2 more Exxon discoveries as Liza FPSOs reach design capacity

JULY 27, 2022, BY NERMINA KULOVIC

IOC ExxonMobil made two new discoveries offshore to the southeast of the Liza and Payara developments in the operated Stabroek block. Discoveries at Seabob and Kiru-Kiru are the sixth and seventh in Guyana this year, with the total number of discoveries in Guyana at over 30, ExxonMobil revealed.

The Seabob-1 well encountered approximately 131 feet (40 meters) of high-quality hydrocarbon-bearing sandstone and was drilled in 4,660 feet (1,421 meters) of water by the Stena Carron drillship.

The Kiru-Kiru-1 well encountered approximately 98 feet (30 meters) of high-quality hydrocarbon-bearing sandstone and was drilled by the Stena DrillMAX in 5,760 feet (1,756 meters) of water. Drilling operations at Kiru-Kiru are ongoing.

Liam Mallon, president of ExxonMobil Upstream Company, said: “The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come.”

The company’s 2022 investment plans include further exploration drilling and resource development in Guyana, where it is already increasing production at an accelerated pace. Two floating production storage and offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — have exceeded their initial combined design production capacity target of 340,000 barrels of oil per day.

A third project, Payara, is expected to produce 220,000 barrels per day. Construction on its production vessel, the Prosperity FPSO, is approximately five months ahead of schedule with start-up likely before year-end 2023. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the ONE GUYANA FPSO comes online in 2025.

SBM Offshore completed the project financing of ONE GUYANA for a total of $1.75 billion, secured by a consortium of 15 international banks. This will be SBM’s largest FPSO so far.

At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.

 

 

Exxon Mobil Awards TechnipFMC Contract for Gas to Energy Project

Hart Energy Staff
08/02/2022

TechnipFMC will provide engineering, procurement, construction and installation services of subsea risers and pipelines for Guyana’s gas-to-energy project.

TechnipFMC provides both subsea and surface technologies to the traditional and new energy industries, such as Guyana’s gas-to-energy project.

Esso Exploration and Production Guyana Ltd., a subsidiary of Exxon Mobil Corp., awarded a “significant” contract to TechnipFMC for a gas-to-energy project in Guyana.

Per the contract, TechnipFMC will provide engineering, procurement, construction and installation services of subsea risers and pipelines for the project. The project will connect the production from the Liza Destiny and Unity FPSOs back to shore, delivering associated gas from the offshore field to a gas-fired power plant.

Although the full award of the contract was not disclosed, TechnipFMC defines a “significant” contract to be between $75 million and $250 million.

 

 

Subsea 7 and Van Oord join gas-to-energy project

July 27, 2022, by Nadja Skopljak

A consortium of Subsea 7 and Van Oord has won a contract by ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) related to the pipeline for the gas-to-energy project offshore Guyana.

The scope under the “substantial” contract, as the companies define it, covers the project management, engineering, and installation of approximately 190 kilometers of pipeline in water depths of up to 1,450 meters.

Work will also include an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.

“Van Oord is honoured to have been selected for the Guyana Gas to Energy project in cooperation with Subsea 7,” said Hans van Gaalen, commercial director for Van Oord.

“Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”

The gas-to-energy project will include the construction, commissioning, and operation of onshore natural gas liquids and natural gas processing plant (NGL Plant), which is proposed to be located at the Amsterdam (Demerara River)/Vriesland Area, West Bank Demerara.

It also includes an offshore pipeline, measuring some 225 kilometers, from the Liza Phase 1 and Liza Phase 2 FPSO vessels located within the Stabroek Block to La Jalousie/Nouvelle Flanders, West Coast Demerara.

The startup of the facilities is expected to take place by late 2024.

 

 

ExxonMobil hires another Kotug vessel

August 4, 2022 Melisa Cavcic

U.S.-based IOC ExxonMobil contracted another vessel from Kotug, a Dutch towage services provider, for operations entailing the provision of terminal towage support for two floating production, storage and offloading (FPSOs) units offshore Guyana. Kotug revealed that this deal was awarded by ExxonMobil’s subsidiary Esso Exploration and Production Guyana (EEPGL) and the firm’s SD Honour vessel will join SD Power to provide continuous terminal support to growing floating offshore production facilities at the Liza field.

This is the company’s second contract with ExxonMobil in Guyana. The first one was awarded in October 2020 for the offshore terminal tug SD Power to support operations in Guyana, which marked Kotug’s first operation in South America.

 

 

Acorn to manage EIA process for Uaru

Aug. 9, 2022

Acorn International will perform an environmental impact assessment (EIA) and lead the public consultation program for the Uaru project in the Stabroek Block offshore Guyana.

Exxon Mobil says it is firmly established in Guyana, operating an office in Georgetown, with numerous ongoing exploration and development operations offshore.

BOSTON, Massachusetts — Acorn International will perform an environmental impact assessment (EIA) and lead the public consultation program for the Uaru project in the Stabroek Block offshore Guyana.

This is the fifth offshore development project in the block, operated by Esso Exploration and Production Guyana Ltd., an affiliate of Exxon Mobil.

The proposed development is in the eastern part of the block, 200 km (125 mi) from Georgetown. Production is due to start around the end of 2026 or early 2027.

Acorn president Dean Slocum said, “We look forward to bringing our team’s deep experience in initiating a robust public consultation program to build awareness of this important project and actively engage all parties who may be affected.”

The company has conducted EIAs and facilitated public consultation programs for numerous large energy-related projects.

It has experience of working in partnership with host-country teams and claims to provide structured tools and coordination to swiftly build capacity on site.

The Uaru discovery was announced in January 2020, and the Uaru- 2 discovery was announced in April 2021.

 

 

Long-term demand for oil in transition to clean energy

5 August 2022

Senior Vice President & Head of Latin America Rystad Energy of Norway, an independent consultancy specialising in energy research and market intelligence, Schreiner Parker forecast that low carbon emission crude oil and break-even price of an average of U$28 per barrel positioned Guyana’s reserves for a favourable market, even with a projected global demand of up to 50 million barrels per day by 2050 due to the shift to cleaner energy such as renewables

His presentation on the company’s latest oil and gas study on Guyana’s upstream industry predicted that existing production would not be sufficient to meet the 2050 demand.

“This is really significant in the sense that when you have this low emissions intensity and the low cost resource, you’re able to be a long-term supplier for oil and gas no matter what the energy transition does and I think that demand figure of between 50 and 30 million barrels per day means that Guyana will have a place at that supply table because of these necessary and sufficient conditions.”

In addition to the need for production from new sources, including discoveries, the crude has to be low cost in order to be profitable and emit low amounts of carbon in an era of energy transition to cleaner energy and renewables.

“That’s what the global community is concerned about these days. Guyana has both the necessary and sufficient conditions to be a producer and be a part of the supply mix in the long term in 2040s and 2050s,” he told delegates.

With the gas-to-energy project, Guyana intends to shift from heavy fossil fuels to natural gas, hydro, solar and wind as part of its own energy transition plan. Already Guyana is regarded as “one of the most competitive sources” among other future large oil sources outside the core Middle East and offshore Norway, beating the Permian Basin in the United States, Russia and other onshore sources. Mid-80s Guyana’s assets have a breakeven ranging from US$18 per barrel to US$35 per barrel.

Emissions intensity for Guyana’s production is 9 kilogrammes of CO2 per barrel of oil equivalent or half of the global average, based on figures from Liza 1 and Liza 2. The Floating Production Storage and Offloading vessels (FPSOs) operating in Guyana outperform 75 percent of global producing assets.

Government take is projected to peak at US$16 billion in 2036. He ridiculed suggestions that his company was in the pockets of ExxonMobil and the government. While many companies including supermajor, ExxonMobil, and its co-venturers are its clients, its papers are 100 percent independently produced based on research and its proprietary data tools.

