Frontera Energy and CGX Energy update on Corentyne Block

11 Feb 2025

Joint Venture has Received a Communication from the Government of Guyana Regarding the Joint Venture’s License

Joint Venture is Considering All Options to Assert and Defend its Interests in the Corentyne Block and in Guyana

CGX Energy and Frontera Energy, joint venture partners in the Petroleum Prospecting Licence for the Corentyne block offshore Guyana announced that the Joint Venture received a communication from the Guyana Government.

The Government has taken the position that the Licence, together with the Joint Venture’s Petroleum Agreement with the Government (as amended, the ‘Petroleum Agreement’), have terminated and that, in the opinion of the Government, there are no reasonable grounds to grant any extensions to the Joint Venture in respect of its appraisal or exploration obligations under the Licence or the Petroleum Agreement.

Furthermore, the Government says that, if it is determined that the Licence has continued, or that the Joint Venture holds any other type of licence contemplated by applicable legislation, the Letter serves as a 30-day notice of the Government’s intention to cancel such licence.

Although the Government argues that the Licence has terminated, it invites the Joint Venture ‘on or before February 22nd, 2025, (…) to submit any representations [the Joint Venture] wish[es] [the Government] to consider prior to [the Government] making [its] final decision as to whether to cancel any licence that may exist.

Any such licence will cease to have effect on March 10, 2025, unless any representation that may be made are favourably considered’.  Additionally, the Government also states its willingness ‘to extend the time for good faith negotiations to the dates set forth above so as to allow receipt and consideration of any representation’ the Joint Venture makes.

The Letter states that such invitation and intention to cancel are in no way any admission that the Joint Venture currently holds a licence of any nature.

The Joint Venture remains firmly of the view that its interests in, and the Licence for, the Corentyne block remain in place and in good standing and the Petroleum Agreement has not been terminated. Notwithstanding the foregoing, the Joint Venture is assessing all legal options available to it to assert its rights and will respond to the Government.

The Joint Venture looks forward to expeditiously resolving this matter and continuing its multi-year efforts and investments to realize value for the people of Guyana and its shareholders from the Corentyne block.

Source: Frontera Energy

 

 

 

 

Baker Hughes in Chemicals Supply Deal for ExxonMobil FPSOs

Feb 3, 2025

Energy technology company Baker Hughes secured a contract from ExxonMobil Guyana to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in Stabroek Block.

The multi-year contract includes all topsides, subsea, water injection and utility chemicals for the Errea Wittu and Jaguar floating production storage and offloading (FPSO) vessels, currently under development and targeted to begin production in 2026 and 2027 respectively.

Uaru and Whiptail mark ExxonMobil’s fifth and sixth projects in Guyana. The two developments will include up to 20 drill centers and 92 production and injection wells. Each FPSO will have a capacity of 250,000 barrels per day, bringing total daily production capacity to approximately 1.3 million barrels.

Baker Hughes already provides a variety of services and equipment to operators in Guyana, including turbomachinery for ExxonMobil Guyana’s FPSO fleet and production chemicals for the Liza Unity vessel.

Offshore Frontier Solutions, MODEC’s joint venture with Toyo Engineering Corporation, is responsible for the engineering, procurement, and construction of the Errea Wittu FPSO based on MODEC’s M350TM newbuild hull, while SBM Offshore is in charge of the construction and installation the Jaguar FPSO.

Amerino Gatti, executive vice president, Oilfield Services & Equipment at Baker Hughes, said,

“ExxonMobil Guyana and Baker Hughes share a long history of supporting Guyana’s energy sector, and we look forward to working together to write its next chapter.

Our experience operating across the country’s energy supply chain and unmatched expertise in oilfield and industrial chemicals make Baker Hughes uniquely suited to support complex FPSO operations such as these.”

 

 

 

 

Baker Hughes wins ‘major’ deal for ExxonMobil Guyana FPSO duo

February 3, 2025, by Melisa Cavcic

U.S.-headquartered energy technology giant Baker Hughes has been hired on a multi-year assignment related to two floating production, storage, and offloading (FPSO) vessels, destined to work on upcoming oil projects on the Stabroek block, operated by an affiliate of American energy giant ExxonMobil.

Baker Hughes described the long-term contract as a “major” and “significant” award with ExxonMobil Guyana, a subsidiary of U.S.-based ExxonMobil. The deal enables the firm to provide specialty chemicals and related services for the FPSOs Errea Wittu and Jaguar, featuring a combined 500,000 barrels per day capacity, which will be deployed at the Uaru and Whiptail offshore greenfield developments in the prolific Stabroek block.

The multi-year contract encompasses all topsides, subsea, water injection and utility chemicals for the FPSO duo, currently under development. While the FPSO Errea Wittu is targeted to begin production in 2026, the FPSO Jaguar is scheduled to start operations in 2027.

Baker Hughes, which celebrated in 2022 the opening of a multimodal supercenter in Georgetown, also provides a variety of services and equipment to operators, such as turbomachinery for ExxonMobil Guyana’s FPSO fleet and production chemicals for the FPSO Liza Unity.

TechnipFMC installed its first Subsea 2.0 equipment piece for the $12.7 billion Uaru project, ExxonMobil’s fifth oil development in the Stabroek block, in the last few weeks of 2024, after winning a similar deal for the U.S. firm’s sixth oil development offshore Guyana in April 2024. Uaru and Whiptail projects will include up to 20 drill centers and 92 production and injection wells. As each FPSO will have a capacity of 250,000 barrels per day, these additions will bring the country’s total daily production capacity to approximately 1.3 million barrels.

Japan’s MODEC disclosed progress in the construction of the FPSO Errea Wittu in October 2024, with the completion of the hull block assembly 40 days ahead of the original schedule. China’s Dalian Shipbuilding Industry Company (DSIC) launched the FPSO at the end of December 2024.

Netherlands-based SBM Offshore secured $1.5 billion with a consortium of 16 international financial institutions in November 2024 to cover construction costs of the FPSO Jaguar.

ExxonMobil (45% interest) operates the Stabroek block, spanning 6.6 million acres or 26,800 square kilometers, with partners, Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%). ExxonMobil’s four other projects in Guyana include Liza Phase 1 and Phase 2, Payara, and Yellowtail. Wheels have been set in motion to get the required approvals for Hammerhead as the firm’s seventh deepwater oil project in Guyana. This project will add between 120,000 and 180,000 barrels per day (bpd) by 2029, raising the country’s overall production capacity bar to nearly 1.5 million bpd.

Since Hess is in the process of merging with Chevron, the latter may become ExxonMobil’s new partner this year. Hess and Chevron passed the Federal Trade Commission (FTC) antitrust review. Completion of the merger remains subject to closing conditions, including the satisfactory resolution of ongoing arbitration over preemptive rights in the Stabroek block joint operating agreement.

