SBM Offshore FPSO prepares to sail toward ExxonMobil project next year

September 19, 2024, by Melisa Čavčić

Dutch FPSO expert SBM Offshore tucked a new milestone under its belt with the completion of final module lifts of a floating production, storage, and offloading (FPSO) vessel at Seatrium yard in Singapore. This FPSO will work on ExxonMobil’s fourth oil project in the Stabroek block off the coast of Guyana.

ExxonMobil sanctioned its fourth project within the Stabroek block, the Yellowtail development project, which comprises six drill centers and up to 26 production and 25 injection wells, in April 2022. The operator followed it up with a contract confirmation with SBM Offshore for the supply of the FPSO One Guyana. Several months later, the construction of topside modules for the vessel began with two steel strike ceremonies held in both Keppel FELS and Dyna-Mac yards in September 2022 to mark the occasion. Constructed for ExxonMobil Guyana, the FPSO is set to join three other SBM Offshore-operated FPSOs – Liza Destiny, Liza Unity, and Prosperity – in Guyana waters in 2025.

The FPSO One Guyana, with a design incorporating the Dutch maritime infrastructure leader’s Fast4Ward program, entered drydock in March 2023 at the Keppel yard. Almost a year later, the FPSO left drydock and arrived along the quayside at the Seatrium yard..Highlighting progress made in combining the sections to make the FPSO One Guyana ready for work on Yellowtail field offshore Guyana, SBM Offshore reveals that the vessel moved to the integration and commissioning phase. This follows the last module lift, completed on time with over 25 million work hours without any lost time injury (LTI). Integration and commissioning activities are underway for a safe quay side departure in 2025.

The Dutch deepwater pioneer confirms that the SBM Installation team completed offshore campaign 1, including installation of anchors and mooring lines pre-lay. The FPSO will perform produced water treatment functions alongside oil separation and gas injection. With an optimum production capacity of 250,000 barrels per day (bpd) of oil, a storage capacity of 2 million barrels of crude oil, a gas treatment capacity of 450 million ft³ a day, and a water injection capacity of 300,000 bpd, the FPSO One Guyana was designed to be anchored in water depths of around 1,800 meters.

Progress on FPSO One Guyana

The Stabroek block covering 6.6 million acres or 26,800 square kilometers is operated by ExxonMobil affiliate Esso Exploration and Production Guyana with a 45% interest. Partners are Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%). Based on plans of the U.S. oil supermajor, six FPSOs with a gross production capacity of over 1.2 million barrels of oil per day are expected to be online on the block by the end of 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of over 11 billion barrels of oil equivalent.

SBM Offshore is also constructing the FPSO Jaguar for Whiptail oilfield development, the energy giant’s sixth project in the Stabroek block located at a water depth of approximately 2,000 meters.

 

 

 

 

Leading the race for seventh Guyana FPSO project

September 25

Fabio Palmigiani
South America CorrespondentRio de Janeiro

ExxonMobil expects to produce first oil from Hammerhead development in the Stabroek block in 2029.

A major floater specialist has emerged as the likely winner to build and supply the FPSO to serve the Hammerhead field offshore. ExxonMobil picked Hammerhead as its seventh project.  Hammerhead oil project will have up to 30 wells.

Highlights

• • Project to be sized at 120,000-180,000 b/d of oil
  • Up to 2 million barrels of storage capacity eyed
  • Also equipped to flow up to 120,000 Mcf/d of gas

Guyana’s Environmental Protection Agency is reviewing the consortium’s intended seventh oil project which would come online in 2029 at a size of 120,000 b/d to 180,000 b/d of oil — smaller than most of the three other oil fields under development which have capacities of 250,000 b/d each.

Several options for the management of the associated gas are being evaluated. The FPSO will process, dehydrate, and compress the associated gas produced from the reservoir. The vessel will be capable of storing approximately 1.4 million to 2 million barrels of oil. Third-party oil tankers will be scheduled to offload oil from the FPSO, making it available for export to the international market. Production facilities to be installed on Hammerhead include subsea equipment affixed to the seafloor and an FPSO on the ocean surface.

ExxonMobil filed preliminary papers with the government on a proposal for Hammerhead in late June, Hammerhead’s smaller size was designed to fit the resource. When Hammerhead reaches peak output, Stabroek will have oil production of over 1.56 million b/d.

FPSOs at Stabroek — Liza Phases 1 and 2 and Payara — are producing over 600,000 b/d of oil. Yellowtail, is set to come online in 2025. Uaru, should produce first oil in 2026; and a sixth, Whiptail, will start up in 2027. The three developments still under construction each have 250,000 b/d-capacity FPSOs. Hammerhead sited amid other oil FPSOs. in the south-central portion of the Stabroek Block, 100 miles from the capitalGeorgetown.

The Guyana Basin has emerged as an important offshore basin based on recoverable resources, with 18.7 billion barrels of oil equivalent discovered since 2015, according to a report by S&P Global Commodity Insights analysts Fernanda Machado, Mariana Anjos and Jerry Jarvis released in May. In nine years, it has established itself as the fifth largest [basin] in Latin America, while continuing to grow. Production is expected to peak in 2037 at 2.3 million boe/d, with oil accounting for 90%. High-quality, low-emissions and cost-effective barrels have already reached European markets. Currently, all gas production is associated with oil and reinjected, but the marketed gas is expected to increase.

First gas monetization is a gas-to-power project which is underway and is expected to have a significant impact on the power generation mix. The region has potential to become an LNG exporter by the second half of the 2030s, with deployment of two floating LNG vessels. The rapid increase in production requires infrastructure to be built, which entails significant investment. Over $120 billion in present value should be spent in the Guyana Basin, with five main companies — ExxonMobil, Hess, CNOOC (the Stabroek consortium ), and APA and TotalEnergies — estimated to account for 94% of all investments.

 

 

 

 

 

TechnipFMC: It’s a wrap on Guyana’s flagship $1.9 billion gas-to-energy project

August 30, 2024, by Melisa Čavčić

UK-headquartered energy technology provider TechnipFMC has put the finishing touches on its assignment at a gas-to-energy (GtE) project off Guyana’s Atlantic coast, which is envisioned to enable infrastructure buildout required to allow for natural gas to be transported from an oilfield in the waters of the prolific Stabroek Block to an integrated natural gas liquid (NGL) plant and a 300 MW combined cycle power plant at Wales on the West Bank of Demerara.

With new hydrocarbon discoveries emerging in the Guyana-Suriname basin, the black gold boom turned the country on South America’s North Atlantic coast into an exploration hotspot, prompting the government to assign the development of natural gas resources to the pile containing its key priorities in the oil and gas industry.

This led to the quest to bring Guyana’s first gas-to-shore project to life, as a way to combat the price shocks and halve electricity costs, sparking economic growth and bolstering energy security. To that end, the Natural Resources Ministry engaged in multiple discussions with ExxonMobil and its Stabroek Block partners, Hess Corporation and CNOOC, to find common ground and iron out the plans to tap into and monetize the total reserves of associated gas.

 

 

Multifaceted energy transition cards carving ExxonMobil’s spot in low-emission future

Given Guyana’s zest for harnessing its associated gas reserves, the government set the stage to find an independent third-party operator to either work with the U.S. oil major on the project or conduct the activity on its own, tackling the design, finance, construction, and operation of gas infrastructure to support upstream developments .

The solutions to put in place gas infrastructure include the necessary pipelines to connect and monetize upstream gas, transporting up to 50 million standard cubic feet per day of natural gas from the U.S. energy heavyweight’s Liza Phase 1 and 2 offshore projects via pipeline to onshore gas processing facilities. The gas-to-power project, which became the most expensive energy venture in Guyana’s history with a $1.7 billion price tag, was anticipated to be in operation by the end of 2024.

