Orinduik JV assessing next-phase offshore drilling

Aug. 1, 2023

TORONTO, Canada — Eco Atlantic says the partners in the Orinduik Block offshore Guyana are reviewing opportunities to drill at least two exploration wells into light oil Cretaceous targets as soon as practical.

In its latest results statement, the company also confirmed that the joint venture for Block 3B/4B in the Orange Basin offshore South Africa has filed an application to drill one well and one contingent well, with an area of interest in the northern part of the block.

The process of compiling an environmental and social impact assessment started this March, in preparation for drilling activity.

Eco now holds a direct 15% working interest in the Orinduik Block.

 

 

Eco (Atlantic) audited results

01 Aug 2023

Eco (Atlantic) Oil & Gas, the exploration company focused on offshore Atlantic Margins, announced audited results for the year ended 31 March 2023.

Financials (as at 31 March 2023)

• • The Company had cash and cash equivalents of US$3,770,614 and no debt.
  • Eco has cash and cash equivalents of US$6.4 million on the balance sheet as at 31 July 2023.
  • The Company had total assets of US$53,777,531, total liabilities of US$5.9 million and total equity of US$48 million.

Operations:

South Africa

• • Post period end, the Company signed a legally binding Letter of Intent with Africa Oil to farm out a 6.25% Participating Interest in offshore Block 3B/4B,for up to US$10.5 million in cash.
  • In March 2023, Africa Oil released a New Competent Person’s Resource Report confirming that the Block contains an estimated P50 Prospective Resources of approximately four billion barrels of oil equivalent (“BOE”), one Billion BOE net to Eco Atlantic prior to the sale of the aforementioned Participating Interest which is expected to complete shortly.
  • Eco, alongside its JV Partners, applied for Environmental Authorisation to undertake exploration activities in Block 3B/4B in the Orange Basin. An application was made to drill one well and one contingent well with an area of interest in the north of the Block. A comprehensive Environmental and Social Impact Assessment (“ESIA”) process commenced in March 2023, in preparation for drilling activity on the Block.
  • The JV partners continue to progress plans to conduct a two-well campaign on the Block in conjunction with progressing the collaborative farm out process, up to 55% gross working interest, with various potential parties.
  • On November 15, 2022, a Production Right Application to the Petroleum Agency of South Africa, for Block 2B, based on the existing oil discovery of AJ-1 and potential future operations was submitted by the JV Partners.
  • Eco continues to believe that Block 2B contains considerable hydrocarbon resources and looks forward to providing further updates as the Company looks to deliver value from the licence for all stakeholders.

Namibia

• • Following significant drilling success in the area, Eco continues to receive third party interest in its strategic acreage position offshore Namibia. The Company continues to assess farm out opportunities with its four licences in the region as it considers options for progressing exploration and commercial activity on its acreage.

Guyana

• • Eco Atlantic and its JV partners remain committed to further drilling on the Orinduik Block and continue assessing opportunities to drill at least two exploration wells into the light oil Cretaceous targets as soon as practical. Further updates will be made on the matter in due course.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:

‘As a business we continue to make significant strides across our strategic portfolio of hydrocarbon assets, in some of the world’s most prolific exploration areas. Following the stabilizing of commodity prices during the first half of this year, alongside a number of discoveries being made in and around the regions we operate in, we continue to see strong industry interest in our unique acreage positions in Orange Basin SA, Walvis Basin Namibia, and the Guyana Suriname Basin.

‘The agreed transfer of a portion of our WI on Block 3B/4B to our strategic alliance partner Africa Oil will strengthen the JV position amid our continued negotiations with third parties to farm into the Block and execute a drilling campaign targeted for 2024. The proceeds from this agreement give us the opportunity to fund other growth opportunities elsewhere in the portfolio with no shareholder dilution. Also, at 3B/4B, we applied for Environmental Authorisation to undertake further drilling exploration activities as we believe that the licence holds significant potential to be explored by the Joint Venture partnership in South Africa.

‘Namibia continues to produce globally significant hydrocarbon discoveries, and as a sizeable licence holder in the region, Eco continues to benefit from heightened levels of industry interest in the area.

‘As a Board and Management team, we continue to assess and progress value accretive opportunities across our portfolio, with the goal of delivering substantial shareholder returns over the medium to long term.

‘We remain excited about our prospects, and I look forward to providing further updates to the markets during the remainder of the year.’

Source: Eco (Atlantic) Oil & Gas

 

 

Eco to purchase Tullow’s share in Orinduik block

Aug. 10, 2023

Eco Guyana Oil and Gas has agreed to acquire a 60% operated interest in Orinduik block, offshore Guyana, through acquisition of Tullow Guyana BV.
Eco Guyana Oil and Gas (Barbados) Ltd. has agreed to acquire a 60% operated interest in Orinduik block, offshore Guyana, through the acquisition of Tullow Guyana BV (TGBV), a wholly owned subsidiary of Tullow Oil PLC, in exchange for a combination of upfront cash and contingent consideration.

