Liza Destiny sailing westward

The first Floating, Production, Storage and Offloading oil vessel to be installed in Guyana sailed from Singapore under the flag of The Bahamas. Liza Destiny crossed the Indian Ocean and is in the Atlantic Ocean, en route to Guyana, in the wake of the Whitby, Hesperus and other historic ships bringing ancestors of the majority of citizens of Guyana to the British colony from 1838.Estimated date of arrival in Georgetown is 29 August.

The Liza Destiny FPSO is designed to produce 120,000 barrels of oil per day with 1.6 million-barrel storage capacity. During normal operations, at least 80 persons will live and work on board the vessel. 24 operations and maintenance technicians, being trained in Canada, will return in 2020 to work on the Liza Destiny.

On June 22, 2019, Guyana’s First Lady commissioned the vessel at the Keppel Shipyard. She hailed the name of the FPSO vessel as fitting for Guyana on the brink of achieving its ‘destiny’ of an improvement in the lives of all its people. She hoped that this ship will bring …. not only physical prosperity but greater cohesion, greater development, and .. sustainability of our country its people and culture.

ExxonMobil Guyana Country Manager, Rod Henson said the company has over 1,000 Guyanese working for the project here and the team is continuing to do an incredible job.

“Their work includes everything from completions of the initial wells for production to laying pipelines and infrastructure on the sea floor to eventually connect up to the Liza Destiny for production. We’re proud of the work being done each and every day, and want to thank everyone involved for their focus on safety and keeping the protection of the environment top of mind in all that they do.”

This FPSO is a significant component of the Liza Phase One development which involves four undersea drill centres with 17 production wells, which includes eight production wells, six water injection wells and three gas injection wells. It will produce as part of ExxonMobil’s $4.4 billion development,

The Liza Destiny FPSO was transformed from the oil tanker, ‘Tina’, a VLCC (Very Large Crude Carrier) built by Hyundai Heavy Industries in South Korea. The contract for its conversion was awarded to SBM Offshore in July 2017. SBM Offshore also won contracts to construct, install, lease and operate the Liza Unity FPSO which almost doubles the capacity of the Liza Destiny FPSO.

As wildcats appear on the Atlantic horizon Exxonmobil and partners on the prolific Stabroek block boosted estimated recoverable resources to over 6 billion boe, with Hammerhead to the fore as they mull next development steps on the tract.

Absence of ring-fencing in contract a plus

– ExxonMobil Country Manager  warns of negative impact on investment if agreement changed

Rod Henson

The 2016 renegotiation of the Production Sharing Agreement (PSA) between government and ExxonMobil subsidiary Esso Exploration and Petroleum Guyana Limited benefitted both sides, according to Country Manager Rod Henson, who said that the oil major did not “strong arm” anyone and warned of the impact on investment if changes to the agreement are sought.

“We didn’t come in here and strong arm anyone…It was the government’s model contract and it was a good contract. It had objectives now bearing fruit.”

With concerns about the lack of ring-fencing provisions in the agreement and criticisms of the 2 per cent royalty and $18 million signing bonus agreed during the 2016 renegotiation, Henson says that pushing for another set of changes does not augur well for attracting investors here. He indicated that the absence of ring-fencing provisions was positive for a frontier country like Guyana.

“Those parties voluntarily signed an agreement which would have many, many benefits for the country. What the country got was a signing bonus,… increased annual fees, increased work commitments, I think what it also benefitted from was more time.”

The 2016 PSA came under attack since it was released at the end of 2017. It contained a 2 per cent royalty figure for Guyana on every barrel of oil which experts said should have been higher, since the deal was concluded after ExxonMobil’s major oil find in its 6.6 million acre Stabroek Block. It also offered a US$18 million signing bonus which experts said should have been higher and which the government concealed until pressured to release the PSA. EEPGL retains control over hundreds of oil exploration tracts within its Stabroek Block when the maximum figure, according to the law, should have been 60. Other issues include the fact that Guyana did not have an oil expert on its negotiating team.

Government expressed concern that the lack of ring-fencing provisions in the PSA could negatively affect revenue from oil. When the 2016 renegotiated agreement was signed, Raphael Trotman, the Minister of Natural Resources was responsible for oversight of the sector but he has absolved himself of any responsibility for the absence of ring-fencing provisions. He acted on the advice and direction of the Guyana Geology and Mines Commission (GGMC).

Commissioner of the GGMC, Newell Dennison, reported in April 2016, following a meeting with ExxonMobil at their Texas office, that he was sent to a “technical caucus” when the renegotiation came up. The report provided insight into what is seen as hard-nosed tactics by ExxonMobil where only Dennison and Manager of the then Petroleum Division attended as Guyana’s representatives.

EEPGL “confronted” the GGMC on the matter of their contract and licence. A signing bonus was among the issues.

Government never explained why the signature bonus was presented to ExxonMobil at a “technical meeting.” How it was computed was also queried and Trotman told the Parliamentary Sectoral Committee on Natural Resources that government determined the sum to pay for legal representation at the International Court of Justice over the border controversy with Venezuela.

All decisions in the contract were taken as a collective Cabinet. If he alone was responsible for the renegotiation of the PSA, it would have been done differently and he stressed that “the decisions taken were… collective Cabinet decisions.”

After GGMC officials returned to Guyana and presented the report, they never heard about or saw the renegotiated contract until it was completed and ready for signature in June 2016 and the agency was not asked for further input.

Henson, with over 30 years in the company, working around the world in Southeast Asia, Europe, the Middle East, Russia and South America, defended the contract saying that it was a good one and has worked in the country’s favour. He said that contracts evolve over time.

“To me, one of the biggest benefits to that [the 2016 renegotiation] was providing us more time to appraise Liza. At that time, we did not have to renegotiate. We had a couple of years left on our current terms. Neither side had to. Neither side strong-armed the other side. But had we not renegotiated at that time, we would not have had first oil by early 2020. We just wouldn’t.

“The other thing that time gave us was time to better evaluate that 3D seismic data. And the benefit of that is that it gives us a higher success rate at exploration wells. So although no one can play the ‘if’ game and predict a different future, I am quite confident that our success rate would have been lower. We would have had more dry holes had we not been given a little more time to study that seismic.”

Henson believes that the contract is working for both sides and the nation should not see it in a negative light as the rewards would be comforting.

“The contract is working beautifully, as it was intended to do. It has succeeded to attract investors to…find oil and develop it to the benefit of the country. So the contract is doing exactly what it was designed to do and… people should be proud of that and be very happy about where we are right now. The contract is a fair contract. It absolutely is a fair contract given the risk profile of where Guyana is. These are multi-decade agreements and we need to keep in mind that there were over 30 wells drilled in this basin, all unsuccessful, all dry holes.”