Based on the planned development, an ExxonMobil-led consortium is in charge of constructing a 12-inch diameter pipeline network and footing the bill of around $1 billion, connecting the pipeline to the Liza Phase 1 and 2 projects in Guyana’s ultra-deep waters. The pipeline was expected to be able to offtake 130 million standard cubic feet of gas per day if the local and regional demand matrix calls for it.

TechnipFMC wins work for Guyanese gas-to-energy project
On the other hand, the government has been entrusted with the construction of onshore facilities, valued at approximately $759 million and consisting of a 300 MW natural gas power plant and an NGL plant, managed by CH4 Lindsayca.

Following the decision from July 2022 to proceed with the project, ExxonMobil hired Subsea7 and Van Oord to install an offshore pipeline. Shortly after TechnipFMC was selected to construct and install subsea risers and pipelines, the government tapped CH4 Lindsayca to build a 300 MW combined cycle and NGL plant.

After the Environmental Protection Agency (EPA) gave the green light for the pipeline and NGL plant, ExxonMobil tasked SICIM and GAICO to install an onshore pipeline.

  In June 2023 , the offshore pipelaying began and the government opted for Kalpataru Project to establish transmission lines and substations.

 

The gas-to-energy project suffered a six-month setback, earlier this year, thus, the total cost estimate rose from $1.7 billion to about $1.9 billion, with the first gas bumped to 2025. The government applied to the U.S. Exim Bank for a loan of $660 million. ExxonMobil Guyana Limited (EMGL), as the operator of the Stabroek Block, advanced construction of the 225-km gas pipeline to facilitate the onshore power plant, gas processing facility and transmission lines.

According to the company, the $1 billion pipeline would be ready by the end of the year but onshore activities ran into delays, with onshore construction lagging behind schedule. In line with ExxonMobil’s expectations for the end of the offshore pipeline segment, TechnipFMC completed the in-field operations for the gas-to-energy project, emphasizing the role of “proper” planning, engineering, and preparation in ensuring “a flawless execution” by its Deep Blue pipelay vessel and Olympic Challenger support vessel.

The subsea pipe layer was refurbished in 2022 when Royston completed an overhaul of diesel power systems onboard the subsea construction vessel, which was in transit from Las Palmas to Rio de Janeiro.

New heads, liners, and piston rings were also installed while the air cooler, oil cooler, fuel pumps and pipes were refurbished. The Deep Blue ship can lay flexible flowlines, rigid pipes, and umbilicals in water depths ranging from 75 to 2,500 m.

TechnipFMC vessels finish in-field operations for the gas-to-energy project

After the natural gas pipeline tie-in was finished, the oil production was restarted at two FPSOs, Liza Unity and Destiny, which were put into offline mode during pipeline tie-ins for the gas-to-energy project. The FPSOs have since resumed their full production levels. The first FPSO at the Liza field in the Stabroek block, Liza Destiny, started production in December 2019 as part of the Liza Phase 1 development.

The second one, Liza Unity, began production in February 2022, as part of the Liza Phase 2 development. A third FPSO, Prosperity, is working at ExxonMobil’s third development, Payara. In addition, construction is underway on FPSOs for the Yellowtail and Uaru projects,e the fourth and fifth developments offshore .

While the first is anticipated to start production in 2025, the second is targeted to join the other four FPSOs in 2026. Recently, ExxonMobil made a final investment decision (FID) to develop Whiptail, its sixth project in the Stabroek Block.

 

 

Another world first for ExxonMobil’s second FPSO in Guyana

As a result of a series of discoveries that have been made and continue to spring up, Rystad Energy’s research in 2022 forecasted that the government’s revenue from domestic production would reach $7.5 billion annually in 2030.

Previous attempts to stop the gas project did not garner support to proceed with a court case. Opponents were forced to play a waiting game and monitor developments until they could latch onto something to end the project.

While the gas-to-energy project has the potential to unleash a cheaper, domestic energy supply, eyes are on the project for any mishaps to spur legal challenges as environmental activists do not regard gas as a transition fuel but as a high-emission fossil fuels.

As the snag in onshore construction gives the impression that the future of the project is left hanging in the proverbial balance, President Dr. Mohamed Irfaan Ali, raised the expectations gas bar with the announcement that the government was evaluating the feasibility of a second major gas initiative to complement the ongoing project at Wales, Essequibo Islands-West Demerara.

 

 

 

Dash for gas: ExxonMobil link- up with US firm to unlock untapped potential

ExxonMobil remains committed to developing its existing projects in Stabroek Block along with Hammerhead, as its seventh oil project, to add up to 180,000 barrels per day (bpd) by 2029, raising the country’s overall production capacity bar to nearly 1.5 million bpd.

With over 11 billion barrels of oil equivalent at its disposal, the U.S. heavyweight hinted at the potential for up to ten FPSOs to be put in operation. The existing plan outlines six FPSOs that will be online by 2027-end, with a gross production capacity exceeding 1.2 million barrels of oil per day.

 

 

 

 

CNOOC to monetise gas

August 30, 2024

Amid concerns over the monetization of Guyana’s gas resources with a controversial contract handed to a one-year-old United States company by the government, ExonMobil’s Stabroek Block partner – China National Offshore Oil Corporation (CNOOC) expressed an interest in a similar deal, Chief Executive Zhou Xinhuai told an earnings briefing on the same day top executives met Guyana’s President, Irfaan Ali and other ministers at the Office of the President. Dr. Ali met CNOOC Group’s Vice President and Chief Supervisor, Professor Yu Jing and fellow Vice President, Yu Jin with a delegation.

Discussions focused on opportunities in the gas sector and ways in which CNOOC can align its corporate social responsibility with the Government’s social agenda. Key officials from the oil corporation were at the meeting. President Ali was joined by Prime Minister, Brigadier (Ret’d), Mark Phillips; Senior Minister for Finance and Public Service, Dr. Ashni Singh; Minister of Natural Resources, Vickram Bharrat and Director of Presidential Affairs, Mrs. Marcia Nadir-Sharma.

CNOOC International holds a 25% working interest in the Stabroek Block, located approximately 200 kilometres offshore Guyana, covering 6.6 million acres. ExxonMobil is the operator with 45% interest and Hess – another US company has a 30% working interest.

CNOOC’s interest in monetizing Guyana’s gas resources comes on the heels of revelation that a one-year-old US company Fulcrum whose owner, Jesus Bronchalo was a former Vice President of ExxonMobil Guyana won the contract. The main opposition questioned the deal and seeks an investigation into the awarding of the contract.

Bronchalo founded Fulcrum LNG in July 2023, five months after he left Exxon, where he was employed for 19 years and one month prior to his resignation. Bronchalo’s company was later selected by the Government of Guyana (GoG) to design, finance, construct and operate the required gas infrastructure to provide gas monetization solutions and accelerate upstream gas developments . The deal was announced by President Ali in June 2024.

The main feature of Fulcrum LNG will involve development of state-of-the-art gas processing and modular, scalable facilities to produce Liquified Natural Gas (LNG) and NGLS/LPGs for Guyana and regional and global markets.

The limited experience of the company raised questions about its capacity to fulfill its contracted obligations. Bronchalo’s company was selected as “the most responsive compliant bidder” among 16 others who tendered to develop the non-associated gas in the Stabroek Block, operated by Exxon. Additionally, the CEO’s link to ExxonMobil sparked concerns but the government has dismissed the possibility of a conflict of interest. VP Jagdeo told reporters that Fulcrum LNG’s proposal was the best received by the government.

“He had left Exxon but if anything, maybe the evaluators thought that he had the data on the gas. I don’t know if they did that…on the face of it, I thought it was the best proposal that the evaluators came up with and that’s what we’re looking for, so there is nothing I found wrong with the evaluation of the bids and I don’t see anything that has come out in any major way that’s wrong, except for that oh, he worked at one time with Exxon.”

