South American Oil Boom Gains A War- Time Boost

Apr 07, 2022, Oilprice.com

Guyana is on track to produce over 1 million bpd of crude by 2027.  The size of the Guyana-Suriname basin may be bigger than anticipated.  Besides deepwater oil, Suriname is believed to have considerable resources in shallow waters.

President Joe Biden’s decision to ban Russian energy imports to the U.S. is boosting the outlook for South America’s newest oil-producing nation Guyana as well as neighboring Suriname. The microstates share the offshore Guyana-Suriname Basin where global energy supermajor ExxonMobil with its partners made a slew of quality petroleum discoveries in offshore Guyana’s Stabroek Block. In 2000 the U.S. Geological Survey estimated that the offshore basin, one of South America’s largest, holds mean undiscovered crude oil resources totaling 15 billion barrels.

Evidence is growing that the USGS may have underestimated the basin’s hydrocarbon potential. This resulted in the U.S. agency announcing it was planning to reassess the petroleum resources of the Guyana-Suriname Basin in 2020, although that was put on hold because of the pandemic. The mounting evidence that the G-S Basin possesses far greater potential than originally believed indicates that the geological resource will be a game-changer for two of South America’s emerging countries.

Exxon estimates its discoveries in the Stabroek Block alone hold 10 billion barrels of recoverable oil resources, which have the potential for at least 10 development projects. Analysts believe Guyana will be pumping over one million barrels of crude oil daily by 2027, which will deliver a tremendous economic windfall for one of South America’s most impoverished nations.

Neighboring Suriname, which shares the Guyana Suriname Basin, is also poised to benefit from an oil boom of its own. French supermajor TotalEnergies, which is the operator, and partner Apache both have a 50% stake in offshore Suriname Block 58 which is 1.8 million acres in size and contiguous to Exxon’s prolific Stabroek Block. The partners reported oil discoveries since January 2020 with the latest being the February 2022 discovery at the Krabdagu-1 exploration well. This is the fifth significant oil discovery in the block and the sixth if the non-commercial November 2021 discovery at the Bonboni-1 exploration well is included. The oil found in Block 58 is characterized as medium to light crude oil with an API gravity of 25 to 43 degrees.

Source: TotalEnergies.

Those discoveries demonstrate that Block 58 possesses considerable petroleum potential with some analysts estimating that it could hold up to six billion barrels of recoverable oil resources. TotalEnergies announced that by the end of 2022 it intends to identify sufficient oil resources, through drilling three exploration and appraisal wells in Block 58, to progress investment in operations for first oil development.

In November 2021 Apache announced the successful flow testing of the Sapakara South-1 appraisal well, which it estimated had tapped a reservoir containing 325 million to 375 million barrels of oil resources. By February 2022, Apache had revised that estimate upward to over 400 million barrels. The U.S.-based driller allocated $200 million to conduct further exploration and appraisal activities during 2022 mostly directed to offshore Suriname. The planned undertakings include spudding an exploration well in Block 53, located to the immediate east of Block 58, where Apache has 45% interest.

The raft of discoveries in Block 58 along with Malaysian national oil company Petronas and partner Exxon discovering oil in Block 52 indicate considerable petroleum potential. There is considerable speculation among industry participants and energy analysts that the petroleum fairway which lies underneath the Stabroek Block continues into Suriname’s sector of the Basin. The shallow waters immediately off the former Dutch colony’s coast are also thought to possess considerable hydrocarbon potential. By mid-2021, Staatsolie, Suriname’s NOC and industry regulator, had completed a shallow water bid round.

Block 5 was awarded to Chevron while Blocks 6 and 8 went to a consortium of TotalEnergies (40%), Qatar Petroleum (20%), and Staatsolie (40%). In December 2021 Chevron sold a 20% stake in Block 5 to energy supermajor Shell while retaining a 40% interest with the remaining 40% held by a subsidiary of Staatsolie. CGX Resources, with partner Frontera, January 2022 reported oil discovery in the shallow water Corentyne Block in offshore Guyana which bodes well for the success of Suriname’s shallow-water blocks. The Corentyne Block is contiguous to Block 58 offshore Suriname as well as the shallow water blocks 5 and 6.

Analysts believe that the petroleum fairway of the Stabroek Block extends into the northern tip of the Corentyne Block, where CGX made the Kawa-1 discovery, and into Suriname’s shallow-water blocks 6 and 8.

