Minister of State, Hon, Dawn Hastings-Williams, attempted to clear misconception about Guyana’s Public Sharing Agreement (PSA) with ExxonMobil and its co-venturers Hess and CNOOC to residents of Region 7.
At the meeting in Kamarang, she said that the previous administration was in discussions for less than what the contract is today.
“When we came in 2015, the percentage the previous administration was bargaining for percent profile… so when we came, we had a negotiation with the explorers,” she explained.
Guyana’s PSA states that the country receives two percent royalty in addition to 50 percent of profit oil. This means, after 75 percent of the investment cost has been recovered, Guyana will receive 12.5 percent of the remaining 25 percent with ExxonMobil, Hess and CNOOC receiving the other 12.5 percent. But before profits are divided, Guyana’s two percent royalty is calculated on the overall 25 percent of the profit oil. The royalties are paid to the country by ExxonMobil and its coventurers, making Guyana’s share of the crude 14.5 percent or 52 percent of profit oil.
She also noted that the revenues garnered from the country’s new natural resource will play a significant role in transforming Guyana’s economic and infrastructural structure significantly.
