(Kaieteur News) – Each piece of material and equipment used in the production of oil and gas, from tiny screws and drill bits to the massive Floating Production Storage and Offloading vessels (FPSOs) that operate in the Stabroek Block are paid for by Guyana’s oil through cost recovery. The long list of cost recoverable items includes the company’s giant Ogle Headquarters, a distinguished fleet of vehicles and other items used for the sector.

Cost recovery allows the oil companies to finance the sector, hand Guyana the bill and then take the country’s oil to repay its investment. This process is not unique to Guyana. In fact, Guyana’s neighbour, Trinidad and Tobago which has been producing oil for over a century lost tremendous revenue when its production activities started to wind down, an experience Guyana can learn from.

Sounding the alarm over this injustice was Trinidadian energy expert, Anthony Paul in a column published in this newspaper on Sunday. Paul held high-level operational, technical, and commercial roles with the government of T&T, Petrotrin, Amoco, and BP. With over 45 years of experience in the sector, he has advised numerous government, national oil companies, multinational operators, service companies, and international financial institutions in complex and evolving jurisdictions.