In a June 2021 speech, President Chandrikapersad Santokhi stated that Suriname expected Apache and TotalEnergies to make a final investment decision regarding developing Block 48 by the end of 2022. Paramaribo anticipates that first oil from Block 58 will be produced as early as 2025 or 2026 at the latest.

According to industry consultancy Rystad Energy, Suriname’s oil production will reach 650,000 barrels per day by the end of this decade. That will deliver a tremendous financial windfall for a country ranked as the fourth poorest, by per capita gross domestic product, in South America.

It will also provide Paramaribo with the opportunity to not only resuscitate an economy caught in a deep crisis that was sharply exacerbated by the COVID-19 pandemic but to restructure onerous sovereign debt of the smallest independent country in South America. Suriname is rich in minerals including bauxite, gold, oil and iron ore. It exports rice, banana, timber, nuts, citrus, and seafood. It was impoverished by corrupt leaders creating serious political and economic challenges.

Matthew Smith is Latin-America correspondent. A veteran investor and investment management professional., he holds a Master of Law degree and writes on oil and gas, mining and infrastructure.

 

 

Transformative mode

April 15, 2022

Petroleum dominates the political space across 83,000 sq miles ( 53,120,000 acres) of the lush South American oil republic. Not long ago, any verifiable information from reliable sources that the economy had been registering anything above the level of its customary annual underwhelming performance would have been sufficient cause for robust media-driven official celebrations.

Over the past year or so, This has changed dramatically. The advent of the oil & gas industry and the expert assessment of the likely transformation that this will have on the country’s economy has significantly reduced the national hype and hoopla that customarily attends anything congratulatory that is said about the Guyana economy.

 

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Guyana will be pumping over one million barrels of oil daily by 2027 and the returns therefrom will deliver “a tremendous economic windfall for one of South America’s smallest states.”

Neighbouring Suriname, with which Guyana shares the petroliferous Guyana/Suriname basin, promises to prosper similarly. Lying contiguous to each other in the basin are the 1.8 million-acre offshore Suriname Block 58 which is being operated in a partnership between the French super major TotalEnergies SE and the US Apache Corporation, and the prolific ExxonMobil-operated Stabroek Block. The two have become the centrepiece of international discourse on oil & gas prospects for South America.

 

Guyana accredits new Venezuelan Ambassador

April 12, 2022

New Venezuelan Ambassador Amador Perez Silva has been accredited to Guyana, presenting his credentials to President Dr Irfaan Ali at the Office of the President, days after he paid a courtesy call on International Affairs Minister Hugh Todd. He emphasised his government’s commitment to friendly relations and strong bilateral ties with Guyana. Minister Todd had welcomed the Ambassador-designate and informed that the President Ali Administration remains committed to advancing relations with Venezuela in areas of mutual interest. Minister Todd reiterated President Ali’s commitment to maintaining the region as a zone of peace.

This is particularly significant since Guyana took Venezuela before the International Court of Justice over the border controversy between the two countries. In 2015, Venezuelan President Nicholas Maduro had withdrawn the country’s Ambassador to Guyana after ExxonMobil found oil in Guyana’s waters.

Venezuela claims Essequibo, despite the 1899 arbitral award confirming Guyana’s sovereignty, which is accepted by the international community. In March 2021, ICJ had granted Guyana until March 8, 2022, to file its written submissions for the case, after requesting 12 months. Guyana filed its submissions on schedule. Venezuela was meanwhile given until March 8, 2023, to submit its counter-memorial.

 

 

Guyana, Canada enhance business links

April 13, 2022

Senior Minister with responsibility for Finance, Dr. Ashni Singh and Canada’s Minister of Small Business, Export Promotion and International Trade, Mary Ng, signed a Memorandum of Understanding (MoU), witnessed by the President of Guyana, Dr. Irfaan Ali, and other officials. It aims to enhance the commercial relationship between the two nations.

Founded in 1946, the Canadian Commercial Corporation (CCC), acts as prime contractor for foreign government purchases from Canada. The agency has international experts helping Canadian exporters succeed in government procurement markets. As prime contractor, every contract signed by the CCC has the legal effect of being signed in the name of the Government of Canada, providing foreign government buyers with the assurance that the contract will be delivered per the agreed terms and conditions guaranteed.

“It offers unique assurance. CCC is a gem in Canada because, essentially, the government guarantees the contract. This means that Canada stands behind the companies, which go through rigorous due diligence processes,” Ng said.

