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Oil money explained: income and expenditure

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Dear Editor,
Over the coming months, ‘oil money’ will be the biggest topic as political parties and aspirants manipulate facts to sell the electorate (you) their plans and vision based on our income from oil sales. I have prepared this poster so that anyone can fact-check with ease.
Guyana’s investment to date: USD 0.00
Guyana’s Income to date (18.05.24): USD 4,700,000,000.00 (Four billion, seven hundred million)

Local Content Explained: Local content is the value that an oil project brings to the local, regional, or national economy beyond the resource revenues. Here are a couple of graphics that show how Guyanese benefit from Local Content Laws:
Cost Oil Explained: A portion of produced oil that the operator applies on an annual basis to recover defined costs specified by a production sharing contract, including monies invested in exploration and development of new wells.
Exxon/Hess/CNNOC investment to date:
• Total investment by year-end 2023: ~ USD 29 billion
• Total costs recovered by year-end 2023: ~ USD 19 billion
• Remaining cost bank YE23: $10 billion USD
• Total investment commitment to date (6 projects): USD 55 billion
Guyana should be “cost-current,” meaning the Stabroek Block Co-investors will recover as they spend (much less than the 75% allowed) by the end of 2026 or in 2027, depending on the price of oil, the pace of investment, etc.



I urge all Guyanese to cut this page out of the newspaper and paste it somewhere in your home, school or workplace. Refer to it periodically or when someone tries to sell you negatives about Guyana’s trajectory in the world. Let us all become guardians of our income and aware of demands that would increase the cost of oil. Remember, we, Guyanese, pay the ‘cost of oil’ bills.

Robin Singh

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