Keppel to deliver third FPSO

Prosperity FPSO is expected to start production in the Payara field this year

2 February 2023

By Fabio Palmigiani in Rio de Janeiro

(Keppel O&M) is on track to deliver the Prosperity floating production, storage and offloading vessel to ExxonMobil by the end of the first quarter for work in the prolific Stabroek block offshore.  The wholly owned subsidiary of Keppel Shipyard, was contracted to execute fabrication of topside modules, riser, mooring and umbilical structures, followed by installation and integration of these structures onto the FPSO.

Once concluded, the Prosperity FPSO will sail to Guyana, to produce petroleum for ExxonMobil and project partners Hess and CNOOC International in the Payara field in the fourth quarter of 2023.The Prosperity FPSO will be operated by Dutch floater specialist SBM Offshore, the third unit to enter operation in Guyana.

“We are pleased to support SBM Offshore and ExxonMobil in contributing to Guyana’s oil and gas industry with a third FPSO for development in the Stabroek block,” said Keppel O&M chief executive Chris Ong.

The Prosperity FPSO will be deployed in water depths of about 1900 metres and will be able to process 220,000 barrels per day of oil and 400 million cubic feet per day of natural gas, with storage capacity of 2 million barrels of crude.

The Prosperity FPSO will be the third of four FPSOs Keppel is undertaking for deployment in Guyana. Keppel Shipyard, wholly-owned subsidiary pf Keppel Offshore & Marine (Keppel O&M) is on track to deliver a mega Floating Production Storage and Offloading vessel to SBM Offshore in 1Q 2023. This is the third FPSO that Keppel Shipyard is delivering to SBM Offshore. The FPSO will be chartered to the consortium of ExxonMobil, CNOOC and Hess to operate in offshore Guyana.

Guest of Honour, Her Excellency Mrs Arya Ali, First Lady of the Co-operative Republic of Guyana named the vessel Prosperity FPSO at a ceremony today at Keppel Shipyard.

Mr Chris Ong, CEO of Keppel O&M, said, ‘We are pleased to support SBM Offshore and ExxonMobil in contributing to Guyana’s oil and gas industry with a third FPSO for deployment in the Stabroek block. FPSO Prosperity reinforces Keppel O&M’s standing as the world leader in the integration of FPSOs and extends our track record of more than 130 FPSO projects. It also marks our 27th major project for SBM Offshore, building on the strong partnership that we have forged over decades of collaboration.’

Keppel O&M’s scope of work on FPSO Prosperity includes the fabrication of several topside modules, riser, mooring and umbilical structures, followed by the installation and integration of these structures and all topside modules onto the FPSO. Designed to produce 220,000 barrels of oil per day, with associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day, the FPSO, will be spread moored in water depth of about 1,900 metres and will be able to store approx. 2 million barrels of crude oil.

See also, SBM Offshore announcement (with photos): Naming ceremony of Prosperity FPSO takes place

Source: Keppel O&M

Third FPSO nearing completion

SINGAPORE — Keppel Offshore & Marine’s wholly owned subsidiary Keppel Shipyard expects to deliver the Prosperity FPSO to SBM Offshore during the current quarter, its third for the company.

The vessel will be chartered to Exxon Mobil, Hess and CNOOC to operate on the Payara project in the Stabroek Block offshore Guyana, where it will be spread moored in 1,900 m water depth.Keppel’s scope of work includes fabricating topside modules, riser, mooring and umbilical structures, followed by the installation and integration and all topside modules to the hull. Prosperity is designed to produce 220,000 bbl/d of oil, with gas treatment of 400 MMcf/d and water injection of 250,000 bbl/d, and storage for about 2 MMbbl.

02.02.2023 Offshore staff

Prosperity for Payara

February 2, 2023, by Melisa Cavcic

Following the naming ceremony , Keppel Offshore & Marine (Keppel O&M) reported that subsidiary Keppel Shipyard will deliver a new floating production storage and offloading (FPSO) vessel to SBM Offshore in the first quarter of 2023.

Keppel Offshore & Marine said FPSO Prosperity, the third of four FPSOs for deployment in Guyana, is expected to be delivered to SBM Offshore in 1Q 2023 for charter to the consortium of ExxonMobil, CNOOC, and Hess.

Scope of work covered the fabrication of several topside modules, riser, mooring and umbilical structures, followed by the installation and integration of these and all topside modules onto the FPSO.

The hull for the FPSO Prosperity arrived at the Keppel yard in Singapore in mid-August and entered the drydock in October 2021. The vessel left the dry dock and moved to the quayside in April 2022 for the topsides integration phase. SBM Offshore confirmed later that same month that the first series of the topsides module lifting for the FPSO Prosperity had started and shared a video with highlights from this milestone.