Eco, via its wholly owned subsidiary Eco (Atlantic) Guyana Inc, currently holds a 15% working interest in the block. On completion of the deal, Eco, as operator and majority interest holder in Orinduik block, intends to begin exploration, obtain new partners, and engage in drilling.

Tullow Overseas Holdings BV, the parent of TGBV, will be paid $700,000 cash upon transfer of TGBV’s 60% participating interest and operatorship of the license. Contingent considerations payable to Tullow is linked to the success of a series of potential future milestones which include $4 million in the event of a commercial discovery, $10 million payment upon the issuance of a production license from the Government of Guyana, and royalty payments on future production.

The transaction is expected to close in this year’s second half, at which time Eco will hold an aggregate 75% participating interest, and TOQAP Guyana BV will continue to hold 25% interest.

In 2019, Tullow drilled two exploration wells on Orinduik which yielded uncommercial oil discoveries.

 

 

Tullow

Aug. 10, 2023

Tullow Oil Plc Has Agreed To Sell Its Total Interest In Tullow Guyana BV, Which Includes The Orinduik License In Guyana To Eco Guyana Oil And Gas (Barbados) Ltd.

LONDON — Tullow Oil Plc Has Agreed To Sell Its Total Interest In Tullow Guyana BV (TGBV), Which Includes The Orinduik License (Tullow, 60% Operated Equity) In Guyana To Eco Guyana Oil And Gas (Barbados) Ltd. In Exchange For A Combination Of Upfront Cash And Contingent Consideration.

Tullow Said Its Decision To Exit The Orinduik License Is In Line With Its Strategy To Focus On Its High Return Production Assets In Africa And Infrastructure-Led Exploration Around Producing Hubs And Delivers Its Objective To Unlock Value In Emerging Basins.

 

LONDON — Tullow Oil Plc agreed to sell its total interest in Tullow Guyana BV (TGBV), which includes the Orinduik license (Tullow, 60% operated equity) in Guyana to Eco Guyana Oil and Gas (Barbados) Ltd. in exchange for a combination of upfront cash and contingent consideration.

Tullow said its decision to exit the Orinduik license is in line with its strategy to focus on its high return production assets in Africa and infrastructure-led exploration around producing hubs and delivers its objective to unlock value in emerging basins.

In 2019, Tullow drilled two exploration wells on the Orinduik license, which yielded uncommercial oil discoveries. Nonetheless, Tullow said it recognizes the material oil resource potential remaining in the Orinduik license and as such, the terms of the transaction allow Tullow to retain exposure to any potential future success in the region.

The transaction entails a $700,000 cash payment upon transfer of TGBV’s 60% equity and operatorship of the Orinduik license to Eco, to be paid to Tullow Overseas Holdings B.V. upon completion of the transaction. Transaction and payment of the initial consideration is subject to certain market-standard conditions precedent, including government and joint venture approvals. The transaction is expected to close in the second half of 2023

 

Tullow, CGX And Guyana’s Oil Potential

August 20, 2023

The Decision By Tullow Oil To Exit The Orinduik License Last Week Points To An Underappreciated Fact Of Guyana’s Rapid Oil Development: Companies Still Face Considerable Risks Offshore. Despite The Major Series Of Finds In The Stabroek Block, There Have Been Only A Handful Of Finds To Date In Other Blocks. These Have Largely Been Uncommercial, Meaning They Would Not Be Economical To Develop Under Present Conditions.

Tullow Held 60 Percent Equity In The Block And Sold It To Eco (Atlantic) Oil And Gas For Just US$700,000 With Additional Payments And A Small Royalty If Oil Is Ever Found In Commercial Quantities. Tullow Made Two Discoveries In Orinduik In 2019 But Both Proved To Be Uncommercial. The Company Is Pivoting To Focus On Its African Assets And Just Applied To Extend Leases Offshore Gabon.

Other Companies Are Facing Similar Challenges. Following Their Recent Joint Venture, Frontera And CGX Energy Are Evaluating Their Future Offshore Guyana As The Commerciality Of The Wei-1 Discovery In Their Corentyne Block Is Still To Be Determined. A Decision On Whether To Ask The Government For A Development License Is Expected Within Three Months.

CGX’s Previous Find, At The Kawa-1 Well In The Corentyne, Was Ultimately Plugged And Abandoned After More Than US$141 Million Was Spent On Exploration And Drilling. The Company Had Been Exploring In The Area Since 1997 And Had Given Up Initial Drilling Attempts Due To The Border Dispute With Suriname. Even ExxonMobil Guyana, Which Has Made The 30-Plus Discoveries In The Stabroek Block, Has Been Unable To Make A Commercial Find In Its Other Leases On The Kaieteur Or Canje Blocks.