Ng noted that the agreement’s aim is to ensure that trade relationships between Guyana and Canada are mutually beneficial to everyone in the respective societies.
She complimented the longstanding relationship between Guyana and Canada and last month the two countries celebrated 58 years of diplomatic relations.

Dr. Singh also commended the strong, longstanding relationship between Guyana and Canada, rooted in the shared commitment to democracy, the rule of law, and shared values, including recognising the importance of economic and social development and ensuring it is realised for the benefit of all of the countries’ peoples.

“Canadian investors, business and commercial institutions have been present in the Guyanese economy for decades and have contributed significantly to the economic evolution of Guyana. Given where Guyana is today and the sharp economic transformation we are embarking on, we see this as a special opportunity for those relationships to evolve with the same speed with which the Guyanese economy is changing.”

The signing is a step towards laying the foundation for closer economic ties between Canada and Guyana.

“We see it as but one step in a journey of many more steps we would like to take,” Dr. Singh said.

The CCC offers commercial advocacy, collaborative project development and foreign contracting expertise to help Canadian exporters secure international contracts with government buyers around the world. CCC signs a sub-contract and flows the contractual commitments through to the qualified Canadian exporter. As the Canadian exporter fulfils its obligations under the contract, CCC takes on all performance oversight and financial administration of the contract, the website further noted.

The corporation has facilitated trillions of dollars in exports and foreign investment by Canadian companies.

 

 

 

1.5MW solar farm to boost Bartica business development

April 13, 2022

Prime Minister, Brigadier (Ret’d), the Hon. Mark Phillips said that when operational, the new solar farm in Bartica would reduce fuel costs and aid in the transformation from fossil fuel to greater use of renewable energy thus reducing Guyana’s carbon footprint. He is optimistic that the solar farm, which is in keeping with the Low Carbon Development Strategy (LCDS) 2030, will boost the overall development of the town.

“It will also help with the expansion of business in this community because you’ll have additional energy. It now becomes more attractive for investors to set up micro and large industries and commercial activities in Bartica.”

He was pleased with the progress of the 1.5MW solar farm after an inspection showed it is currently 90 per cent completed

“We are satisfied based on the briefing we received. This project is on schedule, and it is expected to be handed over to the Government of Guyana by June 1 this year.”

The solar farm will be connected to the Guyana Power and Light grid in Bartica and reduce the cost of producing energy. At present, the cost per barrel of light fuel oil (LFO) is about US$159. To produce one megawatt of electricity per hour takes about 60 gallons of LFO, or approximately 1 ¼ barrel.

The Prime Minister applauded the fact that 95 per cent of the workers are Guyanese. The solar farm, which costs about $600m, is being constructed by Farfan & Mendes Limited and SOVENTIX Caribbean S.R.L. It comes under the renewable energy solutions for the hinterland, which is one of the major components under the Energy Matrix Diversification and Strengthening of the Department of Energy programme funded by the Inter-American Development Bank (IDB).

 

 

EEPGL award contract to Guyana Americas Merchant Bank

April 9, 2022

Guyana Americas Merchant Bank Inc. (GAMBI) on Friday announced that the Trustees of the Esso Exploration and Production Guyana Limited (EEPGL) Retirement Savings Plan have awarded it a contract to provide Investment Advisory and Brokerage services.

“The award of this contract is a further demonstration of Guyanese service providers supporting the ambitions of operators like EEPGL and the government to develop a world-class oil and gas industry. GAMBI remains committed to providing quality Financial and Investment Management Services to achieve this goal,” GAMBI said in a brief statement on the award.

GAMBI was established in 1995 with the support of the International Finance Corporation (IFC) as Guyana’s first licensed merchant bank. It is a subsidiary of Guyana Bank for Trade and Industry (GBTI) and Secure International Finance Corporation.

 

 

Multibillion dollar value of forests

Apr 09, 2022

Government’s Low-carbon Development Strategy (LCDS) 2030 launched last October presents a clear vision on how the country will accelerate non-polluting, economic growth and development . It outlines how Guyana will utilize and monetize its natural resources such as its lush and pristine forests in a sustainable manner to combat the impact of climate change.

LCDS 2030 reveals how the government will ensure the world-class forests, biodiversity, water and marine resources are valued for the vital contribution they make to the health of the planet.

The current draft dispatched by President, Dr. Irfaan Ali in late 2021 is undergoing consultation with citizens on how the nation can re-double its efforts towards achieving the outlined vision, the roots of which can be traced back to 2009.

