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State Media: Attorney General and Minister for Legal Affairs, Hon. Sir Steadroy Benjamin has praised the two Antiguan and Barbudan students who received top...

With life-threatening storm surge, winds, flooding By Circles Robinson* HAVANA TIMES – “H​urricane Milton will make landfall in Florida tonight into early Thursday where it poses...

Justine Greening and Damian Hinds ran the Department for Education between 2016 and 2019 under Theresa May’s government. In this podcast episode, they speak...

Govt. moving to review Exxon’s 7th project – despite VP Jagdeo saying no guarantee it would be approved Oct 09, 2024 News Kaieteur News – The Guyana Government have taken steps to review and evaluate ExxonMobil Guyana Limited Field Development Plan for its seventh project despite Vice President Bharrat Jagdeo back in July said there was no guarantee that it would be approved. The Government of Guyana (GOG) is set to use a portion of a US$20 million loan from the World Bank to pay for consulting services to review the FDP for the seventh project in the Stabroek Block (Hammerhead). Eligible consulting firms can respond to the Ministry of Natural Resources, Expression of Interest (EOI) which was published on Monday. Interested consultants must have relevant experience in similar assignments, particularly in deepwater development projects and addressing climate change impacts in the oil and gas sector. The firm should also be internationally recognized and possess the expertise to provide professional opinions related to field development planning. This project forms part of the Guyana Petroleum Resources Governance and Management Project (GPRGMP). The selected firm will provide advisory services, technical support, and training to enhance the government’s capacity to review, oversee and authorize the implementation of FDPs. Some areas of focus for the project include a detailed assessment of the Hammerhead concept selection process and FDP, management, oversight, monitoring, and reporting of the FDP, evaluation of the Environmental and Social Impact Assessment (ESIA) related to the proposed Hammerhead FDP, and training and institutional capacity building. The estimated duration of this consultancy assignment is 20 weeks, commencing in November 2024. The consulting firm will be expected to be physically present in Guyana for an agreed period during this time. EOIs must be submitted by October 22, 2024, and can be delivered in person, by mail, fax, or email to the ministry. For inquiries, interested parties can contact Mr. J. McKenzie, Permanent Secretary. The contact number is (592)-231-2510, and the email is [email protected]. A few months ago, EMGL, the operator of Guyana’s resource-rich Stabroek Block made its application to the Environmental Protection Agency (EPA) seeking approval for a seventh project, Hammerhead. Hammerhead was announced as Exxon’s ninth commercial discovery in August 2018. The Hammerhead-1 well was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,773 feet (1,150 meters) of water. The project will target between 120-180 thousand barrels per day (kbd). Exxon is aiming to commence production activities by 2029, following the requisite approvals. Notably, the daily production capacity being targeted is significantly lower compared to the last three projects sanctioned, which each target over 200 kbd. Hammerhead-1 is located approximately 13 miles (21 kilometers) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail. Back in April, Exxon received green-light from the EPA as well as blessings from the Government of Guyana (GoG) to develop a sixth deep water project, Whiptail. Jagdeo said no guarantee 7th project will be approved Meanwhile, back in July at one of his news conference Jagdeo had said there was no guarantee that ExxonMobil will be allowed to go ahead with its seventh project Hammerhead. Jagdeo was asked by this publication, “In relation to produced water from Hammerhead Exxon’s 7th project that is supposed to start up in 2029 when he made the comments. “So first of all, there is an assumption that there will be a seventh project. So we will get the application soon and at that time, the government will determine through two permits, one the licence and then the environmental permit, how it will deal with all of these issues.” He boasted that the administration has made the permits for previous projects public unlike the previous administration and they will be dealing with any issues as they arise. Jagdeo added: “Exxon still has to demonstrate that they will submit all the documents needed for us to assess whether the requirements are met. On the seventh project, we are yet to determine whether we want that on the cost bank now ahead of any clarity of how we are moving with the monetization of the Gas Project. So those issues will be determined next week.” The in August again Jagdeo was asked whether the seventh project would be approved he said thusly:” When and if…if and or when and if we approve the project then you will be told about what the benefits will be. We have not looked at anything…there is currently no application in for the seventh project as yet, so when the application comes in that’s when we will start considering this matter.” Related FDP, Liza Deep, management, Pacora, Payara, Ranger, Snoek, Stabroek Block, Stabroek Block at Liza, Turbot, Vice President Bharrat Similar Articles

