Guyana 2018 EITI Report
Total Page:16
File Type:pdf, Size:1020Kb
GUYANA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (GYEITI) GYEITI Report for Fiscal Year 2018 APRIL 2021 (VERSION 2) This document is prepared solely for the use and benefit of the GYEITI Multi-stakeholder Group (MSG). Neither the authors nor BDO LLP accept or assume any responsibility or duty of care to any third party. This revised GYEITI Report for the Fiscal Year 2018 is a result of updates made to the GYEITI Report submitted on 30 March 2021 to the GYEITI MSG, which was approved for publication. The GYEITI MSG subsequently agreed to include the latest information provided by the Guyana Geology and Mines Commission (GGMC) on 30 March 2021. The Independent Administrator was requested to consider this latest information from GGMC. As a result, a revised report with updated Annexes was prepared and resubmitted to the GYEITI MSG for approval. The specific changes made to the previous version are as follows: 1- Annex 1.2. Mining Permits has been updated; 2- Annex 1.3. Prospecting Permits Medium Scale has been updated; 3- Annex 1.6. Claim licenses has been updated; 4- The last paragraph of Section ‘Scope of work’ on page 9 has been added; 5- A footnote has been inserted in Section 1.4 on page 18; 6- A third paragraph has been included in Section 3.4.1 on page 81; 7- The company name of Repsol Exploration Guyana has been amended to‘Repsol Exploracion Guyana S.A.’ in the report, namely in tables 13, 47, 49, 92, 94, 99, 100, 103, 104, 120 and 129. TABLE OF CONTENTS OVERVIEW ............................................................................................................. 8 BACKGROUND .......................................................................................................... 8 EITI IN GUYANA-TIMELINE ............................................................................................. 8 OBJECTIVE ............................................................................................................. 9 SCOPE OF WORK ....................................................................................................... 9 TERMINOLOGY ........................................................................................................ 10 EXCECUTIVE SUMMARY ........................................................................................... 11 1.1. REVENUE GENERATED FROM THE EXTRACTIVE INDUSTRIES ...................................................... 11 1.2. PRODUCTION DATA ............................................................................................. 13 1.3. SCOPE OF THE DATA COLLECTION AND RECONCILIATION ......................................................... 14 1.4. COMPLETENESS AND RELIABILITY OF DATA ..................................................................... 18 1.5. RECONCILIATION OF CASH FLOWS .............................................................................. 21 1.6. RECOMMENDATIONS ............................................................................................ 22 2. APPROACH AND METHODOLOGY ........................................................................ 23 2.1. SCOPING STUDY ............................................................................................ 23 2.2. DATA COLLECTION .......................................................................................... 23 2.3. RECONCILIATION AND INVESTIGATION OF DISCREPANCIES .................................................. 23 2.4. RELIABILITY AND CREDIBILITY OF DATA REPORTED......................................................... 24 2.5. ACCOUNTING RECORDS ..................................................................................... 24 3. CONTEXTUAL INFORMATION ON THE EXTRACTIVE SECTORS ...................................... 26 3.1. OVERVIEW OF THE EXTRACTIVE INDUSTRIES INCLUDING THE MAIN PROSPECTING ACTIVITIES (EITI REQUIREMENT 3.1) .................................................................................................. 27 3.2. LEGAL AND INSTITUTIONAL FRAMEWORK (EITI REQUIREMENT 2.1) ...................................... 48 3.3. CONTRACT AND LICENSE ALLOCATIONS (EITI REQUIREMENT 2.2) ......................................... 67 3.4. REGISTER OF LICENSES AND PERMITS (EITI REQUIREMENT 2.3) ........................................... 81 3.5. DISCLOSURE OF LICENSES AND CONTRACTS (EITI REQUIREMENT 2.4) ..................................... 84 3.6. STATE PARTICIPATION (EITI REQUIREMENT 2.6) ........................................................... 86 3.7. COLLECTION AND DISTRIBUTION OF EXTRACTIVE REVENUES (EITI REQUIREMENT 5.1) .................. 87 3.8. INFRASTRUCTURE AND BARTER ARRANGEMENTS IN THE EXTRACTIVE SECTOR (EITI REQUIREMENT 4.3) . 94 3.9. TRANSPORT OF MINERALS (EITI REQUIREMENT 4.4) ...................................................... 