[[Quote]]
The one per cent royalty was, in fact, contained in the original 1999 Exxon agreement ....
[[Unquote]]
Govt releases CGX oil contract
… Guyana gets 1% royalty, 53% profit sharing
Weeks after its own self-imposed deadline expired, the Guyana Government has begun the process of releasing the contracts between the State and other oil companies – beginning with Canadian company CGX Resources Incorporated.
Under the Article 11 ‘Cost Recovery and Production sharing’ heading of the contract, the Government agreed to a one per cent royalty. In addition, a 53 per cent share of profit oil and gas; after recoverable costs have been satisfied was negotiated. This is providing the company moves from exploration to production.
The contract states that “All recoverable contract costs incurred by the contractor shall, subject to the terms and conditions of any agreement relating to non-associated gas… be recovered from the value… of a volume of crude oil or natural gas produced from the contract area and limited in any month to an amount which equals 75 per cent of the total production from the contract area for such month…” This is a greater share than the 50 per cent share the coalition Government would come to negotiate with ExxonMobil three years later. The one per cent royalty was, in fact, contained in the original 1999 Exxon agreement, until it was increased by one per cent by the coalition in 2016.