…fourth crude lift still on schedule for early December
By Lisa Hamilton
Guyana has received its third payment of oil and gas royalties from gross production at a total of US$4,304,275.30. The sum joins the country’s first and second payments of US$4.9M and US$3.6M respectively received on April 30 and July 30, 2020 respectively.
It now brings the total amount of royalties received from the oil and gas sector to over US$12.9M. In an invited interview with the Village Voice, Minister of Natural Resources, Vickram Bharrat confirmed that the payment was received on schedule. Meanwhile, Public Works Minister with responsibility for Finance, Juan Edghill confirmed the figure on Monday.
The payment is collectively for July, August and September and averages around GYD$904,148,686 in consolidated total.
Though royalties are calculated on a monthly basis, Article 15.6 of the Petroleum Agreement specifies that the monies be transferred to the government quarterly, 30 days after the end of each calendar quarter. With the first payment made on April 30, this meant that the next was expected on July 30, the third was expected by October 30 and fourth is now pending for January 30, 2021.
Under the Production Sharing Agreement (PSA) governing the Stabroek Block, Guyana will be receiving at a minimum two per cent royalty on all oil produced in the block, plus 12.5 per cent profit oil. As the capital and operating costs are liquidated, Guyana’s share of profit oil will increase.
This third payment of royalties will be added to the over US$140M Guyana already has in its NRF. The sum comes from Guyana’s first million-barrel of crude sold on February 19, 2020, raking in nearly US$55M; the second million-barrel sale at US$35M; the third million-barrel sale at US$46M; the three payments of royalties and interest from monies in the bank.
Meanwhile, Guyana is expected to make its fourth million-barrel crude lift early December and Minister Bharrat said that the projection for this has not changed.