 

 

 

 

ExxonMobil Guyana lets chemical contract for Uaru, Whiptail developments

Feb. 3, 2025

ExxonMobil Guyana has let a contract to Baker Hughes to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in Stabroek block.

The multi-year contract includes all topsides, subsea, water injection, and utility chemicals for the Errea Wittu and Jaguar floating production storage and offloading (FPSO) vessels, which are currently under development with first production targeted for 2026 and 2027, respectively.

Uaru and Whiptail mark ExxonMobil Guyana’s fifth and sixth projects in the country. The two developments will include up to 20 drill centers and 92 production and injection wells. Each FPSO will have a capacity of 250,000 b/d, bringing the country’s total daily production capacity to about 1.3 million bbl (OGJ Online, Apr. 12, 2024, May 6, 2024).

ExxonMobil affiliate ExxonMobil Guyana Ltd. (EMGL) is operator and holds 45% interest in Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Ltd. holds 25% interest.

 

 

 

 

Exxon operations bring tremendous benefits to Guyana

Feb 03, 2025

…living standards on the rise

During Exxon’s fourth-quarter earnings call, Chief Executive Darren Woods, claimed that ExxonMobil Corporation operations in Guyana lifted the standard of living for citizens.   Woods highlighted the rapid growth of the economy since oil production began.

“The benefits are tremendous, not just profitable growth for ExxonMobil, but rapidly rising living standards for the Guyanese people, the GDP [Gross Domestic Product] per capita more than tripling since we started production in 2020.”

Guyana’s economy experienced significant growth in recent years, primarily due to the expansion of its oil industry. Last year, GDP, the total monetary value of all goods and services produced, grew by 43.6%. EMGL commenced oil production offshore Guyana in December 2019.

The previous government signed the 2016 Production Sharing Agreement for the oil block. The deal waives all taxes from EMGL and its partners Hess and CNOOC, caters for taxes to be paid by Guyana and agrees to the oil companies recovering 75% of investments before the remaining 25% is shared as profit.

The Stabroek Block in 2024 generated US$18B in revenue, a 55.4% increase compared with the total export earnings of the sector in 2023 of US$11.6B. As a result, EMGL earned US$15.4B of the 2024 revenue from oil, of which cost of US$13.2B was recovered with the rest as profit.

Guyana’s Natural Resource Fund (NRF) received US$2.6B during the period. Woods cited the remarkable progress of deep-water projects, among the fastest-paced developments in the industry.

“In Guyana, we deliver record production from the world’s premier deep-water development, we’ve gone from discovery to 650,000 barrels per day in just 10 years.      The pace for deep-water projects the world has rarely seen.”

In a November 2020 paper titled: ‘A pivotal moment for Guyana: revitalizing the opportunities’, the World Bank observed that Guyana was already resource-rich prior to the discovery of oil but had long struggled to transform its resource wealth into inclusive growth.

Then, the poverty rate declined since 1991, but remains among the highest in the LAC region at 43.4 percent, as decades of relatively jobless growth failed to yield significant poverty reduction.

The advent of oil revenues could break this cycle, accelerating development and permanently reducing monetary and non-monetary poverty but the Bank warned that oil revenues could exacerbate existing challenges and cause the development pattern to deteriorate further.

The World Bank fact sheet on Guyana said that notwithstanding gains, poverty and social exclusion–including limited access to basic services–remain in the hinterland.

The education sector made remarkable progress in the last 15 years in terms of access; as of 2022, Guyana achieved 91 percent and 103 percent enrollment at the Nursery and Primary levels, respectively.

Learning outcomes still need to be improved across all levels. According to the 2022 Human Capital Index, a child born in Guyana just before the COVID-19 pandemic will only be 50 percent as productive as an adult as one who enjoyed complete education and full health, which remains lower than the average for the Latin America and the Caribbean (LAC) region.

Although the average Guyanese pupil is expected to complete 12.2 years of schooling, this is equivalent to only 6.8 years of learning when expressed in Learning-Adjusted Years of Schooling (LAYS). The impacts of the COVID-19 pandemic compounded this.

The World Bank said health outcomes in Guyana remain below the average for LAC and comparator countries. In 2021, the infant mortality rate was 23.2 per 1,000 live births (compared to a LAC average of 14 per 1,000 live births), and the under-5 mortality rate was 28 per 1,000 live births (compared to a LAC average of 16).

Based on the recent Global Monitoring Report 2023, on countries’ progress towards achieving universal health coverage as part of the monitoring for the SDGs, Guyana’s service coverage index stood at 76% in 2021. This means that about 76% of the population in Guyana can effectively access essential services. While this is an important improvement from the 65% it registered a decade ago, due, among other things, to advances in antenatal care and immunization coverage, the levels of service coverage have not advanced in recent years.

Woods expressed confidence for the execution of Exxon’s fourth offshore project, the Yellowtail development, expected to start production later this year.

“With respect to Yellowtail specifically, we really like what we are seeing there. You know that the team managing the Guyana developments continues to demonstrate project after project; they just find new ways to innovate and overcome the challenge to deliver these things below budget, oftentimes and certainly ahead of schedule.

My guess with Yellowtail is that it will come in better than what we have talked about…”

EMGL is the operator of the Stabroek Block, an area of 6.6 million acres estimated to hold 11.6 billion barrels of oil. To date, Exxon obtained government approval for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail.

The first three projects are already producing oil at a daily estimated rate of 660,000 barrels per day (bpd). Exxon’s fourth-quarter adjusted upstream earnings were US$6.28 billion, an increase from the third-quarter driven by record production in Guyana and the Permian, stronger natural gas prices and favourable tax impacts, partly offset by lower crude realizations.

Net production in the fourth quarter was 4.6 million oil-equivalent barrels per day, an increase of 20,000 oil-equivalent barrels per day versus the prior quarter.

 

 

 

 

 

Hess production soars as three FPSOs ‘exceed stated capacity’

Robert Stewart
North America Energy CorrespondentBaton Rouge

Published 29 January 2025, 18:00

US company saw 52% output increase in prolific Stabroek field to 195,000 bpd.

Guyana production for Hess surged by 52% in the fourth quarter of 2024 to 195,000 barrels per day of oil, the US operator revealed Wednesday in its quarterly earnings report.

Hess sold 16 cargoes of Guyana crude in the fourth quarter compared to 10 cargoes in the final three months of 2023. It expects to sell another 14 cargoes in the first quarter of 2025.

Hess attributed the spike to start-up of the Stabroek field’s third development, Payara, which achieved first oil in November 2023.

The Guyana volumes beat analyst consensus by 5%, and Hess’ overall production of 495,000 barrels of oil equivalent per day — an 18% leap from 418,000 boepd in 2023 — beat estimates by 3%, according to a report from analyst firm TD Cowen.

Three floating production, storage and offloading units are producing oil in the Stabroek block for Hess and its partners, ExxonMobil and CNOOC International. Three more have been sanctioned, and the seventh, Hammerhead, is awaiting approval from Guyana’s Environmental Protection Agency.

