Guyana to release ExxonMobil exploration contract
Key Points(5)
- The Government has announced plans to make its contract with ExxonMobil public.
- Recently, the government said it was not prepared to go public, citing security and other issues.
- However, on Thursday, State Minister Joseph Harmon said the administration has not bowed to public pressure, but has taken noted of the need expressed by the population for more information.
- He said after a full discussion at Cabinet, the decision to release the contract made, adding that concerns expressed by the Government in the past including implications for the border controversy with Venezuela will be addressed.
- “We listen to the people and we are not deaf to the concerns expressed by various sections of the society, Harmon said.
The Government has announced plans to make its contract with ExxonMobil public.
Recently, the government said it was not prepared to go public, citing security and other issues.
However, on Thursday, State Minister Joseph Harmon said the administration has not bowed to public pressure, but has taken noted of the need expressed by the population for more information.
He said after a full discussion at Cabinet, the decision to release the contract made, adding that concerns expressed by the Government in the past including implications for the border controversy with Venezuela will be addressed.
“We listen to the people and we are not deaf to the concerns expressed by various sections of the society, Harmon said.
Exxon Mobil recently said that while it was prepared to release the contract it needed to adhere to the Government’s request for it to be kept confidential.
Meanwhile, the oil giant says it will commence the production of oil in the Liza field in 2020 and Guyana stands to benefit financially from the massive revenue inflows that have been projected.
It was also told that the government will be receiving 2 percent royalty on gross earnings and 50 percent profit but only based on a calculation whereby Exxon Mobil gets to recoup its investment which currently stands around US$2 billion.
In May 2015, ExxonMobil announced an oil and gas discovery in Guyana – the first significant discovery for the country with two other major discoveries in the last year.