“Even today, there is no production in Guyana. Given that, the contract is absolutely competitive when you compare it to other frontier countries. It is a multi-decade agreement and it has to be that way because these are extremely large capital investments that companies make when they come here and take this risk. The Liza Field will produce for decades and decades so the terms have to stay for decades and decades as well. It is fair and completely normal for the same stage Guyana is in. Again, this is a multi-decade contract and through time, contracts will evolve. If you take any mature countries like the United States, Brazil or Trinidad, you will see that over years and years and years, contracts will evolve.”

Asked if his company is prepared to renegotiate and increase the two per cent royalty rate, Henson said the company not so long ago renegotiated and the changing of terms often scares investors.

“I can’t predict the future. We are going to be here for a long, long time. We are partnered with the country and we are proud and humble to do that but again, these are multi-decade agreements. We have had to enter into contracts ourselves now and invested billions and billions of US dollars, based upon what we understand to be our agreed to terms.

“The other things I have to say is that we did renegotiate that a very short time ago. And so, in these types of agreements, if you are going to change the terms every couple years, you will never make progress. You will not be able to attract international investments, multi-decade investments, if the terms are going to change every couple of years. In my opinion, the terms don’t need to change. The contract for Guyana is doing what it intended to do. Right now, Guyana is the belle of the ball. You are meeting the objectives to contracts.”

On his company’s posture if a new government pushes for re-negotiation, he replied, “We work with all governments. We work with this government, we are going to work with every government from here to the next several decades. The facts of the matter don’t change based on who is on power on a given day.”

Henson, a petroleum engineer, emphasised the advantages of not having ring-fencing provisions,saying it was normal for those provisions to be excluded in a contract for a frontier country like Guyana .

“The contract that Guyana has is absolutely typical. If you look globally, there are countries that have contracts that have no ring-fencing which are essentially like block-like cost recovery and you have countries that put a greyness; that puts a small ring-fencing around individual fields. There are examples of each and what Guyana has is absolutely normal and particularly for a more frontier area. The way it is now, it encourages investment, it encourages companies to explore more and if you make a discovery, particularly if [it is] a marginal discovery, it encourages you to appraise that more. A negative of ring-fencing can be, particularly when you get into marginal discovery, is that it makes all this exploration a little more risky.”

“You don’t know if you will have cost recovery. It, to some degree, discourages it or it will, to some degree, reduce as well, appraisal. Another great benefit, if you take our example where we made multiple discoveries, because we can treat the block as a block, it allows us to have more synergies, more efficiency, optimise the development because we may need to have infrastructure that goes between fields. Not to say that you couldn’t do that with ring-fencing but this contract greatly simplifies, creating the most optimum development for what we have got,” he added.

Henson dismissed criticisms that ExxonMobil, locally and globally, behaves ruthlessly with poor countries like Guyana. He was asked if the company’s conscience was pricked when it negotiated opposite the Government in 2016 which lacked an expert.

“I have worked with this company for 30 years, my son worked for this company. We are just people, just like you. We are more than half Guyanese. Janelle, are we monsters? When she leaves, will my horns come out of my head?” he asked the company’s Public and Government Affairs Advisor.

“Think about it, all the contracts are the same, aren’t they? They are all public.” To locals who may have trepidations about the emerging sector, Henson has this advice: “Things are moving well and as expected. Be optimistic, continue to think about those good things like transparency, how the revenues are going to be spent, how best to manage this transformational decade. Things are going very, very well. Stay the course.”

Corporate Social Responsibility

IOC ExxonMobil will not recover money it spent on donations, sponsorships and other contributions to local organisations, in fulfillment of its Corporate Social Responsibility (CSR).

According to the Production Sharing Agreement (PSA) for the Stabroek Block signed with ExxonMobil, subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), was granted the privilege of recovering funds it channeled into donations.
The controversial PSA was signed the year after Esso made its first discovery in May 2015.
The list of things that the government pre-approved for Esso to include in cost recovery is quite long.
Annex C of the contract has a list of items ExxonMobil may want to include in cost recovery; that is subject to the approval of the state.

It reads, “Cost recoverable only with approval of the minister: Commissions paid to intermediaries by the contractor; donations and contributions to organisations in Guyana and expenditure on research into and development of new equipment, material and techniques for use in searching for developing and producing petroleum which will be of benefit to petroleum operations.”
Asked whether the company will recover donations made in the fulfillment of its CSR, , the Public and Government Affairs Advisor said “ExxonMobil Guyana considers these strategic investments in the community and does not intend to recover such costs.”

Companies place importance on CSR as a way to self-regulate social accountability to their stakeholders. Since 2015, Exxon made a series of donations to local organizations.
It contributed to the Faculty of Agriculture of the University of Guyana for completion of its Gasifier project. Since 2015, the company funded various projects with US$3.6 M, ( $732M Guyanese dollars). .ExxonMobil Guyana continually seeks to contribute to social and economic progress of communities in which it operates and made contributions to various programmes under STEAM (Science, Technology, Engineering, Agriculture Mathematics), Education, women, youth and community empowerment as well as environmental sustainability.

EEPGL donated $15 million to not- for- profit SSYDR Inc., to present a job readiness programme in communities across the country. Employment Attack 102 is a summer camp preparing young persons including early school leavers for the job market. The overall intent is to fight ills plaguing communities and youth. Targeting systemic crime will aid development, with reduction in youth vulnerability to poverty, crime and violence. Following a four-week interactive training process and one week of web development training, SSYDR coaches will work with each person to develop life plans then assist with securing employment or other livelihood opportunities within a month of the training completion.

This is the third related initiative on which EEPGL partnered with SSYDR. In 2017 it contributed $4M for job readiness skills training. In 2018 $12 million was granted to the first Employment Attack 102- Job Readiness Camp. Close to 400 youths from Regions 2,3,4,5,6 and 10 have benefitted so far.

ExxonMobil, contractors spent $25b

Four years after its first offshore oil discovery, ExxonMobil and its contractors created almost 1,200 new jobs for locals and spent some $24.9 billion on local procurement.

“We are very proud at what we are doing. I think we are doing more in Guyana than any place I have seen. I am really proud of our contractors. We created almost 1,200 new jobs and over 200 of those are women in the oil industry,” said Rod Henson, Country Manager, Esso Exploration and Petroleum Guyana Limited, ExxonMobil’s local subsidiary.