“Production rates on all three (active) FPSOs continue to exceed stated capacity after successful debottlenecking, implying upside to future developments,” TD Cowen’s report said.

Despite the performance, Hess anticipates Guyana production to fall to a range of between 180,000 and 185,000 bpd in the first quarter of 2025 due to planned maintenance at Payara and lower tax barrels in the quarter.

In other basins, Hess’ net production in the Bakken shale grew by 7% to 208,000 boepd. Its output in the US Gulf of Mexico was flat at 30,000 boepd. Hess said production for the first quarter of 2025 could fall to 465,000 to 475,000 boepd because of planned maintenance and lower tax barrels in Guyana as well as winter weather in Bakken.

Hess’ profits rose 31% year-over-year to $542 million in the fourth quarter.

The company’s adjusted earnings per share of $1.76 beat Wall Street expectations of $1.49, according to TD Cowen.

The operator’s exploration and production net income was $529 million in the fourth quarter of 2024, up from $512 million the previous year.

(Copyright)

 

 

 

 

 

Hess Doubles Guyana Oil Output

by Jov Onsat|Rigzone Staff | January 30, 2025

Hess grew its net oil production in Guyana by 52 percent year-on-year to 195,000 bpd in the fourth quarter of 2024.

New York City-based Hess Corp. grew its net oil production in Guyana by 52 percent to 195,000 barrels per day (bpd) in the fourth quarter of 2024 compared to the same three-month period in the prior year, according to quarterly results.

The exploration and production company’s net production in the United States’ onshore Bakken shale also rose seven percent year-on-year to 208,000 barrels of oil equivalent a day (boed). Bakken and Guyana, specifically the Stabroek block, drove an increase in Hess’ proven reserves to 1.44 billion boe at the end of 2024 from 1.37 billion boe at the end of 2023.

The Gulf of Mexico contributed to Hess’ U.S. production with 30,000 boed. In Southeast Asia, Hess derived 62,000 boed from the North Malay Basin and the Malaysia-Thailand Joint Development Area.

Hess’ net production in the October-December 2024 period totaled 495,000 boed, compared to 418,000 boed in the fourth quarter of 2023. Higher production drove a 7.56 percent year-over-year increase in adjusted net earnings to $542 million, or $1.76 per share, for the fourth quarter of 2024.

That beat the Zacks Consensus Estimate, which averages projections by brokerage analysts, of $1.51 per share. Hess has now surpassed the Zacks estimate for the fourth consecutive quarter.

Lower realized selling prices and higher exploration expenses offset the effect of higher volumes. Hess’ realized crude oil selling prices averaged $72.1 a barrel in the fourth quarter of 2024, including the effect of hedging.

The corresponding figure in the fourth quarter of 2023 was $76.63 per barrel. The average realized natural gas liquids selling price was $23.05 per barrel, up from $20.92 per barrel in the comparable period a year ago. Hess sold natural gas at an average realized price of $4.1 per thousand cubic feet, compared with $4.51 in the fourth quarter of 2023.

Hess reported cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P [exploration and production] general and administrative expenses, were $12.95 per boe in the fourth quarter of 2024, compared with $13.29 per boe in the prior-year quarter.

Net cash from operating activities totaled $1.31 billion, down from $1.34 billion for the fourth quarter of 2023. Changes in operating assets and liabilities decreased cash flow from operating activities by $209 million during the fourth quarter of 2024 and increased cash flow from operating activities by $105 million during the prior-year quarter.

Hess ended 2024 with $1.2 billion in cash and cash equivalents, while debt and finance lease obligations stood at $5.3 billion.

In the first quarter of 2025 Hess expects to produce 465,000-475,000 boed, “reflecting planned maintenance and lower tax barrels at Guyana and the impact of winter weather in the Bakken”.

Hess and Chevron Corp. are progressing the completion of their delayed merger, under which Chevron will acquire the latter for $60 billion. On January 17, 2025, the U.S. Federal Trade Commission finalized an agreement that settles antitrust concerns surrounding the combination. While the competition agency concluded its statutory review of the merger, international arbitration is pending over a dispute with Hess’ partners in Stabroek — Exxon Mobil Corp. and China National Offshore Oil Corp. — over pre-emption rights or rights of first refusal.

To contact the author, email jov.onsat@rigzone.com

 

 

 

 

Increased oil production in Guyana drove higher profit for Hess Corporation

Jan 30, 2025

Oil production from Stabroek Block, where American oil company Hess Corporation holds 30% interest, has emerged as the company’s top seller in 2024, with an average price of US$80.04 per barrel.

According to the company’s fourth quarter financial and operational highlights, Guyana’s crude commanded the highest price among Hess’ global operations, outpacing sales from North Dakota, offshore U.S. assets, and Malaysia.  The Stabroek Block increased oil production. Hess reported net profit of US$542 million, for the fourth quarter of 2024, an increase from US$413 million, in the same period of 2023.

Total oil and gas production averaged 495,000 barrels of oil equivalent per day (boepd), up 18% from 418,000 boepd in the fourth quarter of 2023.

Bakken in the United States contributed significantly, with production rising by 7% to 208,000 barrels of oil equivalent per day (boepd) from 194,000 boepd for the same period in 2023. Guyana played a pivotal role in Hess’ growth, with net production soaring by 52% to 195,000 barrels of oil per day (bopd), compared to 128,000 bopd in the fourth quarter of 2023.

The Stabroek Block which covers an area of 6.6 million acres is estimated to hold 11.6 billion barrels of oil. To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail.

The first three projects are already producing oil at a daily estimated rate of 660,000 barrels per day (bpd). With the addition of Hammerhead and Longtail, Exxon said this will expand gross production in Guyana to approximately 1.3 million barrels per day, with total production capacity expected to reach 1.7 million barrels per day on an investment basis.

Hess Corporation is pursuing a US$53 billion merger with American IOC, Chevron. ExxonMobil, the Stabroek Block operator and CNOOC the third-block partner initiated arbitration, citing a right of first refusal on Hess’s share. Despite this, Hess expressed confidence that the merger would proceed as planned.

“We think Exxon’s position and CNOOC’s position is without merit, baseless. It’s about the right of refusal. We think it’s very clear, the words on paper in English law that there’s no right or refusal to be exercised. So, we’re very confident that merger is going to go through, and we’re getting prepared for that,” Chief Executive Officer of Hess, John Hess stated.

The arbitration hearing is set for May 2025, with a decision expected approximately 90 days later. Hess explained the process, saying, “Memorials have been exchanged. The hearing is going to be in May. The decision should be rendered about 90 days later, so let’s say late August, September, and once that’s done, we look forward to completing the merger.”

