Elections on March 2, 2020

On 30 September at midnight, the Caretaker President issued a Proclamation for the holding of General and Regional Elections on Monday, 2nd March, 2020. The proclamation declared that in pursuance of Article 61 of the Constitution of Guyana, the President has appointed Monday, 2nd March, 2020 as the day on which an election of members of the National Assembly shall be held.

In an address to the nation, he announced General and Regional Elections will be held on March 2, 2020 whether or not the opposition People’s Progressive Party/Civic (PPP/C) returns to Parliament and grants an extension.

He cited March 2, 2020 as the earliest date for general elections but did not issue a proclamation of that date as is legally required. He insisted that Parliament must meet to grant an extension of the period for polls, a demand the opposition PPP/C repeatedly rejected. He said that while his choice of words was conditional the date is not. Granger set the election date, instead of GECOM which should always be in a state of readiness.

Opposition Leader Bharat Jagdeo maintained that the PPP/C would not agree to extend the period for general elections under clause 106(7) of the constitution.

Granger said March 2nd was a fixed date for the elections with or without the support of the opposition for an extension. The support of the opposition would be required in order for an extension of the three-month period to be granted, as it requires the votes of at least two-thirds of the elected members of the National Assembly, but the PPP/C had previously said it was out of the question.

The Federation of Independent Trade Unions of Guyana (FITUG) interprets Granger’s lack of constitutional compliance as usurpation of executive power and perpetuation of charades of the Coalition since the beginning of the year. FITUG, like most citizens, hoping the address to the nation would halt the constitutional dark clouds “over our Land of Many Waters,” was dismayed that the address did not “bring us any closer to Constitutional compliance. ..” Intimation of a tentative electoral date is practically unheard of and is now the latest ploy by the regime as it continues its disrespectful attitude towards the Constitution. Granger seeks parliamentary support to extend the life of the government and the late acceptance of this reality is a clear admission that the administration stands on weak legal grounds. It questioned the moral authority of the government to govern, noting the Caretaker President’s “sentiments” contradict what he and other Coalition officials said previously.

The Federation observed mention of the upcoming Golden Jubilee as a rationale for announcing an electoral date. “While the Jubilee is indeed a proud moment for our nation and all Guyanese, it..will be overshadowed by the ..contempt for the rule of law and our fledgling democracy.” Unfazed by criticisms, the Coalition “is prepared at all costs and consequences, to continue to squat and usurp Executive power though it has legitimately lost its right to govern.” Denial of the .. people’s inalienable right of franchise, …, is disheartening and a step in the wrong direction. “Today, the peace-loving and democratic forces must again retrieve our nation from undemocratic and illegal rule.” Using any excuse to remain in office, dictating to the Opposition to return to the National Assembly to legitimize his illegal Government.

Meanwhile, IOC work night and day…

“Almost $30B spent on 500 Guyanese businesses in 2019” – ExxonMobil

Rod Henson, Country Manager of ExxonMobil Guyana, is quite pleased with the strides of his company and its subcontractors to ensure they make significant use of local goods, labour and services for their operations. At the discussion on the Environmental Impact Assessment (EIA) for the Payara field, Henson said that as of yesterday at the Pegasus Hotel subcontractors, have been making to ensure they make significant use of local goods, labour and services for their operations.

As of the middle of 2019,

• • more than 1300 Guyanese have been working on Exxon’s projects and
  • a little over 300 of them are women.
  • Nearly 500 local businesses have been supplying their goods and services to the projects,
  • with almost $30B spent in the first half of 2019.

He is proud of these results while assuring that efforts would be made to improve over time. For those who may be seeking similar opportunities, he encouraged them to sign up with Exxon’s Centre for Local Business Development located on South Road.

While ExxonMobil and its partners continue their local content efforts, the Energy Department is establishing a Local Content Compliance Unit to validate the information it receives from oil majors operating offshore Guyana as well as address potential issues or concerns Guyanese suppliers or contractors may have.

This is the last week for the submission of comments on the draft Local Content Policy to the Department of Energy in the Ministry of Presidency.  Absence of commentary is holding up consultant, Dr. Michael Warner in finishing the document.

ExxonMobil finds pay at Tripletail

ExxonMobil discovery on the Stabroek Block at the Tripletail-1 well in the Turbot area adds to the previously announced estimated recoverable resource of over 6 Bboe on the Stabroek Block.

Tripletail-1 encountered approximately 108 feet of a high-quality oil-bearing sandstone reservoir. Tripletail-1, drilled in 6,572 feet of water, is located approximately 3 miles northeast of the Longtail discovery. After completion of operations at Tripletail, the Noble Tom Madden drillship will next drill the Uaru-1 well, located approximately 6 miles east of the Liza field.

“This discovery helps to further inform the development of the Turbot area,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Together with our partners, ExxonMobil is deploying industry-leading capabilities to identify projects that can be developed efficiently and in a cost-effective way.”

Exploration and development activities are moving forward elsewhere on the Stabroek Block offshore Guyana. The Stena Carron drillship is currently drilling the Ranger-2 well and upon completion will conduct a well test at Yellowtail-1. The Noble Bob Douglas drillship is currently completing development drilling operations for the Liza Phase 1 project. ExxonMobil will add a fourth drillship, the Noble Don Taylor, in October 2019 as we continue to optimize our drilling plans based on well results and ongoing study of the basin.

The Liza Phase 1 development remains on schedule to start up by early 2020 and will produce up to 120,000 bopd utilizing the Liza Destiny floating production storage and offloading (FPSO), which arrived in Guyana on August 29, 2019.

ExxonMobil approved funding for the Liza Phase 2 development after it received government and regulatory approvals in May 2019. Expected to startup by mid-2022, the project plans to use the Liza Unity FPSO to produce up to 220,000 bopd. Pending government approvals, a third development, Payara startup could be as early as 2023 and production would reach an estimated 220,000 bopd.

The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25% interest.

Payara project sanction

Supermajor submits environmental impact ssessment for a third FPSO for its Payara field. .

ExxonMobil is proceeding towards developing billions of barrels of oil discovered on Stabroek block with submission of a development plan and environmental permitting applications for the future deployment of a 220,000 barrels per day FPSO to the Guyanese Environmental Protection Agency (EPA) Payara development will be the third project in the Stabroek Block. First oil at Payara is estimated for 2023.

The same block contains the Liza field with the first phase of development in early 2020 via the 120,000 b/d Liza Destiny FPSO.

Liza’s second phase of development was sanctioned and startup is expected in 2022.

Liza Phase 2 project

Shanghai Waigaoqiao Shipbuilding contracted TMC Compressors of the Seas (TMC) to supply the marine compressed air system for the FPSO Liza Unity, destined for the Liza Phase 2 project offshore Guyana.

TMC’s system will comprise frequency-controlled instrument air compressors and associated air dryers and filters.

This company supplied similar equipment for the FPSO Liza Destiny, for Liza Phase 1.

The Liza Unity (Phase 2)  will produce up to 220,000 b/d of oil, with associated gas treatment capacity of 400 MMcf/d, and water injection capacity of 250,000 b/d.

“This far from shore, it is key to utilize the most reliable equipment to be able to deliver on the operator’s operational requirements,” said Hans Petter Tanum, director of sales and business development at TMC.

The vessel will be spread moored in a water depth of around 1,600 m (5,249 ft), 200 km (124 mi) offshore.

CGX Energy contracts PGS for 3D survey in Corentyne Block

CGX Energy provided an update on its operations in the Corentyne Block and related matters.

Seismic Acquisition on Northern Portion of Corentyne Block

The Company, through its wholly owned subsidiary CGX Resources Inc. (‘CRI’) as the operator of the Corentyne Block under a Joint Operating Agreement with Frontera Energy Guyana Corp (‘FEGC’), has executed a contract with PGS Geophysical to provide acquisition and processing of a full broadband marine 3D seismic survey, to produce seismic data covering approx. 582 km2 of the northern portion of the Corentyne Block offshore in Guyana. The survey is expected to commence in mid-October 2019 and be completed by November 27th, 2019. This is in line with CRI’s resequenced workplan on the Corentyne Block, which requires CRI to complete a seismic survey by November 27th 2019 and the drilling of an exploration well by November 2020.

PGS plans to use an integrated acquisition and imaging approach, for reliable operation and fast turnaround of the seismic data. A Ramform Titan-class seismic vessel will be used to complete the acquisition, ensuring a high level of safety and operational reliability. GeoStreamer acquisition technology will enable advanced imaging techniques to provide structural imaging to support drilling decisions.

CRI has a 66.667% participating interest in the block, with FEGC holding a 33.333% interest in the block.

Drilling Rig

CRI has also executed a letter of understanding (‘LOU’) with Rowan Rigs regarding the drilling rig contract entered into on December 14th, 2018, which required the prepayment of certain costs for the use of the Ralph Coffman offshore jack-up rig. Under the terms of the LOU, CRI has agreed with the Contractor that all operational obligations under the drilling rig contract will be deferred until the parties can enter into an amended agreement due to the resequencing of the commitments in the Corentyne Block and plans to drill in its Demerara Block back-to-back with its Corentyne Block during 2020. CRI will not be entitled to the reimbursement of the mobilization fee under the terms of the LOU and, if an amended agreement is executed by CRI and the Contractor on or before 1 July 2020, CRI will receive a credit towards payments due under the amended agreement.