 

Stabroek Block one of the most prolific ever

August 4, 20220

Senior Vice President at Rystad Energy, Schreiner Parker regards Stabroek Block offshore Guyana as one of the most successful exploration blocks of all time, with an unparalleled success rate after ExxonMobil recorded 33 oil finds between 2015 and 2022. Parker was in Guyana to share Rystad estimates of the value of the Stabroek block at US$41 billion. This compares with the valuation across the peer group Guyana is in, which ranges from US$24 billion to US$55 billion.

“The Stabroek block has been one of the most prolific exploration blocks of all time. And if measured on exploration success rate, it probably does not have an equivalent in the world. Typically, exploration success rate is about five per cent. Meaning every five exploration wells drilled, only one encounters pay. That has not been the case in Stabroek. There have been very few dry holes drilled, versus actual commercial discoveries.”

Exxon’s level of success in the Stabroek block has not yet been replicated by Exxon and other oil companies in other blocks in Guyana’s waters. Of the four oil discoveries outside Stabroek, only one has commercial potential… although Orinduik partners talk of revisiting one wells, Jethro, and its commercial viability.

“We know that Jethro and Joe both had uncommercial lines for a number of different reasons. So, I think there are some questions about the commerciality outside of Stabroek. But certainly, Exxon and the other block owners are going to continue exploration efforts outside of Stabroek.”

Success in the Stabroek block is attributable to the company’s use of technology and deep-sea drilling practices but the Stabroek block also speaks for itself.

“If you look at Shell, which was previously a partner in the Stabroek block and decided to leave, they didn’t believe in the prospects and the potential Stabroek had. And I think it speaks to the fact that Exxon is one of the top deep-water operators in the world, and has a technical understanding that is almost unmatched… it’s a company that has always been run by geologists and engineers. And they were able to see something that others weren’t able to see. But, of course, the basin speaks for itself. And the amount of resources that is here, it’s phenomenal, but the fact that Exxon has been able to, in a short space of time, both have the success they have had and also go from discovery to first oil in a small amount of time does speak to them as an operator and their technical prowess.”

Petroliferous Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through subsidiary Esso Exploration and Production Guyana Limited (EEPGL), is the operator and holds 45 per cent interest in the Block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.

So far, Exxon’s total investments in Guyana is Gy$1.3 trillion and over Gy$3 trillion with its partners. Additionally, the consortium’s exploration and production plans up to 2025 would likely increase their investments to over Gy$6 trillion.ExxonMobil anticipates at least six projects offshore Guyana will be online by 2027, with developmental drilling having recently started on the second one, the Liza Phase 2 project. Production has begun in the second phase, with the Liza Utility floating, production, storage and offloading (FPSO) vessel in operation.

The third project – the Payara Development – will target an estimated resource base of about 600 million oil-equivalent barrels and was at one point considered to be the largest single planned investment in the history of Guyana.

Yellowtail, the fourth development , will turn out to be the single largest development so far in terms of barrels per day of oil, with a mammoth 250,000 bpd targeted.

 

 

Sweet Spot in oil block auctions

August 4, 2022

Senior Vice-President for Rystad Energy, Schreiner Parker believes the right fiscal regime will be the most important factor if Guyana is to get the most out of the sale of remaining oil blocks at the upcoming auction s scheduled for the third quarter of 2022. Even as the petrostate seeks optimum prices for the blocks, it will have to ensure it does not ask for too high prices on the oil blocks or it could scare away investors.

“It’s going to come down to the fiscal terms… What is going to be important is that the fiscal regime represents the fact that these are still exploration blocks and that companies do have to come and invest monies.”

Rystad Energy is an independent energy research and business intelligence company providing data, analytics and consultancy services to clients exposed to the energy industry across the globe. Parker has been working with Rystad since January 2016.

Guyana stands to gain much out of the auction, given the attractiveness of the basin, due to the success of the Stabroek block. However, that’s not to say that the country could not lose out if conditions are not favourable for investors. He believes that finding the right equilibrium will be crucial.

“The expectation, and what we would probably see, is that the fiscal regime will be more favourable to Guyana, but it’s a matter of getting that right. What is the sweet spot?
“What’s more favourable but not to such an extent that you scare off potential investors because [they] can’t make the economics work [if] the government takes [them] too high.”

 

Parker pointed to neighbouring Brazil as an example where such a case played out, noting that despite good prospects, Brazil eventually scared away investors due to the terms that were offered.

“In recent years, they have had unsuccessful bid rounds. Even though Brazil is an extremely important source of offshore production globally, they were unable to attract the interest that they wanted because the fiscal regimes were too onerous and they were asking for too much.”

“So the balance that Guyana is going to have to strike on these new blocks is understanding that we’re no longer going to have the Stabroek [block] fiscal regime that’s done and over, we are a petroleum province.“

Guyana currently has an estimated recoverable resource of 11 billion oil equivalent barrels in the Stabroek Block, which is the only oil producing block, owned by ExxonMobil, which has 45 percent stake, in partnership with Hess (30 per cent) and China’s CNOOC (25 per cent). ExxonMobil is also the operator of the Canje and Kaieteur Blocks offshore Guyana. CGX, together with Frontera Energy Corporation, operates the Corentyne and Demerara blocks and also has a share in the Berbice block.

Due to accelerated development of the Stabroek Block, Guyana has gained massive attention for its oil finds. Exploration companies made over 30 discoveries in the Stabroek Block with two projects, the Liza Phases One and Two, producing a combined 360,000 barrels per day. Two projects, Payara and Yellowtail are scheduled to come on stream in 2023 and 2025, respectively. However, notwithstanding the massive success of Stabroek block, and great potential of other blocks, there are few successful commercial discoveries outside the Stabroek block.

What is important to note is that the oil blocks are exploratory blocks which will require major capital investments, which is why government should be cautious with how much it asks for.

“We can’t expect that its guaranteed success that every hole that’s poked into the ground is going to produce oil, so getting that fiscal regime correct is going to be paramount for attracting interests from oil and gas players globally.”

Notwithstanding the massive capital intensive exploration work for developing the remaining blocks, Parker does not foresee Guyana having any trouble in attracting potential bidders for the remaining blocks.

“If the fiscal terms are right and they incentivise explorers to come and invest capital here then I think that Guyana is one of the hottest stories in international oil and gas right now and there’s a lot of appetite to come here.”

As pertains to the government potentially carrying out its own three-dimensional (3D) seismic surveys to better evaluate the blocks, Parker said that would not be necessary taking into account the attention Guyana is already receiving.

“Something like that could be of interest, but, at the same time, the story is so hot here in Guyana and everyone is really interested in this country; you may not have to do that type of pre-work to have interested parties.“

 

 

1.5M barrels of oil per day output forecast by 2035

August 4, 2022

Nation well positioned to remain strong contender in the supply mix

Increased production means rising revenues, so Guyana is well positioned to receive at least US$3.6 billion per annum by 2030 and US$12.4 billion annually by 2040.

“Things are moving so quickly here,” Parker noted. The projections in the report do not cater for recent discoveries at the Seabob-1 and Kiru-Kiru wells. Guyana’s Stabroek Block currently boasts estimated recoverable resources of approximately 11 billion barrels of oil. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator of the block and holds 45 per cent interest. Hess Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.

The Rystad Report examines oil-and-gas operations and Guyana’s rise from a frontier exploration player to being one of the top five offshore producers in the world; this is a title which the country could hold over the next decade. Guyana presents material value and growth for both the government and international oil companies.

The report also focuses on the advantaged nature of deep-water production due to its lower emissions intensity and low-cost resources. Guyana is taking steps to implement best governance practices in order to harness oil-and-gas revenues to promote broader economic development

While Guyana currently ranks 20th among the top oil producers in 2022, by 2035 Guyana is expected to place as the number four offshore oil-producing country in the world.