 

 

 

Hess confident of winning Guyana dispute, key to Chevron merger

Kevin Crowley January 07, 2025
(Bloomberg) –

Hess Corp. expressed confidence in prevailing in arbitration brought by Exxon Mobil Corp. over a massive oil project that’s key to the $53 billion Chevron Corp. takeover.

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Exxon’s claim of right-of-first-refusal to Hess’ 30% stake in Guyana’s Stabroek block is “baseless” and “without merit,” Chief Executive Officer John Hess said at a Goldman Sachs Group Inc. conference.

“We think it’s very clear that the words on paper in English law that there’s no right or refusal to be exercised. “We’re very confident that the merger is going to go through.”

The arbitration panel, which is taking place under rules designed by the International Chamber of Commerce, is due to decide the case in the third quarter. By then, it will have been almost two years since Hess accepted Chevron’s takeover offer.

Exxon executives also expressed confidence in their case at an investor meeting last month. “We wrote these documents, we understood the intent of those documents,” CEO Darren Woods said on Dec. 11.

Hess said.the companies exchanged “memorials,” or evidence and supporting statements.

“The three arbitrators that are in-place now have been very clear” that there will be a decision by September, .“And once that’s done, we’ll close our deal.”

In a conversation with Goldman analyst Neil Mehta, Hess said the incoming Trump administration should consider refilling the Strategic Petroleum Reserve, which Biden tapped to ease fuel prices after Russia’s invasion of Ukraine upended global markets.

 

 

 

 

Exxon’s Rising Production Drives Earnings Beat Despite Oil Slide

by Bloomberg|Kevin Crowley | January 31, 2025

Exxon Mobil Corp. beat earnings estimates as strong production growth cushioned the drop in oil prices and refining margins, easing investor concerns about an increase in capital spending.

Adjusted fourth-quarter earnings of $1.67 a share exceeded the consensus forecast by 12 cents. The beat comes just weeks after many analysts lowered expectations based on weaker-than-expected preliminary performance figures. European rival Shell Plc’s disclosed adjusted net income that was well below forecasts.

Exxon surprised investors last month by raising capital spending to over $30 billion annually over the next five years as Chief Executive  Darren Woods expands production to levels not seen since the 1970s. Woods argued that new oil projects in Guyana and the Permian Basin, with liquefied natural gas investments, have such high margins that they will drive Exxon’s breakeven oil price down tot $30 a barrel by the end of the decade, ensuring profitability however the energy transition pans out.

The international Brent crude benchmark averaged roughly $74 a barrel during the fourth quarter, down 11% from a year earlier. The slide pressured the biggest oil companies’ capacity to fund shareholder-friendly outlays such as dividends.

Exxon generated $36 billion of free cash in 2024 and handed nearly all of it to shareholders in the form of buybacks and dividends, making it the sixth highest cash distributor in the S&P 500 Index. The company intends to buy back $20 billion of shares annually through 2026. Chief Financial Officer Kathy Mikells said,

“We’re seeing higher and higher production but that production is coming at lower cost of supply, higher profit barrels. It’s important to remember that all barrels are not created equal and ours are very advantaged.”

Exxon posted net income excluding certain items of $7.4 billion, down from almost $10 billion a year earlier. Boosted by fast-growing projects in Guyana and the Permian, Exxon has been Big Oil’s standout performer over the past four years as commodity prices rebounded in the post-pandemic era and rivals Shell and BP Plc invested heavily in low-carbon ventures. Woods is now entering a new phase of growth that requires a significant increase in spending.

Gas-export projects in Qatar and Texas are expected to begin operations this year while Exxon also plans to increase crude output in places such as the Permian Basin, where it recently completed the $60 billion purchase of Pioneer Natural Resources Co. The company also is expecting to formally greenlight LNG developments in Papua New Guinea and Mozambique this year and next while a project to build the world’s largest clean hydrogen facility is also under consideration.

By contrast, Chevron Corp. is reducing capital spending for the first time since 2021 as it prioritizes free cash flow, which will be used for buybacks and dividends.

 

 

 

Guyana Energy Conference -February 18th to 21st

January 22, 2025

The Guyana Energy Conference and Supply Chain Expo (GECSCE) to be held from February 18th to 21st, 2025 is pleased to welcome African Export-Import Bank as its Diamond Sponsor. Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.

The Bank’s main purpose is to stimulate a consistent expansion, diversification, and development of African trade, while operating as a first-class, profit-oriented, socially responsible financial institution and a center of excellence in African trade matters.

Headquartered in Cairo, Egypt, the Bank maintains regional presence through offices in Harare (Zimbabwe), Lagos (Nigeria), Abidjan (Côte d’Ivoire), Yaoundé (Cameroon), Kampala (Uganda) and Bridgetown (Barbados), serving the Caribbean community.

12 out of 15 CARICOM countries are Afreximbank member states, reflecting the Bank’s commitment to its “Global Africa” agenda. This strategy aims to unite all Africans, irrespective of geographic location, in addressing the challenges of the global economic order and unlocking shared growth and prosperity.

Chairman of the Guyana Energy Conference, Anthony Whyte underscored the importance of having the participation of such a financial giant, especially at a time when the region grapples with the challenges of financing sustainable development.

“For more than three decades, Afreximbank has been a leader in providing innovative financial instruments that have accelerated transformation across Africa. With a commitment to deepening its connections and trade relations with the Caribbean region, the financial institution has approved a limit of US$1.5 billion for financing within the CARICOM states.

This will increase to US$3 billion when all 15 CARICOM countries sign the partnership treaty. Afreximbank signals to the world that it is committed to helping regional economies such as ours achieve their mission of sustainable growth and trade expansion. I certainly look forward to their invaluable contributions which will strengthen the business community’s blueprint for success.”

This massive support is certainly not a standalone show of commitment by the bank as it has led investment missions to CARICOM which to date have resulted in pipeline deals totalling over US$2 billion. These include small and medium enterprise support and development in The Bahamas, tourism revitalisation support in Barbados, tourism projects in Grenada, renewable energy projects and trade finance in Saint Kitts and Nevis, and climate adaptation interventions in Saint Lucia.

Afreximbank has proven that it is ready to support Guyana’s economic transformation as it had exchanged a loan proposal of US$500 million with local authorities during the hosting of its 31st Annual Meetings in Nassau, Bahamas in June 2024. Executive Vice President Intra-African Trade and Export Development, Kanayo Awani commented:

“We are delighted to be a Diamond Sponsor of the Guyana Energy Conference and Supply Chain Expo. This event provides an invaluable platform for fostering dialogue and collaboration within the energy sector, a critical driver of economic growth in Guyana and the wider Caribbean region.

Afreximbank is committed to supporting the CARICOM region to realise the full potential of its natural resources by participating in such initiatives. This is in line with our Intra-African trade strategy and Global Africa initiative that mandates our intervention to the African diaspora. We look forward to exploring opportunities to contribute to Guyana’s energy development through our innovative financing products and solutions, and partnerships.”

