Yellowtail

SBM selects yards for Yellowtail development

Qingdao McDermott Wuchuan in Qingdao city will deliver FPSO modules for the ExxonMobil development .

Qingdao McDermott Wuchuan and Dyna-Mac will split topsides workscope for a floater based on SBM’s Fast4Ward FPSO design concept

21 September 2022
Xu Yihe in Singapore

Dutch floater specialist SBM Offshore selected yards to build the topsides modules for a newbuild floating production, storage and offloading vessel destined for ExxonMobil’s Yellowtail field development on the prolific Stabroek block offshore.

Industry officials revealed that Qingdao McDermott Wuchuan (QMW), a joint venture between McDermott and China State Shipbuilding Corporation (CSSC), and Singapore-based fabricator Dyna-Mac Holdings will split the engineering, procurement and construction workscope of the topsides modules for the 250,000 barrels per day unit,the One Guyana FPSO.

Producers ramp up oil exports to European refiners

Sep 09, 2022

The shipments grew as Guyana’s second floating production storage and offloading (FPSO) facility began pumping this year. In recent days, the country’s output hit 350,000 barrels per day (bpd), almost triple its level early this year. The oil, produced by an Exxon Mobil, Hess Corp and CNOOC consortium, is entirely exported. Guyana sells its share through open-market tenders and via a trading unit of Saudi Aramco.

None of the parties have struck long-term supply agreements with specific customers for the oil. A proposed supply deal with India last year failed over price disagreements. Spain’s Repsol, Italy’s Eni and Britain’s BP have taken cargoes. Repsol and Eni imported Venezuelan crude in the second quarter but shipments have remained suspended since July.

Exxon and Hess declined to comment on commercial agreements. Guyana’s energy ministry, Eni, Repsol and BP did not immediately reply to requests for comment on the exports.

Hess CEO John Hess told investors that Guyana wants “to move forward as expeditiously as possible so they can get the cash resources to develop their country.” A development plan for the consortium’s fifth project, Uaru, will be submitted to the government for approval later this year.

In 2021, Guyana exported a total of 101,000 bpd of crude, most of which went to Asia, while shipments to Europe represented 16% of the total, according to Refinitiv. Guyana is now producing two crudes grades: a medium to light sweet oil called Liza, and an even lighter grade called Unity Gold. By 2027, the Exxon-led consortium, which only in 2019 inaugurated output, expects to pump 1.2 million bpd.

Guyana is expected soon to schedule an auction of oil and gas blocks to attract new companies to its offshore fields.

Petrobras imports Guyana oil

Jun 23, 2022

Brazilian state-controlled oil company Petrobras offload Guyana’s latest lift of crude from the Stabroek Block as part of its share of earnings from the oil operations there led by Esso Exploration and Production Limited.

Petrobras and international media including Reuters confirmed the sale which represents the first shipment of oil cargo to be marketed there for refining domestically, the company said..
The first one million-barrel cargo of crude was loaded last week from the Liza Destiny and departed on board the Bahamas-flagged tanker Cascade Spirit.   The vessel plans to discharge in Brazil at month’s end, according to a Refinitiv Eikon data report.

With the start of a second floating production facility in February, Guyana now sells two light and sweet oil grades with plans to pump up to 360,000 barrels per day (bpd) this year.   Since January, Mataripe, an independent refinery operated by Acelen and backed by Abu Dhabi’s Mubadala, has bought two cargoes of Liza crude that marked Brazil’s first imports of Guyanese oil.

“The selection of crude grades varies depending on economic scenarios, trying to identify those that can meet domestic and international demand of refined products aiming at greater profitability for Petrobras,” the company said confirming the sale.

With two FPSO vessels  in operation this year, it is anticipated that there will be 94 lifts from the Stabroek Block, 13 of which will be Government lifts.  This forecast is according to Minister with responsibility Finance, Dr. Ashni Singh, who in presenting the National Estimates for this year had said deposits into the Natural Resources Fund for this year are expected to be about US$957.6 million, comprising some US$857.1 million earned from the Government lifts of profit oil, and an additional US$100.5 million from royalties.

In his January report, Dr. Singh had noted that from the commencement of oil production in December 2019 to the end of 2021, 69 lifts of oil were exported from Guyana, of which nine were for Government.   In March 2020, the US$54.9 million proceeds from the first lift of crude oil were deposited into the Fund, followed by the first royalty payment of US$4.9 million at the end of April 2020.

The Fund received US$185.4 million from four lifts of profit oil and US$12.9 million from royalties for the period March 2020 to December 2020. In 2021, the Fund received US$357.2 million from Government’s share of profit oil, and US$52 million from royalties, and at the end of the year, the Fund’s cumulative balance stood at US$607.6 million.

That amount has since been earmarked as budget support with all of the earnings had from 2019 to the end of last year being injected into this year’s annual spending.

