Introduction
This is the wrap-up column treating with a retrospective and prospective reflection and review of the ruling Stabroek PSA and its Model PSA variant arising from the recent public auctions. The column details the fiscal metrics of both contracts, as stated by the authorities. Following that there is a comment on ring-fencing, which is one of the most widely discussed reforms to the Stabroek PSA. It was adapted by the Model PSA public auctions.
PSA now and then
Due to controversy, the Guyana Revenue Authority, GRA, has pronounced formally on the key fiscal metrics of the ruling Stabroek PSA, used before the Model PSA devised for the public auctions. These metrics are,
Signature Levy, US$ 18 mln. [ A single non-recoverable lump sum payment to the Government on granting the licence for oil exploration].