“[This is] ahead of more historic provinces like Norway and the United States, United Kingdom and Mexico. So, this is quite the big jump in a small amount of time. You wouldn’t have necessarily thought that in the span of 12 to 14 years you could have made that big of a jump, but from what we’ve seen that picture is very realistic.”

A comparative analysis of the government’s take if the Stabroek Block were developed in other territories showed that Guyana banks a 59 per cent profit or US$41 billion, and places the country with a higher percentage and total value when compared to countries such as the US.

“If we run the Stabroek Block in the country like the United States, we see that the fiscal regime in the US for offshore would yield a 40 per cent take for the US government and total government take is $27 billion.”

With new blocks coming on stream in Guyana, it is expected that government’s share will change.
Guyana falls in the median range on the scale of what differing governments would’ve gotten out of the oil block if it were developed in their territory. This shows that Guyana is still making massive gains from the block.

“The fact that Guyana sits right in the middle is something of interest, because the Stabroek Block could have different take in different regions. The prolific discoveries will create significant values for both the government and the companies. Again, these numbers are subject to change with more discoveries and we know that Exxon has a rather rigorous exploration plan still yet to be done for Guyana, so these numbers could and should only go up with more commercial discoveries.”

Parker commended the government for its mechanisms and institutions implemented in recent years to decentralise oversight of various areas of management of the oil-and-gas industry.

“The institutions are extremely important because institutions are designed to outlive administrations and institutions are what provide an anchor to avoid problems that administrations can have.”

The Sovereign Wealth Fund, the local content legislation, and the country joining the Extractive Industries Transparency Initiative (EITI) are areas where the country is “getting it right” in terms of governance. Guyana ranked higher than most other non-OECD countries in the World Bank governance dimensions; however, more work is required, as shown by its low EITI ranking in 2022.

The report examined the long-term sustainability of Guyana’s deep-water resources, given the impending energy transition. The report predicts that energy demand will peak around 2026 at 106 million BoE before drastically declining to as little as 30 to 50 million BEE by 2050. As this decline occurs, it will be a case of survival of the fittest oil resources. Even as demand for oil resources peter out, the quality of the resources produced in Guyana will strategically position the country to still be a massive contender despite declines. The future of the reduced demand will favour supplies coming from resources that have a low break-even cost, meaning the point where profits being to generate, while the second factor being that the resource has low emissions intensity when compared to other resource suppliers. In both of these regards, Guyana’s resources are well positioned to remain a strong contender in the supply mix.

“If we look at the offshore production globally and the cost-supply curve, Guyana fits very nicely. When we look at the break even to Guyana, it’s around averaging $28 per barrel and this includes future developments as well. This really positions Guyana well in terms of being an attractive source of supply in the future.”

 

 

Revenues boom with $7.5 bln expected in 2030

JULY 25, 2022, BY MELISA CAVCIC

Energy intelligence group, Rystad Energy, revealed that Guyana’s burgeoning offshore oil and gas industry is poised to enter the big league with revenues set to break the $1 billion mark in 2022 and see a significant annual acceleration in 2030. This boost in revenue is powered by the Stabroek block, according to Rystad Energy’s research, which shows that the government’s revenue from domestic production is on track to surpass the $1 billion mark this year and accelerate to $7.5 billion annually in 2030. In light of this, the energy intelligence group points out that this year is set to be a turning point for the Georgetown government to start capitalising on the vast reserves in the offshore field, with revenues more than doubling over 2021 levels.

Based on Rystad Energy’s research, low breakevens and below-average emissions intensity in the Stabroek will propel Guyana from a “relatively small” producer to a “global leader” in the coming years, solidifying the country’s position as a “competitive and policy-friendly player” for offshore production.

As a result of this, the government’s take – i.e. the value received by the government over the life of a license in the form of royalties, profit sharing and taxes – from the production is expected to increase until 2025, reaching $4.2 billion annually. Government revenues will fall to $2.4 billion in 2027 triggered by a forecasted drop in oil prices and continued spending on the field’s development.

However, production growth is still set to accelerate, with revenue momentum resuming as new pre-Final Investment Decision (FID) projects are sanctioned and brought online, leading to “peak”government revenues of $16 billion in 2036. Rystad says that these projections do not factor in “as-yet undiscovered resources.”

Furthermore, the recent spate of prolific discoveries and the steady pace of FIDs position the Guyanese government to reap the rewards of these finds with cumulative revenues totalling $157 billion by 2040, forecasts the energy intelligence player.

Guyana is the “global leader” in total offshore discoveries since 2015, with 11.2 billion barrels of oil equivalent, amounting to 18 per cent of discovered resources and 32 per cent of discovered oil. Rystad highlights that a whopping 9.6 billion barrels out of this total number are oil, far outpacing the U.S. in second place with a comparatively small 2.8 billion barrels. The Stabroek block accounts for all of these finds, although, recent discoveries in other areas show the potential for growth elsewhere.

Schreiner Parker, senior vice president remarked: “Guyana is just starting to extract and monetize its vast resource wealth, and the coming years will be a financial windfall for the Georgetown government. The country has played the long game after several decades of elusive exploration. The country’s offshore production is finally ready to take off.”

Keeping the longer-term picture at the forefront, Rystad Energy elaborates that Guyana is forecast to produce 1.7 million barrels per day (bpd) of oil by 2035 – not accounting for as-yet undiscovered volumes – propelling the country to the fourth position on the list of the largest global offshore oil producers, leapfrogging the U.S., Mexico and Norway.

Guyana is on the higher end compared to the fiscal regimes of other offshore leaders, with the government take clocking in at 59 per cent of the total value. On the other hand, applying the U.S. fiscal regime to the Stabroek block would result in a government take of only 40 per cent while Nigeria and Brazil align more with Guyana’s fiscal policies, with 58 per cent and 61 per cent, respectively.

The cost of supply is a “significant factor” in considering the desirability of assets and comparing them to other sources and regions. Guyana’s competitive breakeven costs, which average $28 per barrel across all projects and less than $20 for producing projects, are helping to transform the country into a “global heavyweight” in offshore production.

Rystad Energy sees Guyana’s offshore oil fields as some of the most competitive supply sources outside of the Middle East and offshore Norway, which are cheaper than the U.S. onshore heavyweight the Permian, Russia and many other sources.

Additionally, emissions intensity from offshore activity in Guyana is lower than the global average for oil and gas production and deepwater offshore production, further strengthening the country’s position through the energy transition, claims the energy intelligence provider. In line with this assessment, the upstream emissions from Guyana’s deepwater activities average 9 kilograms of CO2 per boe, comparable to Brazil and slightly higher than Norway.

While tensions with neighbouring Venezuela and Suriname have been an issue in the past, Rystad underlines that “warming relations”have allowed for increased drilling along the borders and boosted overall investor sentiment in Guyana. Despite this, it may not be all plain sailing as strong institutional governance, transparency and regulatory practices will be vital to unlocking the full potential of Guyana’s resource wealth for its society. Even though the government has taken steps to improve governance, including establishing a sovereign wealth fund and improving fiscal policy transparency, there are still improvements to be made.

In line with this, the Extractives Industries Transparency Initiative (EITI), which champions strong resource management and governance practices, recently found several weaknesses in Guyana’s company reporting and tax processes. However, Rystad Energy concludes that the country’s EITI score will likely grow in the coming years as recent improvements take effect.

 

Exxon streamlines procurement, engineering for 5th project

Aug 03, 2022

During its second quarter earnings call at the end of July, 2022. Hess Corporation disclosed that the ExxonMobil consortium initiated procurement and engineering works for its fifth oil project in the Stabroek Block, fortified by Government permission for offshore development.