Reuters reported CNOOC Ltd as saying that fossil fuel will be a stabilising factor in global energy demand for the foreseeable future.   State-run CNOOC aimed to pump 700 million to 720 million barrels of oil equivalent for 2024, or 3% to 6% above the level of last year, CNOOC told an earnings briefing after posting a record interim profit. CNOOC expects domestic natural gas production to maintain strong growth through 2030 and stands ready to monetise vast gas resources in Guyana, Chief Executive Zhou Xinhuai told the briefing.

On new energy, Zhou said the company would focus on investing in projects that offer the best cost advantages, for example the commissioning of the world’s first 5-megawatt offshore high-temperature flue gas waste heat power plant. CNOOC expected oil prices to keep in a range of $75 to $85 a barrel for the second half of 2024. It targets annual capital expenditure at 125 billion yuan to 135 billion yuan ($18 billion to $19 billion), versus last year’s 129.6 billion. Its interim earnings at $11.2 billion were slightly below the $12.4 billion reported by PetroChina, Asia’s largest oil and gas producer, but more than double those of refining giant Sinopec, at $5.2 billion. ($1=7.0942 Chinese yuan renminbi)

 

 

 

Massy Gas commissions US$12m plant

27 September

Nicole Theriot – US Ambassador to Guyana, Vickram Bharrat – Minister of Natural Resources (Guyana), , and Vaughn Martin – executive chairman, Massy Gas Products attended the commissioning of the air separation plant.

MASSY Gas Products commissioned its US$12 million ($81.46 million) air separation plant at Old Eccles Road, East Demerara, the largest in Guyana with the capacity to produce 13 tonnes of gas products a day. Massy Gas Products said Guyana has achieved self-sufficiency in industrial gases as it would no longer need to import industrial gases oxygen or nitrogen. At the commissioning ceremony on September 12, Massy Gas Products CEO Augustus Harris told government officials and private sector executives that the plant would have a significant positive impact on the economic landscape by eliminating the need for companies to import oxygen and nitrogen.

“No more importation of oxygen and nitrogen gases because our plant produces high purity products that exceed the requirements of the industry; this plant also makes efficient use of energy, which offers greater cost savings, considering the increasing global power and fuel costs.”

Natural Resource Minister Vickram Bharrat thanked Massy Gas Products for making the significant investment.

“I realised that Massy Gas and the Massy companies on the whole must have visionary leaders, who have recognised that Guyana is developing at a very rapid pace and they recognised early opportunities that exist and in the future and as a result of that, making this significant investment.”

 

 

 

 

Westar Industrial and Oil Field Supplies Inc.

September 17, 2024

With its mission to monitor and support local content within the petroleum sector, Director of the Local Content Secretariat (LCS), Dr. Martin Pertab and his team conducted a site visit to Westar Industrial and Oil Field Supplies Inc. The 100 per cent Guyanese-owned company specialises in providing support services to the oil and gas industry and is developing a significant shore-based facility on the west bank of the Demerara River. The facility is strategically positioned to serve the growing needs of the booming oil and gas sector.

Construction is advancing rapidly and, once completed, it is expected to create hundreds of new jobs, providing a substantial boost to local employment and economic growth. The visit by the Local Content Secretariat is part of its broader effort to ensure that Guyanese businesses and workers are well-integrated and benefit from the expanding petroleum industry.

 

 

 

Exxon pipeline cost

September 18, 2024

Former Finance Minister questions final cost of pipeline; -repayment terms, maintenance cost , source of funds to repay debt, ownership.

A Former Minister of Finance believes that a fiasco is playing out with the Gas-to-Energy (GTE) initiative.

The Member of Parliament said that the cost of about US$2B is constantly ballooning even as agreement pertaining to the project is still to be laid in the National Assembly. The government said that the pipeline was expected to cost Guyana an estimated US$1B, but the project developer, ExxonMobil Guyana Limited (EMGL) never announced a Final Investment Decision (FID) casting further doubt on the price of the infrastructure.

As documents for the project remain sealed, no agreement has been put in Parliament about the pipeline or the whole project. In addition to the 12-inch diameter pipeline being laid by ExxonMobil to transport gas from the Liza Fields in the Stabroek Block to the Wales Development Zone, West Bank Demerara, the government is undertaking a 300 megawatt power plant and a Natural Gas Liquids (NGL) facility.

Vice President, Bharrat Jagdeo revealed that Exxon would not have advanced money for the project if the company did not believe it was profitable. The MP replied, “So Exxon has advanced us the money . If this is a loan, why doesn’t it appear in the debt profile of the country? How much is the loan? We don’t know. What are the terms of this loan, we don’t know. We have not seen an agreement for this loan. Who owns the pipeline?”

There is also a cost attached to maintaining the pipeline. The External Loans Act requires the government to table all loan agreements that have been concluded as soon as possible thereafter.

The agreement with Exxon is so long overdue to the extent that the company is now preparing to complete the project and pump nitrogen into the structure to preserve it until it is operational. Arrangements have been made to repay the company for the pipeline which Exxon expects to be completed by the end of 2024.

While media reported that President of Exxon Guyana, Alistair Routledge said that repayment will commence only after the project starts up, auditors who examined the company’s 2018-2020 expenditure observed that costs for the pipeline were added to the cost bank. As details on the financing arrangements of the project remain unclear.

Questions include, “Why isn’t this debt in our debt profile, where is the agreement? Why hasn’t this been carried to the Parliament? Have they started back repayment, where is the repayment coming from.? How can we be paying back when we haven’t seen any agreement, how can you pay back when this debt doesn’t appear in our profile and how can you be paying back from our future share (of revenue) when the Natural Resource Fund Act forbids this and what is going to be the accounting arrangements?”

 

 

 

Stabroek oil not used in operations

September 14, 2024

The Petroleum Agreement between the Government and ExxonMobil provides for the operator of the Stabroek Block to use as much oil as it needs during the offshore operations.

Article 11.9 of the Agreement states: “The Contractor shall have the right to use in any Petroleum Operations as much of the production as may reasonably be required by it therefor and the quantities so used or lost shall be excluded from any calculations of Cost Oil and/or Cost Gas and Profit Oil and/or Profit Gas entitlement.”

ExxonMobil Guyana Limited (EMGL said Guyana’s crude oil was not used for its offshore operations in the Stabroek Block.

“EMGL’s offshore operations use none of the crude produced in the Stabroek block. All of the crude oil recovered is lifted for sale in one-million-barrel cargos by the Government of Guyana and the co-venturers.”

ExxonMobil Guyana Limited is operator with 45% interest in the block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest. Government agencies, onshore and offshore, monitor all crude cargo lifts, including those assigned to the co-venturers. The oil company therefore noted, “The idea of secret crude cargos has no basis in reality.”

The company did not indicate where its fuel for the operations was being sourced or the cost. Exxon’s statement followed questions on the secrecy over use of Guyana’s crude oil for the company’s activities and its importance in determining whether this was another avenue for the country to be shortchanged.

“When that number is disclosed, whatever it is, assessments can be made that, given the scope of ExxonMobil’s Guyana operations, as to the reasonableness of it, how it compares to similar situations elsewhere. On the other hand, when that number is shaded in secrecy, the door is flung open for playing with what could involve thousands of barrels of oil daily.”

During a webinar this month, Lawyer, Melinda Janki said that the country was in the dark on how much of its oil was used by Exxon. In 2021 she wrote to President Irfaan Ali requesting this but she never received a response.

 

 

 

 

2023 – $336B gained from oil, $306B paid in consortium tax

September 13, 2024

For 2023, the Government of Guyana (GoG) paid the combined sum of $306 billion in income taxes for ExxonMobil Guyana Limited and its Stabroek Block partners, Hess and CNOOC according to the companies’ audited financial statements, while for the same period Guyana earned $336 billion from its oil.

