Department of Energy designing new model PSA
DPI, Guyana, Thursday, November 8, 2018
The Department of Energy is drafting new model Production Sharing Agreements (PSAs) for future contracts in the oil and gas industry.
The announcement was made today by the Department of Energy’s Director, Dr. Mark Bynoe.
“We’re designing a new model contract that will be used for future PSAs as well as elaborating a model toolkit to allow for problematic scenario modelling of current and future PSA contracts,” Dr Bynoe said.
The department is being assisted by Oil and Gas Advisor in the Ministry of the Presidency, Matthew Wilks, on drafting the new PSAs. Wilks has 32 years’ experience as a senior oil and gas business developer and negotiator.
He noted that the new model contract seeks to strike a balance in investment and benefits to the people.
“This is the right time to evolve the contract. When we’re reviewing a new model PSA, we’re going to review it to attract investment … As well as maximise return to the government,” Wilks said.
The new model will also take into account near and onshore exploration and production.
Dr. Bynoe said the new model PSA will build on existing PSAs. He added that the department is continually pursuing active and professional management of contracts.
The Director of the Department of Energy also gave assurances the government will honour the sanctity of existing contracts it has with oil companies.
Image by Leon Leung.