Hess, which holds a 30 percent working interest in the Stabroek concession said, “Front-end engineering and design work for our fifth development in Uaru Mako-1 is underway with a plan of development expected to be submitted to the government by year-end. In terms of exploration and appraisal in Guyana, we plan to continue to invest in an active programme with approximately 12 wells planned for the Stabroek Block in 2022.”

Hess and its partners are also simultaneously planning a drilling campaign with 24 wells evenly distributed across its Canje and Kaieteur Blocks. It will also execute a 35-well programme in the Stabroek Block next year.

In its project summary submitted to the Environmental Protection Agency (EPA), ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EPPGL) said the Uaru Project will be located in the eastern portion of the Stabroek Block, approximately 200 km from Georgetown.

Current plans include the use of drillships to produce oil from approximately 40-76 wells. Production is expected to begin between the fourth quarter of 2026 and the second quarter of 2027 with an expected field life of at least 20 years. By then, Guyana is forecast to be producing over one million barrels of oil.

EEPGL said production facilities to be installed include subsea equipment attached to the seafloor as well as processing equipment on the ocean surface known as a Floating, Production, Storage, and Offloading (FPSO) vessel. The anticipated production rate ranges between approximately 220,000 barrels and 275,000 barrels of oil per day. The vessel will be capable of storing approximately two million barrels of oil.

Third party oil tankers will be scheduled to offload the oil from the FPSO, making the oil available for export to the international market. The FPSO will also process, dehydrate, compress, and re-inject associated gas produced from the reservoir. As the Uaru and Mako reservoir pressures deplete over time, gas reinjection will help maintain reservoir pressure and allow for optimum production of hydrocarbons to continue over time.Some of the gas will be used as fuel on the FPSO.

EEPGL told the EPA that it has undertaken additional studies to obtain an even more comprehensive understanding of potential impacts of effluent discharges to water, the feasibility of alternative handling of produced water, cradle to grave waste management in Guyana, emergency response capabilities, and environmental compliance monitoring and verification. The learnings from current operations and environmental studies will enhance the design and implementation of the Uaru Project, thereby increasing environmental performance and economic value.

 

 

 

Exxon reports US$17.8B profits

Jul 30, 2022

As inflation soars Exxon Mobil Corporation announced estimated second-quarter 2022 earnings totalling US$17.9 billion, or US$4.21 per share. Darren Woods, Chairman and Chief Executive Officer. said,

“Earnings and cash flow benefited from increased production, higher realizations, and tight cost control. Strong second-quarter results reflect our focus on the fundamentals and the investments we put in motion several years ago and sustained through the depths of the pandemic.”

Second-quarter results included a favourable identified item of nearly US$300 million associated with the sale of its Barnett Shale Upstream assets. Capital and exploration expenditures were US$4.6 billion in the second quarter and US$9.5 billion for the first half of 2022.

Woods noted that key to its success is continued investment in its advantaged portfolio, including Guyana, the Permian, global Liquefied Natural Gas (LNG) and in its high-value performance products, along with efforts to reduce structural costs and improve efficiency.

“We’re also helping meet increased demand by expanding our refining capacity by about 250,000 barrels per day in the first quarter of 2023 – representing the industry’s largest single capacity addition in the U.S. since 2012. At the same time, we’re supporting the transition to a lower-emission future, growing our portfolio of opportunities in carbon capture and storage, biofuels, and hydrogen.”

Turning to its financial performance, Exxon said its second-quarter earnings of US$17.9 billion is significant when compared with US$5.5 billion made in the first quarter of 2022. Excluding identified items, it said earnings of US$17.6 billion increased US$8.7 billion from the prior quarter, driven by a tight supply/demand balance for oil, natural gas, and refined products, which have increased both natural gas realizations and refining margins well above the 10-year range.

Its cash increased by US$7.8 billion in the second quarter, as strong cash flow from operating activities more than covered capital investments and shareholder distributions. Also, free cash flow in the quarter totaled US$16.9 billion while shareholder distributions were US$7.6 billion for the quarter, including US$3.7 billion of dividends.

In Guyana where ExxonMobil’s subsidiary operates the Stabroek Block, there are four sanctioned projects. The Liza Phase 1 development, which began production in December 2019, reached its new production capacity of more than 140,000 gross barrels of oil per day in the second quarter of 2022 following production optimization work.

The Liza Phase 2 development, which achieved first oil in February 2022 utilizing the Liza Unity FPSO, reached its production capacity of approximately 220,000 gross barrels of oil per day earlier this month. The third development at Payara is on track to come online in late 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.

The fourth development, Yellowtail, will be the largest development to date and is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day. At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.

The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator of the oil rich concession and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

 

 

Guyana lifts Hess second quarter earnings to US$667M

Jul 28, 2022

Hess Corporation achieved a net income of US$667 million, or US$2.15 per common share, in the second quarter of 2022, compared with a net loss of US$73 million, or US$0.24 per common share, in the second quarter of 2021.

At the Stabroek Block where it has a 30 percent working interest, Hess said net production totaled 67,000 barrels of oil per day (bopd) in the second quarter of 2022 compared with 26,000 bopd in the prior-year quarter.The corporation said the improvement in after-tax earnings compared with the prior-year quarter adjusted results was primarily due to higher realized selling prices in the second quarter of 2022. Increased production at its operations in Guyana also contributed to its sizeable net profits.

Production from the Liza Destiny Floating Prouction Storage and Offloading (FPSO) vessel reached its new production capacity of more than 140,000 gross bopd in the second quarter of 2022 following the completion of production optimization work initiated in March.

As for net production from the Liza Unity FPSO, commencing in February, Hess said this was 35,000 bopd in the second quarter of 2022, and reached its production capacity of 220,000 gross bopd in July.

In the second quarter, the company sold six one-million barrel cargos of crude oil from Guyana compared with two one million barrel cargos in the prior year quarter.

With respect to net production guidance for Guyana for the full year 2022, Hess said this is expected to be approximately 75,000 bopd, which includes approximately 6,000 bopd of tax barrels. Net production guidance for the third quarter of 2022 is expected to be in the range of 90,000 bopd to 95,000 bopd, which includes approximately 7,000 bopd of tax barrels. There were no tax barrels in the first or second quarters, Hess said in its earnings report.

Hess and its co-venture partners currently have four sanctioned developments on the Stabroek Block. The Liza Phase 1 development, which began production in December 2019, reached its new production capacity of more than 140,000 gross barrels of oil per day in the second quarter of 2022 following production optimization work.

The Liza Phase 2 development, which achieved first oil in February 2022 utilizing the Liza Unity FPSO, reached its production capacity of approximately 220,000 gross barrels of oil per day earlier this month. The third development at Payara is on track to come online in late 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.

The fourth development, Yellowtail, will be the largest development to date and is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day. At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.

Exxon adds two more wells to its string of discoveries. This brought the number of this year’s discoveries in Guyana to seven, while the total number of discoveries made in Guyana is now over 30.

The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator of the oil rich concession and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.

 

 

Tullow abandons Kanuku well

• • • • Group to abandon operations at Beebei-Potaro
      • Well drilled to 4,325 metres t was water-bearing
      • Shares down 6%

Aug 5 (Reuters)

Tullow Oil said it would abandon its drilling operations at an exploration well offshore Guyana after results showed the well bore water, sending its shares lower.

The group, which holds 37.5% of the Kanuku block where the Beebei-Potaro exploration well lies, will work with its joint venture partners before deciding on its next steps.

Spain’s Repsol, which operates the Kanuku licence, and TOQAP, a joint venture between Total (TTEF.PA) and Qatar Petroleum, hold the remaining interests in the block.