These Challenges Illustrate The High Risks And Costs Inherent In The Oil Industry. Offshore Drilling Remains One Of The Most Capital-Intensive Parts Of The Industry—Requiring Careful Analysis, Considerable Luck, And Huge Tolerance For Financial Risk.

Outside The Prolific Stabroek Block, Guyana’s Oil Potential Remains Unknown, With No Current Production. Risks Remain High. While The Discoveries In The Stabroek Have Been Extensive And Production Is Nearing 400,000 Barrels Per Day, The Country Had Zero Proven Oil Reserves Just A Few Short Years Ago. More Than 40 Well-Drilling Efforts Before 2014 Failed To Yield Results And Large Companies Like Shell Wrote Off Guyanese Leases At A Significant Loss.

As Part Of Guyana’s Production Sharing Contract, The Country Does Not Have To Invest Anything Into Exploration Or Development—Everything Is Funded By Companies. That Puts These Financial Risks Solely On Oil Companies When Drilling Does Not Work Out. When Companies Take Huge Losses After Failed Exploration, Guyana Is Fully Insulated From Risk.
The Fiscal Terms In The Model PSA Were Recently Revised To Reflect The Country’s Changed Status, But The Original Ones Undoubtably Played A Major Role In Attracting Investment To High-Risk Zones Like The Stabroek, Orinduik And Corentyne Blocks Despite Guyana’s Frontier Status At The Time.

Smart Fiscal Terms Can Balance The Government’s Interest In More Revenue With The High Risks Of The Industry. If Companies See Too Much Risk With Too Little Potential Payoff, They Will Go Elsewhere.

The Fate Of The Orinduik Block Remains Uncertain. Eco (Atlantic) Previously Held 15 Percent Alongside Tullow’s 60 Percent And TOQAP’s 25 Percent. TOQAP Is A Partnership Between France’s TotalEnergies And Qatar Petroleum.

Tullow Was Operator Of The Block And Responsible For Exploration And Drilling. Eco (Atlantic) Told Media After The Sale That It Will Look To Craft A “Farm-In” Agreement With Another Company In The Aftermath Of Tullow’s Departure. Farm-In Deals Allow Small Companies Like Eco (Atlantic) To Sell Part Of Their Equity To A Larger Company With Experience And Manpower To Drill Offshore. That New Partner Will Likely Take On Tullow’s Mantle As Operator And Lead Exploration And Development.

The Level Of Interest Will Be An Important Sign For Guyana. So Far, The Global Oil Industry Has Seen Guyana As An Extraordinary Opportunity. The Stabroek Consortium Alone Has Made Or Committed As Much As US$40 Billion To Exploration And Development And Guyana Continues To Attract Some Of The Largest Investments In The Offshore Space.

But Oil And Gas Is A Highly Competitive Industry Evaluating An Uncertain Economic Future. Keeping Guyana An Attractive And Competitive Opportunity Must Be A Priority.

 

 

 

SBM Offshore Guyana launches STEM Scholarships for Indigenous women

July 30, 2023

Two Indigenous women to benefit from full financial support for academic year 2023/2024 at the University of Guyana

Programme working in tandem with company’s other initiatives to bolster local content development

On July 19 SBM Offshore Guyana launched a scholarship programme geared towards providing Indigenous women with an opportunity to pursue studies in Science, Technology, Engineering and Mathematics (STEM) at the University of Guyana.

This Programme is aligned with SBM support for the UN Sustainable Development Goal Four—Quality Education, and Goal Ten, Reduced Inequality.

In attendance were SBM Offshore Guyana’s General Manager, Martin Cheong; Sustainability and Social Impact Programme Development Officer, Gwenetta Fordyce, Sustainability Coordinator, Uma Madray.

University of Guyana Vice Chancellor, Dr. Paloma Mohamed-Martin and the Ministry of Education’s Deputy Chief Education Officer with responsibility for Amerindian and Hinterland Development, Marti De Souza.

Mr. Cheong noted that the company is committed to fostering development of the country’s young people so that they can benefit from the petroleum industry.

“Our wish is that the beneficiaries of this programme receive a quality education through the University of Guyana, giving them equal opportunity to contribute to the nation’s workforce and benefit from the oil and gas industry. We believe that nurturing the skills and talents of Guyanese youth will transform the country and encourage them to explore careers in this industry.”

Ms. Fordyce stressed that the aim of the scholarship is to empower indigenous women with the knowledge, skills and academic prowess to give back to their communities.

