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Natural Resource Fund Act 2019 has created a fund for the proceeds of the state`s oil operations, which will be managed by the Bank of Guyana. [18] “Contract inability is a fundamental principle for conducting activities on a global scale, particularly in the oil and gas industry, to ensure security in the event of significant and long-term investments. The Guyanese government has hinted that it will not renegotiate the agreement, but that it will review it,” Routledge told the newspaper. Our work and government support are the basis for a mutually beneficial long-term relationship with the development of oil resources, while creating significant value for Guyanese,” he said. Such a decision could be delayed, however, as reports indicate that the government will appoint a former premier of the Canadian province of Alberta, Alison Redford QC, to review Exxon`s Payara project and discuss how to proceed. However, Exxon has made it clear that the Guyanese portfolio is certainly one of its best chances, but not the only one. “If we don`t get the deal as it`s sought in Payara, the investment money will go elsewhere in ExxonMobil`s portfolio. I just don`t want it to be such a different contract from everything else we can potentially invest in,” said Alistair Routledge. Three days before the discovery was confirmed, a production-sharing agreement (PSA) was signed between the government, ExxonMobil, CNOOC International and Hess, completing the exploration agreement already signed between the parties. In December 2017, the government made the agreement publicly available, which was seen by its citizens as an important step in treaty transparency. PPE was first introduced in Indonesia in 1966. After independence, nationalist sentiments were high and foreign companies and their concessions became the target of increasing criticism and hostility. The government then refused to make further concessions.

New oil laws were introduced to overcome the subsequent stagnation of oil development, which was a disadvantage for both the country and foreign companies. In Guyana, the terms of oil contracts are a very important part of the public debate. Transparency of these concepts is therefore essential. The Stabroek contract provides for the Guyanese government to be allocated a 50% distribution of oil profit, while the other parties will receive the rest of the oil, with a ceiling of 75% to cover the costs. This means that contractors could recover an amount of research, development and operating costs. A 2% royalty is levied on gross sales. Other sources of government revenue, including a signing bonus and surface rents, are part of the government`s assumption under the contract. Tax incentives, including exemptions, are also included. 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.