This arrangement in which the Government paid almost the same amount it earned from oil, in taxes for the oil companies last year is a result of the 2016 Production Sharing Agreement (PSA) the previous Coalition Government signed with the U.S oil major. Exxon is the operator of the Stabroek Block, with 45% interest, Hess Guyana Exploration Ltd. holds 30% interest and China National Offshore Oil Corporation (CNOOC) Petroleum Guyana Limited holds 25% interest. Last year, the companies earned $1.3 trillion in profits – entirely tax-free in Guyana.

However, while Exxon, Hess, and CNOOC are not required to pay taxes, the 2016 oil contract provides for the taxes to be paid to the Guyana Revenue Authority (GRA) by the Government out of its share of profit oil.

Stabroek Block partners are allowed to recover 75% of the oil produced to recover their investment costs, the remaining 25% is considered profit, which is split between Guyana and the Stabroek Block consortium, giving each 12.5%. However, the consortium pays a 2% royalty from its share to Guyana. From its 14.5% Guyana then has to pay taxes for the oil companies.

Notably, the provision of the Stabroek Block contract which gives Exxon and its affiliates a tax-free ride in Guyana attracted criticisms locally and internationally. The contract states in Article 15.1 that the Contractor (ExxonMobil Guyana Limited) and its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement.

Article 15.4 states that the sum equivalent to the taxes owed by the company will be paid by the Minister for Petroleum to the Commissioner General of the GRA. The contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation.

Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the Minister shall furnish to Contractor proper tax certificates in Contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the Contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of Contractor or parties comprising the Contractor and other particulars customary for such certificates.”

The administration has explicitly stated that due to the sanctity of the contract, the 2016 PSA will remain in place, despite the deal being labeled as ‘lopsided’.

Last year, President Ali, in an interview with British Broadcasting Corporation (BBC), reiterated his administration’s position to not renegotiate the ‘lopsided’ Exxon deal.

“Well, I would say definitely, we did not have the best of deals, Exxon had a good deal signed by the last government.” Ali said that the sanctity of contract is “very important” to his government, adding, “and we can’t go back on that.”

Rystaad Energy files upbeat report on energy sector

September 13, 2024

Guyana, along with long-standing South American petrostates, Brazil and Argentina, continue to be in the ‘front row’ of countries in the hemisphere in terms of crude oil production, according to a September 4 disclosure by the globally regarded, Oslo-based independent energy research and business intelligence company, Rystaad Energy.

While the company asserts that South America, on the whole, experienced “significant growth in crude oil production” it claimed that Venezuela’s oil production while currently “recovering” faces an uncertain future “due to political factors.” With regard to the outlook for Guyana, Rystaad maintains that “crude and condensate production for August was projected to average around 520,000 bpd,” a 120,000 bpd m/m jump from July’s average of 400,000 bpd though it noted that this was “well below the country’s first-half average of 626,000 bpd.”

Navigating Guyana’s Surge

September 11, 2024 Guyana CHronicle

Guyana’s unprecedented economic growth is the talk of the town—literally. Over the weekend, Washington D.C. hosted a pivotal discussion with key figures from Guyana’s economic and political spheres, including Dr. Ashni Singh, Senior Minister in the Office of the President, and Alistair Routledge, President of ExxonMobil Guyana.

This meeting of the Guyanese diaspora was more than a showcase of impressive statistics; it was a forum for understanding the broad implications of a transformative period in Guyana’s history.

Dr. Singh’s remarks underscored a narrative of unparalleled economic expansion, driven largely by the discovery of oil and gas. However, growth isn’t confined to the energy sector.

There is also a vigorous development in the non-oil economy, a sign of strategic foresight and deliberate policy-making by the government. This dual-sector growth is a testimony to the administration’s commitment to not only capitalise on the oil boom but to foster a diverse and resilient economy.

Yet, amidst the optimism, there is a crucial undercurrent of caution. The government, under President Dr. Irfaan Ali, recognises the complex dynamics of managing such rapid growth. This awareness is crucial. The temptation to focus exclusively on the short-term gains of the oil industry is tempered with a robust strategy for long-term sustainability.

Dr. Singh’s assurance that the government is balancing immediate needs with future stability is encouraging. However, it is imperative that this balance be maintained with transparency and inclusivity.

Rapid economic growth can be a double-edged sword, especially in a country like Guyana where socio-economic disparities have historically been pronounced. Ensuring that the benefits of this growth are equitably distributed is not just a moral obligation but a practical necessity for social cohesion.

Investments in infrastructure, education, and healthcare are vital to translating economic growth into tangible improvements in the quality of life for all Guyanese.

This is where the government’s deliberate policies have been tested and proven. The administration has taken a meticulous approach to resource management, environmental conservation and human capital development.

The Guyana diaspora’ engagement in Washington D.C. is more than a symbolic gesture. It reflects the global interest and the potential for international collaboration in Guyana’s growth story. The diaspora role in this narrative is crucial; their expertise, investments and advocacy can significantly influence the trajectory of Guyana’s development.

As Guyana continues to navigate this extraordinary period of growth, the government’s approach will continue to be watched closely. The real challenge will always be converting economic prosperity into genuine and widespread improvements in living standards.

This requires not just sound economic policies but a transparent and inclusive governance framework that prioritises the well-being of every citizen. Guyana’s path forward will be shaped by how well it manages these complexities. The hope is that the government’s commitment to balancing immediate needs with long-term goals will pave the way for a prosperous and equitable future.

 

 

 

 

Access to potable water

September 18, 2024

Minister of Housing and Water, Hon. Collin D Croal, represented Guyana at the eighth India Water Week-2024, where he delivered remarks during the Ministerial Plenary Session.

The event, attended by India’s Minister of Jal Shakti, Shri Chandrakant Raghunath Patil, and other sector ministers, focused on inclusive water development and management. Also representing Guyana is the CEO of the Guyana Water Incorporated (GWI), Mr. Shaik Baksh.

Minister Croal highlighted rapid expansion of Guyana’s potable water sector, driven by macroeconomic growth from the emerging petroleum industry. Strategic initiatives such as the Water and Sanitation Sector Strategic Plan, aim to increase access to treated water in coastal and hinterland communities, reduce non-revenue water and upgrade Georgetown’s aging infrastructure.

Currently, 98.8 per cent of the coastal and 82 per cent of hinterland communities have access to potable water, with the government targeting 100 per cent coverage by 2025. Plans are also in place to boost treated water coverage from 52 per cent to 90 per cent, benefitting 260,000 citizens.

Minister Croal noted GWI efforts to enhance water quality management, including the construction of a state-of-the-art central water testing laboratory equipped with an ISO-17025 management system, capable of conducting chemical, microbiological, and wastewater analysis.

The government remains committed to climate-resilient infrastructure. India Water Week 2024 is being held from September 17-20, under the theme “Partnerships and Cooperation for Inclusive Water Development and Management.”

 

 

 

President Addresses UN General Assembly

September 25, 2024

Multilateralism is at a Crossroads

Madam President, Excellencies,

If it is, we all agree on ending wars; If it is, we all agree that the Security Council requires reform;

If it is, we all agree that the international financial system is unfair and unjust to the developing world and

If it is we all believe in climate, food and energy security; then what is stopping us from acting?

We will all be doomed in the court of conscience for knowing what is right while Ignoring what is wrong.

Of the myriad of challenges confronting our world, climate change threatens our very existence, adversely affecting development across all countries. Rising sea levels and temperatures, severe natural disasters, and shifting and extreme weather patterns disrupt agriculture and food security, threaten water supply and displace communities. These impacts are particularly devastating for small island developing states.

Each year, we make the annual pilgrimage to COP, filled with hope for tangible outcomes. And each year we are regaled, and renewed unkept promises are the order of the day. This cycle of hope followed by disappointment cannot continue if the Sustainable Development Goals are to be met. We must break free from this pattern of empty pledges. We must, unequivocally and immediately, fulfill all pledges for the sake of our planet and the future of all its inhabitants.