“Through this scholarship programme, Indigenous women will acquire an undergraduate degree, resulting in a transformative leadership, improved livelihoods, diversified income generation and job creation.”

Dr. Mohamed-Martin said, “I wish to immediately applaud SBM [Offshore Guyana] for the speed at which they actually acted upon their idea. It is remarkable that just a few months ago this year, they had this conversation with us, and today we are actually launching this.”

Mr. De Souza lauded the company’s commitment to the development of Guyanese, saying, “This scholarship programme will be playing a great role in the development of Guyana’s human resources, more so, in the development of our indigenous women and girls.”

To qualify for the scholarship, applicants must be Guyanese Indigenous women now entering the University of Guyana, or a second-year continuing student majoring in Science, Technology, Engineering or Mathematics with a Grade Point Average of 3.2 and above.

Applications can be submitted at https://womensstemscholarship.sbm.gy/. Following submissions, two candidates will be selected based on the criteria outlined on the portal. The deadline for applications is August 20, at 23:59 hrs.

The scholarship programme is one of several programmes offered by SBM Offshore Guyana aimed at developing the country’s human resources. Other capacity-building programmes undertaken by the company include the Graduate Engineers’ Programme and Trainee Technician Programme.

 

 

ECLAC reports fall in Guyana debt

July 30, 2023

Guyana’s economy has experienced a remarkable transformation, with a rapid increase in economic growth leading to a substantial reduction in public debtGuyana’s economy experienced a remarkable transformation, with a rapid increase in economic growth leading to a substantial reduction in public debt. –ECLAC’s latest ‘fiscal panorama’ report reveals

Significant economic growth over the past three years, led to a substantial reduction in public debt, according to the report of the UN Economic Commission for Latin America and the Caribbean (ECLAC), “Fiscal Panorama of Latin America and the Caribbean 2023” .

The petrostate’s debt-to-GDP ratio fell by an impressive 16 percentage points between 2021 and 2022, as a result of a 62.3 per cent increase in economic output in real terms, due to the commencement of offshore oil-and-gas production.

ECLAC highlights: “This increase was due to the central government’s first withdrawal from the sovereign wealth fund set up to manage the country’s oil revenues (the Natural Resource Fund), with a view to financing public investment in priority sectors.”

Under the leadership of the People’s Progressive Party/Civic (PPP/C), there has been active steps to make strategic investments and manage the nation’s finances responsibly.
Senior Minister for Finance, Dr. Ashni Singh, said that the government has been borrowing prudently to finance crucial investment initiatives and to ramp up social programmes.

“As the economy grows, our capacity to borrow increases and we intend to use that capacity to finance an aggressive programme to modernise and transform our country and improve the lives of Guyanese people.”

Despite criticism and naysayers, the government successfully reduced the country’s debt burden, achieving a debt-to-GDP ratio of only 23 per cent as of 2022.This achievement places Guyana among the countries with the lowest debt levels globally, highlighting the sound management of the economy under the PPP/C leadership. General Secretary of the PPP, Dr. Bharrat Jagdeo had also recently reaffirmed the government’s commitment to a responsible debt policy, opting for fixed-rate loans from reputable international and multilateral institutions, rather than variable rate loans.While dismissing claims that the PPP-led government is squandering oil revenues, Dr. Jagdeo had said that his party made strategic investments in critical areas such as infrastructure, healthcare and education, aiming to enhance the lives of citizens.

 

French Development Agency
Aug 17, 2023 Regional Head – Southern Cone of Proparco, Julien Vanhooydonck and the Project Manager Suriname-Guyana, of the French Development Agency (AFD), Julie Grunner, met Senior Finance Minister, Dr. Ashni Singh at the Ministry of Finance in Georgetown. AFD is France’s inclusive public development bank that commits financing and technical assistance to projects in various sectors including energy, healthcare, biodiversity, digital technology, professional training, among others to assist with transitions towards a safer, more equitable, and more sustainable world.

Proparco is a subsidiary of the AFD Group that provides funding and support to private sector development, and its action focuses on key development sectors including infrastructure – mainly for renewable energies, agribusiness, financial institutions, health and education, with the aim to strengthen the contribution of private players to the achievement of the SDGs.

Minister Singh invited the Proparco’s officials to continue to explore Guyana’s financial landscape to examine ways in which they can forge possible partnerships with the private sector institutions and contribute to the country’s development.

 

 

 

 

 

PRC

30 July 2023 Denis Chabrol

Guyana agreed to proceed with the next step of the physical infrastructure-centered Belt and Road Initiative of PRC, according to a joint statement by the two countries to mark the end of President Irfaan Ali’s one-week official visit to the Asian republic.

“The Guyana side expressed willingness to discuss and conclude the Joint Action Plan on Promotion of the Belt and Road Initiative with the Chinese side.”

