Tullow lines up wells offshore Peru and Suriname

Tullow Oil set its sights on two exploration wells next year offshore South America.

One will be on the Marina prospect in the Karoon Energy-operated Z-38 licence in the Tumbes basin, 30 km (18.6 mi) offshore northern Peru, in 350 m (1,148 ft) water depth.

It will be the first well to target the deeper water plays in the basin, the company said.

Tullow plans to gain entry to four other Peruvian licenses.

Offshore Suriname

Tullow plans to drill Suriname wildcat next year.  Independent Tullow Oil and its partners decided to drill an exploration well in Block 47 located offshore Suriname next year. Tullow said in an operational update that together with its Joint Venture Partners it had decided to enter the second phase of operations in Block 47.

Following meetings, the Joint Venture Partners chose to drill the Goliathberg-Voltzberg North prospect in 2020.

The prospect lies approximately 260 kilometers off the coast of Suriname, in 1,900 meters of water and is one of a series of leads and prospects on the flank of the Demerara High.

Tullow has interests in three blocks in Suriname, Blocks 54, 62, and 47.

The company signed a Production Sharing Contract with Staatsolie in relation to Block 47 in September 2010. It is a 2,369 sq km deepwater exploration license where there is potential to extend the Jubilee play from West Africa across the Atlantic to Suriname.

Tullow’s partners in Block 47 are Pluspetrol and Ratio Exploration with 30% and 20% interests, respectively.

Jamaica et al

Tullow is assessing options for future drilling on the Walton-Morant license, Jamaica.

The company was also awarded three blocks as operator under Argentina’s offshore bidding round, and formal conformation should follow later in 2019. These are blocks MLO-122, MLO-114 and MLO-119, all in the Malvinas West basin with shallow water Tertiary and Cretaceous age turbidite plays.

Tullow plans to start initial geological studies, 2D reprocessing, and 3D acquisition in 2020.

The company was confirmed as new operator of blocks 35, 36, and 37 off the Comoros Islands in East Africa and the partners have approved a 3D seismic contract award.

Acquisition of a 3,000-sq km (1,158-sq mi) 3D seismic survey is set to start in September.

 

NFE commissions Jamaica LNG terminal

Jamaica’s liquefied natural gas import terminal developed and operated by New Fortress Energy off the coast of Old Harbour Bay, in St. Catherine was officially unveiled.

The 125,000-cbm FSRU Golar Freeze that will serve a 15-year charter for New Fortress Energy as an import facility supplying new gas-fired power plants, has been positioned 3.6 miles out at sea.

Golar Freeze, owned by the Nasdaq-listed Golar LNG Partners, a limited partnership formed by Golar LNG, was previously converted into an FSRU from an LNG carrier and has a 4.9 billion cubic meters per year regasification capacity.

The prime minister noted that this latest introduction of LNG supply is in line with Jamaica’s energy policy, which seeks development of its energy resource potential to enhance international competitiveness and energy security, whilst reducing carbon footprint.

The terminal, the first of its kind in the Caribbean, will provide fuel to several facilities, including the Jamaica Public Service’s (JPS) soon-to-be-completed 190-megawatt power plant in Old Harbour, through natural gas pipelines. New Fortress Energy is supplying LNG to the University of the West Indies (UWI) and Red Stripe, Caribbean Products, Appleton, IGL Limited, CB Group, Clarendon Distillers, Wisynco and Seprod.

New Fortress invested close to$1 billion to bring the LNG project to its current stage.

Plans to supply the Jamaica Urban Transit Company (JUTC) with the chilled fuel will enable Jamaican buses to run on LNG.

Cayman Islands

The Cayman Islands government has selected Verdant Isle Port Partners (VIPP) as the preferred bidder for a project to construct a new cruise berthing facility (CBF) and enhance current cargo facilities.

The consortium of McAlpine, Orion Marine Construction, Carnival Corporation and Royal Caribbean Cruises was selected after proposing to develop the facility for under KYD 200 million (USD 243.9 million).

The figure includes enhancement of the cargo port which is 40 years old.

The berthing facility will consist of two-finger piers constructed on pilings to allow the sea and marine life to move underneath.