Let me tell you about my country, Guyana, a country that is 83,000 square miles, 86 percent of which is tropical forest. Guyana has the second highest percentage forest cover on earth and one of the lowest deforestation rate. Our forest stores 19.5 gigatons of carbon and sequesters more than 153 million tons annually. According to WWF, Guyana is one of the world’s most important countries for biodiversity density. It straddles two of the richest biodiversity zones, the Guiana Shield and the Amazon. As a country, we are dedicated to the preservation of this vital global asset. I especially salute the Indigenous Peoples of Guyana, the Amerindians, who are the foremost stewards of this great natural heritage. We recognise their leadership and 15% of all revenues earned from carbon sales are directly transferred to our Indigenous communities.

Even with our new-found natural resource – oil and gas, it would require less than 20 percent of sequestered carbon to offset our emissions at maximum output. We have preserved our biodiversity and know its value. We believe it is only fair and just that this global asset be monetised in a fair carbon market. Today, I am pleased to announce the launch of a Global Biodiversity Alliance. We will convene the first global biodiversity alliance summit in 2025, which will focus on;

1. Creating a market for biodiversity credits,

2. Scaling biodiversity conservation debt swaps,

3. Accelerating biodiversity bonds,

4. Establishing a blueprint for biodiversity taxonomies, and

5. Promoting nature positive action

We do not make this announcement by mere words, Guyana is also committing to doubling its protected areas by December 2025 and achieving the global biodiversity target of 30% by 2030.

These are real solutions that Guyana is putting forward to address the global problem of biodiversity loss. We do not lecture, we lead by example without arrogance.

According to the UN Food Security and Nutrition Report in 2023, an estimated 28.9 per cent of the global population, 2.3 billion people, were moderately or severely food insecure. The primary causes were conflict and insecurity, extreme weather events, including those related to El Niño, climate change and economic shocks.

To effectively address food insecurity, we must take more concerted action to address its root causes: reducing conflict, mitigating climate change and enhancing food production and trade in food commodities. By prioritising peace and climate action, we can create environments where food systems, crops and livelihoods are not threatened by conflict and weather extremes. In turn, enhancing food production and ensuring fair and efficient trade in food commodities can reduce food insecurity. So too, can the full involvement of women and youth. In Guyana’s national agriculture strategy and policy, at least 35% of our agro-businesses will be owned by women and 60% by young people.

While I have spoken of food insecurity, the global malnutrition rates are also alarming and must be addressed. Nutritious, safe and sufficient food are crucial to a healthy population. The United Nations must continue to be a beacon of hope amidst a turbulent global environment. The theme of this year’s assembly, “Leaving no one behind: acting together for the advancement of peace, sustainable development and human dignity for present and future generations” resonates with the vision set out in the United Nations Charter. This vision demands decisive action and enlightened multilateralism.

Today, we find ourselves in a world where the quest for peace is met with the defiant echo of conflict, where the promise of sustainable development is eclipsed by the dangerous spectre of climate change and food insecurity, and where the dignity of millions of people is trampled upon with impunity.

Challenges to Peace and Security

In Ukraine, the sovereignty and territorial integrity of a nation are being violated. Yet, decisive action by the United Nations Security Council remains fettered by the veto. Justice demands that we defend the territorial integrity of all States – large, small, powerful and weak.

Equally concerning is the conflict in Sudan, which rages on with devastating consequences for the people of that country, including famine and mass displacement. This conflict will continue to undermine efforts to achieve lasting peace and sustainable development.

This Assembly must also condemn the continued oppression and persecution by the Taliban of women and girls in Afghanistan who face, not just lack of access to education and restrictions on their movements, but now even their voices cannot be heard in public.

Closer to my home, CARICOM [The Caribbean Community] has been actively supporting a Haitian-led process for the restoration of democracy, peace and stability in Haiti. We welcome the deployment of the UN authorized Multinational Security Support Mission, led by Kenya, as a crucial step towards stabilizing the security situation. We call on the international community to urgently scale up financing for the MSS and secure its renewed authorisation so that the Mission can succeed.

We must also address the dire humanitarian situation where almost half of Haiti’s population suffers from acute hunger, mass displacement and women and girls are enduring brutal violence, including sexual violence. Guyana is leading CARICOM efforts in mobilising humanitarian efforts and support for Haiti. Excellencies, I will be reaching out to you for your support. We must stay the course with our Haitian brothers and sisters in their quest for durable peace and sustainable development. The people of Haiti deserve nothing less.

Peace, stability and safety are no more imperilled than in Gaza. Guyana reiterates its strong condemnation of the October 7 attacks by Hamas on Israel. However, the collective punishment of an entire population, including the indiscriminate slaughter of civilians, most of whom are women and children, has long gone beyond the realm of self-defence. As the world watches on helplessly, Israel continues to flout its international obligations, including the orders of the ICJ and successive Security Council resolutions. Instead, the right of self-defence is being used as a weapon of mass extermination, stoking legitimate fears of genocide.No State, large or small, should feel comfortable and safe when such atrocities are allowed to continue with impunity. The war in Gaza must end now. We reiterate our demand for an immediate ceasefire and the release of all hostages and Palestinians illegally detained. The Palestinian people have too long been denied their right for self-determination. We must advance the two-state solution as this remains the only viable option for a future where Palestinians and Israelis live in peace and security.

Turning to our brothers and sisters in Cuba, their right to development continues to be stymied by the economic embargo. Guyana renews its call for revocation of the embargo and the removal of Cuba from the list of State sponsors of terrorism. The United Nations has a special responsibility for the security of small states. Small States look to multilateralism and the rule of international law to protect them from foreign aggression.

Guyana is a small State that has had to contend with aggression from the Bolivarian Republic of Venezuela for all 58 years of our nationhood. International law and its strict application have been our armour and our shield in our determination to protect ourselves from this aggression. We remind this August Assembly that the border between Guyana and Venezuela was fully, finally and perfectly settled in an 1899 award by an International Tribunal. Venezuela was fully represented in that tribunal whose award it proclaimed in its own Congress and welcomed for more than six decades before reopening the issue on the eve of Guyana’s independence, claiming two-thirds of our territory. This controversy, initiated by Venezuela, was submitted by Guyana to the International Court of Justice (the ICJ) in accordance with a decision of the United Nations Secretary General and consistent with our position to settle this matter by legal and peaceful means. In 2023, in light of intensified acts of aggression by Venezuela, the ICJ issued provisional measures stating that, and I quote,

“Pending a final decision in the case, the Bolivarian Republic of Venezuela shall refrain from taking any action which would modify the situation that currently prevails in the territory in dispute, whereby the Co-operative Republic of Guyana administers and exercises control over the area”.

After years of refusing to participate in the proceedings of the ICJ and stating that it does not recognize the jurisdiction of the Court, the Venezuelan government has now submitted a counter memorial to Guyana’s submission. We welcome Venezuela’s decision to participate in the Court’s proceedings, and express the hope that Venezuela will accept the decision of the Court, as Guyana has long pledged to do. I reaffirm Guyana’s unwavering commitment to a peaceful resolution of this long-standing controversy in full conformity with international law and the principles set forth in the United Nations Charter.

Peace, development and human rights are pillars of the United Nations. We all aspire for a form of multilateralism that is equitable, inclusive, and ensures that no one is left behind. Women’s participation and leadership in private and public sectors are integral to this. There is a growing movement in the developing world calling for the democratisation of global political and economic relations. The disproportionate concentration of power favours a few powerful nations whilst marginalising the voices and concerns of the broader international community. Developing countries are justly demanding more inclusive and representative decision-making processes in institutions and organs such as the UN Security Council, the World Bank, and the IMF. The World Trade Organization must also be reformed to ensure fairer trade for developing countries. These reforms must go beyond fair representation and ensure that the policies and practices of these institutions align with the developmental needs and aspirations of all countries.