Appointment of Vice President, Operations

The Company has appointed Mr. Michael Stockinger to the position of Vice-President, Operations. Mr. Stockinger previously held the position of Drilling Engineer Consultant with the Company. Mr. Stockinger has more than 40 years of drilling operations experience, including 18 years with Conoco and 12 years with Kerr-McGee. He held various positions including drilling engineer, rig supervisor, GOM Drilling Manager, and VP-Worldwide Drilling Operations. Mr. Stockinger currently has 10 years’ experience in the Guyana Suriname basin.

Professor Suresh Narine, Executive Chairman, commented:

“Recent discoveries in close proximity to the northern region of the Corentyne Block and in the shallow water east of the Demerara Block presents a compelling endorsement of CRI’s resequenced plans to drill exploration wells back-to-back on its Corentyne and Demerara Blocks in 2020, following further forensic seismic investigation of the northern region of the Corentyne Block. CRI’s arrangement with PGS will allow us to take advantage of PGS” previous experience in this region of the basin to both acquire and process 3D seismic crucial to our understanding of the northern region of the Corentyne Block. In the meantime, CRI has been streamlining its prospects in the Demerara Block based on the 3D seismic campaign it conducted over the Demerara Block in 2014.

“The arrangement with the Contractor will allow CRI to utilize funds previously committed to the Ralph Coffman rig to drill the Utakwaaka well to any of the Contractor’s rigs that are utilized to drill the Corentyne and Demerara Blocks in 2020. Several of the more recent discoveries in the basin continue to provide tangible endorsements of the Company’s exploration focus and I wish to thank our partners and shareholders for their continued support of the Company as we move towards realizing a 21-year vision and commitment to the Guyana basin.”

Dr. Narine further commented, “I am also delighted to announce that in keeping with the increased operational focus of the Company following our successful rights offering and joint venture with FEGC in the first quarter of 2019, Mr. Michael Stockinger has been appointed Vice President Operations. Mr. Stockinger brings more than 40 years of operational and drilling expertise to the helm of the Company’s operational efforts, including experience in successfully and safely drilling the Guyana-Suriname Basin.”

Source: CGX Energy

Tullow opens a new oil play

Wildcat exploration well Joe-1 successfully opened a new Upper Tertiary oil play in the Guyana basin.

The Joe-1 well was drilled by the Stena Forth drillship to a Total Depth of 2,175 meters in water depth of 780 meters. Evaluation of logging and sampling data has confirmed that Joe-1 encountered 14 meters of net oil pay in high-quality Late Tertiary oil bearing sandstone reservoirs . Joe-1 is the first oil discovery to be made in the Upper Tertiary and de-risks the petroleum system in the west of the Orinduik block, where a significant number of Tertiary and Cretaceous prospects have been identified.

Tullow and its Partners will now evaluate data from the Joe-1 discovery alongside data from the Jethro-1 discovery announced in August 2019 and await the outcome of the Carapa well to determine the optimal follow-on exploration and appraisal program.

Joe-1 was drilled on the Orinduik license, offshore Guyana by Tullow’s wholly owned subsidiary Tullow Guyana B.V.

Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco (Atlantic) Guyana Inc. On completion of operations, the Stena Forth drill ship will depart Guyana and return to Ghana.

Angus McCoss, Tullow’s exploration director, said “I am very pleased that we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary of the Guyana basin with our second well. The Joe-1 discovery and its surrounding prospects represent another area of significant potential in the Orinduik Block and we are greatly looking forward to the next phase of the program as we continue to unlock the multi-billion barrel potential of this acreage.”

Tullow is confident the Jethro discovery has the potential to yield a commercial standalone development on a tract that has at least 15 prospects across multiple potential play types.

Tullow will participate in Repsol’s shallow-water Carapa-1 well.

The non-operated Carapa-1 well on the Kanuku license (Tullow 37.5%) is scheduled to commence drilling in late September with the Rowan EXL II jack-up rig and will test the Cretaceous oil play with a result due in the fourth quarter of 2019.

Tullow Oil started drilling at the Joe prospect in the Orinduik block offshore Guyana, the company’s second well in the block, after the Jethro-1 well which struck oil earlier this month.

Eco Atlantic, Tullow’s partner in the block, said Joe-1 was spud at 14.45hrs (Local Guyana time) on August 25, 2019, using the Stena Forth drillship. The same rig was used for the Jethro discovery.

The Joe prospect is a Tertiary feature on the northern part of the Orinduik Block in approximately 700 meters of water and is estimated by Gustavson Associates to hold 148.3mmboe of gross unrisked prospective oil resources (P50).

Colin Kinley, Chief Operating Officer of Eco said: “We are very pleased to have spudded on Sunday our second exploration well on Orinduik. After the discovery made on Jethro in the Lower Tertiary, which greatly derisked that age section throughout the block, we are now moving to an Upper Tertiary target in the Joe prospect where we are targeting over 100mmboe. If a further discovery is made, it will further enhance the value of the block with this shallower play. The estimated chance of success for Joe is the same as Jethro, although it is a completely different play, and we are confident in our 3D interpretation as we were ahead of the Jethro-1 discovery. We look forward to continued success in our exploration efforts as we move forward to define the plays available to us in all the various geological ages and to develop this block.”

Tullow is the operator of the Orinduik block with a 60% stake. Total holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.

Tullow hoped to replicate ExxonMobil’s success, as the Orinduik block is located next to Exxon’s Stabroek block where 14 discoveries were made.

After decades of losses exceeding USD 140 Million with over 326 wells drilled without success, Guyana will finally become an oil-producer in March next year upon the hook-up of the Liza Destiny FPSO to Liza field.

The maiden FPSO now in Guyana is deployed at Exxon-operated Liza field as part of the first phase of the development offshore Guyana. First oil is expected in the first quarter of 2020.

The Liza field is expected to start producing up to 120,000 gross bopd by the first quarter of 2020. The first phase is expected to develop around 500 million barrels of oil.

The FPSO, the first of several to be deployed in Guyana, will be spread moored in a water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.

 

India awaits new licensing round

Indian companies eagerly await a fresh round of licensing for oil blocks offshore Guyana.

Indian High Commissioner Dr K.J Srinivasa said Indian firms would “seriously” consider bidding for some blocks.

Guyana is expected to have its second oil licensing round in the first quarter of 2020.

Head of the Energy Department, Dr Mark Bynoe, advised that next year’s licensing round would be via a competitive bidding process as opposed to one-on-one deals.

Indian state-owned companies such as Hindustan Petroleum Corporation Limited (HPCL), Bharrat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC)  would be interested in buying crude from Guyana in the future.

“These three are huge and have the technical expertise … knowledge and the experience to not only develop but also both upstream and downstream activities in any oil production area. They have already bid and got, and successfully processed, many oil blocks across the world from Russia, Siberia, to Central Asia to South America – we have oil blocks.”

 

SPE Offshore Europe Aberdeen

GUYANA boosted its business relationship with the United Kingdom at its first participation in the spectacular Society of Petroleum Engineers Offshore Europe Conference and Exhibition in Aberdeen, Scotland from September 3-6, a biennial forum on upstream oil and gas.

Facilitated by the GCCI and the British High Commission, over 15 Guyanese businesses. and country representatives engaged with technical experts in innovative technology from over 1,000 suppliers on the international market. Delegates were exposed to international best practices in the sector and solutions to technological challenges.

Valiant Media promoted GIPEX 2019, Guyana energy summit on 20-22 November, at a stand sponsored by Cataleya Energy, which received many inquiries.

The Guyana delegation included executives from Guyana Office for Investment (GO-Invest) , Executive Director of the Environmental Protection Agency (EPA), Georgetown Chamber of Commerce and Industry (GCCI) and the British High Commissioner to Guyana.

Delegates visited Aberdeen University and learnt about opportunities for training and certifying of government employees to deliver on and/or improve on the delivery of services in the oil sector.
The programmes are beneficial to economic development, economic planning, legal and regulatory agencies in governments. Guyanese attending included students in Aberdeen.
At North East Scotland College visitors were informed of the technical and trade skills development and certifying process requirements for local content development and industry sustainability. It is difficult for foreigners to take over the market in a densely populated area.

Several companies showed interest in the Guyanese market at an EIC (Energy Industries Council) event,

The new friendship between Guyana and Aberdeen led to signing of a two-year Memorandum of Understanding (MoU) between Aberdeen and Grampian Chamber of Commerce and GCCI.  The MOU will allow the countries to support each other at various levels of business growth and prosperity.

Links between Guyana and Scotland are not just about diplomatic or government bilateral connection, but a relationship endorsed by the private sector of two cities and countries.

“As we move forward as an oil-producing nation in 2020, it is hoped that we can advance this relationship and similar events like this in Georgetown as well. The Aberdeen-Georgetown relationship is developing into an important mechanism for both our economies and we will continue to build on this foundation and explore more business collaboration for the benefits of both countries.”

On September 4, the Guyana High Commissioner to the United Kingdom told an Aberdeen-Guyana Gateway Networking event that Guyana relies on Aberdeen for good guidance at a critical point of its development. If negotiations succeed with British Airways to offer flights to Georgetown, investors will benefit.  The reception hosted by Lord Provost of Aberdeen, Councillor Barney Crockett, presented further opportunities to network with the Guyana delegation.

London-based Peter Hambro Limited presented The Guyana Onshore Fund as an in-demand investment vehicle targeting Guyana’s economy and its impending boom.

The fund aims to identify future Guyanese economic cornerstones; market the fund to investors through an authorised broker and see investors capitalise on the investment vehicle.

The partnership of entrepreneurs could establish a source or fund manager; have the fund manager direct investments by the fund and eventually invest the fund’s capital to earn a return for investors.

Cornerstone investors indicated a willingness to be a part of the Guyana Onshore Fund with US $100M.