Shares of Tullow fell as much 6% to 47.38 pence in early trade, among the biggest losers in London’s FTSE midcap index. (.FTMC).The results mark another disappointment for companies drilling offshore Guyana, Panmure Gordon analysts said, adding that the only block that has shown and delivered anything in the area was the Exxon-operated Stabroek. London-based Tullow said the well that had been plugged had been drilled to a depth of 4,325 metres and had displayed a “good quality reservoir” in its primary and secondary targets, but was water-bearing.Tullow had previously said it would limit capital exposure in Guyana, which is in the north of South America, possibly selling a portion of its stake to another company.

It has so far not announced any plans to do so. “Higher oil prices will help (defray) … the wasted capex, and suggests that the blocks held by Tullow are low quality (as the Orinduik block only has the sub-commercial heavy oil discovery),” Panmure Gordon added. Tullow holds a 60% interest in the Orinduik block, its other licensed area in Guyana, with partners including Total and Eco Atlantic Oil & Gas

Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu and David Holmes

Tullow offshore exploration disappoints

05 Aug 2022

Tullow Oil announced that drilling operations at the Beebei-Potaro exploration well, drilled in the Kanuku licence, offshore Guyana, have been completed. The well encountered good quality reservoir in the primary and secondary targets but both targets were water-bearing.

The Noble Regina Allen rig drilled the Beebei-Potaro well to a Total Depth of 4325 metres in 71 metres of water and the well has been plugged and abandoned. Tullow will integrate the well results into its regional subsurface models and work with its joint venture partners before deciding on next steps.

Repsol is the operator of the Kanuku licence with a 37.5% working interest. Tullow holds 37.5% with TOQAP holding 25%.

 

 

US$2 Billion funding agreement with US EXIM Bank

July 27, 2022

Guyana signed a US$2 Billion funding agreement with the United States Export-Import Bank.

Under the agreement, the parties have agreed to explore options for utilizing EXIM’s standard instruments, which include direct loans and medium- and long-term guarantees to finance US exports to Guyana for Government projects totaling US$2 Billion.

Following the signing of the agreement in Washington, President Ali said the MOU signals the seriousness of the United States not only in Guyana but the region. The MoU should also signal an open invitation to the private sector and the leadership of both countries to move aggressively forward on a platform supported by the Government of Guyana and EXIM Bank.

“In this development phase of our country, we want to see greater US participation not only from the Government but from the private sector. One of the inhibitive factors has always been the ease of access to financing and the barriers to financing. This today, is the single most important signature not only for Guyana but for the region. The United States, through one of its agencies EXIM Bank is serious about its commitment to the CARICOM region.” The President said.

The MoU highlights a number of sectors in which projects may be identified. These include but are not limited to: infrastructure (including roads and bridges); energy (including renewable energy and emission reduction); telecommunications (including wireless technologies); water treatment and sanitation (including technologies and infrastructure); and agriculture.

“I think we can applaud ourselves and EXIM Bank for this dynamic, futuristic, and bold move in advancing this relationship and this cause, and the areas we have identified shows the broad and multifaceted nature of the leadership of EXIM Bank.” the President said.

The President has assured that his government will aggressively pursue the MoU for the benefit of the Guyanese people and the United States.US provides US$2 billion to Guyana; Ali wants “greater US participation” in Guyana’s development

Guyana made a major shift in its international financing relations with the inking of a US$2 billion deal with the United States’ Export-Import (EXIM) Bank for government projects and hailing the importance of Washington to the petrostate’s development.

“In this development phase of our country we want to see greater US participation not only from the government but from the private sector,” he said in Washington DC at the signing of the memorandum of understanding.

The accord was signed less than two days after the US and Guyana committed to work together to ensure shared prosperity, inclusive growth and transparency and accountability

Traditionally, Guyana has been obtaining concessional bilateral financing from EXIMBANKs of India and China and recently from the Islamic Development Bank. Guyana made a pitch to a Saudi Arabia investment delegation and decided to establish a Saudi Arabia desk at the Ministry of Finance.

In October, 2020, the United States government-run bank, the International Development Finance Corporation, had hoped to finance businesses that would be keen on building high quality infrastructure projects if companies were to win competitive bids.

The President indicated that prior to Wednesday’s signature, Guyana had experienced difficulty in obtaining soft financing. “One of the in factors has always been the ease of access to financing and the barriers to financing. This today is the single most important signal not only for Guyana but for the region. The United States, through one of its agencies- the EXIMBANK- is serious about the commitment and promise to this region, the CARICOM region.”

Dr Ali said the way was now clear for the private sectors of the US and Guyana to move forward “aggressively” and make full use of that opportunity.

“This is what we’re talking about, not a simple MoU, but an MoU that has the potential of unlocking all of this. The focus on energy, renewable energy, that allows us to advance on the path of goals and targets we set at COP26 and beyond. It shows our commitment on cleaner energy, advancing sustainable and resilient development.”

President Ali committed to working “aggressively” and “proactively” in pursuit of the full realisation of the MoU while ensuring that all parties emerge as “winners”. The President also invited the bank’s hierarchy, including its President and Chair Reta Jo Lewis to visit Guyana with the US private sector to meet Government and the local private sector in Guyana to solidify the projects.

An American business delegation visited Guyana and recently held talks with the President and other top government officials.

 

 

ITEC scholarship in India

Aug 24, 2022 ,

Ms. Anuja Reyada Singh, has been chosen for an ITEC Scholarship to undertake a course on Using Digital And Social Media Marketing For Organisation Growth at the Lovely Professional University, Punjab, India, which will span the period August 24 –September 6, 2022.

The High Commission of India noted that Ms. Singh works with the Government of Guyana, volunteers with Art of Living and the Guyana Zoological Park.

During a meeting, High Commissioner H.E. Dr. KJ Srinivasa congratulated and briefed Ms. Singh on the ITEC programme overall and the course.

Since May 2022, the High Commission of India in Guyana restarted its on-site training in India, under the Indian Technical and Economic Cooperation (ITEC) programme after a two-year hiatus due to COVID-19 pandemic.

To date, over 675 Guyanese have undergone training with the ITEC programme, including Officers of the Guyana Police Force (GPF), Guyana Defence Force (GDF), Coast Guards, officers and staff of the various government ministries of Guyana and members of the public/private sector. The ITEC programme comprises of offering short term fully funded courses at prestigious institutions of India by the Government of India to select partner countries across the world.

The High Commission of India urges all Guyanese to seize the opportunity to get themselves trained at some of the most prestigious universities in India in various sectors.

For more information, persons can contact edu.georgetown@mea.gov.in or access website edu.georgetown@mea.gov.in

 

 

3t EnerMech industry training

A partnership of energy sector training provider 3T Energy Group and Aberdeen company EnerMech is to become the sole provider of licensed training in Guyana.

 

 

US VP promotes `inclusive democracy’, `economic development’

July 28, 2022

Guyana’s President Irfaan Ali, who is currently heading a high-level delegation to the United States, yesterday engaged Vice President Kamala Harris on food and energy security and the latter raised “inclusive democracy” and “economic development” for all Guyanese

US Vice President said “This afternoon I spoke by phone with President Ali of Guyana as part of our Administration’s ongoing effort to strengthen partnerships with Caribbean nations. We discussed our cooperation on food security, energy security, and other issues.”

A White House readout of Harris’s call with Ali also reported the Vice President as stating that she looked forward to promoting inclusive democracy and economic development for all Guyanese.

 

 

President to Congressman –
Stop playing politics with the future of Guyana

August 1, 2022

President Ali tells critic Congressman Jeffries to meet.

PRESIDENT, Dr. Irfaan Ali has taken US Congressman Hakeem Jeffries to task after he failed to respond to an invitation to meet during his visit to Washington DC.