Locating the piers in deeper water resulted in the need for less dredging and less coral relocation than previously considered in the 2015 scheme submitted for environment impact assessment. There would be no dredging in Hog Sty Bay.

Under the proposed model, the Port Authority will continue to operate and manage the facility and four cruise lines will enter into preferential berthing rights for the new piers. The Port Authority will operate the four berths and two existing anchor points to manage the number of vessels and passengers visiting the Islands.

The financial investment required to build the piers will be repaid over 25 years to the preferred bidder using a portion of the passenger fee which is charged for each passenger brought to the new piers.

AMCHAM HSSE Conference

The American Chamber of Commerce in Guyana in partnership with AMCHAM T&T hosted the first Health, Safety, Security and Environment (HSSE) Conference in Guyana on July 17, 2019 in Georgetown.
Professionals and experts in the fields of Occupational Health & Safety, Security, Environmental Management from across the Caribbean and Guyana shared information to elevate l awareness and promote industry standard best practices on HSSE compliance and regulation that will ensure a pathway towards human, economic and environmental security for Guyana.

The theme for this year is Preparing for Sustainable Development.
AMCHAM (Guyana) recopgnises that sustainable development cannot be achieved in the absence of compliance of HSSE policies in business practice.
A nation that invests greatly on HSSE compliance and standards as a foundation towards sustainable development is sure to significantly reduce the cost of business interruptions, increase employee morale and productivity and improve reputation to attract future business investment.
The conference advised l CEOs, HSE and Security Professionals and Technicians to:

∙ Learn to build sustainable HSSE practices in their companies
∙ Develop cutting edge thinking when it comes to safety language
∙ Create new knowledge in Safety for Guyana
∙ Understand the cyber and safety threats

Trinidad and Tobago had hosted the region’s premier HSSE conference for the past twenty-three years   in the largest international and regional gathering of HSSE professionals.
Among the dynamic speakers and panelists at this inaugural conference was the President of AMCHAM T&T, Ms. Patricia Ghany, who joined her counterpart from Guyana, Mr. Zulfikar Ally in delivering the welcome address.
The conference featured talks on Leadership and Contractor Management by NGC President Mark Loquan; Leadership Principles for Achieving Total Safety Culture by Dr. Philip Mshelbila, Chief Executive Officer, Atlantic; Human Error and Calculated Risks by Stephen Harris; Cyber Security Considerations For Migrating IT Systems, by Ben Dadson, Indiana University of Pennsylvania and a panel discussion on the topic Regulatory Environment- Preparing for Compliance.

CLICO (Guyana)

Indebtedness Liquidator blocks transfer to T&T

Governor of the Bank of Guyana, Dr. Gobin Ganga, in his capacity as Liquidator of CLICO Life and General Insurance Company (South America) Limited (CLICO), moved to the Court of Appeal to block the transfer of over US$13M to three Trinidad and Tobago companies- CL Financial Limited, First Citizen Bank and CLICO Investment Bank Limited (CIB). The order to transfer was made on June 26, last, by High Court Judge Navindra Singh.

The US$13M (approximately GYD$2.795 billion) is held by the Registrar of Deeds pursuant to an Order of Court made in 2009. Justice Singh also ordered that CLICO pay costs of GYD$1 M to each of the companies. CL Financial Limited is the parent company of CIB and CLICO.
CL Financial Limited had been the largest privately owned conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the region, before a liquidity crisis and subsequent bailout in 2009
CL Financial Limited owes CLICO (South America) US$34M pursuant to a court order handed down by Justice Gino Persaud last February. Over $US13M was due under certain debentures. The order was made by then Chief Justice Ian Chang.
It was to be held by the Registrar of Deeds in an escrow account after CLICO laid claim to the monies following collapse of CL Financial Limited.
On June 25 during the evidence of CLICO, and before its completion Justice Navindra Singh struck out the Writ and Statement of Claim of CLICO, laying claim to the aforementioned sum. Justice Singh discharged the injunction Order under which the money is being held by the Registrar of Deeds.
Ashton Chase and Pauline Chase are representing CLICO, through the Governor who is its Liquidator, and is now asking the Court of Appeal to grant a Stay of Justice Singh’s order pending the hearing and determination of the appeal.