 

Record export earnings of US$4.3B

September 6, 2022

A ROBUST performance from the oil and gas sector and a marginal increase in non-oil exports during the first half of 2022, pushed export earnings to US$4.3 billion, more than double the sum recorded during the same period last year, according to the Ministry of Finance.

Specifically, according to the ministry in its mid-year report, total export earnings grew by approximately US$2,330,200,000 to US$4,352,300,000, outweighing the 41.2 per cent growth in import payments.    In hydrocarbons, earnings from the export of crude oil amounted to US$3,612,300,000 at the end of the first half of the year, juxtaposed with US$1,296,600,000 over the same period last year.

“This is the result of an increase in the average export price of oil, combined with the introduction of the Liza Unity floating production storage and offloading (FPSO) to local oil production,” the Ministry of Finance said.

ExxonMobil, operator of the Liza Phase Two project being serviced by the Liza Unity FPSO, has four sanctioned projects offshore Guyana.

1. Of those, Liza Phase One is producing approximately 130,000 barrels per day, using the Liza Destiny FPSO vessel.
2. The Liza Phase Two project, which started production in February, is steadily ramping up to its capacity of 220,000 barrels per day.
3. The third project, Payara, is expected to produce 220,000 barrels per day; construction of its production vessel, the Prosperity FPSO, is running approximately five months ahead of schedule, with start-up likely before year end 2023.
4. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes on stream in 2025.

ExxonMobil is proceeding with plans for its fifth development project in the Stabroek Block, Uaru, which is expected to produce up to 250,000 barrels of oil per day.

“These projects will bring huge benefits to Guyana,” President of ExxonMobil Guyana, Alistair Routledge, said during a brief interview released by ExxonMobil.

It was reported that returns from the sector are expected to catapult Guyana to the ranks of wealthiest countries in the Western Hemisphere, thereby increasing the government’s fiscal space to invest in initiatives geared at expanding the economy, and improving the overall welfare of citizens.

In order to solidify the foundation of Guyana’s economy and enhance the overall well-being and welfare of every citizen, the government is crafting a framework for development that will be sustained through prudent and effective investment of oil funds into education, health, infrastructure and the non-oil sectors. Natural Resources Minister, Vickram Bharrat, recently reinforced the government’s position regarding the diversification of Guyana’s economy with the use of oil funds, noting that the government intends to diversify away from oil and focus on the provision of world-class healthcare, infrastructure and other social services to enhance the lives of all.

Those efforts would also be supported by increased production in the non-oil sectors, which fared well during the first half of 2022; this is evidenced by the two per cent increase in export earnings from those sectors. This performance is on account of improvements from the “others,” bauxite and timber categories, which grew by US$31.3 million, US$7.2 million and US$3.1 million, respectively.

Within the “others” category, notable outturns were recorded for commodities such as shrimp and prawns, diamonds, and fish and by-products.
Timber exports grew amid an increase in the volume of logs and sawn wood, and bauxite exports were supported by greater performance from both operators within the sector.

“These improvements offset reductions in earnings received from rice, sugar, and gold exports, which fell year-on-year by US$19.5 million, US$4.1 million, and US$3.5 million, respectively,” the Finance Ministry said.

Regardless of the outturns in those sectors, the outlook for the second half of the year continues to be favourable, with real Gross Domestic Product (GDP) growth now projected to reach 56 per cent by the end of this year and non-oil GDP growth at 9.6 per cent, maintaining Guyana’s position of global leader in economic growth.

“Led by President Ali, and fuelled by the rapid economic growth, we have embarked on a period of rapid transformation, and our Government has laid out a masterplan for the rapid development and transformation of Guyana. More importantly, we have demonstrated the capacity and commitment to working assiduously to make this vision a reality, so that benefits can redound to citizens in the shortest possible time,” Finance Minister Dr. Ashni Singh said in the mid-year report.

 

Board Members of Natural Resources Fund take oaths of office

Dillon De ShongAugust 31, 2022 10:25 AM ET

Professor Compton Bourne replaces  United Kingdom Member of Parliament David Lammy, who could not take up the position since his circumstances changed. Lammy’s parents are Guyanese.

Bourne, a former President of the Caribbean Development Bank, is an excellent replacement for Lammy, who signalled his willingness to serve in future .

Retired Major General Joseph Singh remains as the board’s chairman. Ambassador Carolyn Rodrigues-Birkett, Dunstan Barrow and Ramesh Dookhoo are the remaining members.

Members of the Public Accountability and Oversight Committee also received instruments of appointment.   The Committee is chaired by Clement Sealey.

The remaining members are Wendell Jeffery, Abu Zaman, Ryan Alexander, Dawn Gardener, Aslim Singh and Teni Housty.

Letters of Appointment were presented to the chair of the Investment Committee Shaleeza Shaw. Committee members are Michael Munroe and Richard Rambarran.