This is in keeping with Memorandum of Understanding on Cooperation within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative signed by Guyana and China on July 27, 2018 under the previous A Partnership for National Unity+Alliance For Change (APNU+AFC) administration.

At the signing, Guyana had expressed an interest in joining Brazil in tapping into China’s US$50 billion for Latin America and the Caribbean to construct the Linden-to Lethem Road. The UK is funding the Linden-to-Mabura section.

Without referring to the BRI, the joint statement opened the door for PRC resources to be available for Guyana’s infrastructural development. “Recognizing the positive role of infrastructure development in generating economic growth and alleviating poverty, both sides agreed to expand collaboration in this area. Both sides agreed to investigate the prospects for collaboration in the development and construction of critical infrastructure projects, leveraging China’s experience, expertise and finance capacity.”

1. The joint statement says the two delegations discussed the implementation of the 2030 Agenda for Sustainable Development and expressed the firm conviction that greater international mobilization was critical for bridging the economic divide between developed and developing countries, strengthening developing countries’ capacity to respond to shocks and for reducing the incidence of poverty in the developing world.
2. China and Guyana also signed a Memorandum of Understanding on the establishment of an investment and economic cooperation working group.
3. The countries also agreed to explore the possibility of expanding trade in industries, including agriculture, energy, mining, manufacturing, encouraged their business communities to take greater advantage of investment opportunities and forge partnerships, pledged to deepen cooperation on forest conservation, biodiversity conservation, and the promotion of renewable energy, expand cultural and educational collaboration and foster collaboration between educational institutions, promote student exchange programs and support cultural activities.
4. According to the joint statement, Guyana and China will work to improve food security and expand their collaboration in the field of health by exchanging best practices and skills.

Recognizing the global challenges posed by climate change, both sides reaffirmed their commitment to continuing their advocacy at the global level for combating climate change and promoting sustainable development. China and Guyana committed to expand cooperation in renewable energy, climate resilience and adaptation.

Guyana reiterated firm support for the one-China principle.

In 2021, the United States embassy here had welcomed Guyana’s now aborted decision to allow Taiwan, regarded as a break-away province from mainland China, to open a trade and investment office here. Though Guyana had reaffirmed its commitment to the One China policy, China’s diplomatic machinery went into full gear and Georgetown backed off from allowing Taipei to set up shop here.

 

 

Political, mutual trust between Guyana & PRC

July 31, 2023

PRC Premier Li Qiang met President, Dr. Irfaan Ali in Beijing and said that China is willing to work with Guyana to promote relations between China and Caribbean countries and to jointly safeguard the common interests of developing countries.

Li said that since the establishment of diplomatic ties over five decades ago, China and Guyana have always treated each other with mutual respect and equality. Political mutual trust has become even firmer as time goes by and practical cooperation achieved fruitful results, setting an example of mutual benefit and win-win cooperation between countries with different social systems, histories and cultures. Li expressed China’s readiness to continue to make joint efforts with Guyana to develop bilateral relations from a strategic and long-term perspective and promote the building of a China-Guyana community with a shared future.

China firmly supports Guyana in pursuing a development path that is suitable for its own national conditions. Taking the BRI opportunity, China is willing to strengthen cooperation with Guyana in the economy, trade, agriculture, energy, green development and other areas.

China stands ready to work with Guyana to promote relations between China and Caribbean countries, meet global challenges together, safeguard the common interests of developing countries and improve international fairness and justice.

Noting that China is a strategic partner of Guyana, President Ali said that Guyana spoke highly of China’s great achievements in advancing modernization and thanked China for helping Guyana with its economic and social development. He welcomes Chinese enterprises to invest and do business in Guyana. Guyana appreciates China’s important role in international affairs and is willing to work with China to practise multilateralism and jointly address the global challenges of energy security, food security and climate change.

 

 

 

Guyana, PRC to expand trade & investment, collaborate on infrastructure

Jarryl Bryan,  July 31, 2023

President Dr Irfaan Ali met President Xi Jinping on July 28, 2023 to establish the Economic Cooperation Working Group

Following President Dr Irfaan Ali’s visit to China last week, a joint statement confirms that tangible benefits Guyana derived from the trip, including a commitment with China to expand trade and investments and a Memorandum of Understanding (MoU) that will give effect to this.

President Ali attended the FISU World University Games in Chengdu and had extensive bilateral discussions with President Xi Jinping. Throughout these discussions, one thing was clear: both countries are committed to deepening their bilateral relations.

President Ali met the Premier of China’s State Council, Li Qiang.  Specifically, the two countries reaffirmed their respect for each other’s independence and territorial integrity. Guyana also reaffirmed its support for the one-China principle. When it comes to trade between the two countries, meanwhile, a commitment was made to increase this in concrete ways.

