Wiredja Online News Logo

WiredJa Online News

Wiredja Online News Logo

WiredJa Online News

GUYANA | Guyana's First Oil Royalty deposited

  • Written by Calvin G Brown - wiredja.com
  • Published in Energy
  • 0 comments
Featured GUYANA | Guyana's First Oil Royalty deposited
GEORGETOWN, Guyana, May 2, 2020 - Minister of Finance Winston Jordan, has confirmed that the first royalty payment for Guyana’s crude oil produced from Guyana’s Liza Phase 1 Development for January, February and March has been deposited into the country’s Natural Resources Fund (NRF).

The sum of GY$1,040,815,123.60 (US$4.9M) was deposited into the account held at the Federal Reserve Bank of New York. The next deposit is expected to be made at the end of July.

This is in addition to the money the country received from the sale of crude to Shell Western Supply and Trading Limited.

In addition to the two percent royalty being paid, the country also receives 50 percent profit oil. Guyana also stands to benefit from direct and indirect benefits through employment creation and other revenue-generated income from the oil and gas industry.

The country is entitled to approximately five million barrels of oil this year as part of its profit share from production at the Liza Phase 1 Development. Guyana’s first three lifts were sold to Shell Western Supply and Trading Limited.

Guyana sold off its oil rights to Exxon in 1999, when Bharrat Jagdeo's party, the People's Progressive Party, PPP/C, was heading the government. They held power for 23 years. Guyana and Exxon signed a production-sharing agreement that covered a 26,800-square-kilometer (10,348-square-mile) deep-water area spanning virtually the entire width of the country’s maritime borders. Given all the unsuccessful exploration, Exxon secured the rights to Stabroek under terms so generous that they would come back to haunt the country.

When Exxon began drilling the wildcat well Liza-1 in March 2015, Guyana was just a couple months away from a general election. On May 20, four days after Granger emerged as the surprise winner, Exxon announced it had struck oil.

-30-

Last modified onSaturday, 02 May 2020 11:15

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.