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Guyana’s Oil and Gas Sector: Revisiting estimates of recoverable petroleum resources – Part 9

Thus far, this revisit of the ten individual published estimates of the Guyana Government Take ratios conducted by five separate bodies have highlighted four factors that immediately stand out. These are firstly, the estimates have been provided as owned outcomes of the organizations or groupings publishing these. They include two for-profit businesses [Rystad Energy and Wood McKenzie], one University [West Indies] one social grouping [Open Oil]] and one international organization, Inter-American Development Bank [IADB]. No individual projections were found. Secondly, all five bodies enjoy widely acknowledged reputational and professional standings.

Thirdly, the results cluster in a range of 50 to 60 percent for Government Take, thereby reinforcing the professional standing of the individual sources. Fourthly, based on the Nobel Prize winning theory of incomplete contracts along with numerous uncertainties and unknowns in the Stabroek block then clearly the ruling PSA is an incomplete contract, which is bound to be the subject of continuous negotiated adjustments over time.

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