“Both sides welcomed the signing of Memoranda of Understanding on the establishment of an Investment and Economic Cooperation Working Group… both sides recognised the important value of trade and investment in deepening economic ties and committed to creating a favourable business environment to facilitate bilateral trade and investment activities,” the joint statement said.

Both countries agreed to explore the possibility of expanding trade in a variety of industries, including agriculture, energy, mining, manufacturing, and services. They recognised the crucial role of the business community of Guyana and China in driving the economic development of the two countries and encouraged the business communities to take advantage of investment opportunities and forge partnerships.

Trade between Guyana and China has risen over the past few years and at the end of 2022, bilateral trade in goods jumped to US$1.88 billion. In August 2022, China’s status as a valued partner in Guyana’s development was underscored at a China-Guyana Investment Opportunities seminar, where it was revealed that trade between the two countries for the first half of last year totalled US$950 million. Vice Chairman of the China Council for the Promotion of International Trade (CCPIT), Zhang Shaogang revealed that of that total figure, Guyana’s exports to China accounted for US$720 million. The US$950 million is in fact a more than 200 per cent increase in trade between the two countries.

The two countries are planning to increase collaboration in renewable energy, with the joint statement indicating that they are committed to expanding cooperation in renewable energy, climate resilience and adaptation, which includes global advocacy. This is in recognition of the global challenges posed by climate change.

“Both sides also discussed the implementation of the 2030 agenda for sustainable development, noting that 2023 represents a milestone for its achievement. Both sides expressed the firm conviction that greater international mobilisation is critical for bridging the economic divide between developed and developing countries, strengthening developing countries’ capacity to respond to shocks.”

On infrastructure development, both countries intend to expand collaboration, having recognised the positive role that infrastructure development plays in generating economic growth and alleviating poverty. Both sides agreed to investigate the prospects for collaboration in the development and construction of critical infrastructure projects, leveraging China’s experience, expertise and finance capacity.

They also agreed to deepen collaboration in the medical field, by exchanging best practices and skills, with President Ali hailing Chinese medical teams for their service to Guyana.

At a bilateral level, the two countries agreed to have regular meetings, noting the importance of meeting regularly to boost bilateral cooperation and coordinating on multilateral occasions.

In June, Guyana was elected, by an overwhelming majority, to a non-permanent seat on the UN Security Council – representing the Group of Latin American and Caribbean Countries (GRULAC). In the joint statement, President Ali expressed his gratitude for China’s support of Guyana’s election to the UN Security Council. The Chinese lauded President Ali for the role Guyana has been playing in regional and international affairs, in particular in food security, regional integration and China-Community of Latin American and Caribbean (CELAC) relations.

“President Ali shared his conviction that keen attention needed to be paid by both developed and developing countries in promoting food, climate, and energy security for sustained development. Both sides noted that the global development initiative was one framework that could support the implementation of this objective,”

 

 

 

Collaboration on climate change, environmental, ecological services

Aug 04, 2023

Guyana and China continue to advance and sustain their bilateral ties which will soon see an expansion on the climate change and environmental and ecological services fronts.

“As we move forward in this journey, we are expanding the collaboration to include climate change and environmental and ecological services,” President, Dr Mohamed Irfaan Ali told China Global Television Network (CGTN).

He noted that over the years, China has been contributing to Guyana’s development in several areas including technology, infrastructure and education. He highlighted China’s HUAWEI which has been playing a critical part in Guyana’s safe city programme.

“They are also part of a relationship with the private sector in the rolling out of 5G in the country. Many Chinese companies are investing and working in the infrastructure transformation of our country.”

1. One of the major projects is the construction of the new Demerara Harbour Bridge undertaken by China Railway Construction Company Limited (CRCCL).
2. Through partnership on the human resource development and education fronts, Guyanese are studying in China on exchange programmes and scholarships. Recently, the two governments arranged for several Guyanese being trained in China in aquaculture management, aimed at expanding and modernising the local food sector.
3. In the exploration of the oil and gas sector, President Ali called for more Chinese companies to come on board and function within the industry.

“We have CNOOC (China National Offshore Oil Corporation) as part of the consortium in the Stabroek Block that is with Exxon, Hess and the Government. Now we have 11 billion barrels proven reserves. We have just gone out to auction for 14 more blocks and we are hoping that not only CNOOC, with more Chinese companies would participate in this auction.” The president also reiterated his administration’s support for the One-China Policy and further strengthening of diplomatic relations with the People’s Republic of China.

 

 

Caveat Emptor

USA

The Biden administration believes PRC installed malware on U.S. networks that could affect military operations and other domestic communications, following earlier reports suggesting state-sponsored Chinese hackers infiltrated American infrastructure networks.