Afreximbank successfully hosted its inaugural Annual Meetings (AAM2024) in CARICOM in Nassau, The Bahamas, in June 2024, under the theme ‘Owning our Destiny: Economic Prosperity on the Platform of Global Africa’. Over 4,000 delegates from around the world, included Heads of State, Prime Ministers, government ministers, and business leaders.

 

 

 

 

Rig quartet to feature ‘world first’ safety tech combination

February 3, 2025, by Dragana Nikše

UK-headquartered Salunda, specializing in red-zone safety monitoring technology, joined forces with Norway’s Intellilift to install a solution aimed at enhancing the safety of critical equipment and personnel on four drilling platforms offshore Guyana.

While the owner of the offshore assets was not disclosed, Salunda says the rigs belong to a “major offshore drilling contractor.” This is the world’s first deployment of a real-time digital interface between wearable sensors, drilling controls and moving machinery to provide immediate alerts to workers in dangerous working environments.

Alan Finlay, Salunda’s Chief Executive Officer (CEO), said: “This is a significant step in the evolution of offshore safety equipment, and we are proud to be working with Intellilift to ensure that crews are as safe as they can be when working in Red Zones. The digital integration marks a step change in safety for the sector and by knowing where workers and equipment are, as well as having the data behind the movements accurately captured and logged, this trailblazing solution ensures that personnel working in safety critical areas can feel well protected during daily operations.”

Salunda’s CrewHawk solution enables tracking of workers and equipment while Intellilft’s platform provides a digital interface to the drilling automation suite, including the position and status of machinery. A machine’s location, velocity, and status are then streamed in real time. This is the second time the UK firm combined its solutions with the Norwegian player, the first one being a collaboration in August 2024 to optimize safety and automation in well construction.

Intellilft’s CEO, Stig Trydal, noted: “The market is in urgent need of new technology, and we are witnessing a growing willingness among operators to disrupt markets. Our collaboration with Salunda exemplifies the potential of innovative companies to challenge the larger players in technology and transparency. The journey we’ve had together has been truly remarkable, and only time will reveal what lies ahead.”

Salunda’s Hawk Analytics platform allows users to inspect data, generate trends, and display heatmaps showing where violations occur most often. Thanks to this, reports can be generated to coach crews and increase the safety of operations.

In November 2024, Transocean picked the UK player’s zone monitoring solution to enhance the safety of its Transocean Endurance rig working offshore Australia. Before that, BP opted to install the technology on its North Sea assets.

 

 

 

 

World-first safety measure installed on four offshore drilling platforms

January 23, 2025

Salunda has integrated its Red Zone monitoring solutions on four drilling rigs in Guyana with Intellilift’s proven digital technologies to deliver automated location and control of critical equipment and personnel.  The collaboration – on assets belonging to a major offshore drilling contractor – marks the world’s first deployment of a real-time digital interface between wearable sensors, drilling controls and moving machinery to provide instant alerts to workers in the line of fire This advanced digital interface streams precise machine location, velocity and status in real-time.

By integrating Intellilift’s platform with Salunda’s CrewHawk, the system provides a low latency digital interface through Salunda’s proprietary Motion Trigger and Equipment Status (MTES) module.

CrewHawk monitors hazardous working environments to track individuals and equipment while Intellilft’s platform provides a digital interface to the drilling automation suite, including position and status of all operational machinery. Alan Finlay, CEO of Salunda, said,

“This is a significant step in the evolution of offshore safety equipment, and we are proud to be working with Intellilift to ensure that crews are as safe as they can be when working in Red Zones.

The digital integration marks a step change in safety for the sector and by knowing where workers and equipment are, as well as having the data behind the movements accurately captured and logged, this trailblazing solution ensures that personnel working in safety critical areas can feel well protected during daily operations.”

Salunda’s Hawk Analytics platform, which enables users to scrutinize data, generate trends and display heatmaps showing where violations are clustered and around which machines they are most common. Reports can then be used to coach crews and adapt working practices to bolster safety.

Stig Trydal, CEO of Intellilift, said, “The market is in urgent need of new technology, and we are witnessing a growing willingness among operators to disrupt markets,” “Our collaboration with Salunda exemplifies the potential of innovative companies to challenge the larger players in technology and transparency. The journey we’ve had together has been truly remarkable, and only time will reveal what lies ahead.”

The project marks the second collaboration between the two organizations, having first joined forces in August 2024 to optimize safety and automation in well construction.

Salunda’s wearable technology and camera solutions wirelessly monitor hazardous working environments in real-time, tracking individuals and equipment to provide anonymised feedback that focuses on safe operations and minimizing risk. Users of Crew Hawk, which has MET, IECEx and ATEX certification, can set up perimeters in the working environment around areas that pose the greatest risk to personnel.

 

 

 

Salunda announces monitoring solutions installed on four drill ships

Oilfield Technology,, 24 January 2025

Salunda announced it has integrated its Red Zone monitoring solutions on four drilling rigs with Intellilift’s digital technologies to deliver automated location and control of critical equipment and personnel.

 

The collaboration – on assets belonging to a major offshore drilling contractor – marks the world’s first deployment of a real-time digital interface between wearable sensors, drilling controls and moving machinery to provide instant alerts to workers in the line of fire. The digital interface streams machine location, velocity and status in real-time.

By integrating Intellilift’s platform with Salunda’s CrewHawk, the system provides a low latency digital interface through Salunda’s proprietary Motion Trigger and Equipment Status (MTES) module. CrewHawk monitors hazardous working environments to track individuals and equipment while Intellilft’s platform provides a digital interface to the drilling automation suite, including position and status of all operational machinery.

Alan Finlay, Salunda Chief Executive, said: “This is a significant step in the evolution of offshore safety equipment, and we are proud to be working with Intellilift to ensure that crews are as safe as they can be when working in Red Zones.

The digital integration marks a step change in safety for the sector and by knowing where workers and equipment are, as well as having the data behind the movements accurately captured and logged, this trailblazing solution ensures that personnel working in safety critical areas can feel well protected during daily operations.”

Salunda’s Hawk Analytics platform, enables users to scrutinise data, generate trends and display heatmaps showing where violations are clustered and around which machines they are most common. Reports can then be used to coach crews and adapt working practices to bolster safety.

Stig Trydal, Intellilift Chief Executive, said: “The market is in urgent need of new technology, and we are witnessing a growing willingness among operators to disrupt markets. Our collaboration with Salunda exemplifies the potential of innovative companies to challenge the larger players in technology and transparency. The journey we’ve had together has been truly remarkable, and only time will reveal what lies ahead.” The project marks the second collaboration between the two organisations, having first joined forces in August 2024 to optimise safety and automation in well construction.

Salunda’s wearable technology and camera solutions wirelessly monitor hazardous working environments in real-time, tracking individuals and equipment to provide anonymised feedback that focuses on safe operations and minimising risk. Users of Crew Hawk, which has MET, IECEx and ATEX certification, can set up perimeters in the working environment around areas that pose the greatest risk to personnel.

