What Guyana needs to know about ExxonMobil – Pt 1…. Will the country get a fair share for its oil wealth?
Jun 18, 2017 , http://www.kaieteurnewsonline....-for-its-oil-wealth/
In the mean time, policymakers are still working out the bolts and nuts of the Agreement with the company to ensure that the nation gets a fair share for its oil. So far, Exxon and the government have agreed that Guyana will receive a two-percent royalty on gross earnings and 50 percent of the “profits” of the oil proceeds when production starts in 2020.However, there has been deep worry about that 50/50 share as Exxon will have to recover it investments first before the profits are split. The company has already made clear that its Final Investment Decision (FID) for phase one of the Liza Development Project is estimated to cost US$4.4B.
Most likely, Guyana will not receive any portion of the 50/50 proposal for an extremely long time.
The best they may receive is 2% or probably much less.