Nova Scotians were recognized as the principal beneficiaries of their offshore resources in a very real way today, June 30, with the delivery of $830 million in offshore revenues from the government of Canada. Premier John Hamm received a ceremonial cheque from Geoff Regan, federal Minister of Fisheries and Oceans, at Province House in Halifax. The actual financial transaction occurs electronically between the federal and provincial departments of finance. “We will apply this money directly to our provincial debt and use the interest savings for things that matter most — health care, education and investments in our continued growth and prosperity,” said Premier Hamm. “Nova Scotians were very patient through this four-and-a-half year process and I am very grateful for their support. I am pleased to report to them that our Campaign for Fairness has been successfully concluded.” The Department of Finance will start a schedule of debt repayments on Monday, July 4, with the retirement of a $150 million bond. Mr. Regan welcomed the completion of a deal which ensures Nova Scotia is the principal beneficiary of its offshore resource revenues. The transfer of funds follows the passing of the federal budget, which received Royal Assent Wednesday, June 29. “The offshore accord which received Royal Assent on Wednesday and the $830 million down payment made today will make a positive difference in the lives of all Nova Scotians and will help our province address its unique financial challenges,” Mr. Regan said. “Prime Minister Paul Martin made a commitment to Nova Scotians last year and the Government of Canada is fulfilling that commitment here today.” Nova Scotia had budgeted to receive the funds in the fall. Additional debt-cost savings will be factored into the province’s bottom line and recognized in the September fiscal update.
As Guyana embraces its status as an oil producing nation Minister of Finance, Winston Jordan said the government will revise the existing template of the Production Sharing Agreement (PSA).This move is “imperative” to “safeguard the rights of our nation to a fair share of resource wealth” Minister Jordan was quoted by DPI as saying on Monday during his 2018 National Budget speech in the National Assembly.PSAs are common contractual agreements for petroleum exploration and development between governments and companies.While the government has not fully disclosed its contract with ExxonMobil, it shared that Guyana will receive a royalty of two percent on gross earnings and benefit from 50 percent of the profits from the sale of petroleum once production commences in 2020. The company is developing the Liza field located in the Stabroek Block offshore Guyana for first oil by 2020.Exxon’s exploration in the Stabroek Block has since de-risked Guyana’s offshore basin which is estimated to contain at least 7 billion oil-equivalent barrels. The Stabroek Block itself is estimated to contain between 2.25 – 2.75 billion oil-equivalent barrels.Minister Jordan said the revision, which will be undertaken in 2018, seeks to make the PSA “more accommodating to changing commodity prices while maintaining a level of progressivity that is responsive to profitability”.Next year, the government will publish a green paper in the National Assembly on the proposal for the SWF. The paper is to seek feedback for further refinement and to stimulate a national discussion to ensure that all citizens understand the benefits to be had and what the country must guard against in the collection and management of its oil resources, DPI said. Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedUS$20M Exxon signing bonus: If intel provided proves true entire Govt should resign- Opposition leaderNovember 22, 2017In “latest news”Esso exploration gets tax breakAugust 9, 2016In “Politics”Despite criticisms Govt adequately preparing for oil & gas sector- TrotmanNovember 8, 2017In “Politics”
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