There are no direct investments in hydrocarbons but potential allocation targets include port facilities and cranes; fuel and bunkering; marine services; engineering and maintenance; wet and dry docks; healthcare; catering services; commercial office space and warehouses and storage.

The purpose of the presentation at the networking event was not an invitation or solicitation for investment but a means of describing a concept under discussion.
Should it materialise, the prime movers will engage the services of authorised persons to see that all regulatory conditions are met.

Last November a mission from Guyana, which included public and private sector stakeholders, visited Aberdeen.

Discussions were focused on education, trading and skills development.
The meeting was reciprocated when Lord Provost, Mayor of Aberdeen, Barney Crockett and Scotland’s Energy Industry Council visited Guyana in March.

Commonwealth Spirit

The UK Envoy urges British investors to look at the country’s potential. “On the fundamentals, Guyana is not only the only English-speaking South American country, it also has an English-language common law system. The courts system is therefore very familiar to British companies. ” Despite bureaucracy and challenges around ease of doing business, such as electricity supply, as a Commonwealth country it shares a lot of values with the UK. As a place for the British to work and do business, it will feel very familiar—apart from the sunny weather.

Guyana Power and Light Inc (GPL) seeks partnerships to remedy shortfalls in power generation. GPL is finalising a Power Purchase Agreement (PPA) with MCG Investments Inc. [Giftland Mall] to enhance its generating and reserve capacity and meet the needs of its customers.

Westmount Energy Limited

UK energy investment firm, Westmount Energy Limited is a shareholder in companies with stakes in offshore oil blocks .

Westmount Energy acquired more shares in explorer Cateleya Energy Corportaion (CEC) for around $3.1m (£2.6m).

Established in 2015, Cateleya Energy is a private Canadian company focused on oil exploration opportunities in the Guyana-Suriname Basin. Its main asset is a 25% participating interest in the 13,500 km² Kaieteur block, located outboard of, and adjacent to, the Ranger oil discovery on the Stabroek Block.

In 2015, the Kaieteur Block was awarded to Cataleya Energy Limited (CEL) and Ratio Guyana, a subsidiary of Ratio Petroleum Energy Limited Partnership (Ratio Petroleum).

ExxonMobil subsidiary, Esso Production & Exploration Guyana, is operating the block with a 35% interest. CEL and Ratio Guyana each own 25% stake in the block, while a subsidiary of Hess Corporation holds a 15% interest.

Since 2015, ExxonMobil and its Stabroek partners discovered recoverable resources of over 6 billion oil-equivalent barrels in 14 commercial wells out of 16 exploration wells in the Basin.

The existing portfolio of investments in the basin will allow Westmount Energy exposure to between four and seven funded wells during 2019-2020. Chairman Gerard Walsh said: “The recent announcement, by the Orinduik partners, of the Jethro-1 Oil Discovery, the first well in Westmount’s drilling portfolio, confirms the potential for additional substantial discoveries outside of the Stabroek Block and we look forwards to the outcome of the other potentially 6 wells in Westmount’s drilling portfolio over the coming months, including the Tanager-1 well in 2020.”

Westmount announced a conditional subscription through the issue of up to 38,461,538 new ordinary shares of no par value to certain investors, to pursue its ongoing investment strategy in the Guyana basin.

Through its holdings, Westmount boasts exposure to wells in three oil Blocks offshore Guyana. Westmount announced a conditional subscription to raise gross proceeds of up to £5M through the issue of the new ordinary shares.

Following the completion of that subscription and approvals, the company acquired up to 313,500 common shares Westmount will tout a 5.4% stake in Cataleya, up from 2.4% in May, when it participated in a non-brokered private placement through the purchase of 253,685 common shares, with a total consideration, including transaction costs, of USD$2,536,850 (approx. £1,949,324 at time of purchase).
On June 1, 2018, Westmount announced market purchases of 1,200,000 participating share units in Ratio Petroleum Energy Limited Partnership, spending, inclusive of transaction costs, £248,406. Ratio has a 25% interest in the Kaieteur Block.

On February 27 last, Westmount announced purchase of 1,103,770 common shares in JHI Associates Inc., by way of payment of approximately CAD$1M, as well as some shares of no par value in Westmount which owns 2,213,770 shares, representing 3% of JHI’s issued common shares, as of December 21 last year. JHI has a 17.5% carried interest in the Canje Block.

Investigation by the State Assets Recovery Agency (SARA), continues into the award of the oil blocks offshore Guyana. In addition to the Stabroek and Orinduik, the Kaieteur and Canje Blocks which were issued by the Donald Ramotar regime in 2015, are being reviewed. The Canje Block was awarded to Mid-Atlantic Oil and Gas and JHI Associates Inc. on March 4, 2015. The Kaieteur Block was awarded to Ratio Energy Limited and Ratio Guyana on April 28, 2015.

On May 13 Westmount announced amendment of its shareholding in Eco Atlantic Oil & Gas Ltd., through the open sale of 1,625,000 common shares, resulting in net cash proceeds, including transaction costs, of £1.34M. It held 3,125,000 shares in Eco Atlantic, a wise investment, yielding +400% of the capital invested as of May 13, 2019. It has a substantial holding of 1,500,000 shares. The sale of the shares was to further its investment in the Guyana basin.

Eco Atlantic has a 15% stake in the Orinduik Block, which holds the successful drilled Jethro-1 and Joe wells. Jethro l holds an estimated 100M recoverable barrels of oil.

The Guyana-Suriname basin is the most prolific emerging hydrocarbon province worldwide, where ExxonMobil and its Stabroek Block partners reported an estimated recoverable total of over 6 billion barrels. Through its existing portfolio, Westmount has exposure to funded wells over the coming 12-18 months, on three oil Blocks offshore Guyana.

Westmount reported a profit for the interim period ended 31stDecember 2018 of £0.259 million . Pursuant to the ExxonMobil farm-in agreement , FIA, a 5,750 km2 3D seismic survey was acquired in the southern part of the Kaieteur Block in 2017. Processing and interpretation of this dataset was used to develop a prospect inventory and, together with prospect maturation studies, is being used to identify appropriate targets for a drilling program.

Westmount Energy Limited was incorporated in Jersey, a self-governing dependency of The United Kingdom, on 1 October 1992. The Company operates solely as an energy investment company. Chairman Gerard Walsh, a Swiss investor with over two decades of experience financing oil and gas companies, owns significant subscription shares in Westmount. Dermot Corcoran and Tom O’Gorman are two Directors on the Board of Westmount and David King is as an Independent Director.

Nalco Champion reiterates commitment to oil and gas development

Nalco Champion Guyana, Inc. reinforced its commitment to Guyana and continuing with its long-term plans of establishing a product storage facility in the country.

Nalco Champion received an Interim Environmental Authorization from the Environmental Protection Agency (EPA) to begin operations at the John Fernandes Ltd. Main Terminal on Water Street. However, the interim authorization came with certain stipulations that would prevent the company from ensuring reliable operations in Guyana within the time frame required.

John Waldvogel, Nalco Champion Guyana’s Country Readiness Manager said, “To provide the operational assurance of product supply to the Liza Destiny FPSO (floating production storage and offloading) and meet our contractual obligations, we will begin operations from Trinidad. However, we will continue working with the EPA, local authorities and members of the community to secure our Environmental Authorization to establish long-term operations in Guyana. We remain committed to Guyana and operating in a responsible manner. Our top concern is ensuring safety of the environment and the communities in which we operate. We will continue supporting our Guyanese employees and work with the EPA, local authorities and the community to address questions about our operations.”

Nalco Champion, an Ecolab company, operates storage facilities in communities worldwide within international standards and has a proven track record of safe and sustainable operations in over 170 countries around the world.

The Oil & Gas Year Guyana 2019 – The Start of an Oil and Gas Era

Map Courtesy  The Oil and Gas Year

Guyana’s oil and gas industry is still in its infancy. In 2008, ExxonMobil subsidiary Esso Exploration & Production started exploring the country’s offshore territory, and in May 2015, it became the first company to discover significant hydrocarbons reserves through its Liza-1 well in the Stabroek block. Guyana now has estimated recoverable resources of at least 6 billion boe at Stabroek, from which production is expected to hit around 750,000 boepd by 2025.

The domestic offshore sector attracted attention from international players since hydrocarbons were first discovered. Seven active blocks in exploration and development phases are Kaieteur and Canje, also operated by Esso; Orinduik by Tullow Oil; Kanuku by Repsol; Corentyne and Demerara by CGX Energy and Roraima by Anadarko.

New licensing is suspended until 2020 to allow authorities time to clearly define policy and implement mechanisms to regulate the industry and ensure sustainable growth. International institutions including the World Bank and IMF provide support to Guyana in its endeavours to establish strong regulatory frameworks. The Ministry of the Presidency transferred the hydrocarbons portfolio from the Ministry of Natural Resources to the Department of Energy in August 2018,

These developments will be covered in The Oil & Gas Year Guyana 2019. TOGYiN. TOGYiN features profiles on companies and institutions active in Guyana’s oil and gas industry, and provides access to all our coverage and content, including our interviews with key players and industry leaders. TOGYiN currently covers 35 markets worldwide.

USD 3 million plus USD 710,00 p.a for training

The emerging energy powerhouse receives at least USD 710,000 annually for training of locals. The PSA with ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), and partners, Hess and CNOOC/NEXEN, provides for US$3 million of the US$18 million to fund training, in addition to an annual pay-out of US$300,000.