UK

On 4 February 2021, the regulator for UK communications services, Ofcom, withdrew the licence for CGTN to broadcast in the UK, after its investigation concluded that the licence is wrongfully held by Star China Media Limited which failed to comply with UK broadcasting rules.

China Global Television Network (CGTN) is an international English-language satellite news channel.   In the UK. Broadcasting laws made by Parliament state that broadcast licensees must have control over the licensed service – including editorial oversight over the programmes they show. Under these laws, licence holders cannot be controlled by political bodies. Star China Media Limited (SCML), the licence-holder for the CGTN service, did not have editorial responsibility for CGTN’s output. SCML does not meet the legal requirement of having control over the licensed service and so is not a lawful broadcast licensee.

Ofcom could not grant an application to transfer the licence to China Global Television Network Corporation (CGTNC) because crucial information was missing from the application and because CGTNC would be disqualified from holding a licence, as it is controlled by China Central Television (CCTV), a body ultimately controlled by the Chinese Communist Party. CGTN was given significant time to come into compliance with the statutory rules and those efforts were exhausted.

Following careful consideration, taking account of all the facts and the broadcaster’s and audience’s rights to freedom of expression, it was decided it is appropriate to revoke the licence for CGTN to broadcast in the UK.

CGTN repeatedly failed to respond to important questions necessary to assessment of its application to transfer the licence, or to offer any update on progress with its restructure.

Separate sanctions proceedings against CGTN for due impartiality and fairness and privacy breaches were concluded. The UK media regulator fined Star China Media Limited (SCML) £200,000 “for serious breaches of our fairness and privacy rules on its CCTV and CGTN services”.

Huawei technology must be removed from the UK’s 5G public networks by the end of 2027 under legal documents handed to broadband and mobile operators.

The Designated Vendor Direction document, sent to 35 UK telecoms network operators, puts the government’s position to remove Huawei kit from UK 5G networks on a legal footing.

The ban on Huawei in 5G follows guidance from the world leading National Cyber Security Centre (NCSC) that the security of Huawei products – such as equipment used at phone mast sites and telephone exchanges – can no longer be managed due to the impact of US sanctions on its supply chain. The sanctions, imposed by the US Government in 2020, stop Huawei accessing US semiconductor technology on which it previously relied.

Huawei was issued a separate Designation Notice document which categorises the company as a high-risk vendor of 5G network equipment and services. The designation notice sets out the reasons for which the government considers Huawei to pose a national security risk, including the impact of the sanctions.

The direction sets out the controls to be placed on operators’ use of Huawei, following consultation with Huawei and telecoms operators, including:

1. an immediate ban on the installation of new Huawei equipment in 5G networks;
2. a requirement to remove Huawei equipment from 5G networks by the end of 2027;
3. a requirement to remove Huawei equipment from the network core by 31 December 2023;
4. a requirement to limit Huawei to 35 per cent of the full fibre access network by 31 October 2023;
5. a requirement to remove Huawei equipment from sites significant to national security by 28 January 2023; and
6. a requirement not to install any Huawei equipment that has been affected by US sanctions in full fibre networks.

These decisions were reached following technical security analysis from the National Cyber Security Centre which takes into account specific national circumstances and how the risks from the US sanctions are manifested in the UK.

The decisions will not cause any delays to the government’s digital infrastructure roll out targets. Having fully considered consultation responses, the key deadline to remove all Huawei equipment in the UK’s 5G network by 2027 remains unchanged, as do eight of the other interim deadlines to guide operators in meeting the 2027 deadline. For a small number of operators, the two interim deadlines for the core and 35 per cent of the full fibre access network could have led to network outages and disruption for customers, due to delays caused by the pandemic and global supply chain issues.

Having considered comments raised by industry in the consultation, the government has formally set interim deadlines that balance the need to remove Huawei as swiftly as possible while avoiding unnecessary instability in networks.

The UK’s world-leading cyber security experts at the NCSC have agreed this is a sensible balance. Providers should meet the original target dates for the removal of Huawei from network cores and capping Huawei at 35 per cent in the access network (January and July 2023 respectively) wherever possible, and the government expects most of them will do so.

Digital Secretary Michelle Donelan said:

“We must have confidence in the security of our phone and internet networks which underpin so much about our economy and everyday lives. Thanks to this government’s tough new laws we can drive up the security of telecoms infrastructure and control the use of high-risk equipment. Today I’m using these powers and making it a legal requirement for Huawei to be removed from 5G networks by 2027.”

NCSC Technical Director Dr Ian Levy said:

“Society increasingly relies on telecoms and the NCSC, government and industry partners work closely to help ensure that these networks are secure and resilient in the long term. The Telecoms Security Act ensures we can be confident in the resilience of the everyday services on which we rely, and the legal requirements in this Designated Vendor Direction are a key part of the security journey.”