 

 

Higher level of accountability, transparency for oil revenues

August 30, 2022

Higher levels of accountability and transparency will be achieved as the Government delivered on yet another campaign promise to manage revenues from the oil and gas sector prudently.

President Dr Irfaan Ali appointed members of the Natural Resource Fund (NRF) board, and the Public Accountability and Oversight, and Investment Committees.
The members received their instruments of appointment at the Office of the President, Shiv Chanderpaul Drive, Georgetown.

The members of the NRF board are; Chairman of the board, Major General (ret’d) Joseph Singh, Guyana’s Permanent Representative to the United Nations (UN), Ambassador Carolyn Rodrigues, former President of the Caribbean Development Bank (CDB) Professor Compton Bourne, Dunstan Barrow, and Ramesh Dookoo of the Private Sector Commission (PSC).

The members of the Public Accountability and Oversight Committee under the NRF Act, comprise Chairman, Clement Sealey, Wendell Jeffery, Abu Zaman, Ryan Alexander, Dawn Gardener, Aslim Singh and Teni Housty. Other members Desmond Sears and Savitri Balbahadur were unavoidably absent.

The letters of appointment were presented to Shaleeza Shaw (chairperson), Michael Munroe, Richard Rambarran and Lauris Hukumchand of the Investment Committee. The Committee is responsible for advising the NRF Board on matters that concern investment of the oil funds, in a way that maximises the benefits to Guyana.

President Ali told appointees, the government is pleased to be able to fulfill this important responsibility. Management of the oil and gas resources is now strengthened with the establishment of the board and committees.

“As government, we want to assure of our full support in ensuring that you can execute your mandate and you can perform your duties with ease, efficiency and the necessary impetus that is required to make your work efficient.”

He highlighted the importance of the NRF board to the management of Guyana’s natural resources. The members, he acknowledged are persons with knowledge and experience in various fields.

“It gives us, I think, a combined capacity and capability that will bring true value to the management of all resources of our oil resources,” he stated, referencing Major Singh, who dedicated his life to the development of Guyana at every level. He described Professor Compton Bourne, as “a man of great stature, a Guyanese we are all very proud of.”

The Natural Resources Fund Bill, No. 21 of 2021, was passed in the National Assembly on December 29, 2021. Section 5 (1) of the NRF Act provides for a Board of Directors of the Fund comprising not less than three and not more than five members, who shall be appointed by the President, inclusive of a chairperson.

According to Section 5 (2), the Directors are selected from persons who have wide experience in legal, financial, business or administrative matters, one of whom shall be nominated by the National Assembly and one of whom shall be a representative of the private sector.

According to the Act, the directors are responsible for the overall management of the fund, reviewing and approving the policies of the fund, monitoring the performance of the fund; ensuring compliance with the approved policies of the fund; exercising general oversight of all aspects of the operations of the fund and ensuring that the fund is managed in compliance with this Act and all other applicable laws.

Attending the ceremony were Vice President, Dr Bharrat Jagdeo, Prime Minister, Brigadier (Ret’d) Mark Phillips and Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh.

 

 

Training for Petroleum industry

Sep 18, 2022 Consumer Concerns Pat Dial

Absence of local trained personnel to man the petroleum Industry in the early years, led to dependence on expatriates as governments proceeded to train local personnel. The O&G Industry of Guyana is the most recent and Government and people are determined that locals should man the Industry as early as possible. With no comprehensive domestic training institutions, training abroad continues at UWI Trinidad, Canada, USA and UK.

A US$20 million training facility was launched at Lusignan, ECD by a consortium of three investors, the lead being 3t EnerMech with Oninduik Development Inc and Windsor Technologies. The facility began its operations about a year ago and has its first batch of graduates. The official launch by Prime Minister Mark Phillips included the graduation ceremony, attended by Ministers, attesting to the importance Government gives to the Training Centre.

The programme provides a Level One qualification from the Engineering Construction Industry Training Board (ECITB). Level One consists of three phases, Pre-learning Assessment and Safe Passport are its first two and the third is done practically. The Government supports the Centre by offering scholarships under the GOAL programme to those interested in careers in the O&G Industry.

Prime Minister Mark Phillips encouraged Guyanese to be involved in the Industry as part of its human capital, “A crucial factor to the success of our nation lies in our people. We must ensure that we utilise the benefits of the Oil and Gas Sector to build a bright future for this generation, the next and beyond. To do this, we must inculcate a culture of ownership, a culture where our local ownership, a culture where our Local Content, our people, can thrive and that is the workforce itself…As the first entity with approval to deliver OPITO (Offshore Petroleum Industry Training Organization) – accredited training for the Oil and Gas Sector in Guyana, our human resources are now strengthened at a global standard to actively and competently participate in the building of this new and abundant area of our country. With an Industry that requires high skills and knowledge, it is reassuring to know that these capacities can be imparted to our people without having to leave their home soil…The launching of the EnerMech Training Centre is the beginning of the process of growing the local human capital of the Oil and Gas Industry.”

