Opinions Archives - Panorama Insurance Brokers

Issues of privatisation and institutional structures for Guyana’s economic growth

There are further problems with the timing and manner of privatisation. The International Monetary Fund (IMF) once urged as rapid a privatisation as possible. They were worried that so long as resources remained under the control of the government, they would not be efficiently utilized and that there was scope for corruption. Yet, corruption was… Read More

Mechanisms for diversion in Guyana’s petroleum industry

There are basically four (sometimes interrelated) mechanisms for “corrupt” privatisations, besides the obvious ones – just giving the resource to one’s cronies, or, having a first-come system in which those already in the field are in a better position to grab the resources. First, reduce competition; second (particularly relevant in economies in transition such as… Read More

The role of the invisible hand and diversion in Guyana’s natural resources development

The fact that privatisation did not solve the problem of resource diversion should not have come as a surprise: profit-maximizing private enterprises naturally seek to minimize what they give to the government for their rights to control the use of the asset. Modern capitalism is, by and large, based on a simple calculus: each individual… Read More

Privatisation’s role in maximising Guyana’s total benefits from the petroleum sector

Too often countries do not get the full value of their resources. A government would genuinely be interested in using its good luck of an abundant resource endowment for the benefit of its people. However, first, it must somehow extract the resources from below the ground and sell them. To do that, it will have… Read More

Specific issues relevant to associated natural gas for Guyana

The Association of International Petroleum Negotiators (AIPN) has a definition of crude oil which is wide enough to include condensates, natural gas liquids and other forms of liquid hydrocarbons. Increasingly, economic and political pressures require the parties to extract as much value as possible from their hydrocarbon reserves, which will likely involve finding a way… Read More

Commitment to joint sales for Guyana’s hydrocarbons

The parties will commit to dedicating their natural gas entitlement to joint gas sales and will authorize the operator to conduct various activities on their behalf in a coordinated manner such as preparing a marketing strategy, designing and constructing facilities dedicated to joint gas sales and obtaining finance for them, and negotiating with potential gas… Read More

Provision of information by the operators for Guyana’s natural gas development

Assuming that the joint venture will have limited facilities for the reinjection or storage of natural gas, the ability of the parties to take their natural gas entitlement directly affects the ability of the operator to maintain expected levels of upstream natural gas, and (in the case of associated gas) crude oil production. Most likely,… Read More

Guyana facing ‘series of shock and multiplier effects’ triggered by political crisis – Economist

By Bobby Gossai, Jr. The expected high growth rate of the Guyanese economy will be reduced by several factors outside of the limits of the coronavirus. Guyana had an expected exponential growth from 2020 to 2028 which would have been driven primarily by both the direct and indirect positive effects of the burgeoning oil and… Read More