In this emerging global order, we must ensure the United Nations remains at the forefront of global governance. If multilateralism is to trump unilateralism, the UN’s role as the world’s foremost multilateral organisation is pivotal. With the necessary resources and resolve, the UN can ensure a future of peace, sustainable development, and human dignity. The future we seek—a future where no one is left behind—demands courageous action. The UN must fulfill its role as a custodian of greater global peace, the foremost promoter of sustainable development and an unflinching protector of human rights, human dignity and international law. And since the UN is all of us, this body of nations, this is a collective responsibility for us all.

Let us not be found wanting. Let us act together, for the advancement of peace, for the achievement of sustainable development, and the preservation of human dignity, now and for generations to come.

I thank you.

His Excellency Dr. Mohamed Irfaan Ali .President of the Co-operative Republic of Guyana

 

 

 

 

Constitution most advanced, democratic in the region

September 18, 2024

Attorney-General and Minister of Legal Affairs, Anil Nandlall, S.C. said that Guyana’s Constitution is and remains one of the most advanced and democratic constitutions in the region, when he addressed contentions about Guyana’s governance system.

Vehemently rejecting a categorisation that Guyana’s governance structure is akin to an autocracy, he said that Guyana’s Constitution is not only democratic but stands as one of the most advanced and liberal in the Caribbean.

Guyana, like many other democracies, operates under a well-established constitution that has been scrutinised and even praised for its democratic framework. This Constitution establishes a contract between the state and its citizens, outlining how the government will function, how its leaders are elected, how public funds are managed, and how the government is held accountable.

The constitution of a country is that principal document, that basic document of the state that establishes a contract between the state and the citizens. It outlines how the state will be managed, how the state will be governed, and by whom. Guyana’s Constitution meets all international requirements as it relates to constitutions that govern other countries like the United States, India, Canada and South Africa, among others.

“All these countries have constitutions that are similar to ours. In fact, I will advance the proposition that Guyana’s Constitution is more liberal, is more democratic, and is more advanced than any other in the Caribbean and I can debate that at any forum.”

No one could look at Guyana’s constitutional and legal architecture and advance the contention that the architecture is somewhat undemocratic or autocratic.  Against this backdrop, it can be said that the government has forged ahead with the modernisation of the country’s constitution with several new pieces of legislation passed since the Government entered office in 2020.

He said: “…this government from 2020 to now, we have passed more laws than any other country in the Caribbean.” While the Attorney-General reiterated this point, he said that this fact while it refers to the English-speaking Caribbean can possibly be extended to the entire Commonwealth.

At the end of 2023, it was noted that Guyana’s legislative framework is and has been experiencing significant changes since the PPP/C assumed office in 2020, all of which is aimed at promoting modernisation. At that time, it was reported that approximately 78 bills had been passed in the National Assembly. The Minister of Parliamentary Affairs and Governance, Gail Teixeira at the end of 2023 told media that the government has been bringing crucial pieces of legislation that are transformational, thus modernising the legal framework of the country.

 

 

 

 

 

USA committed to territorial integrity

Sep 25, 2024

President Dr. Irfaan Ali met United States Secretary of State Antony Blinken in New York , where they discussed the continued strengthening of US-Guyana bilateral relations.

The meeting covered a range of pressing issues, including Venezuela’s political situation and ongoing efforts to address the security and humanitarian crisis in Haiti. In a statement attributed to spokesperson Matthew Miller, Secretary Blinken highlighted the strong U.S.-Guyana partnership and the shared goal of enhancing security and prosperity for both nations and the wider region.

It was disclosed that the two leaders reviewed the growing trade and economic cooperation between the U.S. and Guyana, highlighting its significance in fostering mutual benefits. Ali and Blinken also discussed the importance of increased support to the Multinational Security Support (MSS) mission in Haiti, which aims to restore security and democracy for the Haitian people.

Moreover, Secretary Blinken underscored the United States’ commitment to Guyana’s territorial integrity, reinforcing the importance of collaboration under the U.S.-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030). This initiative aims to foster climate resilience and food security throughout the region.

Guyana and Venezuela border controversy case is currently pending before the International Court of Justice (ICJ). The case concerns the Arbitral Award of October 1899 which settled the border between the two countries; including the Essequibo region as part of Guyana.

Venezuela has historically claimed Guyana’s Essequibo region as its own despite its initial acceptance of the 1899 Arbitral Award that gives Guyana control of the Essequibo. Essequibo is Guyana’s biggest county, filled with gold, diamonds and significant natural resources. The case finds its genesis in Venezuela’s challenge to the validity of the 1899 Arbitral Award of the boundaries that separate the two countries.

 

Guyana, US reaffirm commitment to regional security, democracy, stability

September 18, 2024

PRESIDENT, Dr. Irfaan Ali and US Principal Deputy National Security Adviser, Jon Finer,  discussed ongoing efforts to strengthen the bilateral relationship and reaffirm the commitment of Guyana and the USA to advance regional security, democracy and stability.

They discussed the outcomes of the inaugural Guyana-U.S. Strategic Dialogue in July and additional concrete steps to contribute to Guyana’s economy, development and territorial integrity. Discussions also surrounded concerns regarding the situation in Venezuela following the July 28 presidential election. The US White House said

“Mr. Finer and President Ali agreed to continue collaboration with regional partners to restore security for the Haitian people, and ensure the success and sustainability of the Kenya-led Multinational Security Support mission in Haiti.”

 

 

 

 

Cutting food imports

September 18, 2024

Guyana moves to sustainably extract natural resources of:

1. 1. 1. bauxite,
      2. gold,
      3. diamond,
      4. manganese,
      5. pristine forest,
      6. arable land,
      7. sunshine,
      8. fresh water
      9. and now oil,

For the benefit of its citizens and for Caricom. Guyana has taken the regional lead on 3 strategic pillars of the economy: energy, food security and climate change.

Guyana, where manufacturing possibilities were hampered by high energy costs and the population endures high electricity cost, periodic load shedding and blackouts, would soon enjoy relief from the integrated gas processing facility at Wales.

When the electricity and gas plants become operational, the energy cost to consumers would decline by 50%: from $(US) 22 cents per kwh to $(US) 11 cents per kwh. Though the estimated cost of the project is $(US)1.9 billion, that works out to just $(US) 4 cents per kwh (covering all capital and operational costs), and the country would save $(US) 100 million annually.

The government record on climate change is second to none. Its detailed plan is captured in the Low Carbon Development Strategy (LCDS), 2030. Guyana is Net Zero;, thanks to forests storing 20 billion tons of CO2 and removing 154 million tons of CO2 from the atmosphere each year. Guyana joined 139 countries and signed onto the Net Zero emission by 2050. The funds earned through LCDS are used for climate mitigation and adaptation, and for Amerindian land titles and community development (carbon credits).

The biggest challenge to the three pillars is the ambitious 25/25 food security programme with Caricom, to reduce the value of food imports by 25% by the year 2025. Between 2018-2020 Caricom imported, in value, 60% of its food requirements (in a few countries it was 80%). Recognizing that this level of imports cannot continue, Caricom was able to reduce the value of imports by 12% in 2023 compared with 2022.

To illustrate the progress towards 25/25, the Agriculture Minister of Guyana Zulfikar Mustapha provides figures for Guyana. These are self-explanatory. The rate of increase is substantial.

1. 1. 1. The production of brackish water shrimps is projected to increase 25% from 958,000 kg in 2023 to 1,200,000 kg in 2024.
      2. A multi-million project to cultivate prawns is ongoing at Onverwagt, West Berbice.
      3. Much work needs to be done in egg production.
      4. Expanding corn production would lead to increased egg production.
      5. Guyana imports 53 million eggs annually.
      6. In 2023 Guyana produced just 27,000 eggs.
      7. By August 24, 2024, it produced 97,000 eggs (3.5 times).
      8. Minister Zulfikar expects that within a few years Guyana would become self-sufficient in egg production.

