& Tobago



Very usefull links


News links




Dow Jones

Oil price



Views and News






Higher royalties in Guyana new oil
contracts -VP Jagdeo


Vice President Bharrat Jagdeo (fifth from left) leading the Guyanese delegation at the OTC 2021 in Houston, Texas, USA.

By Marianna Parraga and Sabrina Valle / Reuters

Petroleumworld 08 30 2021

Guyana aims to increase its oil royalties and revamp other contract terms as part of a new profit-sharing agreement (PSA) for future crude and gas projects now in its draft stage, the South American nation's vice president said on Tuesday.

The tiny country has become one of the most desired oil exploration hot spots after an Exxon Mobil-led group (XOM.N), including U.S.-based Hess Corp (HES.N) and China's CNOOC Ltd (0883.HK), discovered about 9 billion barrels of recoverable oil and gas off its coast.

Guyana expects this year to install an energy regulatory body and it will this month disclose the winner of a one-year contract to market of oil production from the prolific Stabroek block.

The new PSA will be tougher than that negotiated with the Exxon consortium and could be ready "within six months or so," said Vice President Bharrat Jagdeo on the sidelines of the Offshore Technology Conference in Houston.

The government has been at odds with Exxon over flaring at its Liza project, the first one producing crude in Guyana after discoveries.

"We have made it clear that in any new PSA we negotiate for those blocks, the conditions will be very, very different than the ones from the Stabroek block," Jagdeo said, including higher royalties and mechanisms for deducting costs from investment.

Previous Guyanese governments have been criticized for the lucrative terms provided to companies involved in the Stabroek block.

"All the deficiencies of this contract will be addressed," he said.

The International Energy Agency, a group of oil-consuming nations, this spring said if governments wanted to achieve net zero carbon emissions by 2050, there would be no need for new fossil fuel developments. A United Nation panel last month also said burning fossil fuels causes climate warming.

"We have been called to leave our oil in the ground," he said. "We'll develop our oil industry putting in place regulations for safe, low carbon operations."


By Marianna Parraga and Sabrina Valle from Reuters /
08 17 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 reserved


This 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.