In 2009, Guyana had launched the first Low-carbon Development Strategy from a developing country, proclaiming a vision for inclusive, sustainable development, while simultaneously maintaining forests, about 85% of the territory, to meet some of the most urgent challenges. There is no doubt that Guyana intends to stay true to the vision of 2009 to create a model low-carbon economy for the world.

Since 2009 however, local authorities have gained a greater understanding of the outsized contribution Guyana’s ecosystems make to the world’s health and economy, as well as its role as one of the world’s most important countries for biodiversity conservation.

Role of Guyana’s forests in the LCDS 2030

1. • Guyana has the second highest percentage of forest cover on earth and is working with partners to sustain 99.5% of that forest while building the foundation for a new low carbon, ecosystem economy. Government expects to tap opportunities to access a market mechanism for forest climate services and other ecosystem services. This will enable Guyana to store 19.5 billion tonnes of carbon dioxide equivalent (the measure used for greenhouse gas emissions).
2. • Guyana has maintained the second highest percentage of forest cover on earth, with more than 99.5 of the forest’s 18 million hectares remaining. Deforestation rates are among the lowest in the world and Guyana is one of only four countries in the world (and one of only two in the Amazon Basin) verified to have sustained a High Forest Low Deforestation (HFLD) state.
3. • Guyana is one of four countries which host the Guiana Shield, one of the most pristine rainforest landscapes in the world. The Guiana Shield stores around 18% of the world’s tropical forest carbon and 20% of the world’s fresh water.
4. • Guyana’s forests alone provide value estimated to range from US$40-US$54 billion annually which is not recognised in monetary terms. The government is however, working to monetize the preservation of Guyana’s forests through payments from international partners such as Norway.

LCDS 2030 is currently undergoing a period of national consultation. When completed, the LCDS will be finalised and then tabled in the National Assembly.

 

 

First Regional World Trade Centre

March 31, 2022

Guyana will be the host of the first World Trade Centre (WTC) in the region. After months of talks between CARICOM, the New York-based World Trade Centre Association (WTCA), and Demerara Distillers Limited (DDL),.

DDL recently secured a license to establish a World Trade Center in Guyana and will transform its building in High Street Kingston into the centre which will provide a range of opportunities for local businesses and organizations to enhance their networking capabilities globally. Work on the interior redesign of the building has already begun.

Minister of Tourism, Industry and Commerce, Oneidge Walrond will attend the official virtual announcement and handing over of the license . Georgetown Mayor, Ubraj Narine; WTCA Chairman, John Drew; and DDL Executive Chairman, Komal Samaroo will be among the speakers at the event.

There are over 320 World Trade Centers in more than 100 countries on every continent globally. The World Trade Centers Association (WTCA) stimulates trade and investment opportunities for commercial property developers, economic development agencies, and international businesses looking to connect globally and prosper locally. The association serves as an ‘international ecosystem’ of global connections, iconic properties, and integrated trade services under the umbrella of a prestigious brand.

The exclusive ‘World Trade Center’ and ‘WTC’ branded properties and trade service organizations in over 100 countries are supported by 15,000 WTC professionals that deliver integrated, reciprocal resources to meet the needs of small, medium and large enterprises.

 

 

Guyana Manufacturing and Services Association

Apr 01, 2022

US Ambassador told the Annual General Meeting, “Economic diversification is absolutely critical to achieving prosperity for all. Just as Guyana’s high tide enables bigger ships to come to port, economic diversification can be a high tide that lifts all sectors and all people of Guyana. In addition, diversification will serve as a guard rail for Guyana against the Dutch Disease..”

Sarah-Ann Lynch also stressed the need for modernization of the tendering process.

At GMSA, taking into account the experience of her homeland, US Ambassador Sarah-Ann Lynch advised that the authorities adopt international standards and best practices to guard against risks associated with oil spills. As the government proceeds to develop significant oil resources, Guyana can mitigate some of the risks in the oil sector. Appropriate mitigation measures would entail inspecting international standards and best practices and trying to adopt them.

“Guyana is not only on the regional stage but also on the global stage and I think the country that I know wants to set itself up for success, how you do that is learnng these best practices and getting educated on them, and it is going to take some time and hard work.”

