(Energy Analytics Institute, 10.Nov.2020) — The government of Guyana, the newest petro-state in the Latin America and Caribbean region, announced it has made strides in extracting better benefits from oil contracts signed with oil and gas companies exploring offshore including Exxon, Hess and CNOOC, and in particular starting with the Payara offshore development.
“The PPP/C government, building on its manifesto promises, has prioritized a thorough review of the oil and gas sector upon assuming office. This has been done with the view of eliminating loopholes whilst securing benefits for all Guyanese,” the Office of the President announced 10 November 2020 in an official statement.
Highlights of the benefits extracted in negotiations regarding Payara includ: more power to the people in terms stakeholder involvement, a local content task force and mandate, monitoring of the oil and gas sector, prohibition of routine flaring of natural gas, progress reports, required annual payments of $400,000 over five years, a water treatment provision and finally a mandate regarding waste (see principal photo for more details).
By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.