 

 

 

 

Government to set record straight on energy related projects

2025, 02/04

The Guyana government says its priority remains the completion of the gas to energy (GTE) project “in the shortest possible time” following a ruling by the Dispute Avoidance and Adjudication Board (DAAB) which issued its ruling in the dispute between the government and the contractor, Lindsayca/CH4, in connection with the GTE 300 MW Integrated Plant on January 31, after the matter had been referred to it on September 19, 2024.

Following the ruling, the parties have 28 days to determine if they wish to refer the decisions, or any part thereof, to arbitration, which would be the next stage in the dispute resolution process.
The government said that certain aspects of the project were executed on behalf of the government by Exxon Mobil. The administration said it will, therefore, in the next few weeks, in consultation with its partners, including Exxon/Mobil, as well as relevant legal and technical advisors, determine the best course forward for GOG.

“The government of Guyana’s priority continues to be to ensure that the project is completed in the shortest possible time and in keeping with contractual specifications, with a view to bringing the power plant and the NGL plant into operation and delivering the associated benefits to the Guyanese People as soon as possible.

When completed, the project’s benefits will include a doubling of the country’s electricity generating capacity to meet growing demand and a reduction in the cost of generation, thereby enabling electricity prices paid by consumers to be cut by 50 per cent.

“This will, in turn, catalyse rapid expansion in industrial activity, and immediately improve the competitiveness of the manufacturing sector and all other productive sectors that are energy intensive, bringing vast employment and entrepreneurial opportunities for Guyanese nationals.”

It said also that the completion of the project will facilitate other benefits such as a reduction in the cost of LPG cooking gas to households and businesses and the realisation of domestic self-sufficiency with significant surplus for the export market.

“Consequently, the project will not only generate significant foreign currency savings for our country as a result of reduced imports, but also generate additional export revenue, bringing with it the attendant macroeconomic benefits of a stronger balance of payments position, which will redound to the benefit of the Guyanese people.”

The government described as “mischievous” media reports here regarding the ongoing bid for the oil and gas licensing round for the open acreage of oil and gas blocks within the country.

A statement from the Ministry of Natural Resources recalled that in 2022, the government launched the oil and gas licensing round adding that the fiscal terms, technical and financial requirements, and draft Petroleum Agreements (PSAs) were made publicly available to potential bidders as part of the process, encouraging bids from qualified entities.

Of the total available blocks, spanning both deep and shallow water depths, eight blocks received bids which were duly reviewed, with evaluations conducted in accordance with international best practices and the terms outlined in the bid round documents. Following the review process, the bidders demonstrating the most sustainable and responsive proposals were shortlisted and engaged, to award blocks and grant licenses and PSAs, this information was made public.

“In this regard, we consider it very mischievous to see news articles…claiming that the relevant information was not being shared. On the contrary, this process has been transparent, with ongoing public engagement. The most substantially responsive bidders have been publicly announced, and the process is currently in its final stages, with the awardees expected to be formalised soon. When the regulatory process is completed, a press event will be held to mark the signing of PSAs, ensuring that the public remains informed throughout the process.”

It said whilst the process is ongoing for all the blocks, at this stage a minimum of four PSAs are expected to be completed and signed for the year 2025. These include blocks

1. 1. 1. S4 – TotalEnergies, Qatar Energy, and Petronas;
      2. S5 – International Group Investment Inc.;
      3. S7 – Cybele Energy; and
      4. S10 – International Group Investment Inc.

“The government of Guyana recognises the significant public interest in this sector and remains committed to ensuring that the development of the oil and gas industry is conducted in a manner that is both transparent and beneficial to the country as a whole.”

 

 

 

 

PPP at 75 ‘guiding Guyana to greater heights

January 1, 2025

Statement from President Dr Irfaan Ali, President of Guyana, on the occasion of the 75th anniversary of the founding of the People’s Progressive Party.

On this historic occasion of the 75th anniversary of the founding of the People’s Progressive Party (PPP), I extend heartfelt congratulations to the party, its members, and supporters, past and present. This milestone is not merely a celebration of the longevity of a political organization but a recognition of the pivotal role the PPP has played in shaping the history and destiny of Guyana.

The PPP was born out of a vision for a free, independent, united and prosperous Guyana. Since its inception in 1950, it has remained a stalwart advocate for the rights of the working class, for justice, equality, and national development. The party’s contributions to Guyana’s development and political evolution extend even to the period prior to our Independence, marking the party as a foundational pillar of our nation’s modern political modern history. The formation of the party reignited the nationalist struggle, giving voice, leadership and direction to the aspirations of a people yearning for freedom, dignity, and self-determination

Among the PPP’s early and transformative achievements was its vanguard role in the fight for universal adult suffrage. This landmark victory, which enfranchised all adults, laid the foundation for democratic governance in Guyana. It affirmed the principle that every citizen, regardless of class, gender, or ethnicity, has an equal stake in the nation’s future. The PPP’s commitment to this cause epitomized its belief in the fundamental dignity and equality of all Guyanese.

During the the dark era when the democratic will of the people was trampled upon for nearly a quarter of a century, the PPP stood resolutely at the forefront of the struggle for the restoration of democracy. Through tireless struggle and sacrifices, the party championed the return of free and fair elections, culminating in its historic victory in 1992.

The restoration of democracy brought with it the herculean task of national reconstruction. The People’s Progressive Party Civic (PPPC) government, took on the responsibility of rebuilding Guyana from the ruins of economic decay and despair. Through its policies, programmes and projects, the PPPC government laid the groundwork for economic recovery, improved social services, and infrastructural development, rekindling hope among the people.

Beyond its national achievements, the PPP has also made significant contributions to the struggles of oppressed and colonized peoples. The PPP has championed causes such as decolonization, regionalism, anti-imperialism, national liberation and an end to apartheid. In recognition of his extraordinary contributions to the struggles against racial oppression and colonial exploitation, Dr. Cheddi Jagan, the former General Secretary of the party, was posthumously awarded the prestigious Order of the Companions of Oliver Tambo. His later advocacy for a New Global Human Order highlighted the need for a fairer and more equitable world system. Throughout its history, the party has forged fraternal relations with progressive forces and movements, including those fighting for freedom and national liberation.

None of these achievements would have been possible without the tireless support and unrelenting loyalty of the party’s members and its extensive grassroots support. On this the party’s 75th anniversary, the party’s membership and supporters deserve acclaim and applause!

The PPP’s commitment to the ideals of democracy, social justice, and national unity continues to inspire hope and confidence in the future of our nation. Its vision for a Guyana where every citizen has a stake in its future remains as relevant today as it was at the party’s inception.

I commend the PPP for its enduring service to our nation and its dedication to the welfare of our people, particularly the working class. As the party looks toward the future, I am confident that it will continue to be a force for good, guiding Guyana to greater heights of prosperity and unity.