CLICO, in a writ of Summons filed at the Court of Appeal, is seeking an injunction restraining the Respondents, their servants and/or agents from uplifting from the Registrar of Deeds the sums held pursuant to an order made by Chief Justice Chang on March 24, 2009, and such further and other order as the court deems fit.
CLICO is also seeking another injunction restraining the Registrar of Deeds from disbursing and/or transferring and/or paying the sum to the Respondents, namely CL Financial Limited, First Citizen Bank and CLICO Investment Bank Limited (CIB).

In its Notice of Appeal dated June 27, CLICO, among other things, contends that the decision of Justice Singh was erroneous in law and that he erred in striking out the company’s action on the ground that it disclosed no cause of action prior to the close of the company’s case. CLICO argues that Justice Singh failed to consider and/or apply applicable equitable principles and relied on erroneous principles of law and applied incorrect principles of law with regard to subrogation and/or assignment of debenture.

In an Affidavit in Support of the Summons, Dr. Ganga said that Justice Singh struck out CLICO’s claim against CL Financial Limited which did not enter an appearance. Dr. Ganga, therefore, believes that the appeal has good meritorious grounds and that the judgment of Justice Singh was fundamentally flawed in many aspects.

It is Dr. Ganga’s assertion that Justice Singh in effect made a finding of a no case submission during the evidence-in-chief of CLICO and before the close of its case and that the Respondents did not seek discovery or any other Orders with regard to the pleading before the close of the pleading prior to the start of the trial.

“First Citizen Bank and Citizen Investment Bank filed the said Motions after the trial had commenced and an adjournment to permit (CLICO) to tabulate the large number of bank wire transfer documents to be tendered at that stage,” Dr. Ganga noted in the Affidavit.
According to Dr. Ganga, Justice Singh made a finding of fact that the action was repetitive to that of CLICO Life and General Insurance Company (South America) vs CL Financial Limited which was filed in 2009, and heard and determined before Justice Gino Persaud. The Governor added that the aforementioned case was not before Justice Singh nor did it form part of his judgment detailing the basis upon which the said finding was arrived.
“That action in the lower court (High Court) concerned certain debentures issued and registered in Guyana by Bosai Minerals Guyana Group Inc. and Bosai Minerals Guyana Services Inc. in favour of the third-named Respondent (CLICO Investment Bank Limited (CIB)) in the total principal of US$18M. The Appellants (CLICO) claimed rights, benefits and sums due thereunder in equity and law by way of subrogation.”

Dr. Ganga added that the order of then Chief Justice Ian Chang in interlocutory proceedings in the High Court, the Registrar of Deeds was authorized to receive the sums due and hold same in an escrow account and that the sum of approximately US$13M was lodged with the Registrar of the Deeds which is still so held.

Dr. Ganga said, “…That I fear that unless restrained the Respondents will seek to uplift the said sums from the Registrar of Deeds and transfer same out of the jurisdiction of Guyana prior to the determination of the appeal herein rendering the appeal nugatory. The Respondents are companies duly incorporated in the Republic of Trinidad and Tobago. The Appellant (CLICO) is a company duly incorporated in Guyana and carried out business of insurance prior to being ordered wound up.”

According to Dr. Ganga, CL Financial Limited owes CLICO over US$34M. He said that CLICO suffered loss and damages to the tune of US$34M after CL Financial Limited unlawful directions and instructions to transfer the said sum to CLICO (Bahamas), which collapsed in 2009, along with CLICO and CL Financial Limited.
Based on information, CL Financial Limited instructed that the millions of US dollars be transferred from CLICO (South America) to CLICO (Bahamas). The Affidavit sworn to by Dr. Ganga said that First Citizen Bank assumed responsibility, through emergency powers exercised by the Central Bank of Trinidad and Tobago, for aspects of CLICO Investment Bank Limited after it collapsed in 2009.
Dr. Ganga said, too, that the collapse of CL Financial Bank resulted in CLICO being placed under the judicial management of the then Commissioner of Insurance and was subsequently ordered wound up.
As a result of this, CLICO was unable to meet its financial obligations particularly to its policyholders. He said that the Respondents do not have any other assets in Guyana, and CLICO would be left without any remedy should it be successful in the appeal.

