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Lack of ring-fencing provisions undermine benefits of Guyana’s new oil discoveries

July 30, 2021

Kaieteur News: 

In light of ExxonMobil’s recent announcement that more oil was found at the Whiptail-1 and Whiptail-2 wells in Stabroek Block, an international financial group has come forward to expose what this truly means for the people of Guyana. 

According to the Institute of Energy Economics and Financial Analysis (IEEFA), more discoveries in the Stabroek Block only mean little for the citizenry given the absence of ring-fencing provisions in the Production Sharing Agreement (PSA) governing the block.

Kaieteur News along with several regional and international stakeholders have stressed since 2015, the importance of having this provision in the PSA as it would prevent ExxonMobil from deducting expenses associated with other projects against a producing field.

This is currently taking place with the Liza Phase One Project.

More: In absence of ring-fencing provisions, new discoveries mean little for Guyana – Int’l expert 

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