The President called out the seemingly Opposition-aligned Congressman while delivering remarks at the sod-turning ceremony for the Paediatric and Maternal Hospital, at Goedverwagting, East Coast Demerara

Congressman Jeffries, the US Representative for New York’s Eighth Congressional District since 2013 has been expressing views that are critical of the government. Given the Congressman’s concerns, the President noted that he had instructed that an invitation be sent for a meeting with Jeffries while he and his delegation were in the US.

“Let me be clear on this. This President asked the Foreign Affairs Ministry and Ambassador Hinds [Guyana’s ambassador to the US) to write him [Congressman Jeffries] inviting him to a meeting.”

The Congressman; however, according to the President, never replied to the invitation.

“He has not responded to the ambassador’s invitation. Ask yourself why? If you have all these concerns why you haven’t attended a meeting you were invited to? Stop playing politics with the future of a country. This President will not allow it. I will speak about it and in stronger terms I’ll speak about it.”

Other Congressional members have lauded the President for his visionary leadership. During his visit to the US, the President was bestowed with a Certificate of Congressional Recognition by Congresswoman Sheila Jackson Lee. The recognition of the 18th District of Texas to President Ali recognises his election victory as a “triumph of democracy” while praising his vision for the Guyanese people.

President Ali was in the US with a high-level delegation, including Vice-President, Dr. Bharrat Jagdeo. While there, he met high-level US officials to advance the strategic shared interest between the two countries. Coming out of the meetings, Guyana signed a historic US$2B agreement with the Export-Import (EXIM) Bank of the United States in Washington. The agreement represents an important milestone in US-Guyana relations since it lays the foundation for Guyana to access EXIM financing and facilities for the first time and provides for interventions on a scale that is likely to have a lasting developmental impact.

 

 

Guyana needs cheap, reliable electricity

Jul 21, 2022

A recent power cut in Georgetown lasted for most of the morning and continued into the afternoon. Sunshine gave some relief to those who have solar power but fridges full from weekend stock-ups were out of action, microwaves dead, and fans silent.

Guyanese can use some cheap, reliable electricity for a change, if only to give them a little peace of mind and empower them to get on with the many other hard demands of local life. After billions have been spent, almost as many promises from leaders, changes in government, and changes in management at the nation’s electricity company, we are in the same place, as we have always been – blackouts and more blackouts in many parts of the country. Some areas are more blackout prone than some but, overall, the electricity picture is pretty grim.

The Guyana Power and Light (GPL), as it stands, is not the answer to our electricity woes. Projects hailed as the solutions may be the answers urgently needed, but there is great uncertainty as to whether leaders in the Government are telling Guyanese the full story, and an accurate one. Gas-to-energy and the Amaila Falls Hydro Project have been held out as the remedies to our woes. We have heard about cheaper and cleaner than what we have now, but that has been greeted with much skepticism because so much is still unknown about both projects.

Meanwhile, the blackouts roll on, and Guyanese swelter or curse over their spoilage and losses, and the general quality of their lives. The Vice President and his energy team have been talking up the benefits of planned energy projects, but whenever he puts these kinds of things on the table, citizens get the impression that he pushes the positives, while keeping the negatives to himself, that is, if he himself has the most complete grasp of all the components of these U.S. billion-dollar projects. We know how much we need currently, and how much we will demand in the next few years, with due consideration given to national economic development and expansion. It would help to know what the true cost is end-to-end of energy projects being sold and the maximum output of electricity, as well as what our visions and plans are for any excess electricity or energy produced. Trinidad has a huge demand for electricity, and could serve as a potential market for any spare capacity in our inventory.

How would we get such to them? What would it cost us to do so? Would such costs still keep any possible supply to Trinidad within an acceptable price range? Meaning that the final cost would still make sense for our CARICOM neighbours and partners to benefit from what we sell them. And, at the same time, we also make some money from what is transported to the Trinis. If we have excess and have no market for it, then that becomes a worrying and burdening proposition, a wasteful one. Certainly, the nice sounds coming out of leaders about energy make for good listening. We all want cheap, reliable electricity, but only if we get all the pieces right.

 

 

Encourage investment from USA

Aug 04, 2022,  Vishnu Bisram

As it relates to the Washington trip of President Ali and Vice President Jagdeo and entourage, Guyana must heed messages delivered in diplomatic words — use of key phrases – and body language. Guyana’s political and economic future, her development and democratic culture, is tied to the USA and the West and not with any socialist oriental country seeking global dominance. Failure to heed the underlying message coming out of Washington would result in serious repercussions.

America is our natural ally given geographic regional proximity, geo strategic security interests, democratic culture, guarantor of free and fair elections, trade, financial aid, investments and large diaspora (bigger than the population of Guyana) in the USA. Besides, the diaspora in the USA wants closer ties, even an association or alliance, with America, the hegemonic power of the region. Any defiance that threatens USA interests will lead to serious consequences.

Guyana toyed with close relations with the Soviet bloc between the 1950s and 1990, and we were severely burned and are yet to recover from the devastation. Fraternising with another power alien to the region will hurt our country especially ast we are producing oil which is in demand by USA and western Allies and that would fund our development. We would not like a repeat of the political faiths of 1953, 1964, 1992, 2015, and 2020.

The USA has been the guarantor of regime change and democracy in Guyana. The government has not forgotten that USA ensured “the results of the 2020 election were observed”. For that alone, Guyana should eternally be grateful to the U.S. The majority of the Guyanese people, based on my interactions with them, are thankful to America for coming to the rescue of democracy. The diaspora, as per my engagements with them in various parts of the USA, is also grateful that USA protected the people’s right to choose their government. China, Russia, Cuba, Venezuela made no attempt to condemn electoral fraud in Guyana or urged the then regime in March 2020 to respect the will of the people. If the US had not spoken out forcefully, Guyana would have become an undemocratic pariah state.

The U.S. is concerned about Chinese influence in the Americas. And while we are not privy to any discussion in Washington relating to China, it must be assumed that the matter would have been raised with the visiting delegation as China has been on the minds of American policymakers over the last decade. Guyana should not become over dependent on Chinese loans or investment to the detriment of US investment.

US$2 billion American Exim Bank line of credit has been made available to American private investment in Guyana. Insurance is also generally offered to American investment abroad. This suggests that the US wants and will encourage American investment to compete with or replace Chinese investment in Guyana. Like President Ali, I too am excited that American investment is returning to Guyana after they were chased out by the Burnham dictatorship. The diaspora is also pleased to see greater American investment in their homeland. They know that greater American presence is good for the country. They recognise America’s role in securing democracy there. Guyana should offer favourable terms to diaspora investors.

Guyana should unshackle financial ties with countries that don’t protect or subscribe our democratic culture, and the country encourage and embrace American investment. Incentives should be offered to increase American investment. The diaspora in America should take advantage of the Exim bank credit line and invest in various projects in their former homeland. Since they want to cement ties between Guyana and USA, their investment would bring the two countries closer. As investment grow as, the US would have greater interest in ensuring that democracy is not threatened as in 2020. And as the two nations become closer through trade and people to people contact, the US would be more inclined to protect our nascent democracy.

 

 

 

Guyana among few benefitting from high energy costs – ECLAC

August 25, 2022

While highlighting that most of the countries in the Latin America and Caribbean region are being adversely affected by the steep rises in energy prices, the Economic Commission for Latin America and the Caribbean (ECLAC) identified that Guyana is among the few countries in the region benefitting from increased energy costs.

The information was contained in the ECLAC’s annual report – Economic Survey of Latin America and the Caribbean 2022: Trends and challenges of investing for a sustainable and inclusive recovery. The Economic Survey of Latin America and the Caribbean is issued annually by the Economic Development Division of ECLAC.

 

 

 

A handle on growing oil economy

August 24, 2022

-no hyperinflation, overheating

The Government has a handle on Guyana’s growing economy and will continue to strengthen its masterplan to guard against any wasteful or excess spending of funds.