• • Tullow Oil , Eco Atlantic and Total will contribute US$25,000 per year as
    license holders of the Orinduik Block .
  • Repsol which operates Kanuku Block pays the Guyana Geology and Mines Commission (GGMC) US$30,000. Staff from Trinidad trained locals.
  • Anadarko which holds the license for the Roraima block offshore pays the government US$40,000 .
  • Guyana collects US$55,000 from Mid-Atlantic Oil and Gas which holds the licence for the Canje block.
  • Ratio Energy and Ratio Guyana provide US$60,000 for training of locals.
  • CGX which holds the licenses for the Demerara and Corentyne blocks gives US$$100,000 per block annually.

Although none of the Production Sharing Agreements provides funding for technological and infrastructural support, in addition to these substantial payments, members of the Commonwealth, EU and UN provide generous scholarships.

• • The UK offered 11 Chevening scholarships through the British Council for study in Universities of of Aberdeen, Exeter Bradford, Sussex, Heriot-Watt , Warwick , Bedfordshire, East Anglia, Bangor and Kent.
  • Canada funds over 229+ Scholarships, Fellowships and grants.
    Numerous international scholarships are offered by USA, Australia and Latin American states.
  • Mexico. provided courses in regulation and offered. internships. In a Memorandum of Understanding (MOU) the Mexican Petroleum Institute (IMP) proposed training in Earth Sciences
  • During Education Month, Indian High Commissioner Dr. K.J. Srinivasa told Georgetown Mayor Ubraj Narine that as part of the International Cooperation Programme, ITEC, the Indian Technical and Economic Cooperation programme will offer scholarships.
  • Azerbaijan is offering 40 scholarships at leading universities at the undergraduate, graduate, and doctoral level and opportunities for oil and gas training.
  • PRC offered Grant Aid for development of the Public Service Staff College and funds for 11 Guyana Defence Force (GDF) officers to pursue advanced studies in scientific, technological and engineering fields in PRC.

• TOTALTEC Oilfield Services CEO Lars Mangal said another 50 youths graduated from training, raising the total to 250 since the company opened last year. Prime Minister Moses Nagamootoo said it is the most “tangible manifestation” yet of local content in the industry. TOTALTEC formed a strategic alliance with MATPAL Marine Institute, which provides International Maritime Organisation (IMO) certified training for seafarers. Their next steps are to develop the Academy into a world class campus spanning over three acres, offering a full curriculum of oil and gas training. They plan to develop closer cooperation with the TVET Council and Technical institutes countrywide to ensure that their graduates can be well prepared for specialized roles in the industry.

The Ministry of Natural Resources, the Geology and Mines Commission and the University of Guyana signed a Memorandum of Understanding for a $100 million philanthropic education grant for 2017-2018 to establish an Oil and Gas programme. It provided the UG Faculty of Technology with equipment for geology labs, curriculum development, training, outreach and field research linked to the petroleum gas sector.

University of Trinidad & Tobago and University of The West Indies, Trinidad assist with petroleum technology training since January 2019 in a new department of Petroleum and Geological Engineering in the Faculty of Engineering and Technology of UG. New Associate and Masters degree programmes in Petroleum Engineering are offered in conjunction with U T T and U W I which has access since June to 27 million euros (TT$206 million) from the ACP-EU Partnership Agreement for tertiary education. UWI has 60 years of experience in petroleum technology.

The Guyana petroleum industry employs 1357 citizens, of which 35% are women. Expenditure with local suppliers is doubling annually as Exxon and other operators support strong local content.

IMF- first share of Liza oil by February 2020

With oil production likely to start before the end of 2019, Guyana expects to lift its first entitlement of one million barrels of crude oil in February 2020. This will be at approximately 60-day intervals. Guyana opted to take its share of production from Liza One field and market it on its own behalf.
To successfully monetize oil production, it must be able to qualify pricing of crude oil by quality, quantity and pricing. Maximizing the sales will depend on the type of sale, the sale price, the buyers and where the proceeds go.

It will take a few years to stop relying on expatriates for these operations and becoming independent, fully staffed and managed by locals.. This is a long term process, Guyana lacks the capacity and technical systems to price crude oil sales. Correctly pricing oil requires an understanding of petroleum market drivers and basic use of hedging within a trading environment to properly evaluate and challenge prices achieved by the lifters.

Agreeing with IMF advice, other observers say that opting to sell its share of the oil may not necessarily be the best decision at this time. It would be wise to consider other options.
Selling crude requires marketing expertise and Guyana needs to train people to do this effectively. which could take several years.  The advantage of selling its own oil is that the Government managers of the oil would understand the market firsthand and not have to rely on Exxon to sell the crude at a price that may not be ideal.

An alternative is for the Department of Energy to rely on the operator Exxon, to sell the crude, an option envisioned in the Stabroek Block Production Sharing Agreement (PSA), from the beginning as Exxon has the expertise. This means the government gets to sell its share of oil on a more regular basis since its entitlement would be combined with Exxon’s when planning tanker loading logistics.

Otherwise, they would have to wait until their entitlement accumulates enough to comprise a full tanker size lifting.  The Ministry would need to be able to verify that the prices obtained are in line with the market. If Exxon sells to its own downstream affiliates, that becomes more difficult to do. Exxon will charge a fee for this, ranging from US$.02 to US$.07 per barrel.

Alternatively, the Energy Department can hire a third party crude oil marketing firm to do this for them. This could obtain a slightly higher price from time to time, but with the risk that the marketing firm may not be able to easily dispose of the oil when the market is declining, lacking access to refineries. This is the same risk if the Energy Department opts to sell on its own without a marketing firm. The charge from a third-party firm may be higher than Exxon fees.

Thus it makes sense for the Energy Department to develop a strategy that evolves over time, such as requesting Exxon to sell the government’s share over the first few years while a local trader is seconded to the Exxon trading offices to learn the business. Officials can perform independent reviews or audits of the prices using publicly available pricing data from S&P Global Platts.

IMF Executive Board Concludes 2019 Article IV Consultation

On August 30, 2019, the Executive Board of the International Monetary Fund concluded the Article IV consultation with Guyana.

Economic growth strengthened in 2018 with broad-based expansion across all major sectors. Real GDP grew by 4.1 percent, led by construction and services sectors, up from 2.1 percent in 2017. Inflation remained low at 1.6 percent at end-2018. The external current account deficit rose to 17.5 percent of GDP, from 6.8 percent in 2017, due to weaker exports and higher imports related to oil production, which was largely financed by foreign direct investment (FDI) in the petroleum sector. Public finances improved in 2018 as the central government deficit came in at 3.5 percent of GDP, lower than the budgeted 5.4 percent of GDP.

The medium-term prospects are very favorable as oil production is on schedule to begin in early 2020. Economic growth is projected at 4.4 percent in 2019, extending the broad-based expansion across all major sectors. The current account deficit is estimated to rise to 22.7 percent of GDP on .. higher imports related to oil production, which will be largely financed by FDI in the petroleum sector. The commencement of oil production in 2020 will substantially improve Guyana’s medium- and long-term outlook. The oil sector is projected to grow rapidly, accounting for around 40 percent of GDP by 2024 and supporting additional fiscal spending annually of 6.5 percent of non-oil GDP on average over the medium term, which will .. meet critical social and infrastructure needs. Public debt and the external current account deficit are projected to decline steadily following the onset of oil production.

Executive Board Assessment

• Directors welcomed Guyana’s broad‑based economic expansion in recent years underpinned by prudent macroeconomic policies.
• Directors noted that the medium‑term outlook is favorable but … commencement of the oil production presents both opportunities and challenges.
• Directors emphasized that to ensure the effective use of windfall revenues, policies should focus on reducing macroeconomic vulnerabilities, addressing structural weaknesses, boosting inclusive growth, and promoting intergenerational equity.
• Directors welcomed the authorities’ Natural Resource Fund (NRF) legislation for managing .. oil wealth and emphasized the need to complement it with a fiscal responsibility framework to avoid fiscal deficits.
• They commended that the NRF’s framework aims to save some of the resource income for future generations and contain the pickup in public spending.
• To meet these objectives,  Directors called for the authorities to constrain the annual non‑oil deficit to not exceed the expected transfer from the NRF. This rule could be phased in over the next three years to allow a smooth widening of the non‑oil deficit (in relation to non‑oil GDP).
• Directors agreed that monetary policy should gradually revert to a neutral stance to contain potential inflationary pressure as public spending increases, economic growth strengthens, and credit expands.
• Over the medium‑term, developing the infrastructure for greater exchange rate flexibility within the monetary policy framework would help sustain healthy economic growth while maintaining price stability and facilitating adjustment to oil price and other external shocks.
• Directors noted the continued progress in strengthening transparency and governance and encouraged sustained efforts to implement the recommendations of the 2019 Extractive Industries Transparency Initiative Report, which would promote effective and transparent management of the oil wealth.
• They also supported strengthening anti‑corruption frameworks, including by facilitating the work of the Integrity Commission, to improve governance, support investor confidence and promote growth.
• At the same time, addressing institutional capacity weaknesses would enable decisive implementation of policy actions to further strengthen governance.
• Directors noted that it is important to further improve the quality, efficiency, and transparency of public financial management.
• They recommended addressing the shortcomings identified by the 2017 Public Investment Management Assessment (PIMA) and expenditure review before public investment is significantly scaled‑up with oil revenues.
• Directors recommended an asset quality review to assess the credit quality of banks with high nonperforming loans.
• They welcomed the progress made in implementing the 2016 FSAP recommendations and encouraged completing the remaining ones.
• Directors noted the authorities’ progress in strengthening the AML/CFT framework and called for further efforts in this regard.
• Directors encouraged the authorities to use the opportunity presented by oil revenues to undertake structural reforms to support economic diversification, tackle skilled labor shortages, and achieve inclusive and equitable growth.
• Priority should be given to address infrastructure bottlenecks and upgrade the education system. In addition, promoting more flexible working arrangements could help increase female labor participation.
• Directors underscored the importance of improving the business environment and enhancing competitiveness. They also recommended putting more efforts into developing climate‑resilient infrastructure networks.