 

 

Local access to oil and gas training

September 3, 2022

The development of Guyana’s human resources to effectively manage the oil and gas sector is now a reality with the opening of the first oil and gas training facility. The new 3t EnerMech Guyana Training Centre of Excellence, will provide Guyanese with the opportunity to access accredited training in over 450 programmes without having to travel overseas.

The US$20 million Offshore Petroleum Industry Training Organisation (OPITO) located in Lusignan, is a collaborative effort between 3t EnerMech, Orinduik Development Incorporated and Windsor Technologies.

Prime Minister, Brigadier (Ret’d) Mark Phillips hailed the facility as a groundbreaking achievement. It will play an integral role in building the human capacity to effectively manage the oil and gas sector.

“The oil and gas sector has undoubtedly strengthened Guyana’s economy and the effective management of the fruit that this sector bears will help secure abundant and life-changing opportunities for all Guyanese.”

He stressed that the success of the oil and gas producing nation lies in the development of the people. Some 18 Guyanese selected through the Guyana Online Academy of Learning (GOAL) scholarship programme benefitted from training at the facility.

“We must ensure that we utilise the benefits of the oil and gas sector to build a bright future for this generation, the next generation of Guyanese and beyond,.”

Natural Resources Minister, Vickram Bharrat said the facility is another step towards the transformation of Guyana. While Guyana is blessed with an abundance of natural resources, the development of the country’s human resources is vital to the transformation of Guyana.

“That is what we need to develop to realise local content. We are never going to achieve true local content if we don’t develop our local human capita, our local capacity at the private sector level so that Guyanese can benefit.”

He noted that government holds the responsibility for providing access to opportunities and creating the environment for Guyanese to take advantage of those in the oil and gas sector. It is one of the main reasons why the Government pushed for Local Content Legislation.

“We as a government realise that we needed to move forward and create opportunities for people in the oil and gas sector and that was the basis on which the local content legislation was built.

“It was never designed to keep out investors or investment into our country. It was never created to keep out foreign investments coming into Guyana. It was designed to bring benefits to Guyanese and Guyanese businesses.”

Orinduik’s Chairman Harrychand Tulsi, commended the government for creating the environment needed for such a facility to be established. He believes the facility gives Guyanese an opportunity to fully participate in Guyana’s transformation.

“Without the government efforts and the confidence of business people like myself in what the government is doing, this would not have been possible,” Tulsi stated.

Public Works Minister, Bishop Juan Edghill, Public Service Minister Sonia Parag along with other senior officials witnessed the opening of the training facility. Public Service Minister Sonia Parag distributed certificates to graduates.

 

 

3t EnerMech, Orinduik Development Incorporated and Windsor Technologies training facility

September 3, 2022

At the official launch of the US$20m 3T EnerMech Guyana Training Centre of Excellence and graduation ceremony at the company’s headquarters in Lusignan, East Coast Demerara,  Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips, said the Government intends to continuously bolster investments in human capital to build local content capacity and foster a sustainable future for all Guyanese. The launch of the petroleum training facility would enhance Guyana’s human resource development.

“A crucial factor to the success of our nation lies in our people. We must ensure that we utilise the benefits of the oil and gas sector to build a bright future for this, the next generation of Guyanese and beyond. To do that, we must undertake a culture of ownership, a culture where our local content – our people – can thrive and that includes within the workforce itself.”

Guyana’s premier in-country, state-of-the-art facility is a collaborative venture between 3 companies driving CUTTING EDGE DEVELOPMENT. Persons will be taught through blended learning software and technology, and via fully immersive simulators for high-hazard activity learning. Prime Minister Phillips lauded the drive and innovation of the facility and those responsible for its establishment.

“As the first entity with approval to deliver OPITO (Offshore Petroleum Industry Training Organisation)-accredited training to the oil and gas sector in Guyana, our human resources are now strengthened at a global standard to actively and competently participate in the building of this new and abundant area of the country. With an industry that requires high skills and knowledge, it is reassuring to know that these capacities can be imparted to our people without having to leave their home soil. The benefit of strong partnerships can never be understated, for these are the binds that allow goals that may otherwise seem unattainable to be achieved”.

Government would collaborate with 3t EnerMech to offer a blended technical and vocational training programme for Guyanese interested in careers in the oil and gas industry through the Guyana Online Academy of Learning (GOAL).

“Our Government has continually engaged in the training of our workforce to be able to occupy positions in the oil and gas sector and contribute to the building of this sector, which extends to the development of Guyana. In the past, much of this training was conducted away from home, but today, and from hereon, our people will be able to access such training right here in Guyana.”