On how Guyana can seek insurance for oil spills, drawing on the lessons of the USA, the envoy said every company has its own rules and regulations. it is hard to give a generalization there. Each company in the USA has very strict rules to follow about what insurance they carry so should something happen in their industry they are covered.

“But in terms of the level of insurance and how they get that I would have to defer to the different companies.”

The USA is doing its part by helping Guyana with the training it needs to properly respond to oil spills. “Yes we definitely think this is important and we know there are others working on this including within the industry and our goal, what we are providing is some assistance to the Coast Guard and helping them become better prepared to identify and respond to the potential for any one spill. It certainly is prudent I think for Guyana, the government and whoever else is involved such as the private sector to improve the ability to respond, their skills, get the right tools (for response)…”

GUARANTEE FROM EXXON
While the US Embassy has been integral to providing key training sessions for Guyana in oil spill response, civil society groups urged former and current administrations over the years to give equal attention to securing full coverage insurance for the Stabroek Block.  Citizens want ExxonMobil, the parent of Esso Exploration and Production Guyana Limited (EEPGL), which operates the block, to be made to cover any oil spill costs that cannot be handled by EEPGL.

 

 

Alerio Gold

April 1, 2022

VANCOUVER, BC / ACCESSWIRE / March 31, 2022 /

Alerio Gold Corp.   (the ‘ Company ‘)   (CSE:ALE) announces advancement of exploration activities on the Company’s 100% owned Tassawini Gold Property, Guyana including a review of the historical resource using updated parameters which will be used for drill target definition, a Property-wide topographic survey, and camp upgrades in anticipation of the commencement of field activities.

The Company’s technical consultants Kangari Consulting LLC has engaged with mining engineers to conduct a review of the geological and historical mineral resource data that exists for the Tassawini Property using updated mining parameters for the historical resource of 437,000 ounces of gold Indicated (10.8Mt @ 1.3 g/t Au) and the additional 62,000 ounces of gold Inferred (0.6Mt @ 1.7 g/t Au) estimated by SRK in 2010.

This re-run will include updates on costs and gold price to better reflect the higher current gold pricing. These results, expected in April, will guide the confirmation and extension drill campaign on the Property in Q3 2022. This work will allow for the upcoming exploration to be guided by current mining parameters. It is expected the Company will update the mineral resource model after the confirmation and extension drill program is completed.

Work by previous owners includes 47,509 meters of drilling in 1,279 core and reverse circulation drill holes. The historical practices were in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (November 29, 2019) and followed CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014), that are incorporated by reference into National Instrument 43-101 (‘NI 43-101’).

The data and procedures employed by SRK are considered reliable and it was a valid resource estimation in 2010. The estimate used geological interpretation to prepare wireframes, data validation, and statistical analyses including variograms. Composites were capped for gold grades, block size was determined by drill spacing, and grades were estimated into the block model using ordinary kriging. Mineral resource classification was carried out using a combination of drillhole spacing, geological and wireframe confidence. Pit optimization studies were conducted to determine the depth to which resource estimates were reported.

Since 2010, a qualified person has not done sufficient work to classify the historical estimation as current mineral resources and the Company is not treating the historical resource estimation as a current mineral resource. Additional confirmation drilling and updated topographic surveying is required to update the historic resource estimate.

As part of doing business in Guyana, the Company has formed a wholly owned local subsidiary which will be used to conduct all in country activities. An in-country management team is being formed along with a technical team in anticipation of a rapid ramp up in activities.

The Company is receiving quotations for work programs on Tassawini including a Property-wide detailed topographic survey which will assist in the planning of field activities as well as verification of prior activities. The topographic survey will produce an accurate 3D coverage for the license to allow the Company to map artisanal mining activity and verify the location of historic drill holes.

In anticipation of the commencement of field activities Alerio Gold is in the process of initiating the re-commissioning of the on-site camp and updates are expected in due course.

Mr. Greg Smith, P. Geo. Director of Alerio Gold, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data.

About Alerio Gold Corp.  Alerio Gold Corp. is a mineral exploration and development company in the business of acquiring, exploring, and developing natural resource properties, with a focus in Guyana, SA. The company currently has 100% interest in two gold properties located in Guyana.

ON BEHALF OF THE BOARD of DIRECTORS

Geoff Balderson, CFO

For further information, please contact:
Telephone: (604) 343-3739
Website: aleriogold.com

#1000 – 409 Granville Street
Vancouver, BC, Canada, V6C 1T2
604-602-0001

SOURCE: Alerio Gold Corp