contract.
All future Exxon projects must adhere to new PSA terms: Kaieteur News
…Norton backs AFC, others on the issue
As American oil giant, ExxonMobil continues to reap exponential profits from Guyana’s lucrative Stabroek Block and the lopsided contract it signed with Government in 2016, stakeholders are beginning to challenge the terms the country got and are demanding more wealth from all future projects to be approved by the Government. Leader of the Opposition for instance yesterday in an invited comment told this publication that all addition projects Exxon wants to pursue in the Stabroek Block, must adhere to the new terms announced by Government to rake in more wealth for the country.
Gas to energy project not viable even at present high crude oil prices: Stabroek News (Letter to the Editor) by Fitzroy Fletcher
The Government backers of the Wales Gas to Energy project (WGTE) are promising that it will lower electricity costs by up to 50 per cent. However, all the available data shows that this is not a reasonable expectation. In fact, an analysis of the US$2 billion project shows that even at the presently high world market price of crude oil there would be minimal reduction in GPL’s power generating costs with the project in place.
Potential bidders may negotiate the 27.5% from the new oil blocks if the price per barrel falls below US$50: Stabroek News (Letter to the Editor) by Tulsi Dyal Singh, MD.
I wish to offer some of my thoughts on the fiscal criteria being considered for the upcoming auction of oil blocks in offshore Guyana. 1: I like the 10% corporate tax on profits. I am relieved that a transparent corporate tax regimen will be used from here on; and that the operators will be actually paying their taxes. I have previously written that whoever is signing the attestation of tax payment on the Stabroek block might ask for a letter ruling from the United States IRS validating the procedure.