At the graduation ceremony for the first group of students held In conjunction with the launch, the Prime Minister charged the graduates to put their skills to use.

“I congratulate the first cohort of participants who underwent training at this facility. May you take your skills and put them to their fullest use as you proceed in your daily tasks of helping to build a better Guyana. ”

Guyana’s success depends on proper resource management, transparency and accountability. The training programme provides a level one qualification from the Engineering Construction Industry Training Board (ECITB) and is divided into three phases: pre-learning assessment and safe passport, which are completed online and the technical pathway, the practical journey, which is completed at the 3T EnerMech headquarters.

 

 

Inter-ministerial oil committee axed

Sep 02, 2022

In its 2017 assessment of Guyana’s oil and gas capacity, the World Bank found that the last Government organised an Inter-Ministerial Technical Committee on Petroleum, involving key Ministries and agencies in to ensure all input from relevant parties in relation to the development, management of the oil sector, and spending of the revenues garnered. This was reported in the US$20M loan document approved by the Bank in 2019, but is not yet utilised by the current Government in 2022. The document sought to provide important assistance to Guyana to protect its environment and utilize oil income for the total benefit of the populace.

In the governance review of the oil sector in April of 2017, the World Bank concluded that the legal and regulatory frameworks in Guyana are underdeveloped and in some cases outdated, requiring update in line with international good practice. WB highlighted that the award of future production sharing agreements and licenses requires updating in view of the exploratory success, while noting that the requisite human resource training and institutional capacity to oversee and manage the sector is limited and that capacity to collect, manage, and plan the use of the O&G revenues needs to be strengthened- in addition to increased coordination and enhanced needs among Government entities.

The Inter-Ministerial Technical Committee on Petroleum was formed by Ministry of Finance (MOF) in cooperation with the Ministry of Natural Resources (MNR). The Bank continued that in 2019, the MOF partnered with the Department of Energy (DE) and the Committee retained its chairmanship format in being co-chaired by one representative of each institution as membership consisted of representatives of key ministries and institutions primarily responsible for the oversight of the main aspects of the sector.

The World Bank added that through sub-committees such as ‘Legal’ and ‘Regulatory’, other stakeholder oversight bodies would also contribute towards the overall developmental and planning process. Key members of the Inter-Ministerial Technical Committee consisted of : Ministry of Finance (MOF), DE, Ministry of Public Infrastructure (MPI), Ministry of Foreign Affairs (MFA), Guyana Geology and Mines Commission, the Guyana Revenue Authority, Environmental Protection Agency, Bank of Guyana (BG), Bureau of Statistics, Lands and Surveys Commission, Civil Defense Commission, Maritime Administration and the Guyana Civil Aviation Authority.

While this is a structure of the last regime in the early management of the sector, fast-forwarding to 2022, the core management of the industry has been brought under the control of the President’s Office with Vice President Bharrat Jagdeo tasked with overseeing the oil and gas industry. Under the new mechanism a number of areas within the sector remain unresolved with local and international oil and gas stakeholders highlighting the risk of Guyana becoming a victim of its oil wealth. They expressed concerns over the management and spending of oil funds, inadequate and unsatisfactory insurance to protect against oil spill damage, inadequate measures to monitor oil companies’ spending, verification and auditing in a timely manner and co-management of oil company spending since the developer’s expenses are covered by Guyana’s oil.

Stakeholders sceptical about Government explanations continue to question spending of the oil fund as it dedicated a significant amount of the money initially earned to the 2022 budget for mainly capital spending, despite calls for more money to be spent on human development, and for it to be spent equitably. The cabinet is still in the process of making the Natural Wealth Fund fully functional.

The Government apparently failed to utilise support all mechanisms put in place by the last regime to aid in the development of the sector. These include an EPA grant to strengthen that agency, a more than US$11M Inter-Development Bank loan, and the said US$20M loan. The Government failed to implement a Petroleum Commission which, based on experience from other countries, plays an integral role in regulation, oversight, and management. In the Ghana Petroleum Commission model, the body is a central location for all oil and gas information. All ministries must work along with the Commission, while they carry out their mandates. The Vice President had promised the formation of the Commission since 2020. In April of this year, he said that the Commission would not prevent corruption but the Government has not given up on forming the body

Wealth for All

September 1, 2022

During a three-day visit to Region Nine (Upper Takutu-Upper Essequibo). President Irfaan Ali reaffirmed his government’s commitment to the equal distribution of resources and equal treatment of all Guyanese, while speaking in St Ignatius about the many social safety nets that his government created over the last two years to ease the burden of adverse economic conditions following the pandemic and the war in Ukraine.

