GUYANA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (GYEITI) GYEITI Report for Fiscal Year 2018 MARCH 2021 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. 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 ................................................................................................................. 177 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) ............................................................ 408 Annex 1.4. Prospecting Licences ............................................................................................. 1063 Annex 1.5 Quarry Licence ....................................................................................................... 1065 Annex 1.6. Claim licences ........................................................................................................ 1066 Annex 2: Oil and gas map ........................................................................ 1069 Annex 3: List of licences in fisheries sector in 2018 ........................................ 1070 Annex 3.1. Artisanal Vessels List ............................................................................................. 1070 Annex 3.2. Vessels List ............................................................................................................ 1102 Annex 4: Beneficial ownership .................................................................. 1106 Annex 5: Legal ownership ........................................................................ 1110 Annex 6: Employment data disclosed by extractive entities .............................. 1113 Annex 7: List of licences in forestry sector in 2018 ......................................... 1115 Annex 8: Data on production reported for FY 2018 ......................................... 1130 Annex 8.1. Reported by companies and GGB ......................................................................... 1130 Annex 8.2. Reported by companies and GMC ........................................................................ 1134 Annex 8.3. Reported by by GGB and GGMC ........................................................................... 1137 Annex 9: Data submission and reliability FY 2018 ........................................... 1141 Annex 9.1. Data submission of companies ............................................................................. 1141 Annex 9.2. Data submission of Government Agencies ........................................................... 1143 Annex 10: Reconciliation sheets by extractive entity ...................................... 1146 Annex 11: Social and environmental expenditure declared by extractive entities .. 1264 Annex 12: Data on exports reprted for FY 2018 ............................................. 1276 Annex 12.1. Reported by companies and GGB ....................................................................... 1276 Annex 12.2. Reported by GRA and GGB .................................................................................. 1279 Annex 12.3. Reported by companies and GRA ....................................................................... 1283 Annex 13: Extractive entities profile as declared by reporting entities ................. 1287 Annex 14: Persons contacted or involved ..................................................... 1290 0 LIST OF TABLES Table 1: List of abbreviations