Guyana to earn 2% Royalty from Liza production; 50% profit from sale of petroleum

Following reviews of the technical and environmental aspects of the Liza Project, the Government of Guyana is expected to grant a production licence to ExxonMobil for the production of petroleum to move ahead in 2020.

The Ministry of Natural Resources this evening (Thursday, June 01, 2017) disclosed that “the Government and people of the Cooperative Republic of Guyana will receive a royalty of 2 percent on gross earnings and benefit from 50 percent of the profits from the sale of petroleum once production commences.”

The Production Licence is required to be finalised before the developers make their Final Investment Decision (FID) for the project later this month.

Extraction from the Liza field is expected to commence at an initial rate of 100,000 barrels of crude per day in the first phase; with a Floating Production Storage and Offloading (FPSO) vessel providing the primary infrastructural support for the project.

According to the Ministry, it is working with other Ministries and Agencies to ensure that the country is prepared for the coming oil production.

Citizens are encouraged to continue to provide their feedback and recommendations on the new sector when the Ministry’s outreaches visit their communities, the statement added.

It has promised that following consideration by the Cabinet, the findings of the various reports will be released.