“In every single society, the most basic understanding of developmental studies will tell you that you must be able to have social safety nets that address the vulnerability of communities and address the vulnerability of different people. Otherwise, you will have a country in which development and growth brings with it a great disparity and inequality, and we cannot allow our country to suffer from inequality and disparity. I am not willing to lead a government that will see this happen. That is why we would invest heavily in transforming your future, ensuring we build the conditions, ensuring we build the facilities that will give you an equal shot of life because you are no different from any other Guyanese whether you are from Region Nine or Region Four.”

Unity and equitable treatment are at the heart of the government’s “One Guyana” platform that champions inclusivity and fairness.

“We are building ‘One Guyana’ that must bring social prosperity, economic prosperity, food security, energy security to every single one, to every single environment. I am not here to evaluate what the opposition says about the government. I am not here to respond to the nonsense that you hear them say every day. I am here to define a pathway to which we are working positively to make your life better, to work with you to give you the best… work with you to enhance your communities, work with you to build sustainability. This is the path that I want all of us to embrace each other with We are all creation of God but when God said he made us to his own image and likeness… there is no difference in colour. There is no difference in ethnicity. There is no difference in communities. There is no difference between rich or poor. The difference comes when you do things that…destroys peace. We are all part of a bigger family, even bigger than the Guyanese family. We are part of the family of humanity. And when we start understanding that we are all part of a singular family, then we all know that life must be enjoyed by all of us equally as far as possible.”

Hinterland communities like those in Region Nine have benefitted from a $25,000 per household cash grant that was implemented to help residents deal with the rising cost of living, given the economic disadvantage faced by this section of the population.

“Those are grants that are responsive to your vulnerability. Those are not handouts.”

In addition to the cash grant for hinterland and riverine communities, the government has implemented across the board benefits such as the “Because We Care” education cash grant and uniform voucher with parents receiving $30,000 for each child in the school system. The government has also increased the old age pension to $28,000 and the public assistance to $14,000. The government removed the Valued Added Taxes (VAT) on water, and reduced or removed taxes on a number of items.

Guyanese are benefitting from a robust housing programme being implemented by the government, whereby Guyanese of all races are benefitting from accelerated house lot allocation, and resource assistance. These support programmes include initiatives of the government where land owners will receive support with steel and cement for the foundation phase of their housing construction. Some 600 land owners in Region Nine will also benefit from grants towards the construction of their homes. The government has also negotiated with two lending agencies to finance the remainder of the low cost mortgages.

USAID keeps Summit promise

August 31, 2022

Guyana and the USA continue to strengthenr efforts aimed at eliminating hunger and addressing food security in the Caribbean region. Foreign Secretary, Robert Persaud and a member of the USAID greeted each other before the bilateral discussion begins. A government team met members of the United States Agency for International Development (USAID), to hold bilateral discussions at the Ministry of Foreign Affairs and International Cooperation, Ramphal House. The visit follows the Summit of Americas, when CARICOM leaders and President and Vice President of the United States agreed that three high-level action committees would be established for Food security, energy and finance. The food security high-level joint committee co-chaired by Foreign Secretary Robert Persaud on behalf of CARICOM and US Assistant Secretary of State Brian Nichols, concluded its initial report.   The Agriculture Minister  joined the bilateral talks

The visit by the USAID mission was a follow up to the Summit of Americas process and implementation of the joint committee report and developing a medium and long term plan. Ddialogue between the two sides covered discussions of mutual interest in areas aligned with the Caribbean Community’s (CARICOM) 25 by 2025 food agenda.

Guyana’s Agriculture Minister, Zulfikar Mustapha, explained that there is a united decision in CARICOM as it relates to food security.

“We have already agreed on what we should tackle and how we can address it in the next three years that we have set ourself an agenda.”

Minister Mustapha disclosed that the region’s ministerial taskforce has been advancing discussion on food security, where commodities were prioritised to reduce the almost $5 billion food import bill. He outlined transportation as another issue to be addressed around the region and further afield.

“Transportation is a serious problem for us too, we have to look at that to develop and work energy around the Caribbean and North America, the United States to look at those aspect.”

He highlighted products which were delayed during the COVID-19 pandemic, explaining that after 12 to 13 months containers which were enroute to Guyana with essential products were stuck in Miami. The minister clained out that efforts are being made to see how a transportation model can be established across the Caribbean, beginning with Guyana, Suriname, Trinidad and Tobago and Barbados.

“But that is a work still in progress.”

Efforts are also being made to develop the capability of technical officers across the region.

“What we have been doing over the last few months, is sharing technical expertise around the Caribbean, but still, we need to build capacity and we will need country like the United States to help us in those areas.”

Following the war in Ukraine there has been a shortfall of wheat globally. However, locally, an indoor wheat production trial with several varieties has already been completed. The trial has proven successful, and an open field trial is expected to begin by the end of next month in Region Nine. He emphasised that the expertise from countries like the US is needed in these interventions to ensure proper management.