Table 1. Guyana: Selected Social and Economic Indicators
I. Social Indicators
Population, 2018 (thousands)	782
Life expectancy at birth (years), 2017	66.8
Under-five mortality rate (per 1,000 live births), 2017	31.3
Population living below the poverty line (%), 2000-06	35

Population not using an improved
water source (%), 2015		4.9
Gini index, 1998		44.6
HDI rank, 2017		125

. Economic Indicators
				Preliminary	Projections
	2015	2016	2017	2018	2019	2020
Production and prices
Real GDP 1/	3.1	3.4	2.1	4.1	4.4	85.6
Real GDP per capita	2.7	2.5	1.5	3.6	4.1	85.1
Consumer prices (average)	-0.9	0.8	1.9	1.3	2.1	3.3
Consumer prices (end of period)	-1.8	1.5	1.5	1.6	2.7	3.5
Terms of trade	19.7	12.1	-10.3	-8.7	2.0	1.6
Central government
Revenue	24.6	24.5	26.2	26.9	28.0	18.5
Grants	1.0	1.1	1.6	1.3	1.3	0.6
Expenditure	27.0	30.0	32.2	31.6	34.3	19.7
Current	22.4	23.5	24.4	24.8	26.1	14.5
Capital	4.6	6.4	7.9	6.8	8.1	5.2
Overall balance (after grants)	-1.4	-4.4	-4.4	-3.5	-5.0	-0.7
Total public sector gross debt 2/	50.1	50.7	51.4	52.9	55.4	29.3
External	35.7	33.2	34.4	33.9	33.2	18.4
Domestic	14.4	17.6	16.9	19.0	22.2	10.9
Money and credit
Broad money	3.7	5.4	-0.7	6.0	8.4	13.5
Domestic credit of the banking system	12.3	7.8	1.5	10.8	9.9	-2.7
Public sector (net) 3/	34.4	23.6	0.4	25.8	20.5	-14.9
Private sector	5.8	2.0	2.1	4.0	4.2	5.0
External sector
Current account balance 4/	-163.0	13.2	-246.2	-683.3	-935.7	-1,483.6
(Percent of GDP)	-5.1	0.4	-6.8	-17.5	-22.7	-18.4
Gross official reserves	598.5	596.7	584.0	528.4	643.0	857.8
Months of imports of goods and services 5/	3.7	3.3	2.6	2.1	1.8	2.4
Memorandum items:
Nominal GDP (G$ billion)	660.2	723.6	744.6	805.7	852.4	1,678.0
Nominal GDP, non-oil (G$ billion)	660.2	723.6	744.6	805.7	852.4	967.2
Per capita GDP, US$	4,168	4,531	4,636	4,984	5,252	10,249
Guyana dollar/U.S. dollar (period average)	206.5	206.5	206.5	206.7	…	…

1/ Projected real GDP growth in 2020 is potentially overstated and subject to large subsequent revisions because of the very high growth rate of oil GDP, which in turn is elevated on account of the very low (zero) base in 2019. Hence, even small changes to the projected oil output in 2020 would result in large changes in real oil GDP and overall real GDP growth rates. Work is ongoing to rebase the real GDP series to account for oil-related activities since 2015 in advance of actual oil production in 2020.

2/ Since 2015-16, public debt to GDP ratios have been adjusted to reflect unsettled government balances at the central bank. The ratios do not include publicly-guaranteed debt.

3/ The changes in public sector (net) are from a small base, making the series volatile.

4/ The external current account for 2018 onwards includes high value imports of oil goods and services.

5/ Gross reserves in months of imports of goods and services for 2017 onward are affected by high value imports of oil goods and services.

IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: RANDA ELNAGAR

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guyana

Author/Editor:International Monetary Fund. Western Hemisphere Dept.

Publication Date:September 17, 2019

Electronic Access:Download PDF.

Summary:Economic activity strengthened in 2018 with broad-based expansion across all major sectors. Inflation remains relatively low, and monetary stance accommodative. Oil production is expected to commence in early 2020, and additional oil discoveries have significantly improved the medium- and long-term outlook. This presents a momentous opportunity to boost inclusive growth by addressing human development needs and infrastructure gaps, provided the oil wealth is managed well.

Series:Country Report No. 19/296
ENGLISH
Publication Date:September 17, 2019

ISBN/ISSN:9781513514093/1934-7685

Stock No:1GUYEA2019001Price:$18.00

(Academic Rate:$18.00)Format:PaperPages:91

IMF – Latest technology for meter reading

To get its fair share of oil, Guyana must invest in the latest technology to record accurate measurements of the quantity being extracted and exported from the Stabroek Block.
In its most recent advice to the government, the financial institution underscored the importance of having all the necessary measures in place to monitor the oil.

If Guyana makes use of the latest technology, accurate meter reading of the oil can be conveyed to the Guyana Revenue Authority’s customs department, eliminating the need for a permanent or regular presence of customs officers during oil lifting operations.

While the latest technology will bring immense benefits, the IMF stressed that GRA’s Customs Department should not relinquish its right to visit to the Liza Destiny. Customs officers should visit the FPSO from time to time to ensure that agreed procedures are being adhered to by ExxonMobil as well as to assert sovereignty over FPSO operations.

The FPSO is a significant component of the Liza Phase One development which involves four undersea drill centers with 17 production wells. It has a production capacity up to 120,000 barrels of oil per day and an overall storage volume of 1.6 million barrels.
The FPSO will be connected to the wells via separate production (oil, gas, and produced water), gas injection, and water injection flowlines and risers, and associated subsea equipment.

The Project will also involve shorebase facilities and marine/aviation services to support development drilling, FPSO and subsea equipment installation, production operations, and ultimately decommissioning.

Esso Exploration and Production Guyana Limited (EEPGL) will utilize proven and industry accepted standards and has incorporated many embedded controls into the overall Project design to minimize environmental and socioeconomic impacts. The initial production is expected to begin by mid 2020, with operations continuing for at least 20 years. The Project is expected to employ up to 600 persons during well drilling, approximately 600 persons at the peak of the installation stage, and up to about 140 persons during production operations.

Activities of the Liza Phase One Project are predicted to have minor impacts on physical resources (i.e., air quality, marine sediments, and water quality), no impacts on coastal biological resources, minor impacts on marine biological resources and positive impacts on socioeconomics. Predictions are based on the fact that the bulk of the project activity will occur approximately 190 km (~120 miles) offshore, and the project will:

• capture and re-inject produced natural gas, which is not used as fuel on the FPSO, back into the Liza reservoir;
• treat required wastewater streams prior to discharge to the sea;
• have a very small physical footprint (e.g., infrastructure construction disturbs only about 0.3 km2 of benthic habitat);
• and use Marine Mammal Observers (MMO) during selected activities to minimize the potential impacts to marine mammals due to auditory injury and ships strikes.

As for unplanned events, EEPGL’s Environmental Impact Assessment notes that a large oil spill is unlikely to occur because of the extensive preventative measures employed by EEPGL. Nevertheless, the document notes that an oil spill is considered possible, and EEPGL conducted oil spill modeling to evaluate the range of likely spill trajectories and rates of travel.

Location of the project 190 km (~120 mi) offshore, prevailing northwest currents, the light nature of the Liza field crude oil, and the region’s warm waters would minimize the severity of a spill. Accounting for these factors, the modeling indicates only a five to 10 percent probability of any oil reaching the Guyana coast, without taking into consideration the effectiveness of any oil spill response, and in the unlikely event that a spill were even to occur.

Although the probability of an oil spill reaching the Guyana coast is very small, the EIA notes that a spill at a Liza well would likely impact marine resources found near the well, such as sea turtles and certain marine mammals that may transit or inhabit the area impacted by a spill. Air quality, water quality, seabirds, and marine fish could also be impacted, although likely to a lesser extent because the duration of acute impacts would not be long and the impacts are reversible.

IMF – relax immigration policy for skilled workers

As development partner the IMF proposed a more relaxed and liberal immigration policy to meet the demand. for skilled manpower to boost medium to long-term growth.
CARICOM workers permitted free movement are relegated to certain skillsets.

The Minister of Public Security, Khemraj Ramjattan, suggested that diaspora, can be recruited for policymaking, economics, finances and migration. “Gross school enrolment ratio at tertiary level for Guyana is about 12 percent, lower than the Latin America and the Caribbean average of 44 percent.”

Low expenditure on education of 10 percent, relative to the Caribbean average of 18 percent of total government expenditure, highlights the need to increase expenditure on education policy reforms aimed at expanding access to education, improving the curriculum to better connect to modern labour market needs and enhancing vocational training.

Female labour participation declined slightly from 42.6 percent in 2017 to 41.2 percent in 2018, the IMF also suggested promoting more flexible working arrangements to help increase female labour participation.

Guyoil to realign for oil and gas industry

At the launch of a new GUYOIL facility at Providence on the East Bank of Demerara, The MINISTER of Finance urged the Board and Management of the Guyana Oil Company to realign itself towards playing a role in the oil and gas industry and take advantage of the new business opportunities with the emerging sector.

“You all are aware that the impressive developments in the petroleum industry in Guyana are attracting global attention. Foreign investors on a daily basis are coming to Guyana, .. to participate … As a company with many years of experience in the downstream value chain, GUYOIL must take advantage of new business opportunities .. so that the company can benefit directly from the .. oil sector.”