Chris Ong, CEO of Keppel O&M, remarked: “We are pleased to support SBM Offshore and ExxonMobil in contributing to Guyana’s oil and gas industry with a third FPSO for deployment in the Stabroek block. FPSO Prosperity reinforces Keppel O&M’s standing as the world leader in the integration of FPSOs and extends our track record of more than 130 FPSO projects. It also marks our 27th major project for SBM Offshore, building on the strong partnership that we have forged over decades of collaboration.”

This FPSO will operate ExxonMobil’s Payara development project, 200 kilometres offshore Guyana, which will target an estimated resource base of about 600 million oil-equivalent barrels. The oil major’s Payara project is on track to come online by the end of 2023.

The FPSO Prosperity, which will be spread moored in a water depth of about 1,900 metres, is designed to produce 220,000 barrels of oil per day, with an associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The FPSO will be able to store approximately 2 million barrels of crude oil.

ExxonMobil’s first two sanctioned projects off Guyana are Liza Phase 1 and Liza Phase 2, which are producing above design capacity and are currently operating at a combined gross production capacity of more than 360,000 barrels of oil per day (bopd). The Payara project is the firm’s third development off Guyana.

The U.S.major’s fourth project, Yellowtail, is expected to be on stream in 2025 with a gross production capacity of roughly 250,000 bopd, using the ONE GUYANA FPSO. In addition, ExxonMobil submitted for approval a plan for a fifth development, Uaru, to the government of Guyana in the fourth quarter of 2022. Pending the government’s approvals and project sanctioning, the first oil is anticipated at the end of 2026.

Japan’s MODEC secured a FEED contract for Uaru FPSO which the firm will design and construct based on its M350 newbuild design. The FPSO, which will be able to produce 250,000 barrels of oil per day, will have an associated gas treatment capacity of 540 million cubic feet per day, and a water injection capacity of 350,000 barrels per day.

These projects are expected to enable ExxonMobil to have at least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day online on the Stabroek block in 2027, with the potential for up to ten FPSOs to develop gross discovered recoverable resources.

 

First Lady dedicates Guyana’s newest FPSO in Singapore

February 1, 2023

The Prosperity is the third floating, production, storage, and offloading (FPSO) vessel that will operate in the Stabroek Block offshore Guyana.

Mrs. Ali is the godmother of the vessel. It is a longstanding maritime tradition to identify a woman to bestow good luck and protection over the vessel and those who sail aboard.

“This vessel offers another avenue to prosperity, an opportunity to build a future for our people, a future they deserve. The Prosperity is more than just a symbol of development though; she is a physical manifestation of the hard work and collaborative relationship between the people of Guyana and the collection of companies doing business in our oil and gas sector.”

ExxonMobil Senior Vice President of Deepwater Hunter Farris praised the level of collaboration among multiple companies in several countries that went into making the project a reality. He highlighted the benefits that will arise from having a third vessel operating offshore Guyana.

“The Prosperity reaffirms ExxonMobil’s commitment to Guyana. A third vessel operating offshore will further contribute to Guyana’s transformation, creating new business and employment opportunities over the life of its operation.”

The Prosperity is scheduled to leave Singapore for Guyana before the end of April, to operate the Payara development, third project in the Stabroek Block for the ExxonMobil consortium.

The Prosperity will have an initial production target of 220,000 barrels of oil per day with an overall storage volume of around two million barrels.

 

 

ExxonMobil targets two more wells in relentless drilling campaign

Over 11 billion barrels of oil equivalent have already been found in Stabroek

2 February 2023
By Fabio Palmigiani in Rio de Janeiro

ExxonMobil set its sights on a pair of new exploration wells in the Stabroek block offshore to add to its discovered recoverable resources of over 11 billion barrels of oil equivalent there.

The US supermajor is expected to spud the Basher-1 and Blackfin-1 wildcats by the end of the first quarter of this year.

Basher-1 will target a deep prospect to the west of the Fangtooth-1 discovery, while Blackfin-1 will penetrate an updip prospect to the east of the Barreleye-1 find.

 

 

First Lady Arya tours Prosperity

Feb 03, 2023

Accompanied by Mr Jon Gibbs, President of ExxonMobil Global Projects;, Mr Bruno Chabas, Chief Executive Officer, SBM Offshore, Mr Chris Ong, CEO, Keppel Offshore & Marine, Tim Chisholm, Vice President for Guyana and Suriname, Hess Corporation, Mr Tian Lixin, President of CNOOC International and other officials, First Lady, Mrs. Arya Ali toured Guyana’s third Floating, Production, Storage and Offloading Vessel (FPSO) – ‘the ‘Prosperity’ .

The tour followed a dedication ceremony, during which Mrs. Ali was named ‘godmother’ of the vessel which is expected to depart the Keppel Shipyard in Singapore soon, arriving in Guyana during the first quarter of this year. Led by Prosperity’s Manager, Ms Nadia Stampes, Mrs. Ali had the opportunity to observe sections of the vessel including the oil, gas, and water processing and offload metering modules.