“Since 2015, EEPGL and its major contractors spent approximately US$119.5 million with local suppliers for procurement of goods and services ranging from foodstuff to engineering. People are seeing benefits,” he said, referring to local content statistics.

Local content is a major issue with the lack of a government policy. The Private Sector Commission said that local content legislation is needed to protect investments in the oil and gas sector. Georgetown Chamber of Commerce and Industry (GCCI) echo this stance following an Offshore Technology Conference (OTC) in Houston, Texas in May.

“We, as a private sector, have played our cards and are willing to make the investment, learn and inculcate new behaviours and new standards into what we offer. What we need is that regulatory environment that starts with a policy and ends with legislation that says there is a need for local content in this industry,” GCCI Head Nicholas Boyer said. Even though there are efficient local content policies around the world, there is a need for Guyana to learn quickly and implement such a policy and related legislation before first oil. Depending on operators’ internal local content policies is no excuse for the government to eschew a policy.

“We’ve invested in it already, consultants and consultations. If this was the private sector and government was .. run as a company, somebody would’ve had to answer the questions on how did we get so far and invest so much and not have the policy.”

The Department of Energy aims towards completing consultancy for the local content policy by the end of June. After that it will be taken for consultations with the private sector and other stakeholders.

Since 2015, ExxonMobil contributed to the growth and development of Guyanese suppliers and workforce. EEPGL’s operations led to the recruitment of 1,183 Guyanese at the end of March 2019 representing 49% of the project’s total workforce. EEPGL initially started with 43 Guyanese in its operations in 2015.

“You know our industry is not labour intensive. It is technologically intensive so there are not thousands and thousands of jobs but we will definitely [do] the best that we can,” Henson said. “The real benefit will come from the revenue from the oil. Really transformative stuff will happen over this decade.” For the first quarter of this year alone, over 30,000 training hours were generated by the local workforce.

Total expenditure with Guyanese businesses has been doubling since 2015, recording US$58 million at the end of 2018 with 499 local suppliers utilised. Those figures were ramped up significantly this year and the first quarter saw utilisation of 321 Guyanese businesses with expenditure totaling US$24.4 million.

A Guyana Office for Investment magazine highlighted local content benefits. A local company supplies fruit, vegetables, frozen local fish and chicken to the Stena Carron drillship operating offshore . The vessels utilise local staffing companies to identify the local personnel filling roles such as Radio Room Administration Operators, Stewards and Painters, among other occupations.

ExxonMobil said that its support vessels, while sailing under international flags, have transitioned to “training” vessels for Guyanese nationals including officers from the Civil Defence Commission and Cadets from MatPal Mari-time Institute who “have gained experience in roles ranging from engineer officers to deck side officer…”

Its subsea contractor, TechnipFMC recruited 10 candidates from the University of Guyana to attend training in Brazil.

Its local office comprised 70 per cent Guyanese “including two in senior management positions.” Local personnel “work in the areas of Business Services, Controllers, Logistics, Public and Government Affairs, Safety, Security, Health and Environment.” Three Guyanese engineers began an international training programme. The Public and Government Affairs Advisor said the company sent a recent batch of youths to Canada to be trained for offshore work.

Henson said that to date, another US$3.6 million has been spent in grants “ STEM education, women empowerment, youth empowerment, things like that.”

Hess Corporation

Hess reported a net loss of $6 million, or $0.02 per common share, in the second quarter of 2019, compared with a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $28 million, or $0.09 per common share, in the second quarter of 2019, compared with an adjusted net loss of $56 million, or $0.23 per common share, in the prior-year quarter. The improved after-tax adjusted results reflect increased U.S. crude oil production and reduced exploration expenses, partially offset by the impact of lower realized selling prices and higher depreciation, depletion and amortization expenses.

Guyana Giants Turn The Tide

Guyana has upside possibilities. Major discoveries improved the profitability outlook. Offshore costs fall as technology improves and the offshore recession drives down costs. Over the next five years production should double and cash flow should probably more than double. Guyana bets are paying off for Hess.

Focusing on offshore Guyana and Bakken shale opportunities is paying off for Hess, foreseeing significant production expansion in the coming years “Our production is now expected to come in at the upper end of our full year guidance range, while our capital and exploratory expenditures are projected to come in below our original full year guidance,” Chief Executive Officer John Hess said in the Q2 2019 earnings release. “Our portfolio is on track to generate industry-leading cash flow growth.”

Hess raised its estimated gross recoverable reserves to more than 6 Bboe Offshore Guyana, based on positive discovery results in the 30%-owned Starbroeck Block. This growing resource base demonstrates potential for at least five FPSOs, producing more than 750,000 gross bopd by 2025.

The Liza Destiny FPSO, with a capacity to produce up to 120,000 gross bopd, iwill arrive on the Stabroek Block in September 2019; First oil from Liza Phase 1 is expected by the first quarter of 2020
Hess also sanctioned the second phase of development of the Liza Field; Phase 2 will utilize the Liza Unity FPSO, which will have a capacity to produce up to 220,000 gross bopd with first oil expected by mid-2022.

In the Bakken shale play, net production increased 23% from the prior-year quarter, to 140,000 boepd, based on increased drilling activity and improved well performance. Hess operated six rigs in the Bakken in the second quarter, drilling 39 wells and bringing 39 new wells online.

Tullow Oil plc – 2019 Half Year Results

• Group delivers $0.9bn revenue; $0.1bn profit after tax; $0.2bn free cash flow Kenya oil development Heads of Terms signed;
• FID targeted for second half of 2020 Three-well Guyana exploration campaign under way;
• Jethro result expected in August 24 July 2019

Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its Half Year results for the six months ended 30 June 2019.

Details of a presentation in London, webcast and conference calls are available on the last page of this announcement or visit the Group’s website www.tullowoil.com.