GUYOIL must also prepare itself to move “beyond its current role of stabiliser of domestic prices,” towards participating in the re-distribution of the country’s oil wealth to the society, in general, when oil production starts.
“You must become an industry leader, going where others fear to tread, thereby helping the government to bring equity to the regions and communities. You will need to expand your facilities, build capacity and acquire new skills, where necessary.”

Increased economic activities precipitated a significant rise in the number of vehicles entering the country. “The standard of living … will continue to improve, as the country is poised for high and sustainable growth levels. This .. will translate into more motor vehicles being imported for private and commercial purposes, among other things.”

With the production of oil, the government plan is to diversify the economy, to develop the indigenous and new economic sectors, ..to avoid becoming heavily dependent on the petroleum resources. “These developments will have implications for the services offered by GUYOIL. Therefore, you should prepare adequately to respond to the changing needs of your customers.”

$294M solar-powered complex

GUYOIL commissioned a $294M green office complex and storage facility at its Providence location. Modernisation commenced in June 2017, aimed at housing key staff closer to the unit to advance a Green Economy.

The Minister said the oil company is moving in a direction that will set Guyana apart. “Solar power ranks highly among the cleanest and most green energy sources since no pollution is created in the generation of electricity. Evidence has also shown, that although renewable energy requires upfront capital, it is one of the lowest cost energy options available, which is the most compelling reason why it is utilised globally.” The investment, while supporting the long-term development strategy will reduce expenditure, improve profitability and create a better position to grow larger dividends and other transfers to the treasury. The oil company has been a net contributor to the economy. Transferring to a green economy requires the support of all stakeholders, particularly key companies such as GUYOIL. Construction of the facility is a positive development indicating the great strides the economy is making. “If people are constructing, they are showing faith in the future. They would have made their own assessment and would have concluded that it is worthwhile putting down a permanent structure.”

The Chairman said the upgrade .. creates the right environment for staff to operate. “This is a green building. It is going to be 100% solar-powered in keeping with the dictates of the Green State Development Strategy and as a state-owned enterprise, we really believe that GUYOIL has a role to play in supporting that policy.”’ The CEO said GUYOIL is reaching the ‘green’ energy objective of transitioning to renewable energy.

Guyana Oil Company Limited has been in existence since 16 June 1976. The business involves the importation, storage, distribution and marketing of motor gasoline (Super 95), gasoil, kerosene, fuel oil, ULSD and Castrol lubricants.

Products are delivered through the largest distribution network in the petroleum business in Guyana, comprising fifty-two (52) Dealer Owned Dealer Operated (DODO) and eight (8) Company Owned Company Operated (COCO) Service Stations. Both DODOs and COCOs are all serviced by GUYOIL’s three Terminals located in Regions II (Adventure), IV (Providence) and VI (Heathburn).

The distribution fleet comprises fourteen (14) Road Tank Wagons (RTWs), nine (9) operate from the Providence Terminal, three (3) from the Heathburn Terminal and two (2) from the Adventure Depot. These distribute fuel products to all our service stations, dealers, government ministries, government agencies and all major customers.

Maiden Platform, Liza Destiny cost US$720M

Selling systems and services to the petroleum industry, Dutch global group SBM Offshore built the Liza Destiny FPSO, at a cost of US$720M. Supermajor ExxonMobi awarded the contract in 2017.  Project financing was secured by a consortium of 12 international banks.

Guyana’s first Floating Production Storage and Offloading vessel, Liza Destiny is owned and will be operated by SBM Offshore. The lease and operate contract with ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL) includes an initial period of 10 years with extension options up to an additional 10 years.

Discussions are progressing regarding a potential accelerated transfer of ownership using the purchase option in the 10 year lease contract. The outcomes are expected to lead to a transfer of the FPSO ownership and operation to EEPGL.The FPSO, designed to produce up to 120,000 barrels of oil per day, will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day.

The converted Very Large Crude Carrier (VLCC) FPSO will be spread moored at the Liza field in the Stabroek block circa 200 kilometers offshore Guyana, in water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
SBM won the contract from Exxon to build perform Front End Engineering and Design (FEED) for a second Floating Production, Storage and Offloading vessel for the Liza development.

Following FEED and subject to requisite government approvals, project sanction and an authorisation to proceed with the next phase, SBM Offshore will construct, install and then lease and operate the FPSO for a period of up to two years, after which the FPSO ownership and operation will transfer to EEPGL.

The second Liza FPSO design is based on SBM Offshore’s industry leading Fast4WardTM programme as it incorporates the company’s new build, multi-purpose hull combined with several standardised topsides modules. The FPSO will be designed to produce 220,000 barrels of oil per day, will have associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. Furthermore, the FPSO will be moored in water depth of about 1,600 meters and will be able to store around two million barrels of crude oil.

All costs being handled by ExxonMobil’s subsidiary for the FPSO will be recovered.

KEY DIFFERENCES
According to documents held by the Environmental Protection Agency (EPA), there are key differences between the Liza Phase Two Development and the Liza Phase One Development.

In the area of Oil Production Rates, the Phase Two production rate will be approximately 190,000 to 220,000 barrels of oil per day while Phase One’s production rate is 100,000 barrels of oil per day with the ability to operate at sustained peaks of 120,000 barrels per day.

With respect to FPSO Oil Storage Volume, Phase Two storage volume will be approximately 1.6 to 2 million barrels, depending on the hull selected. Phase One storage volume is 1.6 million barrels.

In terms of the number of wells, Phase Two will have approximately 35-40 wells. Phase One has 17 wells.

Guyana Shore Base Inc

Oil services company Guyana Shore Base Inc (GYSBI) invested over US$100 million ($20.8 billion) into its operations and plans to invest US$50 million ($10.4 billion) in the next 12 months.  Established in late 2016, GYSBI is a consortium of Muneshwers Limited, TOTALTEC Oilfield Services, Pacific Rim Constructors, and LED Offshore.

Muneshwers is a Guyanese company while Lars Mangal, who has Guyanese roots, is the Chief Executive Officer of TOTALTEC.  Russia-based Pacific Rim Constructors was founded in 2001 by Glen Beal and Bill Davis.   Little is known about LED Offshore and its principals but LED (Offshore) Limited appears to be registered in The Bahamas.

The consortium, which provides services to oil major ExxonMobil, marked its second anniversary since beginning operations in 2017.

General Manager Mark Edwards disclosed that to date, GYSBI has pumped “in excess of US$100 million” into the operations. They plan to invest another US$50 million over the next 12 months.

A tour of GYSBI’s Houston, East Bank Demerara facility revealed that the company purchased additional land to expand its operations. Muneshwers had purchased the 28-acre Houston property from timber company, Caribbean Resources Limited in 2014 for US$20 million.

Since then, the waterfront area has expanded to 32 acres following the purchase of Eddie Vieira’s property to the north. GYSBI also purchased an additional 100 acres of land located east of the Houston Public Road.

“We purchased 100 acres across the road from the Vieiras and it is where we will construct a wash bay and store a lot of the pipes,” Edwards said. The company plans to construct an access road from the waterfront base to the 100 acres facility, equipped with traffic lights that they have funded to ensure safety and facilitate orderly movement.

A warehouse, to hold material and equipment that can service two Floating Production Storage and Offloading vessels (FPSOs), is almost completed and should be operational by next month. Containers with filters and other equipment for ExxonMobil’s Lisa Destiny FPSO, currently offshore, is already being stored at the Houston base. ExxonMobil aims to begin oil production by March next year.

GYSBI currently has 288 employees and 10 per cent are women. “The women work in every capacity…and we are looking to always increase those numbers,” he said. Of the 288 employees, 272 are Guyanese, and by next year, the company hopes to see that number reach 400.

GSBYI is proud of its contribution to local content and Edwards said that while there are some areas that require specialist input, they have no problems with the Guyanese employees that they hired and trained in specialty areas. “We believe in local content and you will see our workers are mostly Guyanese. We have Guyanese at every level. Our senior engineer is Guyanese and some of them have the advantage [over] expats because they know this country, they know the soil type and they give advice about what is best for an area. We look to Guyanese suppliers first before anything.” When items are “overly expensive” here GYSBI prefers to import from overseas.

Exxon contract – Dr Tulsi Dyal Singh

In the contract between Guyana and Esso Exploration and Production Guyana Limited (EEPGL), one outstanding feature has not received the attention it deserves. That is, in a rising price environment, Guyana’s share of oil revenues will match or even exceed the share obtained by the state of Texas on state-owned oil and gas royalty interests and by the federal government of the United States in its deep water oilfields in the Gulf of Mexico.

The contract feature, which caps the amount that EEPGL can claim as expenses to 75 per cent of the revenue in any given month, has been widely misinterpreted to mean that Guyana, apart from its 2 per cent royalty, can get no more than half of 25 per cent or, 12.5 per cent of Stabroek block oil sales. That is incorrect. Guyana’s share can reach 24 per cent or even higher as the price of oil rises.

The cap on cost recovery protects Guyana’s share to not less than 12.5 per cent in low revenue months when the selling price of oil is low. But in high revenue months, when oil prices are higher, and the spread between selling price and cost price is greater, Guyana will get a much higher percentage, simply because the “profit” to be shared 50/50 between Guyana and EEPGL is so much bigger.

The number “12.5%” or the words “twelve and a half percent” do not appear anywhere in the Cost Recovery and Production Sharing section (Article 11) of the contract.

Hess Corporation hedged most of its Brent oil production for the rest of this year at US$60 per barrel. A simple calculation based on some of Hess’ numbers follows-

Assume that the selling price of oil is US$60 per barrel. Royalty payable to Guyana is 2 per cent or $1.20.

