& Tobago



Very usefull links


News links




Dow Jones

Oil price



Views and News






Exxon contract lopsided, local content
will pick up the slack -Minister Bharrat

By Kaieteur News

Petroleumworld 07 26 2021

Minister of Natural Resources, Vickram Bharrat, yesterday admitted that the Stabroek Block Production Sharing Agreement (PSA) is lopsided; that its terms do not give the Government as much benefit as it would have hoped.

The Minister made these comments during a forum at the office of the Guyana Oil and Gas Energy Chamber in Georgetown. The Chamber launched its training centre yesterday at its Middle Street office to educate stakeholders about the oil & gas industry. Minister within the Ministry of Public Works, Deodat Indar, and Senior Petroleum Coordinator at the Ministry of Natural Resources, Bobby Gossai Jr., also attended.

They all made remarks about the importance of local content, which the Government expects to claw back the value lost from the lopsided PSA.

“As a government, we are open to partnership with any individual organisation or agency that shares the view that Guyanese must benefit from the sector,” Bharrat said. “And how do we benefit as Guyanese from the sector? Of course, through a strong local content policy. Of course, we have a PSA that is not bringing the kind of benefits that we would have liked as a nation…”

His colleague, Indar, said, “With the current construct of the ExxonMobil contract, 75% of the money spent in any calendar year, there is a cap on it for cost oil. How do you benefit from that? That is where the local content element comes in.”

He said apart from the government take and money that will flow back into the economy, the money spent by the oil companies, for which cost recovery is capped at 75%, is money spent in the private sector.

“What you have to understand is, that means that is a lot of money,” the Minister said, urging local businesses to grab up a slice of the cake.

The Minister's statements come after weeks of sustained protests by Kaieteur News and Guyanese home and abroad, for a better deal. The protests build on years of exposes, and advocacy by the free press for a better deal for Guyana.

Former Petroleum Advisor to the Government, Dr. Jan Mangal, in 2020 addressed the attempt by the People's Progressive Party/Civic (PPP/C) Government to use local content as a substitute for a fair deal. The petroleum consultant had said on Kaieteur Radio that while local content is important, it cannot claw back all of the value lost from the lopsided Stabroek Block PSA. Dr. Mangal had said that local content is peanuts compared to the prosperity Guyana could get from a fair deal.


Story from Kaieteur News
07 23 2021

Copyright© 1999-2021 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!


We invite all our readers to share with us
their views and comments about this article.
Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels




Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2021 Petroleumworld- All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.