High Commissioner Gregory Quinn Guyana is better off with more operators and countries involved in its oil fields, British High Commissioner to Guyana Gregory Quinn has said in wake of UK-based Tullow Oil’s recent offshore oil discovery.
Tullow last week announced the discovery of oil in commercial quantities in its Orinduik Block, offshore Guyana, which represents the first commercial find outside of the Stabroek Block, where ExxonMobil has made 13 major finds since May 2015. Its first exploration well, Jethro-1, is estimated to hold more than 100 million recoverable barrels of oil.
Speaking with reporters after a press conference about a city chamber trade mission to Aberdeen, Quinn yesterday said that from his perspective, the Tullow find is good for Guyana for two reasons—it demonstrates that there is oil outside of the Stabroek Block, which shows that Guyana’s potential is far bigger than that block; and it brings in a whole new set of companies, countries and operators. “…And the more operators and countries and companies you have involved in the oilfields, the better,” Quinn said.
The find has also been attended by sharper scrutiny of the Production Sharing Agreement (PSA) signed between government and Tullow and Eco (Atlantic) in 2016. Under the agreement, Guyana will receive a 1 per cent royalty while profits will be shared on a sliding scale. Article 11 of the 69-page agreement, which addresses cost recovery and production sharing, says that the government will receive 50 per cent of profits earned from the first 25,000 barrels of oil per day, 52.5 per cent from the next 25,000 barrels, 55 per cent from the next 15,000 barrels, 57.5 per cent from the next 15,000 barrels and 60 per cent for production above 80,000 barrels.
Quinn refused to comment on the contract and said that is for Tullow and the government to discuss but he stressed that the find by Tullow is, fundamentally, good for Guyana.
Meanwhile, also speaking in wake of the find, President of the Georgetown Chamber of Commerce and Industry Nicholas Deygoo-Boyer emphasised the need to set up regulatory bodies for the oil industry.
Minister of Finance Winston Jordan last week noted that letters were sent to the varying stakeholders to submit their nominees for the Public Accountability and Oversight Committee that is to ensure the transparent spending of the funds
He said no responses were received, including from the Private Sector Commission.
However, Deygoo-Boyer explained that a response was delayed […]