COMMENTING TODAY, PAUL McDADE, CHIEF EXECUTIVE OFFICER, SAID: “Today’s results demonstrate strong financial delivery in the first half of 2019 with robust profits and free cash flow. We are disappointed that a mechanical issue at our latest TEN well has caused us to reduce our 2019 production outlook; however, our overall portfolio of low-cost West African production continues to provide a solid financial base for the business, allowing the Group to invest for future growth, continue to reduce debt and pay dividends to shareholders. Elsewhere, our exciting three-well Guyana exploration campaign is now under way and I am particularly pleased to see the good progress being made in Kenya with the first ever lifting of East Africa crude expected in the coming months”

2019 HALF YEAR RESULTS SUMMARY

• • •Revenue of $872 million; gross profit of $527 million; post tax profit of $103 million; free cash flow of $181 million
  • • Board confirms interim dividend of 2.35 cents/share (c. $33 million) in line with the Group’s Capital Returns Policy
  • • Net debt and gearing reduced to $2.9 billion and 1.8x; no near-term debt maturities
  • • First half 2019 capex of $248 million; 2019 capex forecast remains unchanged at $570 million
  • • West Africa first half 2019 working interest oil production averaged 88,700 bopd
  • • Full year 2019 oil production guidance revised down to 89-93,000 bopd reflecting delays in TEN well completion
  • • Kenya oil development progressing well; Heads of Terms signed with the Government; FID targeted for second half of 2020
  • • Uganda farm-down continues to make limited progress; discussions between JV Partners and Government continue
  • • Three-well Guyana exploration campaign under way; Jethro result expected in first half of August
  • • New exploration acreage accessed in Argentina, Peru and Namibia; withdrawn from Zambia and Mauritania C-18 licence

FINANCIAL OVERVIEW 1H 2019 1H 2018

• • Sales revenue ($m)2 872 905
  • Gross profit ($m) 527 521
  • Profit after tax ($m) 103 55
  • Free cash flow ($m)3 181 390
  • Gearing (times) 3 1.8 2.0
  • Net debt ($m) 3 2,948 3,082
    • Includes 2,700 bopd of production-equivalent insurance payments
    • Revenue does not include proceeds for Tullow’s Corporate Business Interruption insurance of $29 million (1H 2018: $129 million)
    • Free cash flow, gearing and net debt are non-IFRS measures and are explained in the finance review

Guyana

The Stena Forth drillship. is drilling two consecutive exploration wells in the second half of 2019 on its operated Orinduik licence. The first well, targeted the Early Tertiary age Jethro prospect. The drillship will then move to drill the Late Tertiary age  Joe prospect.

The Rowan EXL II jack-up rig has been contracted to drill the Cretaceous Carapa prospect in the non-operated Kanuku licence. This is expected to commence drilling in September with a result expected in the fourth quarter of 2019.

Suriname

Tullow has interests in three blocks, Blocks 54, 62 and 47. Tullow and its Joint Venture Partners decided to enter the second phase of operations in Block 47. Following recent meetings, the Joint Venture Partners chose to drill the Goliathberg-Voltzberg North prospect in 2020. The prospect lies approximately 260 kilometres off the coast of Suriname, in 1,900 metres of water and is one of a series of leads and prospects on the flank of the Demerara High.

Jamaica

Tullow continues to process seismic data on the Walton-Morant licence and assess its options with regards to future drilling.

Argentina

In April 2019, Tullow won three blocks as operator in the highly competitive offshore bidding round. Awards are expected be made later this year. The blocks, located in the Malvinas West Basin, comprise 100% equity in Block MLO-122 and 40% equity in Blocks MLO-114 and MLO-119, in partnership with Pluspetrol and Wintershall.

The shallow water Tertiary and Cretaceous turbidite plays in this underexplored acreage complement Tullow’s existing South America portfolio. The multiyear low-cost, low-commitment work programmes also adhere to Tullow’s strict commercial criteria. Tullow plans to start initial geological studies, 2D reprocessing and 3D acquisition in 2020.

Peru

The Government approved Tullow’s entry into two licences, Z-38 and Z-64 and work continues to secure the other four licences in which Tullow is interested. The Marina exploration well will be drilled by Karoon Energy in the non-operated Z-38 licence in early 2020. Stakeholder engagement and operational planning are under way.

The Marina prospect is located in the Tumbes Basin, approximately 30 kilometres from the coast of Northern Peru, and adjacent to the prolific, onshore Talara Basin. The prospect, located in 350 metres of water, has been identified on a high-quality 3D seismic survey. The Marina well will be the first well to target the deeper water plays in the Tumbes Basin.

Qatar Petroleum acquires interest from Total

While international attention is focussed on the flagship domestic LNG project, the Qatari state energy company is building a worldwide portfolio.
Government-owned Qatar Petroleum built on ties with Eni and Total to acquire interests in five exploration blocks in Kenya and Guyana. This is the latest move in a two-year international upstream acquisition spree that has seen the traditionally domestically-focussed company build a substantial portfolio in Africa the Americas and the GCC.

QP entered into an agreement with Total for a share of exploration and production rights in two blocks offshore Guyana.

Under the agreement, which is subject to customary regulatory approvals by the government of Guyana, Qatar Petroleum will hold 40% of Total’s existing 25% participating interest in the Orinduik block. The other partners in this block are Tullow Oil ( Operator) with a 60% participating interest and EcoAtlantic with a 15% interest.

Qatar Petroleum will hold 40% of Total’s existing 25% participating interest in the neighboring Kanuku block with partners Repsol (the Operator) with a 37.5% participating interest and Tullow Oil with a 37.5% interest.

His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, and President & CEO of Qatar Petroleum, said: ‘We are pleased to expand our global exploration footprint into Guyana together with our valuable, long-term partner, Total, in these offshore blocks in this prospective basin.

‘We hope that the exploration efforts are successful. I would like to take this opportunity to thank our partners and the government of Guyana for their collaboration in this effort, and we look forward to working together in these blocks.’

Three exploration wells are planned in this year: two on the Orinduik block, including the Jethro well which is currently being drilled, and one on the Kanuku block.

Qatar Petroleum acquires interest in Guyana exploration blocks from Total
The Orinduik block located 120 km offshore Guyana has a total area of about 1,800 sq kms, with water depths ranging from 70 to 1,400 meters.

The Kanuku block is located 100 km offshore Guyana and has a total area of about 5,200 sq kms, with water depths ranging from 70 to 800 meters.

Source: Qatar Petroleum

US Coast Guard boosts maritime security capacity

United States Coast Guard expertise for a capacity building workshop on Port Safety Management. benefitted The Guyana Maritime Administration Department . Participants at the first such training exercise in Guyana , a three-day seminar in Georgetown. include port facility security officers and representatives of the Guyana Fire Service (GFS) and the Guyana Revenue Authority (GRA).

MARAD’s Chief Port Security Office said the seminar will assist all port facilities to meet international best practices. A code was derived after  meetings of the International Maritime Organisation, which thought it was a smart thing to do following the events of 9/11 and all areas and sectors were affected. To mitigate maritime threats, the IMO saw it fit to bring the code to port facilities around the world, signatories to the IMO.

Ccollaboration between MARAD and the USCG began back in 2014.The event has become a five-year occurrence.

Among programme facilitators at this year’s training programme is Lieutenant Commander Don Davis.

