Production Sharing Agreement Guyana

In addition to the disclosure of contracts, the EITI standard also encourages EITI countries to disclose sales contracts related to the sale of the state`s production share or other revenues collected. The EITI in Guyana clearly has an opportunity to play a role in clarifying this issue by cooperating with the International Secretariat of EITI and its work in the area of transparency in the trade in raw materials. The Ministry of Energy is committed to providing the necessary data on oil production and trade to prepare the second EITI report. The 1999 production-sharing agreement with Exxon was renegotiated in 2016, company spokesman Todd Spitler confirmed on February 10. It was a year after the current president, David Granger, a member of the People`s Congress, took office. ExxonMobil is dissatisfied with the Guyanese government`s plans to review oil deals Large oil traders remain interested in Guyana despite falling prices. They are still expressing interest in being considered marketing agents by the government in the country`s crude oil. The publication of the sales contract would be a step in dispelling several of Guyanase`s concerns regarding the analysis of the terms of oil contracts and oil sales contracts. The Ministry of Energy is committed to providing revenue data. The Department of Energy also pointed out that there are certain areas of international negotiations on the sale of oil that may be influenced by the rapid disclosure of certain aspects of sales data due to the nature of commercial sensitivity in this type of activity, which is no secret to those engaged in international oil trade. Spitler would not reveal Exxon`s expected production from Guyana this year and said Exxon “does not comment on details of what was provided.” However, the company will outline more details about its activities in Guyana during Investor Day on March 5.

John Hess, CEO of Hess, rejected speculation that Guyana could renegotiate its contract to share oil production. In the company`s fourth-quarter 2019 earnings call, the CEO said the current government and opposition government were “pretty clear that they will abide by the Exxon/Hess production split contract.” Exxon Mobil Corp.`s contract to share oil production with Guyana appears isolated, regardless of the outcome of the election. Changes to the current oil contract with the U.S. major, along with partners Hess Corp. and China National Offshore Oil Corp., would only hinder the development of Exxon`s Liza field in the Stabroek Block, according to Schreiner Parker, vice president for Latin America at Rystad Energy. Global oil and gas production from Hess without Libya is expected this year to be between 330,000 boe/d to 335,000 boe/d, up from 290,000 boe/d in 2019. During this period, the transparency of contracts and the disclosure of sales contracts become even more timely and urgent.

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