“(CL Financial Limited) is also under liquidation which represents a greater danger in the circumstanced that the sums would be irrecoverable should they be dissipated prior to the hearing and determination of the appeal. CL Financial Limited has not honoured its financial obligations to (CLICO South America,” the Governor stated in the Affidavit in Support.

Dr. Ganga says that it is a peculiar practice for an Order of Court to be signed by a Judge. He said that the Order of Court was entered the day after the judgment was delivered. The Governor noted that the signing of the Order of Court by His Honour (Justice Singh) is peculiar in the circumstances and in breach of Order 35 of the Rules of the High Court Chapter 3:02.

Investment outreach

Prime Minister Moses Nagamootoo, Ministers Ally, Trotman and Patterson, Director General of the Presidency Harmon and Georgetown Mayor Narine engaged with over 200 business investors in Port of Spain. The Department of Public Information said the Guyanese team detailed investment opportunities and outlined the Green State Development Strategy policy while welcoming to regional investors to Guyana. Plans for high level visits to Guyana were discussed. Trinidad and Tobago Minister of Energy praised the Coalition Government for its emphasis on human development, particularly investment in educating young people.

Since 2015, ECO has been donating a petroleum library and rock collections to UG and UTT for undergraduate and postgraduate training.

Trinidad Member of Parliament for Naparima, scolded Energy Minister for attending while a question mark hangs over Guyana’s Government following the Caribbean Court of Justice (CCJ) rulings.

The CCJ ruled that the the main purpose of the caretaker government was calling elections as soon as possible. It was doubtful whether hosting the investment outreach was a caretaker responsibility. Trinidad had a foreign policy of non-interference. Repercussions may follow if the People’s Progressive Party (PPP) win the next elections due by 18 September.

It is not in “T&T’s national interest to be taking sides either with the present caretaker Government of David Granger or with the Opposition. Given all the circumstances, our national interest will be best served by being scrupulously neutral”.

CARICOM

CARICOM meets United Nations

At their 10th general meeting CARICOM Secretary General noted that the Secretariat has been closely monitoring Guyana affairs following the No-Confidence Motion. , “It does not mean we don’t care; it doesn’t mean we are not concerned… CARICOM does not interfere unless there is a democratic and judicial process breakdown. We continue to monitor everything .… There has been a process … since the vote of no confidence, .. the process has worked so far in the sense that the CCJ delivered a judgment and its consequential orders.” The CCJ ruling was “very, very clear that all of the actors concerned; the Executive, the Opposition and GECOM must play their part.” Following the CCJ’s ruling which declared that the vote of no confidence against the government passed by the National Assembly was valid, the provisions of Article 106 of the constitution were set off, namely the resignation of the Cabinet and new elections to be held in three months.

“We [CARICOM] are very much engaged.” He met with the President and the Leader of the Opposition following the ruling. He spoke to the President before and after the ruling. “I am in touch, and will continue to be in touch with the relative parties involved.”.

He regularly briefs his Chairman, Prime Minister of St. Lucia, Allan Chastanet.
Opposition Leader Bharrat Jagdeo accused CARICOM of being “silent” and called for a public statement on the current affairs in Guyana.

The Secretary General said “But for now I think the situation continues. I have spoken to both of them [the president and opposition leader], I have made the offer that CARICOM is prepared to assist if both parties deem it necessary… That is how we operate.“

President Trump can compensate for losing Greenland by buying CARICOM and eradicating the waste of international by this bureaucracy which failed to operate even a single market.

About CARICOM

The Caribbean Community and Common Market (CARICOM) is a group of twenty developing countries that form an economic and political community that shapes regional policies and encourages economic growth and trade.
Fifteen countries are full-fledged members of the community- Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, Saint Kits and Nevis, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago.

Five retain associate member status with part-time privileges- Anguilla, Bermuda, British Virgin Islands, Cayman Islands and Turks and Caicos.