Key focus now should be how oil revenues accrued are spent

Guyana’s Production Sharing Agreement (PSA) with ExxonMobil’s subsidiary  is not very different from other frontier oil countries, according to the International Monetary Fund which says that a key focus now should be on how the revenues accrued are spent.

“The PSA is not atypical. There are quite a number of countries that have that. It is to allow the companies who took the risk and spent large sums of monies for the explorations and so on, to allow them a reasonable period for cost recovery…,” Arnold McIntyre, IMF’s Chief of Mission to Guyana said recently.

“I would say that there is nothing atypical here. Some countries have a little bit more than the share in the investment recovery period, some have a little bit less.  But the important thing is the share that Guyana gets from the oil revenues, after the initial investment phase, revenue  goes up quite substantially and the  returns to the country are very significant,” he noted.