The International Monetary Fund (IMF) revealed in April that Guyana will see positive growth, although the global economy entered 2022 in a weaker position than previously expected.  Guyana is on track to seeing some 47.2 per cent growth in its Gross Domestic Product (GDP) by the end of this year.

While Guyanese continue to witness a number of heavy investments in several areas to enhance their livelihoods, the administration has systems in place to prevent overheating of the economy.

An economy is overheated when its productive capacity is unable to keep pace with growing aggregate demand. It is generally characterised by a below-average rate of economic growth, where growth is occurring at an unsustainable rate. Boom periods are often characterised by overheating in the economy.

Dr Irfaan Ali assured that his government is taking all necessary measures to secure Guyana’s economy.

“This is something that we are managing, we are very cautious about, and we are ensuring that whatever we do, we are not over extending ourselves, the financial system, and we are keeping to the transformative investment.

“That’s where the balance of management comes in. you could get carried away very easily when you have resources coming your way, and go on a massive expansion plan or expenditure plan that could cause hyperinflation…”the president added.

Even if the current investments have temporary supply issues, it will be the bedrock on which the future transformation will take place. He said the local economy is creating a lot of opportunities for jobs in both the public and private sectors, to the extent that there are issues with labour supply.

In Guyana, the government has already been able to create thousands of jobs. With the booming housing programme, a host of persons were employed in the sector. The cost of energy is expected to fall by 50 per cent, creating a new wave of jobs in the industrial and manufacturing sectors.

The administration has also recently launched its part-time jobs initiative, added to the major economic spur is the construction of six new hotels, where at least 6,000 Guyanese will have to be trained to work in the hospitality sector.

Importantly too, government is pursuing a path that will deliver world class healthcare service.

“We have a private sector that is booming, a private sector that is seeing tremendous transformation. We have an investment portfolio that must be implemented if we are to deliver the housing programme… open up new lands for agriculture, new highways so that we can build the industrial parks and development that we want to do,”

 

 

 

Oil, gas boom will ensure Guyana’s future

 

President Dr Mohamed Irfaan Ali said the oil and gas boom Guyana is experiencing will ensure the country’s future economy but it will not be the focus. The country had 18 billion barrels of proven reserve and by 2026 it should be producing 810,000 barrels per day. However, even before oil and gas was discovered in Guyana its economy was one of the fastest growing in the world.

Even so, he said the country lacked “the revenue and a fiscal space” to advance its development but it could do so now with that discovery.

“Oil and gas is just but an input to build out the other sectors and segments of the economy to be globally competitive and produce the wealth of the future. We have to invest in cutting edge technology, in research and development… We are working now on building our new city with an innovation village within that city, cutting edge jobs of the future. We’re not only working on jobs, we’re working on tech jobs, building a National Skills Training Development Centre that will be training the workforce for the future. And we’re starting with those at home, but you are part of home.”

At a Diaspora Outreach hosted by the consulate general of the Co-operative Republic of Guyana in TT at the Radisson Hotel, Ali said his government was evaluating how some of its programmes could be applied to the diaspora.

Guyanese contribute significantly to every aspect of global development and it was important to harness and concentrate the expertise, talents, skills and experience to develop and uplift Guyana and its people. A country’s human resource was one of its most important assets and Guyana’s had to be fixed so it could support social and economic transformation.

“Let us understand fundamentally that fixing the human resource is not making everyone doctors, professors and lawyers. Fixing the human resource problem starts with fixing ourselves, fixing the way we think, fixing the way we act, fixing the way we behave, fixing the way we see each other, fixing who we are and what we were created for.”

He believed when that was fixed, prosperity would come to the country.

The prosperity of Guyana would be the prosperity of the Caricom region because each country could not do it alone. Caricom countries have to build a region where all can realise their aspirations and build a future for their children. He said the support of the region was necessary as all lived in a global environment where things in other parts of the world affected them.

Ali said the country had to position itself to monetise its ecosystem. He said with 87 per cent of the last area being forests, Guyana was the “lungs of the world.” It also had, possibly, the largest concentration of fresh water in the world, was highly mineralised, and had diamond reserves among other valuable resources.

The government was looking into increasing production including animal feed, poultry, rice, and vegetables, as well as using hydroponics to produce fruits and berries that were usually imported.

It also wants to eventually position the country as a leader in tourism, and reduce the cost of electricity by 50 per cent by 2025 to benefit the people and sectors such as manufacturing and industrial development.

Ali noted that those in the audience were the ones who decided to leave the country when they faced hardships in Guyana. He recognised they faced challenges in the countries in which they settled but stressed that the opportunities they grasped brought them success.

He reminded them even though Guyana was made up of six different people, they were all on the same team – One Guyana. But, he said, each individual had to contribute to make that a reality.

 

 

Fulbright Scholars

August 13, 2022

GUYANESE educator, Keesha St. John and civil engineer, Bayeeshmaal Ramsundar are 2022 Fulbright Scholarship awardees. They will embark upon graduate level programmes in their respective fields at universities in the United States.

According to a release from the US Embassy in Georgetown, St. John will pursue a Master of Science in Agribusiness Economics at Southern Illinois University Carbondale while Bayeeshmaal Ramsundar will pursue a Master of Science in Construction Management at New York University’s Tandon School of Engineering.

During a courtesy call at the Embassy on August 11, Ambassador Sarah-Ann Lynch extended congratulations to the awardees on their selection from a highly competitive group of candidates, the release said.

Ambassador Lynch noted that the US Government was pleased to support Guyana’s development by building local capacity through higher education. She further noted that both areas of study were vital to Guyana’s growth as it takes centre stage on the world market.

The Fulbright Foreign Student Programme gives Guyanese citizens the opportunity to complete a master’s or PhD at a higher education institution in the United States. Founded in 1946, the Fulbright Programme now operates in 160 countries and has provided over 400,000 people from all backgrounds and in all fields the opportunity to study, teach and conduct research, exchange ideas, and contribute to finding solutions to complex global challenges. Over 120 Guyanese have benefitted from Fulbright scholarships since the early 1960s, many of whom are in the public sector, academia, the arts, business, civil society, media, and education.

 

 

Berbice port delay

Aug 11, 2022

CGX Energy Inc. through its subsidiary, Grand Canal, is involved in the construction and development of the Berbice Deep Water Port (BDWP), on the eastern bank of the Berbice River.

A critical portion of the project, the Offshore Supply Base of the port, was initially scheduled to be completed in the fourth quarter of 2022. Unfortunately, the company has informed shareholders that it would be unable to meet this deadline. A revised schedule for completion is being discussed with the contractor for the project.

According to the company’s financial statements, the Deepwater port facility intends to serve as an offshore supply base for the Oil and Gas industry and as a multi-purpose terminal (MPT) cargo handling base to service agricultural import/export, containerised and specialised cargo.

The BDWP also aims to enable provisioning of operators and vendors in territorial waters of both Guyana and Suriname. CGX in its latest financial report said active construction is ongoing on the rip rap flood protection (which is 96% completed), and quayside laydown yard (92% completed). It said too that an access bridge from Corentyne Highway, rehabilitation of access road, extension of electricity infrastructure to the port site and delivery of potable water to the port have all been completed.

Requests for proposals were received for the wharf platform and access trestle, capital dredging programme, design and construction of all gates, buildings, design and construction of firefighting and first aid structures and covered storage areas. Evaluations of submitted proposals for the capital dredging and construction of the wharf platform and access trestle were completed and a local contractor selected. CGX said the successful bid incorporates an update to the design of the Wharf and Trestle to realize cost efficiencies. Taking this into account, CGX said it is unlikely that the Offshore Supply Base of the port will be fully operational in Q4, 2022 as previously scheduled. To cover expenses associated with the project, the cash-strapped company had to borrow funds from its partner, Frontera Energy Corporation, in the Corentyne Block.