He said Guyana and the US were also trading partners by sea and anything that happens to maritime transportation would severely impact both countries. “So, we take it very seriously, and we think it is well worth the time, money and investment to do this type of programme,” he told the Department of Public Information (DPI).

Unincorporated USTerritory of CARICOM?

Spurned by Denmark for his offer to buy Greenland, President Donald Trump can compensate by purchasing CARICOM to expand US unincorporated territory on the southern border of the Gulf of Mexico.   A majority of English-speaking states around the Caribbean Sea, popular with American tourists, are democracies enjoying a historic link with their main investor.

Petroliferous Guyana is looking forward to lasting cooperation with the United States as the country advances towards securing prosperity in the Western Hemisphere and congratulated the government and people of the USA on the the 243rd Anniversary of its Declaration of Independence.

Guyana and the US enjoyed excellent relations since the establishment of formal diplomatic ties in August 1966 – the year Guyana gained independence. The countries cultivated a strong stable and sound relationship over the past 53 years… bound by the ties of history to the US, the largest economy in the world. They founded a friendship on the principles of mutual non-interference in internal affairs, mutual respect for territorial integrity and sovereignty, cooperation for mutual benefit and respect for international law and treaty in the maintenance of international peace and security.

The US continues a significant trade and investment partner and Guyana appreciates the cooperation programmes which contributed to national, economic development and social changes. Initiatives include a maternal child survivor programme, strengthening of the criminal justice system and numerous USAID governance and security training programmes offered to the local defence and police forces. These augment human resource capacity and are invaluable to development. Guyana continues to benefit from the US SOUTHCOM’s New Horizon series of projects which began 15 years ago. The current project contributed to public health and public education systems, through building of clinics, community centres, schools and the hosting of joint medical outreaches. Those initiatives promote peace and stability and augment the development of social infrastructure for improving citizens’ quality of life.

The US sustains cooperation in health, education and the environment with the current cohort of 33 Peace Corps volunteers, who assist the ministries of public health, education and Department of Environment in improving primary literacy, supporting adolescents in youth friendly spaces and raising awareness of domestic and environmental issues. Guyana benefits from the President’s Emergency Plan for AIDS Relief (PEPFAR) in the global fight against the disease. It is an initiative guided by the Millennium Development Goals of halting the spread, improving treatment and the preventing transmission of HIV/AIDS.

While Guyana welcomes US support on all fronts, it remains guided by its own ‘Green State Development Strategy’. Guyana is in transition to becoming a ‘green’ state which will place emphasis on the protection of the environment, the preservation of biodiversity, promotion of renewable energy and the adoption of practical measures to ensure climate adaptation.”

Like Guyana, the US has grown by using its many resources, which have enabled the country to be what it is today – a strong leader, but also a friend and partner to many nations, including Guyana. US Ambassador to Guyana, Sarah Ann-Lynch, said a lot has happened along the 243-year journey. The US has struggled but has found its way out of divisiveness and set itself on a solid path forward. The US has experimented-first with a political system that stressed checks and balance of power – a system far from the norm of the times, and then, with science and technology, giving them wonders that people take for granted today: the telephone, electricity, computers and airplanes. The US explored westward then under the seas and out to the stars. The US faced unparalleled challenges in its journey to space but it succeeded in breaking extraordinary new ground. Preparation had met opportunity and that yielded success.

Guyana is on its own journey now with tremendous opportunity, having burst onto the world stage as it prepares for the first extraction of oil in 2020.

“I am proud that the US continues to be a determined partner of yours as we continue to collaborate with Guyana in preparation for this new day: partnering on the security front to make Guyana safer and more secure; partnering on the governance front to improve transparency and accountability and to reduce corruption; partnering on the development front to enhance access to quality healthcare and increase educational and job opportunities; and partnering on the economic front to increase trade and US investment in Guyana.”

The partnership will continue to thrive and be successful with strong US and Guyanese leadership. She urged government officials, leaders and members of the opposition, civil society and youth to help Guyana in its journey to success and to help the country prepare, to the greatest extent, for the new day. She urged Guyanese to remember the words of Astronaut Neil Armstrong – “Success is where preparation meets opportunity.”

There is no better opportunity for the American Eagle to spread its wings over the Empire of the British West Indies to secure peace and prosperity.

Harvey Gulf opens subsidiary

U.S.-based marine transportation company Harvey Gulf  opened an office in Georgetown.

The company has established a subsidiary, Guyana Offshore Vessel Service Incorporated and is targeting 100 percent Guyanese recruitment.

Harvey Gulf International Marine CEO Shane Guidry, president of the American Chamber of Commerce of Guyana Zulfikar Ally, petroleum geologist at the Department of Energy Marissa Foster, Minister of Public Infrastructure David Patterson, and the Mayor of Georgetown Ubraj Narine were among those at the opening ceremony.

Shane Guidry said that the initiative began four months ago when the company started to explore global expansion. The company signaled its intention to have local staff trained in its United States facility.

Embedding new recruits in existing facilities was beneficial to not just learn the job but to experience the standard of work and level of safety required in the industry. AMCHAM president Ally noted that the company’s presence in Guyana would lift industry standards in the oil and marine sectors.

Harvey Gulf, focused on U.S. Gulf of Mexico, has recently expanded its range to include Guyana and Trinidad and Tobago. The company owns and operates fast supply and utility vessels, offshore supply vessels and multi-purpose vessels that specialize in deep-water and ultra-deep-water operations.

Peterson wins contract for Repsol well

International energy logistics provider Peterson won a major contract with Repsol’s Guyana subsidiary for work on an offshore well.

Peterson was selected as the main logistics contractor for the Carapa-1 exploration and drilling project.

The company will provide Repsol with integrated supply base operations management, logistics and pipe yard operations. Peterson will service this project from Trinidad and Guyana.

Maarten Spiljard, director of business development , said: “We are delighted to have won this new contract with Repsol and it reaffirms our commitment to the Caribbean region. Peterson and Repsol have had a strong working relationship to date, and we look forward to working with them in the months and years ahead.”

The Carapa-1 well on the Kanuku block, located 150 kilometers offshore Guyana, is expected to be drilled in the third quarter of 2019. The Carapa prospect, a 200-million-barrel Cretaceous target located in 70 meters of water will be drilled using a jack-up rig.

Spanish oil major Repsol operates the block with a 37.5 percent working interest. Partners in the block are Tullow with 37.5 percent while Total and Qatar Petroleum share the remaining 25 percent.

