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LatAmOil GUYANA LatAmOil

Guyana may fold Energy Department

into Ministry of Natural Resources

VIKRAM Bharrat, Guyana’s new Minister of fund, known as the Natural Resources Fund
Natural Resources, has said that President Irfaan (NRF). Prior to that deposit, the NRF already
Ali’s administration might reorganise the gov- contained more than $90mn.
ernment agencies responsible for overseeing the The South American state collects royalty
country’s oil industry. payments on a quarterly basis. It requires oil
Up until now, the Energy Department, cur- producers to calculate royalties on a monthly
rently headed by Mark Bynoe, has handled basis and then make a quarterly payment 30
most matters related to oil and gas. But Bharrat days after the conclusion of each quarter.
told Argus Media last week that the Ali cabinet, Currently, all of the royalty payments are
which took office on August 8, was considering coming from the ExxonMobil-led consortium
another option. that is developing Stabroek, Guyana’s first licence
Specifically, he said, the government is look- area to enter into commercial production. The
ing into the possibility of making the Natural US super-major and its partners brought Liza,
Resources Ministry responsible for the hydro- one of the fields within the Stabroek block, on
carbon sector. He indicated that this option stream last December.
would see the Energy Department, which is President Ali has said he wants to increase
a component of the office of the president, royalty tax rates on contracts signed after the
absorbed into the ministry, which is part of the Stabroek deal. In his inauguration speech, he
president’s cabinet. explained his position by saying: “There must
He did not say when the administration be no doubt that our country, our nation, our
might make a decision on the matter. people are the beneficiaries of the oil and gas
As of press time, Bynoe, who was appointed industry.” ™
by Ali’s predecessor David Granger, was still
heading the Energy Department. The new gov-
ernment has not yet said whether it intends to
replace him if the department remains in place.

Royalty payments
Bharrat was speaking several days after Win-
ston Jordan, who served as head of the Finance
Ministry under the Granger administration,
reported that Guyana had collected its second
payment of royalties on crude oil production.
The payment amounts to nearly $3.7mn and
covers the oil extracted in the second quarter of
the year, he said.
Jordan further noted that the royalties had
been deposited into Guyana’s sovereign wealth Mark Bynoe still heads the Energy Department (Image: OilNow.gy)

Guyanese government will review

Payara project before granting approval

GUYANA’S government expects to decide ExxonMobil, the leader of the consortium that
whether to approve plans for proceeding with is developing Stabroek. The US super-major
development work at Payara, a section of the off- recently urged officials in Georgetown to give
shore Stabroek block, by the end of the month, the project a green light as soon as possible.
President Irfaan Ali said on August 11. But Ali said that his government needed to
News of the delay is likely to disappoint take time for a review.

Week 32 13•August•2020 www. NEWSBASE .com P13