Mitwah posted:ksazma posted:Mitwah posted:ksazma posted:While the $460M covers cost from 1999 to 2015, was it agreed upon in the 1999 agreement that Guyana would be responsible for that cost sharing or was it agreed to in 2016 when the agreement was revised?
It normal to add this now, that oil is discovered. We can expect year to year variations of capital expenditures.
I am still hoping to learn if it was agreed upon in the 1999 agreement or if it was added to the 2016 agreement for the first time. I don't feel like reading either the 1999 or 2016 agreements now.
I really don't know. But the KN article is insinuating that it is being added now.
Annex C of the contract speaks to Cost Recovery. The list of items to be included in this aspect is vast.
One of the many expenses that Guyana will have to stand is what is referred to as “pre-contract cost.” The pre-contract cost is referred to in the contract as the “cost incurred by contractor with petroleum cooperation carried out pursuant to the 1999 Petroleum Agreement.”
Maybe we will get some further clarification tomorrow. Things always become clearer when the sun comes up. 