Assume cost recovery of US$42 per barrel, extrapolated from Hess. This includes royalty paid, operating cost and capital expenditure, each prorated on a per barrel basis. Note that the 75 per cent cap on expenses, in this case, US$45 does not apply because US$42 is already below US$45 so there is no need to invoke the cap.

Profit is US$18 per barrel. Split that 50-50 between EEPGL and Guyana. Guyana’s share is US$9 per barrel. Add Guyana’s royalty of US$1.20 per barrel. Guyana’s total revenue per barrel of oil is US$10.20. That is 17 per cent of the selling price.

Where the selling price is higher, say US$70 per barrel, costs will be higher . That’s just the way it works in the oil business. When the price is higher, costs increase. For instance, royalty payable to Guyana will increase by 20 cents per barrel. Labour costs increase and middle men demand more. Using US$45 as recoverable costs, , the 75 per cent cap, in this case, US$52.50 does not apply. Profit, therefore, is US$25 per barrel. Guyana’s half will be $12.50. Add royalty, and Guyana’s total take becomes US$13.90 or nearly 20 per cent.

Consider a lower selling price, say US$50 per barrel. The math is significantly different in this scenario because the amount that EEPGL can claim as expenses for that month is capped at 75 per cent of the selling price. The maximum that can be expensed is US$37.50 per barrel. (The amount that is not expensed is carried forward for a month when prices are higher) so now, “profit”, because of the cap, is US$12.50 and Guyana’s share is US$6.25 per barrel or 12.5 per cent of the selling price.

This means that Guyana will always get a minimum of 12.5 per cent plus the two per cent royalty at the lowest of prices, but as the price rises, the percentage that Guyana gets rises exponentially.

Hess’ stake in the Stabroek block is greater than Guyana’s. Hess is a small corporation in which Guyana’s oil looms large in the company’s future. Hess will be Guyana’s best friend as far as the Stabroek Block is concerned. Their interest is much more closely aligned with Guyana’s than any others. Hess will want free cash flow or money in the hand as much as Guyana and as soon as possible.

There are matters pending that need urgent resolution if they haven’t yet been resolved by the Government of Guyana. Pre-development costs of around US$460 million should not be allocated to just Liza 1. It has to be allocated to the entire Stabroek Block. More importantly, that cost should not be front-loaded on the cost recovery regimen. It should be amortized either over the economic life of the Stabroek block or prorated on barrels of production. Hess’ pronouncements of US$35 operating expenses and US$7 capital expenses per barrel suggests that they have already found the light. Guyana would be wise to do the same.

Oil refinery not feasible

With first oil months away and six billion barrels of oil equivalent in the offshore Stabroek Block alone, the Director, Department of Energy, Dr. Mark Bynoe said that a local oil refinery is not feasible at this point. The Department will only pursue evidence-based decision making, which will lead to prudent, non-regrettable investments.

“We have never said that there will never be a refinery. At this time a refinery is not feasible… .. what most people are conflating is not if a refinery should come to shore, it’s whether or not we should have cheap fuel. A refinery doesn’t mean cheap fuel or the absence of a refinery doesn’t mean that you will not have cheap fuel, cheap fuel is a policy decision and there are many ways by which you can ultimately have cheap fuel… … What the Department is concerned about is what we call ‘no-regrets investment’. When you invest today, you must not regret tomorrow… it must be monies that are well spent.”

The industry must be managed to the benefit of all Guyanese.

“We are accountable first and foremost to the people of Guyana. These resources… belong to Guyanese… ” A Communications student at the University of Guyana said he has a better understanding of the role he can play in the development of the oil and gas sector.

“I recognise that through the media which has a very important role to play in changing our landscape for the transformation of Guyana. I can play a very integral role in disseminating information that .. will lead to truth and confidence and that will surely show the real picture. Another thing that stood out .. is that the contracts [are] not as bad as they seem. How Dr. Bynoe explained the contracts, I recognise that it’s .. moving Guyana forward.” The Department of Energy continues to spearhead interactive sessions, targeting a wide cross- section of persons, to keep them informed about developments in the petroleum sector.

In May 2017, Pedro Haas, Director of Advisory Services at Hartree Partners, tasked with conducting a feasibility study for an oil refinery said the cost to construct such a facility would be some US$5 billion. At least half the investment would be lost at commissioning. Haas contended that building an oil refinery would be a very risky investment requiring a vast amount of capital.

When calculating the cost , the industry’s jargon represents it as a cash amount per barrel of oil. “For many years, refinery cost to build was about US$10,000 to a barrel and then it rose to about US$20,000 and about today it could be up to US$25,000.”

Initially the company started calculations based on a 250,000 barrel per day refinery but had to scale it down to a 100,000 barrel per day refinery. Because the company was only exposed to data from 2013, it had to factor in an inflation adjustment for the present, along with adjustments for the location since there would be a need for new infrastructure and other ancillary facilities to support and run alongside a refinery.

… we’ve made a range of assumptions and finally that gives you the cost of a grass-roots, 100,000 barrel per day, cracking refinery and we ended up with a total grass-roots cost in the neighbourhood of US$5 billion. It’s a large amount of money.”

U.S. helps oil spill response plan

The United States pledged continued assistance and commended efforts to develop an oil spill response plan as the country becomes one of the most active offshore oil exploration and production (E&P) centres in the region.

“Over the past year, the Department of State and U.S. Coast Guard have been working with Guyana’s Department of Energy and its Civil Defence Commission to assist with the development of its National Oil Spill Contingency Plan,” U.S. State Department Desk Officer Seth Wikas told a two-day conference enhancing offshore E&P Regional Capacity with a focus on operational and environmental safeguards.

“With Guyana’s oil resources coming online imminently, we commend the Guyanese government in its foresight to develop this plan, and look forward to working with them on this important document. The assistance on the National Oil Spill Contingency Plan follows years of engagement the Department of State has had with Guyana under the Energy Governance and Capacity Initiative, or EGCI,”

EGCI, is a Department of State initiative that provides U.S. interagency and independent expert advisory services in countries across the globe to build capacity related to oversight and governance of the hydrocarbon and mineral sector’s.

“Countries receiving EGCI assistance have world-class hydrocarbon and mineral resources. These countries have the potential to receive sizable financial windfalls from the development and export of these resources.”

From 2010 to 2018, EGCI supported government efforts to manage its upstream oil and gas sector effectively and responsibly.

“EGCI engagement increased in 2015, when ExxonMobil made its first major offshore oil discovery, radically reshaping the country’s energy landscape and long-term economic prospects. The Department of State recognised the need for the necessary regulatory, legal, and policy structures to ensure sound governance and sustainability in this emerging upstream sector,” he noted.

The U.S. Army’s annual Southern Command-sponsored combined joint exercise, Tradewinds, will be held in Guyana next year and a component is focused on oil spill response.

CDC head, Lieutenant-Colonel Kester Craig said that he was pleased that Guyana host 21 participating nations meeting to get a firsthand experience of this country’s terrain.

Wikas also reminded that over the course of the programming period, EGCI’s implementing partners at the U.S. Departments of the Interior and Treasury conducted workshops and provided technical support.

“They introduced cutting-edge practices in the regulation and management of deep water oil exploration and production. EGCI provided financial advisory support to help prepare for managing anticipated oil sector revenues, and engaged on oil spill preparedness and response planning with the U.S. Coast Guard. With EGCI assistance, Guyana was also able to initiate the process to join the Extractive Industries Transparency Initiative, EITI, to ensure the public knows where oil revenues are going.”

While EGCI programming in Guyana wound up last year, after nearly a decade of assistance and engagement, the Department of Treasury’s Office of Technical Assistance continues to build the capacity of the Guyana Revenue Authority. The training given to auditors of the tax agency’s large taxpayers division, the U.S. hopes, will equip them “so that they are able to confidently manage the windfalls which are to be expected over the coming years.” The U.S. government hopes that Guyana will rely on the long period of sustained engagement and assistance, which produced expert reports on best-practices in oil sector management, and not just leave them but use their findings as a reference in its decision making processes. “We hope the government references these reports and recommendations as it makes critical decisions in the months and years ahead.”

U.S. oil and gas consulting firm Hunt Petty LP is coordinating the two-day conference and former President and Chief Executive of the International Association of Drilling Contractors (IADC) Dr. Lee Hunt, a partner in the company said that  the conference followed a meeting with Guyana’s Ambassador to the U.S. Riyad Insanally and Energy Department head Dr Mark Bynoe.

…We discussed how to best educate a general audience of government and local stakeholders on the critical issues surrounding the initial development of an oil and gas field. That was the idea for the conference. We came down in April, we met …directors and vice directors of the University [of Guyana] and I proposed this agenda, which starts with a concept, the thing people most worry about—an oil spill. We should really direct attention to all that is being done by industry and …international governments, to cooperate in developing the best techniques of preventing oil spill and the latest technologies available for responding in case one happens. So that was the central core of the conference. Around that, we talk about what is necessary to enhance capacity,” he said, detailing the planned sessions.

From experience around the world, Hunt said Guyana is better poised in terms of access to investments, access to prolific discoveries compared to African oil producers. “I am very pleased with what I see here, in terms of their commitment, in terms of their willingness to learn, very actively seeking information international sources for best practices.” With a good system on paper, the country has “a lot of need here for the physical development of facilities- onshore bases, training, education.”