Minister Zulfikar is mindful of ‘El Nino’ weather patterns and has taken measures to mitigate the impact of this on production. The Ministry of Agriculture is building a Hope-like Canal each at No. 51/52 and at Lancaster, which will offer flood protection for over 360,966 acres of farmland and residential areas. The government provides incentives and removes obstacles to growth.

The government grants duty free concessions for machinery and agriculture inputs; upgraded market to farm roads as well as constructing several highways to benefit all Guyanese including farmers; has restored the drainage-irrigation charges and land rentals which the APNU+AFC government increased by more than 4 times (from $(G) 3, 500 to $(G) 15,000) to the original level of $3,500.

New methods of agriculture husbandry like hydroponic and shade houses are being implemented. President Dr Irfaan Ali takes more than a personal interest in agriculture expansion and diversification.

To achieve the target of 25 by 2025, a special Ministerial Task Force on Food Production and Food Security (MTF) was established to guide the implementation of VISION 25 by 2025.

Ministers of Agriculture in Caricom meet monthly to evaluate the situation. For 2023, the value of food imports was reduced by 12% in Caricom compared with 2022. Minister Zulfikar expresses optimism that Guyana and Caricom would attain the objectives of 25 by 2025 and Guyana would never catch the Dutch disease.

 

British Business can capitalise on economic growth, investment-friendly climate

September 17, 2024

British High Commissioner to Guyana, Jane Miller, OBE, urged investors to seize the abundant opportunities in Guyana at the official London launch of the British Chamber of Commerce in Guyana (BritCham Guyana) .

Since the discovery of vast oil reserves offshore Guyana in 2015, Miller disclosed that the petrostate has been one of the fastest-growing economies globally. “Guyana is on the map, thanks to many, many people and to oil. People are beginning to recognise this most incredible country and I really do encourage those of you who have not been there to go and invest and go and find out more about it,” she told an audience of business executives, investors, government officials and diplomats.

With Guyana rapidly emerging as a global economic powerhouse, driven by its expanding oil and gas sector, Miller emphasised that the timing could not be better for British businesses to invest.  The envoy outlined the favourable business climate in the Commonwealth member, highlighting its pro-investment policies and burgeoning energy and non-oil sectors.

“The GDP [Gross Domestic Product] has quintupled since 2015. Last year’s economic growth was 38.4 per cent and the IMF [International Monetary Fund] is projecting that the next three years, it will be 20 per cent or more. What incredible economic growth, and this brings up amazing opportunities. And importantly, that growth isn’t only in the oil sector, it is also in the non-oil sectors.”

She highlighted three key advantages for British investors, considering Guyana. In addition to the booming economy, the English-speaking country has a legal system largely based on English law. This makes it easier for British investors to navigate business dealings, legal frameworks, and contracts without significant language or legal barriers.

Guyana benefits from United Kingdom Export Finance (UKEF), a UK government initiative that helps British companies invest overseas by offering financing and insurance options. The British government significantly boosted this financing for Guyana from £715 million to £2.5 billion in the past year, signalling strong confidence in the country’s economic potential.

There is visa-free travel between Guyana and the UK as well as direct flights. Guyana is the UK’s top trade partner in the Caribbean, with bilateral trade between the two nations reaching £1.8 billion in 2023.

“The time is now. Come and see Guyana. You wouldn’t understand the incredible opportunities in Guyana until you come into the country, meet the people and actually see what’s going on. New bridges, new roads, new hospitals, new schools, new housing… you name it. It’s all happening at the moment and it’s super exciting. Come now. There is competition. Everybody is coming into Guyana. Just in the last few months, three new embassies emerged in Georgetown. Everybody is coming to invest…,” Miller added.

She offered some practical advice for investors interested in Guyana. She recommended that investors connect with key organisations like BritCham, the Georgetown Chamber of Commerce (GCCI), the Private Sector Commission (PSC), and the Guyana Office for Investment (GO-Invest). These bodies can provide valuable insights, partnerships and support for businesses seeking to establish or expand in Guyana.

She encouraged participation in trade missions, which provide opportunities to explore the market, meet local business leaders and gain firsthand knowledge of investment opportunities in Guyana. Miller suggested that investors take extra time to experience Guyana’s natural beauty.

With 85 per cent of the country covered in tropical rainforest, Guyana boasts incredible wildlife and biodiversity. BritCham is a professional business support organisation working to protect, promote and encourage trade and commerce between Guyana and the United Kingdom and improve the quality of business opportunities across Guyana and the UK.

 

 

UK’s biggest trading partner in the region

September 15, 2024

Forty Guyanese companies attended the BritCham Guyana United Kingdom launch event at the historic Lords cricket ground, London, United Kingdom , which had over 300 attendees and marked a historic milestone for bilateral trade between Guyana and the UK. Over 50 new UK companies were in attendance and a number are working with BritCham to plan visits to Guyana this year.

“At the sold-out event, over 300 ticketed persons, celebrated with BritCham Member executives and special invitees.”

BritCham Guyana stated that President Irfaan Ali sent a personal message for the event and spoke of his support for the chamber. UK Foreign Secretary David Lammy, a member of the Guyana diaspora, congratulated BritCham Guyana on their launch through a video message, highlighting that Guyana is now the UK’s biggest trading partner in the Caribbean.

UK Government officials, Guyanese officials, celebrities from TV, Film and Music including Guyanese, British Academy Film Awards (BAFTA) award winning and former BBC Eastenders producer, Barbara Emile, Guyanese Choice FM Co-Founder, Yvonne Thompson, Award winning film director, Sally El Hosaini, Roc-A-fella Records Co-Founder, Kareem “Biggs” Burke and Jadon Sancho’s Guyanese father Sean Trent Alexander. Special guest Trevor Phillips spoke eloquently about his childhood in Guyana and the quality of the Guyanese people. BritCham’s founding Chairman Faizal Khan highlighted his sincere appreciation to the attendees that supported the event to grow the business connections between UK and Guyana.

“The BritCham Guyana Lords launch event, was a tremendous success with our data highlighting this was the biggest Guyana business event in UK History. Dare I say, we do it again bigger and better next year? Watch this space and get in touch for more information www.BritChamGY.Com”

To that end, Rachel Simmons and band performed live music and a special tribute to Trade Winds lead singer Dave Martin who died recently. Chairman Faizal offered a special tribute to Sir Shridath Ramphal, who was interred in Guyana on Saturday.

BritCham Guyana also soft launched their new App, which is collaboration with BritCham member Guyana-Business.com .    The app allows all persons in attendance to communicate directly with all ticketed attendees and discuss projects together.

Guyana-Business.com hosted a prestigious welcoming reception the evening before at the Landmark Hotel champagne bar for BritCham members and special invitees.

 

 

 

Saipem launches Community Development Initiatives

September 17, 2024

Italian oilfield company- Saipem has announced the launch of its 2024 Local Community Initiatives (LCIs) Plan in Guyana, by which Saipem is stepping up its commitment to strengthening relationships with local residents and community stakeholders.

The company said it has always been engaged in creating lasting value for the communities where the company operates. In alignment with this vision, Saipem in 2024 will focus on empowering individuals and fostering community growth through targeted investments and social programmes.

This year, it is partnering with the Women Across Differences to launch two impactful initiatives aimed at supporting women and single mothers.

Computer Literacy for Single Young Women: In an effort to bridge the digital divide, Saipem will provide computer literacy training for five single, unemployed women aged 18 to 30. Selected through a collaboration with Women Across Differences, these young women will receive a full scholarship to attend the Global Technology Institute, gaining essential skills to enhance their career prospects and overall life quality.

