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Suriname secures three times Guyana’s royalty for latest oil find


– Companies to pay 36% tax on income

After drilling six dry holes in December last, the Government of Suriname was completely thrilled after it learnt that oil operators, Total and Apache, made a material oil discovery on Block 58. That concession is located within its territorial waters. The find which was made a few days ago is on trend with the prolific discoveries made in the adjacent Stabroek Block in Guyana.

Map showing the location of the latest Suriname discovery (marked by a star) and its proximity to other oil finds offshore Guyana

According to Total and Apache, the Maka Central-1 well was drilled by a water depth of about 1,000 metres and encountered more than 123 metres net pay of high-quality light oil and gas rich condensate net pay, in multiple stacked reservoirs. Further drilling and testing will be carried out to appraise the resources and productivity of the reservoir.
While that is being done, Staatsolie, the Dutch state’s oil company, has disclosed that contractual provisions allow it to participate as an investor up to a maximum of 20% in the development of a well, while noting that the State earns 6.25% in royalties. This is more than three times what Guyana was able to negotiate for its globally praised, light sweet crude in the Stabroek Block.
Further to this, Kaieteur News understands that the companies will pay 36% tax on income to the Surinamese administration. In the case of Guyana, ExxonMobil, Hess Corporation and CNOOC/NEXEN can breathe easy as the coalition government has generously opted to pay the taxes of the companies out of its share of profit oil.

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Suriname is benefiting from the Guyana finds.  The Guyana finds have de-risked the territories around.  This is why Guyana should have worked out a tiered step royalty contract.

Guyana now needs to manage that profit share P&L tightly.

Baseman
Ray posted:

yep...they are in a better position because of the huge finds in Guyana

What Guyana should have done was to hire a professional set of people to meet with Exxon before they signed the contract, instead of just sending an inexperienced Trotman to negotiate with their top notch representatives. 

V
VishMahabir posted:
Ray posted:

yep...they are in a better position because of the huge finds in Guyana

What Guyana should have done was to hire a professional set of people to meet with Exxon before they signed the contract, instead of just sending an inexperienced Trotman to negotiate with their top notch representatives. 

Vish, Kudos to you for calling out APNU/ AFC government failure without any fear, you have done it many times.

Regarding Trotman, we must remember he said “ he was acting on instructions “  heh heh heh 

Not me

-Trotman points finger at GGMC for absence of ring-fencing provisions in Exxon agreement

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Raphael Trotman

 

FM
VishMahabir posted:
Ray posted:

yep...they are in a better position because of the huge finds in Guyana

What Guyana should have done was to hire a professional set of people to meet with Exxon before they signed the contract, instead of just sending an inexperienced Trotman to negotiate with their top notch representatives. 

I still cannot believe how dumb they were going into negotiations with Exxon without the expertise.

I know an Exxon guy who lives in NJ. He works with Exxon spinoff Infineon’s contracts and agreements department.  He has a chemical engineering degree and a law degree.  I do his taxes. He rakes in $580k base/bonus then over that LTI.

And Lilmohan is correct, they cannot renegotiate.  They have to go hat in hand.

Baseman
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Like how he negotiated Skeldon sugar factory?  

Baseman
Baseman posted:
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Like how he negotiated Skeldon sugar factory?  

The negotiation was fine BUT the Chinese Govt who loaned the money use their influence to protect the Contractor. I already said it was not a good deal but the Chinese are like dat. This was Dr Jagdeo worst performance and them came the Outhouse road builder!!

Nehru
Baseman posted:
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Like how he negotiated Skeldon sugar factory?  

He did admit making mistakes, and he intervene and turn the factory around then came the 2015 election. He should have intervene sooner . 

FM
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Wha wrang wild you banna....you forget TIEFMAN

V
VishMahabir posted:
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Wha wrang wild you banna....you forget TIEFMAN

What he sole from you, your virginity.

K
Dave posted:
Baseman posted:
Nehru posted:

Dr Jagdeo should have been the Chief Negotiator. Dat Banna is knowledgeable, intelligent and has the necessary skills and experiences!!

Like how he negotiated Skeldon sugar factory?  

He did admit making mistakes, and he intervene and turn the factory around then came the 2015 election. He should have intervene sooner . 

You and Nehru are echoing exactly what is wrong in Guyana on key decision-making.  Always needing to learn from costly mistakes.  Now it's PNC turn to make mistakes just as the PPP did with Sugar.

Guyana has been a sugar-producing country for over a century and we got that wrong.  Why you think it would have gone right with Exxon?

The problem in Guyana, it's always about some individual as opposed to a decision-making process.  The Lap Top project became a Lap Flop.

I'm sure the PPP would have done some things differently however, I'm not sure Exxon would not have pulled something on them given the way they too operate.

Baseman

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