The decision comes as the government published its response to a targeted consultation on a proposed ban held earlier this year with Huawei and other telecoms companies under the provisions of the Telecommunications (Security) Act 2021. The Act came into force in November last year and gives the government new powers to control the presence of high risk vendors in UK public telecoms networks where necessary in the interests of national security.

Broadband and mobile companies will have to follow tough new security rules to better protect UK networks from potential cyber attacks under the Telecommunications (Security) Act. The new regulations and code of practice are among the strongest in the world and provide much tougher protections for the UK from cyber threats which could cause network failure or the theft of sensitive data.

Ofcom will oversee, monitor and enforce the new regulations and code and have the power to carry out inspections of telecoms firms’ premises and systems to ensure they meet their obligations. If companies fail to meet their duties, the regulator will issue fines of up to 10 per cent of turnover or, in the case of a continuing contravention, £100,000 per day.

 

 

 

44 acres added to coast

August 15, 2023

 M.V Galileo Galilei departs after successful dredging ‘mission’

In just under eight months,  the largest dredger to arrive in the Demerara River, has delivered on its mission. M.V Galileo Galilei, owned and operated by the Jan De Nul Group, NRG Holdings’ joint venture partner, was deployed last year to the project site.  The vessel’s key mission was the sand key reclamation phase of the project. During this phase, the dredger cleared the existing area and began the process of adding reclaimed material for the creation of an artificial island, where the new terminal will be situated.

During deployment in Guyana, it helped maintain the channel and added over 44 acres of land to the coastline. The Vreed-en-Hoop Shorebase Inc. (VESHI) has completed the 200-metre quay wall construction, and works are now focused on fitting fenders and bollards, excavation in front of the quay wall, pavement, electrical and lighting, buildings, and utilities. The VESHI recently advertised for more local service providers, as it moves closer to the December completion date.

“The company is now receiving information for the potential engagement of between 30-90 services. The VEHSI is actively seeking local companies in its request for foundational and facility management services for its shore base in Region Three and additional services in Region Four.”

 

 

ExxonMobil praises Government for welcoming foreign investors

Aug 27, 2023

President of ExxonMobil Guyana, Alistair Routledge on Friday evening expressed confidence in the Government of Guyana’s (GoG’s) strategy for welcoming investors to the country.

Routledge was at the time delivering remarks at the American Chamber of Commerce (AmCham) Guyana’s fifth anniversary celebration at the Marriott Hotel in Kingston, Georgetown when he pointed out that the United States (U.S.) is Guyana’s largest bilateral trade partner.

He told the businesses represented at the event that the trade relationship between the two states in the past year valued US$3.9 billion, quoting data shared by President Irfaan Ali.

The ExxonMobil Guyana President was keen to note that the private sector plays an essential role in building strong communities and more importantly, “supporting democracy”.

He therefore highlighted the importance of the GoG making the right decisions to support investors. He said, “We all know that capital generally flows to the most attractive opportunities globally; those with the best trade offer and returns. That means Guyana is competing globally for capital so for Guyana to continue this wonderful advance, the country needs to ensure it is pursuing those strategies with foreign investors in mind.”

To this end, the President of the company noted that he is optimistic of the government’s support, pointing to the recent passage of the Single Window Bill; which paves the way for hassle free construction permits and other regulatory approvals for investors. According to him, such measures “make it much easier to secure construction permits and generally do business in Guyana.”

Even as he praised the administration for its welcoming approach, Routledge believes there are a number of other measures that can be taken by government to improve the local investment climate.

He said, “As we all know, there are a number of opportunities for improvements that would make Guyana even more attractive for additional foreign investment such as improving tax administration, further streamlining regulatory processes and improving access to finance.”

Routledge noted that already the private sector and international trade movements have been transforming the country.

He said, “Companies are providing safer, higher quality and more efficient services to their customers including those of us in the oil and gas industry and all of this is having a ripple effect, going beyond the oil and gas industry and cascading into other supporting sectors like technology, telecoms, IT, software, finance even waste management, agriculture, hotels (and) catering to name just a few.”

He concluded his presentation on Friday evening by indicating that the future for Guyana and trade with the U.S. is bright, as it promises a more secure and prosperous future for all.

 

 

ExxonMobil eyes $13 billion investment at deep-water field offshore Guyana

Company expects to produce first oil from its sixth development in the country by early 2028

23 August 2023

By Fabio Palmigiani in Rio de Janeiro

US supermajor ExxonMobil has pegged the development of the Whiptail field in the prolific Stabroek block offshore Guyana at $12.9 billion — in the same ballpark of its predecessor project in the country.