Hunt believes in educating persons on the industry and what is needed for oversight and how to coordinate resources locally, regionally and internationally. “They need to learn from the industry… and be prepared to support that with the kind of infrastructure and kinds of capacity. For example, to respond to an oil spill, you need facilities for vessels, for cranes, for housing of personnel for transportation and that is one of the aspects of this conference. We are talking helicopters, vessels… they are all needed to come together… multiple operations going on at the same time and that requires the intense cooperation and coordination at the same time. EPA, Civil Defence, Department of Energy and so forth. We are trying to bring all of the parties together with an interest and general overview of education and go from there for further development,” he said.

Bourbon Rhode offshore tug supply vessel sinks

Highlighting the dangers in offshore exploration, French offshore vessel owner Bourbon confirms death of two more crew members after vessel sinking.

Bourbon reported the death of two other crew members of the Bourbon Rhode vessel who went missing following sinking of the vessel in the Atlantic Ocean.

Bourbon announced recovery of the bodies of two more crew members by search teams in the Atlantic Ocean,

Heading to Guyana to lend support in the offshore oil field developments, the anchor-handler started to take in water as it was caught in the eye of Hurricane Lorenzo..

Three crew members are confirmed deceased, three were rescued and eight are still missing after the vessel sank in heavy seas with 14 on board near a category 4 hurricane. Lorenzo.  The bodies of two mariners were transferred on the French navy  frigate Ventôse .   Three crew members in a lifeboat were spotted by a French search plane and picked up by a nearby commercial vessel.

The Bourbon Rhode had issued a distress call while in transit some 1,200 nautical miles off the island of Martinique, and 60 nautical miles south-southeast from the eye of hurricane Lorenzo.   The search effort has since intensified. 10 commercial vessels have been mobilized in the area as part of the search and rescue efforts. A French Navy search plane is performing daily overflights, supported by a US Coast Guard aircraft. A French Navy frigate, accompanied by its helicopter, is coordinating the grid of nearly 40 search areas.

Bourbon Corporation CEO, Gaël Bodénès, stated: “On behalf of all BOURBON employees, I would like to pay tribute to the deceased sailors. Our thoughts and prayers are with the families and loved ones who are grieving over this dramatic event. We stand in full solidarity with them in this ordeal and assure them of our strongest support. Research operations are continuing on this sixth day and the mobilization of the maritime world is unprecedented. I would like to express our gratitude to all the research teams and those who volunteer.”

US must support Guyana in elections

United States Senator Marco Rubio urged US support of Guyana as it seeks to elect a new Government. The Senator is looking forward to the democratic electoral process in Guyana, the US’ “important regional ally”.

It’s in our strong interest to stand in support of the Guyanese people, as they seek to elect a new Government that can advance their security and prosperity.”

Private Sector Commission (PSC) Chairman, retired Captain Gerry Gouveia echoed the calls for free and fair elections. This, with respect for the rule of law and the Constitution, is what matters.

“What matters to us in the Private Sector is… fair and free elections free from violence that we suffered in 1992,1997 and 2001. What matters.. is that whichever party wins the elections reach across the political divide and truly find a way to work together for the children of Guyana’s Future.

“What matters.. is that the New Government rationalised our tax systems while creating the enabling environment to foster and enhance investors’ confidence. What matters … is that job creation must be the daily [priority] of our country leaders.”

Two proclamations officially declared March 2, 2020 elections day. The declaration, dated October 1, 2019, was issued in accordance with Article 61 of the Guyana Constitution, which states that the President shall by proclamation appoint a day for an election under Article 60 (2), and that an election of members of the National Assembly shall be held under Article 60 (2).

The caretaker president proclaimed that “…in pursuance of the said Article 61, I do hereby appoint the 2nd day of March 2020, as the day on which an election of members of the National Assembly shall be held under the said Article 60 (2).” Granger has been under pressure to issue his proclamation over the past few weeks. After almost a year of procrastination following his defeat in a No-Confidence Motion, he announced March 2, 2020, as the “earliest possible” date for elections.

UK High Commission

No decisions have been taken on the next phases of two vital projects: the road between Linden and Mabura and the development of the Kingston-Ogle seawall.

The British High Commission issued the following statement:

UK-Caribbean Infrastructure Fund (UKCIF) update

Following reporting in the local media the British High Commissioner H.E. Greg Quinn today said:

‘As part of the UK-Caribbean Infrastructure Fund (UKCIF), launched in 2016, over the last year the UK has supported initial design work for the construction of the road between Linden and Mabura and the bridge at Kurupukari which is being implemented by the Caribbean Development Bank. No decision has yet been made on the next, construction, phase of this project. Similarly whilst the UK funded the design phase of the Kingston-Ogle seawall project through UKCIF, no decision has been taken on the next phase of this project either.’

The Minister of Public Infrastructure has addressed the prospects for the Linden-Mabura road and government agencies have reported on the seawall project.

The UK was a signatory to a joint statement with the US and the EU on September 19 calling on Granger to set a date for general elections. They warned about the impact on development aid, a clear sign of the jeopardy facing the Guyana Government for not holding general elections by September 18.

Statement from the Commonwealth Secretary-General
23 September 2019

The Commonwealth Secretary-General, Patricia Scotland, urges the President of Guyana and all relevant stakeholders and institutions to restore constitutional rule in Guyana by immediately setting an early election date in consonance with its constitution, enabling elections to be held without further delay.
The Secretary-General has taken note of the 18 June 2019 ruling of the Caribbean Court of Justice (CCJ) and its consequential orders of 12 July 2019. The CCJ’s ruling was clear that the Guyana Constitution sets out certain requirements for the time of an election after the valid passing of a no confidence motion.

The rule of law and constitutional governance are fundamental Commonwealth values to which Guyana has subscribed.

In this regard, and in accordance with the ruling of the CCJ, a general election in Guyana is now constitutionally overdue. A general election should be held in accordance with the unambiguous constitutional imperative to do so. The Secretary-General has spoken with the Chair of the Guyana Elections Commission (GECOM) and discussed Commonwealth support to GECOM.

Statement from the EU, USA, UK

• • • – demand election date
    • – breach of constitution will hinder development support

In a joint statement The United States, Britain and the European Union urged President David Granger to set an election date immediately in light of the advice from GECOM. The government, in breach of the Constitution, hinders their ability to support development needs.

“The United States of America Ambassador to Guyana, H.E. Ambassador Sarah-Ann Lynch, United Kingdom High Commissioner to Guyana, H.E. Greg Quinn and the European Union Ambassador to Guyana, H.E. Ambassador Fernando Ponz Cantó joint statement on the Guyana Elections Commission (GECOM) proposed elections timeframe.

“The United States, United Kingdom and the European Union thank the Guyana Elections Commission (GECOM) for devising a proposed elections timeframe for conducting General and Regional Elections.

“However, we deeply regret that, by surpassing September 18, the Government is currently in breach of the Constitution following its failure to adhere to the decisions of the Caribbean Court of Justice (CCJ) on 18 June and its subsequent orders.

“This situation comes at great cost to the people of Guyana. The prevailing political uncertainty undermines Guyanese institutions, compromises economic opportunities and delays development across all areas including infrastructure, education, health, and social services. It also hinders our ability to support Guyana’s development needs.

“We therefore call upon the President to set an elections date immediately in full compliance with Guyana’s constitution.”

Blinkered analysis questioned whether the statement would have any impact on the caretaker regime’s recalcitrance since there are no urgent projects reliant on funding from any of the three. Yet these major donors of aid and scholarships and champions of investment underpinning the regional economy fear the impact on democracy.

Would the statement have been effective on June 18 when the Caribbean Court of Justice ruled that the constitutional articles requiring general elections within three months of that date were in effect?

The moribund parliament was stymied after deliberate delay in the aftermath of the NCM. CCJ’s internal counsel has advised that the lengthy House-to-House Registrations would be an act of contempt against the CCJ.

Critics claim that US and UK policies towards the regime are driven by their desire to secure oil production plans for ExxonMobil and Tullow which may explain the statement about unconstitutionality of the government when it no longer had any effect.

However, it galvanized the multinational Commonwealth to spring into action to get the basics right, knowing the effect of subsaharan-style paralysis on the nascent energy sector, a staple industry for the next century. Provocative delay risks protests and compromises investment and security of delegates at GIPEX 2019 on 20-22 November as ExxonMobil lines up wildcats on Canje block, with two prospects for drilling on the tract adjacent to its prolific Stabroek block,

Leading the international community, the USA keeps Guyana on the path of democracy, even as the country meanders on several months overdue for elections and the US Congress is being urged to keep a watchful eye on Guyana to avoid disastrous effects of constitutional violation on regional stability.

It is a self-inflicted calamity for a nominally democratic regime to find its actions revoked and reversed by the highest court and to be forcefully reminded of its legal, constitutional and political duty by judges, diplomats and the supranational cosmopolitan Commonwealth. Democratic India, Canada and Australia realised that the regime abused power and acted unlawfully, combining unconstitutional sharp practice with a political error which underscored their insincerity, united opponents and thwarts atavistic activists planning to divert oil wealth to a minority.

EVENTS

(i)  Energy Chamber of Trinidad and Tobago

Guyana Safety Forum  and Tradeshow

October 16, 2019,

  Arthur Chung Conference Centre , Georgetown

 

(ii)     GIPEX 2019

GUYANA MARRIOT HOTEL, GEORGETOWN, GUYANA
20,21,22 NOVEMBER, 2019

GIPEX 2019 will provide opportunities for companies across North and South America, Europe, Africa and Asia.

Many well-established companies from the oil & gas sector have already shown their interest and made their commitment to be a part of this year’s event which will be held in Guyana – the most prominent Oil and Gas destination in South America and the Caribbean.

https://guyanaoilexpo.com/    (LINK)