Qatar Petroleum signed a deal with Total in late July for a share of rights in two blocks offshore Guyana. Under the farm-in deal, the Qatari national oil and gas firm holds 40 percent of Total’s existing 25 percent participating interest in both the Orinduik and Kanuku blocks.

Repsol awarded a drilling contract to Rowan’s EXL II jack-up rig for operations off Guyana. The contract is for one well beginning in the third quarter of 2019 with a duration of approximately 45 days. Preparations for this well are ongoing.

Peterson operates from Trinidad and is based in Aberdeen, with which Georgetown is twinned with as part of a growing relationship between the two petroleum economies.

Source: Peterson

UK fireboat for Demerara Harbour

Guyana Fire Service announced that marine firefighting capacity will be enhanced with the arrival of its new US$1.4M fireboat, built in the United Kingdom, tested and dispatched to be stationed at the Demerara Harbor.

Angloco Limited, based in the United Kingdom was tasked with the construction of the massive vessel. The Fire Chief described the vessel as ‘monumental’. Guyana last possessed a fire boat in 1978.

Over the years there has been much development of Guyana’s waterfronts and there is the potential for more port facilities, which warranted the need for the fireboat.

The vessel will improve the Guyana Fire Service’s marine firefighting and response capability as it will be able to pump in excess of 5000 gallons of water per minute to support land based operations. The vessel, one of the Fire Service’s major projects coming out of the 2017 National Budget, took approximately one year to construct.

CGX Corentyne block

The government approved resequencing of CGX Energy’s work program in the offshore Corentyne block.

The block is operated by CGX’s wholly-owned subsidiary CGX Resources. Frontera Energy also holds a stake in the block through a farm-in completed in early May.

CGX said that it had intended to drill one exploration well on the Corentyne block and then follow that up with seismic processing. The company intended to use $11.2 million from a rights offering to drill the Utakwaaka well on the Corentyne block by November 27, 2019.

However, the company will now utilize these funds to complete a seismic survey over the northern region of the Corentyne block by November 27, and the remaining balance of funds for its resequenced exploration well to be drilled on the block by November 27, 2020.

Resequencing will not change the CGX’s overall work commitment on the Corentyne block, and may also involve other related projects but should better position the company in the long-term.

“The benefit of the resequenced work program, which allows a seismic assessment to be conducted over the northern region of the Corentyne block before drilling of an exploration well is that it will allow the company to gain a more complete technical understanding of the Corentyne block and in particular its northern sector,” CGX explained.

Given recent large discoveries in an adjacent block, which provides a strong indication that hydrocarbons migrated into the northern region of the Corentyne block, the seismic assessment will allow CGX to better evaluate the hydrocarbon potential of the block and assess whether it first drills Utakwaaka or another well located in the northern region of the block. In previous statements, the company disclosed that it hired Rowan to drill Utakwaaka.

CGX and Frontera plan to begin a new commitment well in the Demerara block in 2020, that was not initially planned to occur until February 2021 and should happen either immediately before or after the Corentyne commitment well with rescheduling done with cost savings in mind.

Suresh Narine, executive chairman and executive director for Guyana at CGX, said: “CGX and our joint venture partner are focused on maximizing the partnership’s chances of exploration success while increasing efficiencies, ensuring safety and managing costs. The resequenced work program establishes the right chronology of actions to allow these guiding principles to be realized.”

Source: CGX

Frontera Energy

Frontera Energy Corporation announced that a resequencing of CGX Energy Inc.’s work programme in the Corentyne block,, held by its wholly owned subsidiary, CGX Resources Inc., has been approved by means of an addendum to its Corentyne Petroleum Agreement by the Government . CGX and Frontera are joint venture partners in the block and CGX is the operator.

The benefit of the resequenced work program, which allows seismic assessment to be conducted over the northern area of the Corentyne block before drilling of an exploration well, is that it will allow CGX and Frontera to gain a more complete technical understanding of the Corentyne block and in particular its northern sector. Acquisition of new seismic data will allow the joint venture to evaluate more comprehensively the hydrocarbon potential of the Corentyne block updip from discoveries in the adjacent Stabroek block and help it assess whether it first drills the Utakwaaka well or another well located in the northern region of the block.

Richard Herbert, Chief Executive Officer of Frontera, commented:”I am very pleased that our partner CGX successfully renegotiated the timing of our drilling and seismic obligations relating to the Corentyne block, offshore Guyana, allowing the joint venture to gain better technical data, including 3D seismic, before drilling. Our joint venture is now positioned to target higher quality, lower risk prospects, beginning with our first two wells planned for 2020.”

In addition, the joint venture plans to commence the drilling of a new commitment well in the Demerara block in 2020, which was originally planned for February 2021. The sequence of the wells in 2020 will depend upon the results of the technical evaluation. This approach should also result in significant cost savings and improved execution efficiency for the joint venture.

About Frontera:     Frontera Energy Corporation is a Canadian public company and a leading explorer and producer of crude oil and natural gas, with operations focused in South America. The Company has a diversified portfolio of assets with interests in more than 40 exploration and production blocks in Colombia, Peru, Ecuador and Guyana. The Company’s strategy is focused on sustainable growth in production and reserves. Frontera is committed to conducting business safely, in a socially and environmentally responsible manner. Frontera’s common shares trade on the Toronto Stock Exchange under the ticker symbol “FEC”.

Canada chamber

 Canada plans to establish a business chamber in Guyana as Canadian companies join the search for oil offshore. High Commissioner to Guyana, Lilian Chatterjee made the announcement to mark her country’s 152nd anniversary.

“In recognition of the growing Canadian presence in Guyana, I am pleased to announce tonight that we will be launching the Canadian Chamber of Commerce Guyana.”

The envoy said the business organisation will be launched later this year, but meanwhile interested persons can contact the Trade Commissioner at the Canadian High Commission in Georgetown. Canada is Guyana’s largest trading partner and Canadian businesses sponsored the reception, including Scotiabank, Canadian Bank Note, Ontario-headquartered offshore oil drillers, CGX Energy, JHI Associates and Eco-Atlantic.

There are 12 partnerships between Canadians and Guyanese in the oil sector. Guyana Gold Strike, Sandspring and Reunion are engaged in mining operations in addition to Guyana Goldfields/Aurora Gold Mines. Over 60 Canadian companies are registered with The Centre for Local Business Development. Guyana and Canada established diplomatic relations in 1966. Canada Day is observed officially on July 1. Thousands of Guyanese live in Canada and account for remittances totaling over US$208 million dollars over the past five years. The American Chamber of Commerce Guyana was launched in August, 2018.

