Dear Editor,
Under Melinda Janki’s letter (SN: 18/08/19), I asked several questions: What royalties are we getting on one million barrels of oil? Is it 250 barrels or 2,000 barrels? Is the royalty assessed on barrels sold? If only 1,000 barrels are sold, does this mean royalty would be assessed and paid on only 1,000 barrels? Mr Trotman needs to clarify this matter for the Guyanese public.
How much corporate income tax will be paid by the oil companies to the Government of Guyana over 20 years? The answer might be zero. Mr Trotman needs to clarify this matter.
The GoG needs a schedule (pro forma) to show when the cost recovery will be satisfied. Is it never? In 20 years? And, how does this affect the profit share of the GoG? Right now, the lack of “ring fencing” makes everything opaque. It has to be more transparent.
There is an Article in the contract that requires the GoG to pay the oil company’s tax from the GoG’s share of the profits (a dubious 12.5 per cent). This must be a mistake.
I urge Mr Trotman and Mr Jordan to call a press conference and explain the contract to the Guyanese people.
Yours faithfully,
Mike Persaud