Guyana earn $130B in income taxes at midyear, but allowed Exxon and partners to walkaway with $306B last year Oct 09, 2024 News Godfrey Statia, Commissioner General of the Guyana Revenue Authority (GRA) Kaieteur News – The Guyana Revenue Authority (GRA) collected almost $130 billion in income taxes by mid-2024, the Bank of Guyana (BOG) reported. The Central Bank said that GRA’s overall income tax revenue collection within the first six-months of 2024 increased by 21.8% to 129.7 billion, largely driven by a broader base of collection from oil and gas related firms. President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge However, despite this growth, it remains noteworthy that the overall income tax GRA collected within six months is less than what ExxonM0bil Guyana Limited (EMGL), Hess Guyana Exploration Ltd. and China National Offshore Oil Corporation (CNOOC) Petroleum Guyana Limited did not have to pay to GRA in income taxes for 2023. BOG revealed that total current revenues increased by 18.7% to some $227.2 billion. This figure excludes inflows like the Natural Resource Fund (NRF), Guyana REDD+ Investment Fund (GRIF), and Carbon Credit Sales (CCS). The increase was due to greater tax collection which rose by 18.8% to $216 billion, on account of increased economic activities. Corporate tax payments from private firms rose by 21.1% to $48.8 billion, while public corporation taxes saw a modest increase of 8.1%, reaching $2 billion. Also, personal income taxes and withholding taxes expanded by 14.6% and 31.9%, respectively, amounting to $39.5 billion and $39.4 billion.  Additionally, the collection of VAT and excise taxes grew by 13.9% to $55.8 billion. Kaieteur News previously reported that for 2023, the Government of Guyana (GoG) had to pay the combined sum of about $306 billion in income taxes for ExxonMobil and its Stabroek Block partners, Hess and CNOOC, according to the companies’ audited financial statements. Exxon is the operator of the Stabroek Block, with 45% interest, Hess holds 30% interest and CNOOC holds 25% interest. Last year, the three companies earned $1.3 trillion in profits – entirely tax-free in Guyana, in accordance with the 2016 Production Sharing Agreement (PSA). While Exxon, Hess, and CNOOC are not required to pay income taxes, the 2016 oil contract provides for the taxes to be paid to the GRA by the Government out of its share. In 2023, Guyana earned $336 billion from oil sales and royalties. According to the PSA, the Stabroek Block partners are allowed to recover 75% of the oil produced to recover their investment costs; the remaining 25% is considered profit, which is split between Guyana and the Stabroek Block consortium, giving each 12.5%. However, the consortium pays a 2% royalty from its share to Guyana. From its 14.5% Guyana then has to pay taxes for the oil companies. Notably, the provision of the Stabroek Block contract which gives Exxon and its affiliates a tax-free ride in Guyana has attracted criticisms locally and internationally. Despite this, the Irfaan Ali-led administration is adamant that the deal will not be renegotiated due to the implications of the sanctity of contract. The contract states in Article 15.1 that the Contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement. It goes on to state in Article 15.4 that the sum equivalent to the taxes owed by the company will be paid by the Minister responsible for Petroleum to the Commissioner General of the GRA. It should be noted that the contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation in the United States. Related Similar Articles

AG withholds legal costs to fight against Guyanese in major oil, other cases filed against Gov’t Oct 09, 2024 News Kaieteuer News – Attorney General, Anil Nandlall SC has failed to provide details on the costs incurred by the state to fight legal cases relating to the petroleum and other sectors. Opposition Parliamentarian, Annette Ferguson The Legal Affairs Minister was requested by Opposition Parliamentarian, Annette Ferguson to provide a detailed list to the National Assembly of the number of cases where the Ministry represented the government between 2022 and 2023. She also asked for a list of retainers and their costs for those cases. Additionally, Ferguson requested the Minister of Legal Affairs to inform the National Assembly which procurement method was used to obtain the services of the retainers and say how many cases were successful. D Attorney General, Anil Nandlall SC uring the 84th Sitting of the National Assembly on July 31, 2024, Nandlall provided the response to the former Minister within the Ministry of Public Infrastructure. While he supplied the House with the Court cases handled by the AG’s Chambers during the period, he did not outline the costs attached with fighting those cases and the Lawyers that were retained. In fact, the AG in response said the question by Ferguson was “wholly misconceived”. Nandlall explained, “The Ministry did not retain lawyers for cases in which the Ministry represented the Government for the year 2022 and 2023.”  Likewise, he said questioning the procurement method was “otiose” or pointless. Similarly, on the question of how many of those cases were successful, he said the Ministry of Legal Affairs does not record successes or failures of cases.  According to the list seen by Kaieteur News, some 131 Court matters were handled by the AG Chambers during the period. These include critical oil and gas related matters such as the tax case that was filed by Publisher of Kaieteur News, Glenn Lall; the case seeking to quash Exxon’s Permit for the Gas-to-Energy (GTE) pipeline; the case for full liability protection from oil spills filed by Frederick Collins and Godfrey Whyte and finally a matter filed by a citizen, Stuart Hughes for adequate compensation for his lands affected by the GTE pipeline. The government had won the tax case, while the citizens were successful in their application to the Court seeking full liability coverage for oil spills. That decision was later appealed and is presently ongoing. With regard to the GTE Permit, the Court ruled in favour of the citizens that the Permit was not legally issued but did not quash the Permit. The citizens have appealed that ruling. In the meantime, the other matter involving Hughes is still ongoing. Related AG, Anil Nandlall, Attorney General, cases, cost, court, lawyers, Likewise, Nandlall, National Assembly, oil, petroleum, Public infrastructure Similar Articles