Chatham House

The Production Sharing Agreement (PSA) between Guyana and ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), and its international partners, Hess Corporation and CNOOC/NEXEN, allows all of its foreign subcontractors a range of tax exemptions. These subcontractors are exempt from Value Added Tax (VAT) and import duties on all equipment and supplies.

Such exemptions for foreign subcontractors seem discriminatory to locals and should be addressed, whether by law or the review of contracts. The only tax that foreign subcontractors are required to pay is Excise Tax on fuel imports at a rate of 10 percent; meanwhile, locals pay 50 percent.

United Nations Development Programme (UNDP). commissioned a report for the Government in 2016 which claimed that such exemptions could undermine local content efforts.

The unlevel playing field of exemptions for locals and foreigners is not the only tax issue that needs to be addressed. Guyana needs to urgently review its tax legislation before first oil comes on stream.

Issues which Guyana needs to address include loopholes that allow for tax avoidance, transfer pricing, capital gains tax not being applied and companies not disclosing their payments to the government.

The report recommended that a special Negotiating Task Force reviews the concessions granted to the oil sector and cautioned that oil companies often engage local accounting firms to help them find the country’s fiscal loopholes. Guyana would be wise to consider hiring the right firms to help identify and plug the loopholes which can be used to keep significant revenue away from the national purse.

Department of Energy

DoE celebrated one year since its establishment and played up key achievements.

“The establishment of the Department is a step forward in ensuring, among other things, capacity building and the strengthening of the legislative framework in the oil and gas sector. Oil production will be the most transformative economic development in Guyana’s history. Its revenues, some of which will be managed by the Natural Resources Fund, will be invested strategically in building human and institutional capacity, addressing infrastructural deficit and providing economic security for future generations.”

Dr Mark Bynoe said that the department and partners will continue to work assiduously to reduce value leakages.

They will “pursue market strategies of Guyana’s crude oil that will bring optimum returns, build out a fit-for-purpose regulatory body, expand the physical and technological capacity within the sector, and focus on making decisions from a position of knowledge.”

Achievements are strong inter-agency collaboration, legislative review, completing the final draft of the local content policy, securing more than US$30 million in financing for the sector and finalising a road map outlining Guyana’s management framework for the hydrocarbon sector. DoE implemented an internship programme, approved the Liza Phase 2 Project development plan and completed a new PSA/PSA modelling toolkit to allow probalistic scenario modeling of current and future PSAs.

Symposium- Youth shaping the future–encouraged to continue to play active role in development

Youths are taking charge of their future in the Oil and Gas sector and its supporting industries as they help to chart developmen- the message at the opening of a ‘Guyana Youth for Tomorrow’ symposium.

Director of the Department of Energy, Dr. Mark Bynoe, urged young people to not only focus on careers in the petroleum sector but broaden their spectrum. “It’s not just about oil and gas, it’s about all the supporting services that are required.” Young people from all walks of life discussed topical issues, community development, youth involvement, creating the country that they wish to inherit and what comprises an ideal Guyana.

“Position yourself by ensuring that you continue to absorb your education in a very cogent manner.” He shared experiences and ideas with the young people and encouraged them to seek entrepreneurship in industries, including those which are ‘non-traditional’. During a discussion on oil resources,he explained the importance of collaborating and understanding the needs of Guyana and catering to those specific needs in order to reap the benefit of all that Guyana produces. “…pool your resources together.”

Participants will draft a manifesto contributing ideas towards creating the Guyana they wish to live in and inherit. The manifesto will be presented to community leaders, governing bodies and the media on Universal Children’s Day, November 20, 2019.

The symposium will also cover areas of interest to youths that deal with budgeting, skill-based work and training, empowerment and the role of young people in the global movement. Speakers and hosts are active youths who play a role in Guyana’s development in keeping with the overarching theme of the symposium – The Guyana we impact now is the Guyana we inherit. The seminar is the brainchild of ‘GIFT’– Girls Innovating for Tomorrow. The objective is to inspire individuals to take action to help change the world for the better and … build a global movement for good.

Guyana will sell crude

When oil production begins at the Liza Phase One development, Guyana will sell its share of exported crude with predictions of crude cargo liftings every eight to 10 days. Crude stored aboard a Floating Production Storage and Offloading (FPSO) vessel will be transferred to tankers and pipelines heading ashore. ExxonMobil’s first FPSO to Guyana, Liza Destiny, is expected to arrive in the first week of September 2019, two weeks ahead of the initial projections.

All sales of crude oil from the FPSO where Guyana’s interests are concerned or Guyana’s entitlement will be via Free On Board- crude is sold to the buyer at the exit point of the FPSO and the buyer is responsible for shipping the crude, sold in million barrel cargoes… Crude cargo liftings every eight to 10 days require an efficient and smooth process. The department is working with its sister agencies and the operator to ensure that such a process is in place and running efficiently from day one. One lift is likely to take between 36-48 hours so continuous presence may be necessary . These are discussion points for the government.

The department hired a Commercial Specialist and a Crude Lifting and Marketing Specialist to build capacity and aid in the advancement of its mandate. With both posts expected to be filled within three weeks, the department continues to examine ways to source the relevant expertise, using the established tender process through the National Procurement and Tender Administration Board (NPTAB), as well as receiving approval from the Cabinet. The government will be selling its own share of exported crude lifts. A tender will be issued during quarter three or quarter four of 2019 for a consultant with relevant experience for a fee-based marketing service to market Guyana’s share of crude oil.

The crude liftment agreement is being finalised and government will be a signatory as a lifter of crude, along with the Stabroek co-ventures. During normal operations, there will be at least 80 persons living and working on board the FPSO vessel. A total of 24 operations and maintenance technicians, being trained in Canada, will return in 2020 to support work on the Liza Destiny.

There are numerous ways of exporting crude oil from a FPSO, as well as numerous avenues for accidents. However, risks of accidents can be controlled through passive and active measures.

Industry-standard documents based on the Association of International Petroleum Negotiators Model Crude Oil Liftment Agreement are being applied. support the crude lifting agreement being finalized. This is used throughout the industry worldwide; it sets up a mechanism for allocating the schedule of crude cargo liftings, based upon volume entitlements which are calculated, taking into account the cost recovery rules of the Petroleum Agreement. The document lays out the strict procedures for efficient crude lifting with any delays causing value loss and risk shutting in production on the FPSO. The department continues to be aware of the risk associated with this activity.

The Liza Destiny FPSO vessel will have associated gas-treatment capacity of approximately 170 million cubic feet per day and water-injection capacity of around 200,000 barrels per day. It will be moored in water with a depth of 1,525 metres and will be able to store 1.6 million barrels of crude oil.

