Guyana’s government has released details of its contract with ExxonMobil for developing offshore oil resources and it shows that the country stands to gain around $7.6bn from just one field – the Liza 1 – once commercial operations are up and running, according to Guyanese and Caribbean media sources.
That is based on a 2% royalty on gross which, at estimated prices and output, should yield $380m annually for a 20-year period.
It also reveals that Exxon and its partners in the huge development have been granted very generous tax concessions.
The 2016 Petroleum Agreement states that Esso Exploration and Production Guyana Limited (an Exxon subsidiary), CNOOC Nexen Petroleum Guyana Limited and Hess Guyana Exploration Limited are exempted from a range of taxes and duties.
And the Agreement shows that a controversial $18m signing bonus from Exxon that was deposited in a special Bank of Guyana account was to pay for a 10-year extension of the agreement.
Authorities in the South American nation were pressured by media, politicians and the public to reveal details of the contract.
The Liza 1 field in the Stabroek Block is estimated to contain some 3.2 billion barrels of oil. Exxon’s subsidiary and its partners are preparing to begin production from Liza 1 by early 2020.