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The fuel hose leads from the Liza Destiny to the Cap Philippe for the transfer of Guyana’s first million barrels of crude. (Ministry of the Presidency photo)

Guyana lifts first oil for profit as energy director reaffirms benefits

The fuel hose leads from the Liza Destiny to the Cap Philippe for the transfer of Guyana’s first million barrels of crude. (Ministry of the Presidency photo)

Guyana began lifting its first of five million barrels of oil scheduled for this year, a large part of its profit from its recent start to oil production.

An aerial view of Georgetown, the capital of Guyana.

The Director of the Department of Energy, Dr Mark Bynoe, travelled to the Liza Destiny Floating Production Storage and Offloading vessel to for the start of the transfer yesterday, February 18.

Speaking at the transfer, Bynoe, restated that the country’s benefits from the oil production go beyond the two per cent royalty it will receive on total production.

“I am happy to say that Guyana is entitled to approximately five million barrels of oil in 2020 alone, plus the two per cent royalty, plus withholding taxes, plus the direct and indirect benefits through employment creation and other revenue-generated income.”

– Director of the Department of Energy, Dr Mark Bynoe

Bynoe said “These one million barrels is part of our profit oil allocation. It does not include the two per cent royalty, which would be paid on gross productions. So, even though we are having a million barrels lift in this particular instance, we are also receiving two per cent on all oil that is being produced.”

“This gets us away from the perception that all Guyana is getting under the contract is two per cent royalty. I am happy to say that Guyana is entitled to approximately five million barrels of oil in 2020 alone, plus the two per cent royalty, plus withholding taxes, plus the direct and indirect benefits through employment creation and other revenue-generated income. So, this is not a contract that we should take lightly, it is not an occasion that we should take lightly.”

The Cap Philippe which will transport Guyana’s first entitlement of crude oil.

The offloading, which will take between 20 to 36 hours, comes at a time when many have been critical of the deal, including a recent report from non-profit Global Witness which said the country could be losing as much as US$55 billion from the agreement.

 The Government had hit back at the claim, calling it “arbitrary and utterly absurd” and questioned its timing with an election looming.

In a statement, the Government said it “maintains its position that there were geo-political and national security imperatives which could not be ignored. The report deliberately seeks to trivialise the national security and sovereignty of Guyana.”