The Natural Resources Ministry on Wednesday released the Petroleum Agreement –signed on April 28, 2015- between the then Government and the principals of Ratio Energy Limited and Ratio Guyana Limited.
According to the Ministry, Ratio Energy Limited (now Cataleya Energy Limited by way of a duly registered change of name) and Ratio Guyana Limited (referred to as ‘Ratio’) commenced negotiations with the previous Government of Guyana for a Petroleum Licence within the ultra-deep water Guyana Basin area in mid-2012.
At the time, that area was known as Annex B.
Negotiations were nearly completed when the October 2013 Anadarko/Venezuelan incident occurred where Venezuela’s navy took control of a research vessel, which was conducting a survey in the Roraima Block offshore Guyana.
It took until the 1st Quarter of 2015 before negotiations resumed. On April 28, 2015, the production sharing agreement was signed by both the then Government of Guyana and Ratio’s principals.
The concession was then renamed the ‘Kaieteur’ Block. It totals approximately 13,535 sq. kms.
Article 15 of the released petroleum agreement outlines that the Contractor will pay royalty at the rate of one percent (1%) of Crude Oil produced and sold.
Article 11.4 of the contract outlines that once the recoverable contract costs have been satisfied, the profit will be shared equally, with 50 per cent going towards the contractor and the other 50 per cent to the Government.
Moreover, Article 10 outlines that the Contractor will pay the Government $US 200,000 every year the licences remains in force as a rental charge.
Ratio, this publication was informed, is in a joint venture partnership with Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of US oil exploration giant ExxonMobil.
As such, Ratio has a 25 per cent stake in the Kaieteur Block. Cataleya Energy has another 25 per cent of the Kaieteur Block, while EEPGL has a stake of 50 per cent respectively.