Guyana could get US$7 billion from first phase of oil production

ExxonMobil and its production partners estimate that Guyana could get revenues of US$7 billion from Phase 1 of production of the Liza oilfield.

This includes profit and royalty were the price of oil to be US$50 per barrel based on the crude forecast of the IMF, said Rod Henson, Country Manager of Esso Exploration and Production, on Thursday at a press briefing at the Guyana Marriott Hotel in Georgetown.

In the first five years, he said revenue could amount to US$1.5 billion.

Guyana will benefit from 2% royalty and will share profits 50/50 with the oil companies after cost is recovered.

The company will pay US$1 million in an annual fee and will provide US$300, 000 for training and US$300, 000 for corporate social responsibility projects.

Minister of Natural Resources Raphael Trotman told the National Assembly this month that the 2% royalty will give Guyana US$380 million per annum.

Henson argued that the agreement was fair to Guyana as a new country joining the oil industry and he further argued it would be unfair to cherry-pick parts of the petroleum agreement and compare.