Latest update March 25th, 2023 12:52 AM
Mar 12, 2023 News
Kaieteur News – According to the 2016 Stabroek Block Production Sharing Agreement (PSA), ExxonMobil Corporation and its partners can take as much of Guyana’s oil that they may need to cover US billion worth of purchases. The sweetest part of this arrangement is that for much of its expenditure, there is no need for ministerial approval.
“Surface Rights” is part of the list of recoverable items. This covers all costs attributable to the acquisition, renewal or relinquishment of the Contract Area including the annual licence rental totalling US$1M.
Labour costs are also listed and entails gross salaries and wages. The PSA states Guyana’s oil will be used to cover the bonuses of employees for ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL), Hess Corporation and CNOOC Petroleum Guyana Limited.
Guyana’s oil will also cover holiday, vacation, sickness and disability, life insurance, hospitalization, pensions and other benefits and payments for employees of Exxon and its partners.
Also included are the reasonable travel and personal expenses of such employees including those made for travel and relocation of the expatriate employees assigned to Guyana.
Exxon and its partners can also recover any personal income tax paid for its employees.
The cost of transportation of employees, equipment, materials and supplies is also cost recoverable.
Charges for Third Party Contracts are also catered for along with all materials purchased to support the petroleum operations.
Furthermore, all rentals, taxes, levies, charges, fees, contributions and any other assessments and charges levied by the Government in connection with the Petroleum Operations and paid directly by the oil companies are recoverable.
Additionally, the contract states that insurance premium and cost incurred for insurance are recoverable.
With respect to legal expenses, the PSA states that all costs and expenses of litigation in defending or prosecuting lawsuits involving the Contract Area or any
third party claim arising out of activities under the Agreement are recoverable.
But the sweetness does not stop there for Exxon and its partners. This newspaper understands that all costs and expenses incurred in the training of Guyanese personnel are recoverable.
Guyana has also allowed Exxon and partners to recover US$ US$460,237,918. This is in respect of all costs incurred between 1999 and 2015 by Exxon and partners in the search of oil.
Additionally, the oil companies are allowed to recover all interests on loans along with all forms of financing used to fund the projects in the Stabroek Block.
There is also a provision that allows Exxon to recover all costs for the decommissioning of wells. This involves the safe removal and shutting down of operations at the end of the project.
There is also a list of items which Exxon can import without payment of duties and without need for ministerial approval. See list below.
ANNEX D – 255 Pre-Approved and Certified Petroleum Operations Items
They are being paid while we are being played…your pain is their gain!
Mar 25, 20232022/23 West Indies Championship… – Impeccable Imlach records maiden First Class ton Kaieteur News – Day four of the Round 4 2022/23 West Indies Championship-match between the Guyana...
Mar 25, 2023
Mar 25, 2023
Mar 24, 2023
Mar 24, 2023
Mar 24, 2023
Kaieteur News – There has never been a more transparent conflict of interest than that which exists in the Environmental... more
By Sir Ronald Sanders Kaieteur News – (The writer is Antigua and Barbuda’s Ambassador to the United States and the... 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]