Latest update May 12th, 2024 12:59 AM
Feb 18, 2020 News
The Stabroek Block Production Sharing Agreement (PSA) has been heavily criticised over the years for the its fiscal weaknesses such as the absence of ringfencing provisions and low government take, thereby leaving many observers to deem it as unfair for Guyana.
Chatham House Associate Fellow, Dr. Valerie Marcel, says that indeed there are a number of opinions out there on the deal, some of which say it is unfair while others say that it is in line with industry standards for frontier countries.
Be that as it may, the Petroleum Governance Expert told Kaieteur Radio on its programme, Guyana’s Oil and You that she may be no fiscal expert but the deal is “confining” for Guyana. Expounding on this note, Dr. Marcel said that one of the issues is that if government wants to set rules, laws and policies like those for local content, then it would have to work within certain parameters.
“…As you start to produce, you need to put to paper, the rules by which the operator has to work and the contract is very confining, in the sense that it prevents Guyana from developing a local content policy that would have any implications on the commercial terms of the contract and a variety of things like that,” the Chatham House Associate Fellow said.
She said it is important at this stage for the government to set the regulations for oversight of the environment, oil metering, valuation of the crude and local content “and be able to do so in the interest of Guyana and not to be hamstrung by that contract.”
Dr. Marcel said she is not sure how Guyana can resolve the foregoing but she stressed nonetheless that there needs to be a focus now on how one administers the contract and implement it in a way that protects the interest of the country.
Listen how to run an oil country
May 12, 2024
– GCF yet to respond to concerns regarding race course By Rawle Toney Kaieteur Sports – Some of the country’s leading cyclists are considering boycotting the National Sports...By Anasa Williams Kaieteur News – Millicent Mary Frank was born on May 11, 1924, at Lot 103 Leopold Street, Werk-en-Rust,... more
By Sir Ronald Sanders Is it ever justifiable for journalism to fan the flames of geopolitical tension? This question arises... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]