Educational Opportunities for Single Mothers: Recognizing the unique challenges faced by single mothers, Saipem will support eight single mothers to return to school. These mothers will have the opportunity to enroll in courses at esteemed institutions including the Government Technical Institute (GTI), Guyana Industrial Technical Center, Institute of Distance and Continuing Education, and Carnegie School of Economics. This initiative aims to empower them with the skills needed to support their families and advance their personal development.

The Computer Literacy Programme will span eight weeks, while the educational courses for single mothers will last seven weeks with possibility for advanced and prolonged attendance. Both initiatives kick off this month. Similarly to what was done in 2023, this year Saipem will additionally focus on an internship program, providing valuable work experience to six students from technical vocational schools like GTI (Government Technical Institute) and GITC (Guyana Industrial Training Center) and to three final-year engineering students from the University of Guyana.

Saipem’s 2024 initiatives represent a significant evolution of the company’s community engagement efforts, dedicated to making a tangible difference in the lives of Guyanese society. Saipem’s commitment to ongoing community development and support reflects its belief in the power of education and opportunity to drive positive change.

 

 

 

 

Forest-saving deal with Norway yields rich results

September 10, 2024

Fifteen years ago, a groundbreaking agreement signed in the heart of Guyana at Fairview, sett the stage for a global model of forest conservation which ensured billions of US dollars were earned by the country for not cutting down the forest.

The 2009 deal between then President Dr Bharrat Jagdeo and Norway’s Minister of Environment Erik Solheim pledged US$250 million to Guyana in exchange for conserving its vast rainforest, marking one of the world’s first forest-saving initiatives. This week, Solheim and Jagdeo reunited on stage in Georgetown to celebrate the success of the Low Carbon Development Strategy (LCDS) and discuss its global implications.

President Dr Irfaan Ali spoke glowingly of the original idea of Dr Jagdeo to deploy all of Guyana’s forests in the fight against climate change if the country could be compensated for doing so.

“It was ambitious, it was world-leading, it was imaginative, it was certain in the fact that Guyana can lead the world in finding solutions to global problems,” Dr Ali stated at a high-level discussion to reflect on the LCDS.

“We have really, in this journey, set the benchmark and the best practices, when it comes to forest governance, forest management and the deployment of forests at the jurisdictional scale to meet this global challenge.”

This week Solheim returned to the heart of Guyana to check on how the funding from the 2009 forest-saving deal has benefitted indigenous communities.

“It was amazing. I was so happy. Because sometimes when money is spent, you see no results. But in Guyana, it was the opposite. You can see results everywhere,” Solheim said at the discussion with Dr Jagdeo.

He highlighted the transformational impact on local communities, from improved infrastructure to sport facilities like football and cricket fields, from ICT centres to eco-tourism initiatives.

Funds from the Guyana-Norway agreement supported 19 projects utilising over US$ 222 million. These projects were implemented under thematic areas such as socio-economic development, climate resilience and adaptation, sustainable land and forest management, hinterland development, digital infrastructure and renewable energy.

This success has been a testimony to the vision that Guyana’s forests can provide both environmental and economic benefits. The LCDS 2030 (the updated or second phase of the original LCDS) positioned Guyana as a leader in forest finance and sustainable development.

Forests cover 85% of the Guyana’s land area, storing nearly 20 gigatons of carbon dioxide, a gas which traps heat. The carbon dioxide, or carbon for short, with other harmful gases are causing the earth’s temperature to rise, leading to climate change, extreme weather events such as floods, wildfires and more frequent and intense hurricanes.

Guyana has avoided cutting down trees to clear land for big agriculture and mining projects like other countries have done to earn money for national development projects. In return, the country has argued there must be value – it must earn – in keeping the forest standing.

President Irfaan Ali emphasised the pivotal role Guyana played: “It was the idea of then President Bharrat Jagdeo that our forests were a natural and national asset playing a key global role.”

However, recognition of the role of forests in addressing climate change was slow.

“The world knew that forests played an important role, yet it was unprepared to provide the support for forested countries.”

The Guyana-Norway partnership was therefore pioneering, creating a replicable model that demonstrates the financial and environmental value of conserving forests.

“We built the model according to its replicability and we proved that this could be sustainable, this could be measured, that people were going to get what they paid for…,” Dr Jagdeo stated.

Solheim’s return to Fairview, 15 years after the initial agreement, was symbolic of the lasting impact of the deal.

Today, Guyana’s efforts at earning from standing forests has extended to the sale of carbon credits, with US$750 million recently earned from a deal with American firm Hess. A portion of these funds is earmarked for indigenous communities, including Fairview, to support long-term sustainable projects.

President Ali praised Solheim’s vision, calling his leadership “inspiring and invaluable” in helping Guyana to set the stage.

“We have set the benchmark for forest governance and management, positioning Guyana at the forefront of global efforts to combat climate change.”

Through the LCDS, Guyana continues to shape international policies, providing a blueprint for how tropical rainforest conservation can drive sustainable development worldwide. The success of the Guyana-Norway partnership underscores the power of collaboration in tackling global environmental challenges. With the LCDS 2030 now in full effect, the future of forest finance and sustainable development looks brighter, thanks to the pioneering efforts of Guyana.

 

 

 

 

New Canada high commissioner to Guyana

August 30, 2024

Canada’s Minister of Foreign Affairs, Mélanie Joly announced the appointment of Sébastien Sigouin as the High Commissioner (Designate)to Guyana and Plenipotentiary Representative to the Caribbean Community.

Mr. Sigouin succeeds Mr. Mark Berman, the high commission here said. Sébastien Sigouin (LLB, University of Sherbrooke, 1993; PhD and LLM [International Relations], Graduate Institute of International and Development Studies, Geneva, 2002) joined the Department of Foreign Affairs and International Trade in 1997 as a human rights and humanitarian affairs adviser.

At headquarters, he served as manager of the International Programme and director of policy for the Canadian Human Rights Commission (2002 to 2010). He was also director of strategic planning and operations for Canada’s development assistance programming (2010 to 2015), deputy head of the Permanent Mission of Canada to the Organization of American States (2015 to 2018) and executive director responsible for relations with Central American countries, Cuba and the Dominican Republic (2018 to 2022). Most recently, he was executive director of the Haiti Division. Sébastien Sigouin is expected to present his Letters of Credence to the Government of Guyana soon.

 

 

 

 

Star in the West Indies

August 30, 2024

Guyana’s rapid transformation and burgeoning economic strength have attracted a diverse array of international investors, positioning the petrostate as a highly sought-after investment hub.

This was emphasised by President Dr Mohamed Irfaan Ali, as he stressed Guyana’s prominence on the world stage, emphasising the country’s pivotal role in the region’s economic and infrastructural landscape.

“We are the eye of the storm. We are the eye of the region, and the globe is looking at us,” President Ali stated, during the contract signing ceremony for a US$161 million road upgrade project along the Soesdyke-Linden Highway.

Since 2020, the government has strategically engaged skilled contractors and consultants from around the world, to oversee and work on a range of mega projects.

The notable initiatives include the construction of the new Demerara River Bridge by China Railway Construction (International) Limited and the oversight of the project by the Italian firm – Politecnica.

Additionally, the upgrade from Sheriff Street to Orange Nassau and Mahaica, as well as the Linden to Mabura Road upgrade, are integral components of this transformative approach.

These large-scale projects will enhance the country’s infrastructure, and nurture local managerial capacity to thrive in complex environments, bolstering the nation’s overall development.

“We are building that capacity to take our country forward, and this is an important point you miss sometimes with these transformative projects”

The significant investments made by participating companies in training facilities further underscore their confidence in the government’s long-term strategic vision.

Minister of Public Works, Bishop Juan Edghill, emphasised the government’s commitment to ensuring these projects are supervised by reputable international firms, to protect public funds and ensure the delivery of high-quality work.

This strategic approach positions Guyana as an attractive investment destination and reaffirms its commitment to sustainable and impactful development.