The Ukraine calamity also contributed to the hike in natural gas. This,, has driven up the cost for fertiliser, which has become a major issue for farmers across the Caribbean. The Guyana, government was able to aid farmers with billions of dollars in subsidies. While more vegetables are being produced this year when compared to last year, due to the cost of production, prices are still high.

“So, these are the things affecting us and those are the areas I think we should concentrate.”

Foreign Secretary, Robert Persaud said the meeting will advance the ongoing works between the two partners, stressing the need to explore the exchange in terms of food security, energy and finance. He reiterated Guyana’s commitment to working with the US on deepening the partnership towards addressing food security and related issues in the region.

US Ambassador to Guyana, H.E Sarah Lynch commended the Guyana government for being “prolific” in leading the agriculture agenda in the Caribbean region. The mission reiterated its commitment to work closely with regional and international partners to develop compressive programmes which respond to regional food security challenges .

The USAID team also comprised Assistant Deputy Director of USAID, Tina Balin; USAID/ESC Regional Representative, Clinton White; Senior development Advisor, Phillip Schwehm; Private Enterprise Officer, Brenna McKay; Economic Growth Specialists (Mission Lead on Food Security), Durwin Humphrey.

 

 

USAID seeks consensus, inclusion in oil economy

Sep 01, 2022

A report for the United States Agency for International Development (USAID) last year had urged Guyana to address consensus and inclusion as the country is set to receive increased funds from the development of the oil and gas sector.

It warned that Guyana was about to increase cash but lacked the expertise to utilise same and the cohesiveness that would allow for better management of money and its distribution for the development of all involved.

“Prepare for a massive influx of government revenue with little expertise on how to handle it.” The Democracy and Governance Assessment report said that Guyana will face an array of governance and institutional challenges as it tries to manage expected increases in annual revenues. However, “limited and ineffectual government accountability mechanisms can undermine citizen’s confidence in public institutions and further erode consensus in a vision for the country’s future.” Improving the effectiveness of the country’s public integrity institutions is therefore critical to inclusive, sustainable development.

The USAID had requested a democracy, human rights, and governance (DRG) assessment for Guyana to provide the Eastern and Southern Caribbean (ESC) Mission with analysis and recommendations. It said that the DRG Assessment is based on USAID’s DRG Strategic Assessment Framework and identifies key DRG opportunities and challenges in Guyana. The report also provided a political economy analysis of reform supporters and opponents (both actors and institutions) within the DRG sector, and offered strategic recommendations that account for mission priorities, available resources, and the initiatives of other donors and stakeholders.

On the matter of consensus, the document said that national consensus on critical development and economic issues seem elusive due to the prolonged political instability that has widened the political and racial divide within Guyana.

Despite both political parties having a shared commitment to a democratic system, “there is no clear consensus for necessary electoral and institutional reforms and stewardship of Guyana’s national wealth.’ It is therefore incumbent on political leaders and citizens to reach across the racial and ethnic divide to come to a common vision of a new national development plan since ‘the lack of political agreement regarding policy priorities for economic opportunities and social benefits perpetuates long standing disparities in the country.”

The USAID report pointed out further that access to social and economic resources has varied depending on which political party is dominant in the political cycle. The parties derive their support from distinct ethnic blocks of voters which often pits Indo-Guyanese against Afro-Guyanese.

“This political favouritism towards one ethnic group is especially worrisome as Guyana is on the cusp of unprecedented economic transformation. Vulnerable populations, rural and hinterland residents, along with the LGBTQI population have been excluded from meaningful engagement in political life and policymaking.”

It is critical that Guyanese achieve consensus on the conceptual, structural, management and oversight functions of the state to ensure equitable distribution of the dividends of the expected economic boom and to mitigate the risk of corruption.

“The government must develop an open and transparent process to plan and operationalise the fiscal and legislative framework of the Sovereign Wealth Fund (SWF), by consensus, to subvert corruption and theft of the expected funds and ensure equitable distribution of the expected revenue.”

The report pointed out however that the deep distrust of the party in government by the opposition has not changed as stakeholders interviewed for this assessment, across social groups, continuously referred to the ethnic political divisions as the major threat to political consensus. The inability to achieve consensus is often seen as originating from post-colonial ethnic divisions and the politics of grievance, the document related.

Institutionalized concentration of power among ethnically identified elites who control political parties, and through them government institutions, prevents government from serving the interests of all citizens, while dominating political and economic development.

“The lack of political competition and accountability leads to ethnic tensions and systematic exclusion across all levels of government and the private sector when Guyana is about to experience transformational economic growth from newly discovered oil and gas resources.

Trinidad is a major proucer of fertiliser and natural gas which can supply Caricom needs. It also has a Shipping industry. The Bahamas is a major flag state and a cruise ship port. Sea transport can be easily resolved The solution to Caricom woes is US acquisition of the region as Unincorporated Territory. This would resolve all issues, act as a deterrent to expansion of totalitarian tryrants seizing strategic resources and creating instability in the wake of the European war.