 

 

 

 

 

US firms invest US$15B over four years

December 25, 2024

–‘Proof that partnerships produce results,’ US official says

UNITED States companies ploughed over US$15 billion into Guyana over the last four years, solidifying its status as a top destination for international investments.

US Assistant Secretary of State for Western Hemisphere Affairs, Brian Nichols highlighted this achievement, reaffirming the tangible outcomes of the strategic partnership between the two countries.

“The strategic elevation of our relationship with Guyana, the fastest-growing economy in the world, provides further proof that these partnerships produce results,” Nichols said while commending the bilateral efforts that have strengthened Guyana’s economy and defence capabilities.The multi-billion-dollar investment is part of a broader collaboration between the US and Guyana, which includes partnerships with US companies, robust defence cooperation through US Southern Command, and support for key sectors like oil and gas, tourism, and infrastructure.

Since 2021, US companies have been involved in major projects, from ExxonMobil’s offshore oil developments to luxury hotel investments such as Four Points by Sheraton, and Hyatt Place.

These initiatives align with Guyana’s rapid economic transformation, and are supported by the People’s Progressive Party/Civic (PPP/C)-led government’s push to develop a diverse range of industries, including healthcare, education, and renewable energy. While large-scale oil projects dominate headlines, the US is also fostering partnerships with Guyanese small and medium enterprises (SMEs).

Ambassador to Guyana Nicole Theriot earlier this year highlighted the role of SMEs in promoting long-term economic stability.

“It’s not just our large Fortune 500 companies that are making an impact. Small and medium enterprises trading with each other is arguably even more important for long-term diverse economic growth.”

In 2023, over 3,000 US SMEs were exported to Guyana, underscoring the strong trade ties between the two nations. Leading the wave of US investments in Guyana is ExxonMobil, whose historic developments have transformed the country into a global oil powerhouse.

Since First Oil in December 2019, ExxonMobil and co-venturers, Hess and CNOOC, launched three major offshore projects—Liza Phase 1, Liza Phase 2, and Payara. These projects collectively produce over 600,000 barrels of oil per day, with production expected to surpass 1.7 million barrels per day by 2030.

ExxonMobil’s operations in Guyana are among the most successful deep-water developments globally, and the company’s local investments reflect its commitment to Guyana’s economic growth. Over the past five years, ExxonMobils spent over US$2 billion on goods and services from over 1,700 local suppliers, and currently employs over 6,000 Guyanese in high-paying industry jobs.

While oil remains a cornerstone of US investments in Guyana, the relationship is expanding into other critical sectors. US companies made significant contributions to tourism, hospitality, and infrastructure development. Luxury hotel projects led by US firms include the Four Points by Sheraton, Hilton Garden Inn, Hyatt Place, and H-Tower Luxury Hotel.  These ventures are set to capitalise on Guyana’s growing international profile and burgeoning tourism sector.

Beyond economic investments, the US supported Guyana’s defence and infrastructure development. The US government signed a US$16 million contract to provide advanced rotary-wing aircraft and flight instructor support for Guyana’s air corps. With US$15 billion invested over four years, and more expected in the coming years, the US-Guyana partnership is stronger than ever.

 

 

 

 

A year of wins for oil production

 December 29, 2024

AS 2024 draws to a close, Guyana has much to celebrate in its oil-and-gas sector.

This year marked milestones that highlight the country’s impressive achievements, and lay a strong foundation for what promises to be an even more transformative 2025.

One of the standout accomplishments of 2024 was ExxonMobil achieving peak production of 650,000 barrels of oil per day (b/d) from its three major projects: Liza 1, Liza 2, and Payara. Liza 1 demonstrated a capacity of about 160,000 b/d. Liza 2, which produces at an optimised 250,000 b/d, underwent debottlenecking upgrades that see it capable of producing 270,000 b/d pending regulatory approval.

Payara, initially designed for 220,000 b/d, was successfully optimised to 250,000 b/d, continuing to place ExxonMobil’s prioritisation of efficiency on display. A cumulative production milestone of 500 million barrels was also reached in November, marking another historic achievement since operations began in December 2019.

In addition to record-breaking production, 2024 saw substantial strides in local content. Over 6,000 Guyanese now work in the oil-and-gas sector, a testament to the effectiveness of the Local Content Act, and efforts by ExxonMobil and its subcontractors.

The commissioning of the US$13 million Facility Simulator, known as FacTor, in February was another important development. Located at the Guyana Technical Training College in Berbice, this state-of-the-art facility mirrors real offshore operations, allowing trainees to gain practical skills in operations, troubleshooting, and maintenance.   The first cohort of trainees graduated in July, signalling the beginning of a robust pipeline of skilled Guyanese technicians ready to support offshore operations.

Guyana’s local businesses also made notable inroads into the oil-and-gas sector, with a number of businesses securing major contracts. Industrial Fabrications Inc. (INFAB), Guyana Oil and Gas Support Services Inc. (GOGSSI), and ZECO Group of Services were awarded contracts by SBM Offshore to fabricate over 300 tons of steel for the Jaguar FPSO, currently under construction.

This collaboration is a demonstration of the growing capability of local firms to meet international industry standards. Further, the sector awaits the arrival of the ONE GUYANA FPSO in mid-2025, which will drive production for the Yellowtail project, expected to add 250,000 b/d.

Infrastructure developments tied to the Gas-to-Energy project also took centre stage. ExxonMobil completed installation of the offshore pipeline, a critical step towards utilising associated natural gas for power generation.

Looking ahead to 2025, the stage is set for even greater achievements. The anticipated production increase at Liza 2, pending regulatory approval, and the commencement of operations at the Yellowtail project with the ONE GUYANA FPSO could add 270,000 b/d to Guyana’s output. Expansion of job opportunities and training programs will further integrate Guyanese talent into the sector, while the 300 MW Gas-to-Energy power plant will start generating electricity. By facilitating a reduction in electricity costs by some 50%, the project is expected to catalyze industrial growth and economic diversification, making affordable, reliable energy a reality for all Guyanese.

 

 

 

 

ExxonMobil greenlights Whiptail oil project & expects production to pass Venezuela

Kevin Crowley, Bloomberg April 14, 2024

Exxon Mobil Corp. formally approved its sixth oil development offshore Guyana that will make the Latin American nation a bigger crude producer than OPEC member Venezuela.

The Whiptail project will cost $12.7 billion and produce about 250,000 bpd as soon as the end of 2027, Exxon said in a statement Friday. Guyana’s overall daily crude capacity will climb to 1.3 MMbbl just eight years after the advent of the country’s oil production.

Guyana’s boom comes as neighboring Venezuela, a co-founder of the Organization of Petroleum Exporting Countries, grapples with years of underinvestment and international sanctions that slashed oil production and government revenues.

