HGP Nightly News – The Ministry of Natural Resources has rejected suggestions that Guyana’s share of profit oil stands at 39.8 per cent.
The Ministry says the country’s profit-oil share remains at 50 per cent.Its clarification follows questions over the figures behind the 39.8 per cent calculation.
According to the Ministry, the two percentages measure different things. It explained that 39.8 per cent represents Guyana’s estimated share of total oil production after cost recovery is taken into account.
The profit oil remaining after those costs is then divided equally between Guyana and the oil companies. Using 100 barrels as an example, the Ministry said about 20 barrels would currently go towards recovering costs.
Roughly 80 barrels would remain as profit oil.Guyana would receive half of that amount, resulting in approximately 39.8 barrels from every 100 produced.
The Ministry also addressed concerns surrounding billions of US dollars in petroleum costs that have been audited.
It said costs rejected through the audit process would no longer qualify for recovery.
Instead, those amounts would effectively increase profit oil, of which Guyana receives 50 per cent. The Ministry pointed to US$279.5 million in two settled audit cases.
It said if the entire amount had been disallowed, Guyana’s additional share would have been approximately US$140 million.
The Ministry maintained that the 50 per cent profit-oil split has remained unchanged since the 2016 petroleum agreement.
