The Rising Influence of Rising Affluence

[DewDiligence]

XOM/HES—WSJ profiles Guyana:

https://www.wsj.com/articles/eureka-giant-oil-find-set-to-bring-guyana-startling-riches-maybe-1529578800 https://www.wsj.com/articles/eureka-giant-oil-find-set-to-bring-guyana-startling-riches-maybe-1529578800

Under its deal, Exxon is permitted to use as much as 75% of annual oil proceeds to recoup exploration and production costs once commercial pumping begins. Guyana gets a 2% royalty of the proceeds plus 50% of the remaining proceeds. That is on par with the world average for “frontier exploration,” said IHS Markit analyst Carlos Bellorin. But the oil companies’ local taxes are paid from the country’s share of the profits, cutting into Guyana’s take.