On March 10, 2022, CGX had entered into a financing agreement with Frontera for a US$35 million loan, to continue to finance part of its share of costs related to the Corentyne Block, the Berbice Deepwater Port, and other budgeted costs as agreed to with Frontera. This 2022 Convertible Loan was then amended three times prior to closing. The 2022 Convertible Loan was available for drawdown in tranches on a non-revolving basis until September 10, 2023 or the date on which CGX has drawn down the maximum amount of the 2022 convertible loan.

 

 

 

CGX reports US$6.8M loss

Aug 11, 2022

Canaada-based CGX Energy Inc. announced that for the first half of the year it has recorded almost US$7M in losses. Specifically, the company with said it recorded a net and comprehensive loss of US$6.8M or US$0.02 per share for the six month period ended June 30, 2022, compared with a net loss of US$3.4M or US$0.01 per share for the same period in 2021.

In its latest financial statements CGX said net loss for the period is consistent with prior periods as expected, adding that the differences in the period include interest expense which increased by US$2,262,700 to US$2,638,308 in the six month period ended June 30, 2022 from US$375,608 for the same period in 2021. CGX said the increase in interest expense pertained to 2021 and 2022 convertible loans it has with joint venture partner, Frontera Energy Corporation.

General and administrative costs increased by US$325,712 to US$1,319,419 in the six month period ended June 30, 2022 from US$993,707 for the same period in 2021, due to increased business development costs related to pursuing strategic options.

Financial statements also note that the company has a history of operating losses and as at June 30, 2022 had a working capital deficiency of US$83,478,546 and an accumulated deficit of US$317,364,980. CGX said the ability of the company to continue as a going concern is dependent on securing additional required financing through issuing additional equity or debt instruments, the sale of company assets, securing a joint farm-out for its Petroleum Production Licences (PPLs), or securing a partner for the deepwater port project.

It does not have sufficient cash flow to meet its operating requirements for the 12 month period from the statement of financial position date.

CGX has been successful in raising financing in the past, where recently it was able to raise US$35 million through a convertible loan. It noted nonetheless that there exists material uncertainties that may cast significant doubt as to the company’s ability to continue as a going concern.

CGX initially held the PPLs for three licences. Due to its inability to honour its minimal work obligations, it was instructed to return to the State two of those blocks—the Demerara and Berbice. It continues to hold the Corentyne Block but has since relinquished the majority interest in the block to Frontera Energy Corporation due to its lack of funds to meet upcoming commitments.

CGX and Frontera are expected to drill their second well called Wei-1 in October.

 

 

Keppel Shipyard tragedy

Investigations continue after fatal accident in Singapore

24 August 2022 By Amanda Battersby in London

The body of the missing Bangladeshi national who fell into the sea when a pier collapsed at Keppel Shipyard in Singapore as he was working on the Prosperity floating production, storage and offloading vessel for client SBM Offshore has been recovered.

The Singapore Civil Defence Force (SCDF) retrieved a body floating in the water near to the incident site. The worker was pronounced dead at the scene by a paramedic.

The 38-year old Bangladeshi national was employed by Singapore’s Kumarann Marine.

“The body of the missing subcontract worker who fell into the sea following the incident on Monday, 22 August 2022 was found this morning. We would like to express our deepest condolences to the family of the deceased and are rendering our full assistance to them,” a Keppel Shipyard spokesperson said. “Keppel Shipyard values the safety and life of every worker, and we deeply regret this tragic incident,” added the Keppel Shipyard spokesperson. We are working closely with the authorities to conduct thorough investigations and review.”

Singapore’s Ministry of Manpower has halted all work on the pier while an investigation is carried out.

Preliminary investigations into the accident show the concrete pier on which the crane was standing had collapsed, causing it to topple and become partially submerged — throwing two workers into the sea. Another three workers were injured in the accident.

It remains to be seen whether the FPSO has sustained damage that could delay delivery of the vessel to client SBM. The floater is destined for US supermajor ExxonMobil’s Payara field offshore Guyana.

The hull of the Prosperity FPSO, which was constructed by Chinese yard Shanghai Waigaoqiao Shipbuilding under SBM’s Fast4Ward concept, could require an independent third-party survey to determine whether any structural damage was caused by the accident.

e National Trades Union Congress-backed Migrant Workers’ Centre (MWC) said the recent spate of workplace accidents in Singapore is a worrying trend. The MWC — a non-government organisation that aims to champion fair employment practices and the well-being of migrant workers in the city state — said it is “gravely concerned” by yet another workplace accident.

“We are in the process of establishing contact with the worker’s employer, Kumarann Marine, to offer guidance and provide support to the injured workers,” said the MWC.

“Once we obtain the contact details of the injured migrant workers, we will contact them at the earliest opportunity to offer mental health support and provide any additional assistance they might need along the way. “In the worst-case scenario that he… passes away, we will extend an ex-gratia pay out through the Migrant Workers’ Assistance Fund to provide interim financial assistance to help his next-of-kin to tide over while they await compensation from the Work Injury Compensation Act.

Keppel’s workscope on the FPSO Prosperity includes the fabrication, installation and integration of topsides modules, riser balconies and spread-mooring support structures, as well as supporting client SBM on pre-commissioning and commissioning work.

Despite the challenges posed by the Covid-19 pandemic, Netherlands contractor SBM last August said the FPSO remained on schedule for completion in 2024.

“The recent spate of workplace accidents is a worrying trend. #Everyworkermatters and we would like to urge all our migrant brothers and sisters to look out for one another and come forward to report any potentially unsafe work practices,” added the MWC.

“If you or your fellow migrant workers have been tasked to engage in unsafe work practices, we urge you to report such incidences to the authorities without fear of reprisal.

 

 

US $44 million loan signed to enhance education

August 12, 2022

The Government of Guyana signed a US$44 million loan agreement with the World Bank as part of the Guyana Strengthening Human Capital through Education Project.

The project focuses on the expansion of access to quality education at the secondary level and improving technical and vocational training (TVET).

The agreement was signed in the Ministry of Finance’s boardroom by Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh and World Bank Resident Representative for Guyana and Suriname, Ms Diletta Doretti.

Honourable Minister of Education, Priya Manickchand stated that this project aligns with the Education Ministry’s goals to improve and expand access to quality secondary education while simultaneously developing the country’s TVET sector.

“The Government of Guyana is very aware that this new Guyana has to be people centred. Each human being must develop along with the beautiful resources our land is benefiting from.”

Finance Minister, Dr Singh noted that the signing of the US $44 million agreement for the development of human capital is a significant part of a much broader and comprehensive policy agenda. He explained with the rapid transformational development taking place, there is a great need for human capital development.

“We believe that there is no investment that is more important than the investment in the people.”

Meanwhile, Ms Doretti highlighted that the funding aims to prepare citizens to excel in emerging sectors of the economy including climate-resilient agriculture, low-carbon technology, and digital development.

“Activities under the project are expected to benefit at least 60,744 students and 2,128 teachers and principals at the secondary level. At the TVET level, a minimum of 600 students and 140 secondary and post-secondary TVET trainers will benefit from professional development activities.”

The project will support the piloting and national rollout of a new curriculum for Grades Seven to Nine and finance textbooks for Grades Seven to Eleven. It will also see the development of a new TVET sector policy for 2022-203o and improve the delivery of TVET at secondary and post-secondary institutions.

Present for the signing were Ministry of Education Permanent Secretary, Mr Alfred King, Chief Education Officer, Dr Marcel Hutson, Deputy Chief Education Officer (TVET), Dr Ritesh Tularam, Chief Planning Officer, Nicola Johnson along with officers from the Ministry of Finance.