 

 

Guyana-Venezuela border controversy

September 21, 2022

President, Dr Irfaan Ali reiterated Guyana’s position as he addressed the 77th Session of the United Nations General Assembly (UNGA), declaring Guyana will continue to champion the peaceful resolution in the territorial controversy with neighbouring Venezuela. He said government will not support any use of force as a means of settling any dispute or controversy among nations.

“Guyana does not condone or support the threat of, or use of force in relations between states or in the resolution of disputes. Consistent with the Charter of the United Nations, Guyana subscribes to the use of peaceful means to settle disputes.”

The head of state highlighted that even though Guyana’s own land is being threatened, the government will not sway from the advice of UN Secretary General António Guterres, at the opening of the event.

“[We remain] committed to making the most of every diplomatic tool for the pacific settlement of disputes, as set out in the Charter of the United Nations,” Guterres was quoted as saying.

Guyana is committed to a judicial settlement in the matter, one, which he hopes could come soonest.

Guyana is seeking to obtain a final and binding judgement that the 1899 Arbitral Award, which established the location of the land boundary between then British Guiana and Venezuela, remains valid and that the Essequibo region belongs to Guyana and not Venezuela.

 

Innovative land management

August 31, 2022

This digitally prepared map was derived from the 1: 500,000 four section map of Guyana. The map shows important places, rivers and creeks, canals, roads and tracks, airport and airstrips, mountains, land development schemes and many other natural and man-made features. The map measures 55cms East to West by 85cms North to South between outer borders

Gillian Smith

In Guyana’s fast-paced development-oriented environment, effective land administration and management continue to be an underpinning measure that will maximise the country’s investments, and contribute to sustainable growth. Land is a key component to economic development, social well-being, and environmental sustainability.

At the swearing ceremony for Land Surveyors, President Dr. Mohammed Irfaan Ali reminded the new Land Surveyors about the strong linkage between the efficiency and effectiveness of their work in land management and justice. The President also highlighted regional opportunities available to a cadre of well-trained Land Surveyors.

Commissioner Enrique Monize of the Guyana Lands and Surveys Commission (GLSC) added that Land Surveyors need to utilise technological advancements to better support the increasing requirements of the country for accurate, responsive, high-quality land management services.

The Sustainable Land Management and Development (SLDM) project is, among other things, contributing to the upscaling of land surveying capacity in the country.
Implemented together by GLSC and the FAO, with funding from Guyana’s REDD+ and Investment Fund (GRIF), the project is assisting with the rollout of Guyana’s comprehensive and responsive land administration and management agenda in two important ways.

The first is to strengthen capacity to meet international reporting obligations on land degradation, adoption of sustainable land management practices that can slow and avoid degradation, and measures to restore and return degraded lands to a natural or more productive state.

The other is to meet the needs of stakeholders for effective land administration and management and mapping services.
Meeting international obligations demonstrates Guyana’s leadership in land management, and ensures that the country is recognised for its efforts to meet its commitments to the United Nations Convention to Combat Desertification (UNCCD).

The SLDM project contributes by helping the country to adopt technical tools and methods, which identify and characterise the main land degradation causes in the country, and to prioritise and implement land restoration initiatives. This will also contribute directly to the country’s LCDS target to restore approximately 200,000 hectares of land by 2030.

The other important part of the project is supporting the national land institution (GLSC) to improve their land management and administration information services and products to the stakeholders. This includes updating base maps for several administrative regions by applying LIDAR technology, implementing modernised land administration and lease management systems, upgrading technology in land surveying and cadastral systems, and developing the capacity of local institutions.

Training and human resource capacity building are also supported through scholarship programmes at the Government Technical Institute (GTI) and the University of Guyana (UG), and increased use of new technological applications such as using drones, SEPAL, and LIDAR platforms.

By the end of the project in 2023, Guyana should be well on its way to a stronger, more responsive, and revitalised land administration and management system, which supports the country’s development vision.
The GLSC and other land management agencies will be able to manage land more efficiently, while being able to provide solutions that consider the complex interactions between different land use systems. (Gillian Smith is the United Nations Food and Agriculture Organisation (FAO)’s Representative in Guyana)

 

 

National Day of mourning for Queen Elizabeth II

September 13, 2022

His Excellency Dr Irfaan Ali today proclaimed that Monday, September 19, would be a national day of mourning in sympathy and solidarity with the Royal Family and the people of the United Kingdom and other Commonwealth nations, over the passing of Her Majesty, Queen Elizabeth II. According to the proclamation signed by the President, all authorities, boards, commissions, corporations, public agencies, Ministries and citizens are asked to fly the National Flag at half-mast.

Queen Elizabeth II, who died at the age of 96, reigned for 70 years. The long-serving British Monarch was laid to rest in WIndsor Castle.