Guyana’s emergence as a major oil producer also is having vast social and economic consequences for a country of just 800,000 people. Oil revenues have allowed the government to unleash a wave of welfare and infrastructure spending while expanding crude supplies factored into a recent OPEC decision to maintain production caps in a bid to support prices. International crude prices have risen almost 20% this year to about $90 a barrel.

Exxon plans to drill 48 wells about 120 miles (190 kilometers) offshore Guyana that will feed a floating production, storage and offloading vessel, or FPSO, named Jaguar, the country’s national animal.

The FPSO will have 2 MMbbl of crude storage capacity, SBM Offshore NV, which will construct the vessel, said in a separate statement. SBM shares rose as much as 1.7% in Amsterdam.

Exxon expects Whiptail to ultimately produce more than 750 MMbbl. The cache was discovered in 2021.

Guyana’s offshore oil production growth is unlikely to continue at breakneck pace once Whiptail is online in 2027. Exxon has found enough oil and natural gas to support as many as 10 FPSOs, but is leaving its options open for the seventh project having now made more than 30 major discoveries.

“Some of it is not quite so easy reservoir-wise, but there’s a lot of resource,” Exxon’s Guyana country manager Alistair Routledge said in an interview. “We’re working through that inventory and figuring out what could potentially be next in the development.”

One option is for Guyana’s first gas-focused project, which is favored by the government. Other options include connecting more recent discoveries to existing production vessels rather than commissioning new FPSOs.

Since Exxon’s first Guyanese discovery in 2015, the nation’s known reserves have expanded to more than 11 Bbbl, attracting unwelcome interest from Venezuela. President Nicolas Maduro has ramped up rhetoric around his country’s historic claims to the Essequibo region that makes up two-thirds of Guyana’s land mass.

Meanwhile, Chevron Corp. is attempting to buy a share of Guyana’s oil bounty through a $53 billion takeover of Hess Corp., which holds a 30% share in the Exxon-led development. Exxon, which owns 45%, is disputing the change of hands via arbitration at the International Chamber of Commerce, arguing that it has a right of first refusal. Chinese oil giant Cnooc Ltd., which also owns a stake, joined Exxon in arbitration last month.

 

 

 

 

Gas to energy , electronic ID to advance as $141.5B approved

February 3, 2025

A massive $141.45 billion in budgetary allocations have been approved for the Office of the Prime Minister, paving the way for the completion of key transformative projects, including the landmark Gas-to-energy project at Wales and the electronic identification card (e-ID), among many others.

Some $65.8 billion in capital allocations and current expenditures totaling $75.6 billion were approved by the Committee of Supply, following extensive scrutiny by the parliamentary opposition.

Power Generation

$51.2 billion has been approved to advance construction on the massive gas-to-energy project being developed at Wales on the West Bank of Demerara (WBD) in Region Three.

Prime Minister Brigadier (Ret’d) Mark Phillips, responding to the opposition regarding the sum, explained that $36.2 billion has been budgeted for construction of the natural gas power plant and a natural gas liquid plant. More than $1 billion is also earmarked to procure project consultancy services, among other expenditures.

The allocation is part of a broader $88 billion investment to enhance power generation across Guyana, with $18 billion allocated to support the Guyana Power and Light (GPL) company. This will absorb fuel prices, allowing Guyanese to enjoy the same rates of electricity they were enjoying since 2020.

“We have not increased the rate of electricity for households and for any other consumer, from the time we have been in office, notwithstanding the shocks that would have seen fuel prices going throw the roof.”

Monies were also approved for small hydropower projects in communities in Region Nine, and among other villages, further advancing the government’s renewable energy agenda.

Telecommunications and innovation

The Committee of Supply appropriated $16.7 billion to advance critical projects in the information and communications technology (ICT) sectors. Over $1.4 billion is earmarked to advance the electronic identification (e-ID) project in Guyana. This [project] is on target for June 2025 .

$6.2 billion was approved to expand the Safe Country programme, and additional $1.9 billion to operationalize the e-gates and border control system at the Cheddi Jagan International Airport (CJIA).

12 e-gates have already been procured and will be installed at the arrivals and departure gates, guaranteeing ease of travel for not only Guyanese but those travelling to Guyana.

To smoothly implement the Safe Road Intelligence System (SRIS), $382.9 million was approved, with an additional $4.4 billion catering to other capital projects.

Disaster Preparedness, Response and Management

To enhance Guyana’s disaster preparedness strategies, the committee appropriated $41.7 billion; $38.2 billion in current expenditures and $150 million in capital expenditures.

Government Information and Communication Services

$1.5 billion was approved to support the operations of the National Communications Network (NCN) among other state agencies.

$745 million was appropriated for the Prime Minister’s secretariat, providing financial resources to support the discharge and responsibilities of the Prime Minister’s Office.

 

 

 

Guyana, UK explore partnership to accelerate national projects

 February 12, 2025

As Guyana and the United Kingdom (UK) continue to explore new avenues for partnership on investments to accelerate projects for economic development, Finance Minister, Dr. Ashni Singh, met a team from the United Kingdom Export Finance (UKEF) Department led by UK High Commissioner to Guyana, Ms. Jane Miller. The UKEF team included the Global Head of Business Origination, Vomic Nur Shah; Regional Head, Business Origination (Americas and South Asia), George Hames; and UKEF Country Head for Guyana, Mr. Camilo Neira.

Dr. Singh expressed appreciation to the UK for the support provided to the government’s development agenda in various sectors. The visiting officials noted that Guyana is a strategic priority and that UKEF is looking forward to providing further financing for priority projects in the country. Also joining were UK’s Country Director for Trade and Investment at the British High Commission, Sherwyn Naughton and technical officials of the Ministry of Finance

Published 12 February 2025, 04:30

 

 

 

PRC oil majors streamline operations with overseas asset sales

China’s top oil and gas companies are selling off underperforming assets and streamlining operations as part of ongoing restructuring.

Xu Yihe
Asia Correspondent, Singapore

China’s state-owned oil giants — PetroChina, Sinopec, CNOOC Ltd and Sinochem — are accelerating asset divestments to boost profitability and enhance operational efficiency.

As part of broader restructuring efforts started in 2024, these companies have offloaded several underperforming or non-strategic assets. The divestments mark a significant shift toward greater operational focus, with the companies targeting efficiency improvements and more profitable ventures.

Sinochem completed the sale of its stakes in Brazil’s shallow-water Peregrino and Pitangola oilfields and is negotiating the sale of its Wolfcamp shale assets in the US.

After British chemicals giant INEOS acquired the US subsidiary and the Gulf of Mexico oil and gas assets of state-run China National Offshore Oil Corporation in December 2024, the PRC company may consider divesting its stake in Stabroek Block to ExxonMobil.

This will facilitate the Hess-Chevron merger and reduce PRC exposure to geopolitical risks to focus on more stable and lucrative Pacific markets amid rivalry with USA.