94 3.10. BENEFICIAL OWNERSHIP (EITI REQUIREMENT 2.5) ........................................................ 95 3.11. AUDITING AND ACCOUNTING (EITI REQUIREMENT 4.9) .................................................... 97 3.12. PRODUCTION DATA IN THE EXTRACTIVE SECTOR (EITI REQUIREMENT 3.2) ................................ 99 3.13. THE CONTRIBUTION OF THE EXTRACTIVE SECTOR TO THE ECONOMY (EITI REQUIREMENT 6.3) ......... 104 3.14. MANAGEMENT AND MONITORING OF ENVIRONMENT (EITI REQUIREMENT 6.4) .......................... 112 3.15. NOTES TOWARDS GENDER SENSITIVE GYEITI REPORTING AND IMPLEMENTATION ....................... 117 4. DEFINING THE RECONCILIATION SCOPE ............................................................... 124 4.1. REVENUE FLOWS ......................................................................................... 124 4.2. LEVEL OF DISAGGREGATION (EITI REQUIREMENT 4.7) .................................................. 127 4.3. GOVERNMENT AGENCIES (EITI REQUIREMENT 4.1.D) ................................................... 131 5. RECONCILIATION RESULTS ............................................................................... 132 5.1. PAYMENT RECONCILIATION BETWEEN EXTRACTIVE ENTITIES AND GOVERNMENT AGENCIES .................. 132 5.2. ADJUSTMENTS ............................................................................................ 138 5.3. UNRECONCILED DISCREPANCIES .......................................................................... 144 6. ANALYSIS OF REPORTED DATA .......................................................................... 153 0 6.1. ANALYSIS OF TOTAL EXTRACTIVE REVENUES .............................................................. 153 6.2. UNILATERAL DISCLOSURE OF REVENUE STREAMS ......................................................... 158 6.3. ANALYSIS OF PRODUCTION DATA DECLARED BY REPORTING ENTITIES ..................................... 160 6.4. ANALYSIS OF EXPORTS DATA DECLARED BY REPORTING ENTITIES ......................................... 163 7. RECOMMENDATIONS....................................................................................... 164 7.1. 2018 IA RECOMMENDATIONS ............................................................................ 164 7.2. FOLLOW UP OF RECOMMENDATIONS OF EITI IMPLEMENTATION (EITI REQUIREMENT 7.3) .............. 173 ANNEXES ............................................................................................................ 178 ANNEX 1: LIST OF LICENCES IN THE MINING SECTOR IN 2018.................;.......................................178 • Annex 1.1. Mining Licences.........................................................................................178 • Annex 1.2. Mining Permit...........................................................................................179 • Annex 1.3. Prospecting Permits Medium Scale (PPMS) ........................................................ 334 • Annex 1.4. Prospecting Licences..................................................................................843 • Annex 1.5 Quarry Licence..........................................................................................846 • Annex 1.6. Claim licences..........................................................................................847 ANNEX 2: OIL AND GAS MAP................................................................................................3266 ANNEX 3: LIST OF LICENCES IN FISHERIES SECTOR IN 2018.......................................................... 3267 • Annex 3.1. Artisanal Vessels List.................................................................................3267 • Annex 3.2. Vessels List............................................................................................3299 ANNEX 4: BENEFICIAL OWNERSHIP............................................................................;...........3303 ANNEX 5: LEGAL OWNERSHIP..........................................................................................;...3307 ANNEX 6: EMPLOYMENT DATA DISCLOSED BY EXTRACTIVE ENTITIES...............................................3310 ANNEX 7: LIST OF LICENCES IN FORESTRY SECTOR IN 2018.........................................................3312 ANNEX 8: DATA ON PRODUCTION REPORTED FOR FY 2018...........................................................3327 • Annex 8.1. Reported by companies and GGB..................................................................3327 • Annex 8.2. Reported by companies and GMC..................................................................3331 • Annex 8.3. Reported by GGB and GGMC.........................................................................3334 ANNEX 9: DATA SUBMISSION AND RELIABILITY FY 2018...............................................................3338