Guyana Revenue Authority (GRA) and Guyana National Bureau of Standards (GNBS) will have key roles overseeing the measurement process for Guyana’s share of crude. This is one of the steps to ensure the process for the measurement of Guyana’s oil is in place.

GNBS has the mandate in terms of measurements and ensuring that the equipment is calibrated. Their capacities are being built. Third party assistance. may be necessary. GRA will be responsible for customs-related matters. Its immigration department will be required to ensure anyone entering Guyana’s waters is in compliance with the laws.

Chair of the Guyana Elections Commission

THE United States, United Kingdom and Canada hailed the appointment of Justice (rtd) Claudette Singh as the new chairman of the Guyana Elections Commission.

The US Embassy said, “We commend Guyana’s leadership for agreement on an Elections Commission Chairperson, in compliance with the Caribbean Court of Justice ruling. We encourage continued collaboration toward free and fair elections.”

UK High Commissioner to Guyana, Greg Quinn, said, “I welcome this extremely positive development. I look forward to meeting the new GECOM chair. All relevant actors are to be congratulated on this agreement.”

Canada High Commissioner to Guyana, Lilian Chatterjee, said: “Progress for the citizens of Guyana!”

Following the Caribbean Court of Justice (CCJ) rulings, the Western diplomatic community called on all sides of the political divide to respect the ruling of the regional court. United States Ambassador to Guyana, Sarah-Ann Lynch; United Kingdom High Commissioner, Greg Quinn; Canada High Commissioner, Lilian Chattergee and Head of Delegation of the European Union to Guyana, Jernej Videtic, noted in a joint statement, that “it is important that all sides respect the ruling…we also encourage all to come to an agreement on the way forward.”

President Granger, met members of the diplomatic community to Guyana’s actionsby the government thus far and its intention to usher Guyana into fair, free and credible elections as early as possible. He committed to upholding the Constitution; respecting the National Assembly and the courts; ensuring the rule-of-law; safeguarding human and civil rights and preserving democracy. He reviewed of the legal processes which began with the challenging of the passage of the no-confidence motion in the National Assembly on December 21, 2018 and ended with the ruling of Guyana’s highest appellate court, the Caribbean Court of Justice (CCJ). He spoke on dual citizenship and said the government acted in good faith and complied with the rulings of the three courts involved.

He presented the government’s case to the Commonwealth Secretary General twice; to the CARICOM Chairman and to the diplomatic community . He observed “strong resistance by the opposition to the Elections Commission’s work plan to correct the List of Electors by a process of its own choosing.”

He stated that free, fair and credible elections can only be achieved if there is an independent and functional Elections Commission; an acceptable and credible Official List of Electors (OLE) and an efficient and competent secretariat .

It is for the Elections Commission to advise the President on its readiness to conduct free, fair and credible elections. It would be reckless and irresponsible, on my part, to name a date for elections without the commission’s assurance and advice that it would be ready to conduct elections on such a date.”

Caricom must uphold democracy

Dr Leslie Ramsammy wrote-

If there was any doubt the Government of Guyana fell on December 21, 2018, the Caribbean Court of Justice’s (CCJ) ruling on June 18, layered with consequential orders issued on July 12, 2019, now affirms the Guyana Government was defeated in a No-Confidence Motion on that day. The facts are unambiguous and affirmed by the CCJ. The Constitution of Guyana requires that the President and the Cabinet resign with immediate effect, the President and his Government transition into a caretaker role, the elections held within 90 days, by September 18, in a new timeline which began on June 18, the day of the CCJ ruling. . These realities are in accordance with the laws of Guyana, its Constitution, with the CCJ merely pointing out the cold, hard facts. Caricom has been totally silent nine months after the NCM in Parliament, insisting its commitment is towards democracy in every Caricom country, in the Commonwealth and in the world. Caricom firmly and bravely stood on the side of democracy, whenever and wherever democracy was threatened. In view of the CCJ ruling on the NCM in Guyana, where does Caricom stand? Democracy is threatened as the Guyana Government refuses to adhere to the Constitution and the will of Parliament. Will Caricom maintain silence as Guyana plunges into a dictatorship? Caricom insisted the legal avenues must be honoured and, therefore, it will not voice any position on the political dispute in Guyana, one of its founding members. It took this position even though the parliamentary outcome was clear on December 21, 2018. Whatever doubt the Government attempted to stir has now been dismissed by the CCJ. The Guyana Government is a caretaker Government and it must follow the Constitution, holding elections within three months. First, Caricom positions on any threat to democracy anywhere will seem hollow and hypocritical. Silence as the Constitution of Guyana is being railroaded potentially disqualifies Caricom from ever again being a legitimate voice against undemocratic actions anywhere. Caricom silence is contributing to a perilous future for the CCJ. The strength and integrity of Caricom are dependent on a strong and respected CCJ. If rulings and orders are ignored by a Government, as is happening in Guyana , then the CCJ is rendered a toothless poodle. Caricom must take a stance that the CCJ ruling is sacrosanct, with no room to disrespect the institution. In accordance with Guyana’s Constitution which the CCJ affirms, the Guyana Government is a caretaker Government and will become an illegal Government after September 18. Caricom must end its silence and forcefully call on the Government of Guyana to enforce the CCJ rulings, following faithfully the provisions of the Constitution of Guyana. The CCJ has spoken and Caricom has no reason to equivocate. If Caricom does not support its own institution and stand by it, why should anyone want to continue with the CCJ? The deliberate and contemptuous disregard being demonstrated by the Guyana Government in regard to the ruling is a fatal threat to the CCJ. Why should any of the countries that presently subscribe to the CCJ continue to honour this onerous burden for an institution that is merely a paper tiger? Why would any country that presently includes the CCJ as its final court continue to honour this obligation if the Court is a paper tiger only? Why should any country which presently is thinking of using the CCJ as its final court do so if the CCJ is nothing but a talk shop? This is Caricom’s dilemma. While you equivocate, refusing to comment and refusing to urge the Guyana Government to adhere to its Constitution, while you continue to behave as if it is business as usual in Guyana, the credibility of Caricom, the legitimacy of your institutions, are being eroded by your silence. Your silence has caused, if not more than 50 per cent, at least 50 per cent of the Guyanese people to lose faith in Caricom. The time has come for Caricom to stand by the principles of the Treaty of Chaguaramas and the 2001 Nassau Declaration and speak out against the erosion of democracy in Guyana, against the deliberate perversions of the Constitution of Guyana. This is not an option for Caricom, it is duty-bound to stand up on behalf of democracy in Guyana.