“It was a special moment being able to explore and learn about a vessel that will bring greater prosperity to the people of Guyana. Not only that, I was happy to be able to personally meet and thank some of the workers who made this possible,” the First Lady said .

She meet Guyanese working on the mega-facility

‘The Prosperity’ will serve ExxonMobil’s Payara development, located 200 kilometres offshore Guyana. The Payara project will target an estimated resource base of about 600 million oil-equivalent barrels. The project start-up is expected later this year.

The FPSO is designed to produce 220,000 barrels of oil per day, with an associated gas treatment capacity of 400 million cubic feet per day and a water injection capacity of 250,000 barrels per day.

It will be spread moored in a water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil. Once operational, ‘the Prosperity’ will increase production to an estimated 560,000 barrels of oil per day.

The vessel, which measures 342M in length, 60m in width, and 25m in height, has a minimum lifespan of 20 years. Roughly 4,000 persons have been working on the FPSO which weights 110,000 metric tonnes.

 

ExxonMobil observes greater potential for expansion

February 10, 2023

ExxonMobil Guyana President Alistair Routledge, announced that, seeking to broaden its horizons, ExxonMobil signalled an interest in the upcoming bidding rounds for offshore areas, spurred by massive success and discoveries at Stabroek Block offshore.

“We’re always interested in new acreage, and, clearly, where we’ve had some success, it brings a certain degree of interest, and we should be knowledgeable on it. We’ve registered for the bigger end.“

Routledge said the company will examine data the government provided, along with other factors before making the decision on participation in the auction.

“… When we have all of that together, then we will be in a position to make a decision on whether or not we bid.”

The petroliferous Stabroek Block is 6.6 million acres (26,800 square kilometers), with its gross recoverable resource now estimated to exceed 11 billion oil-equivalent barrels, including Liza and other successful exploration fields.

President Dr. Irfaan Ali last year announced that the government hopes to award the contracts by the end of May.   Guyana is among 65 countries that will be launching the auction of oil blocks.

Blocks offered for auction range in acreage from 1,000 sq. km to 3,000 sq. km, with 11 in shallow water and the other three in deep water. Bidders will be evaluated on their work programmes, financial offers, and local-content commitments.

There are no restrictions on the number of bids a company is allowed to submit but a successful bidder will be limited to an award of three blocks.

A participation fee of US$20,000 is applied for the bidding process for each block.

Winners of the shallow-water exploration blocks must pay a minimum of US$10 million signing bonus and twice that amount for the deep-water blocks.

Bidders will also be required to provide a development plan for consideration, along with their financial bids.

Under the new fiscal terms and other conditions for future Production Sharing Agreements (PSAs), successful companies will be subjected to 50 per cent profit sharing, a royalty rate of 10 per cent and corporate tax of 10 per cent, among other stipulations.

President Ali had said that the Guyana offshore basin captured the attention of global oil market participants as a gateway to the world’s fastest-growing super basin over the last few years.

“Guyana’s offshore [fields] are estimated to have potential resources of in excess of 25 billion barrels, and estimated reserves of in excess of 11 billion barrels.”

 

 

 

ExxonMobil reports ‘good progress’ in Guyana developments

At least two projects progressing ahead of schedule, chief executive tells investors

1 February 2023
Davide Ghilotti in London

US supermajor ExxonMobil reported steady progress in projects under development in Guyana, with chief executive Darren Woods speaking of a resource base that “continues to grow”.

“We continue to make discoveries and optimise around these discoveries,” Woods said in an earnings call to investors, when asked about prospects for the company’s projects in Guyana.

ExxonMobil made eight discoveries in the Stabroek block offshore in 2022 — Lau Lau-1, Barreleye-1, Patwa-1, Lukanani-1, Kiru Kiru-1, Seabob-1, Sailfin-1 and Yarrow-1.

 

 

ExxonMobil FID on Uaru development this quarter

… awaiting approval to sanction fifth project

3 February 2023
By Fabio Palmigiani in Rio de Janeiro

ExxonMobil is expected to take the final investment decision by the end of this quarter on its giant Uaru field in petroliferous Stabroek block

Last November ExxonMobil submitted its development plan for the $12.7 billion Uaru project, which will feature a large floating production, storage and offloading vessel to be supplied by Japanese player Modec.

The operator expects the government to sanction the Uaru development plan by the end of March, paving the way for taking FID on its fifth project in the South American petrostate.

 

 

SBM in initial pact with PRC yard for Whiptail FPSO

Dutch floater specialist books dry-dock at SWS for Fast4Ward floating production, storage and offloading vessel for offshore Guyana

3 February 2023
By Xu Yihe in Houston

SBM Offshore has lined up PRC yard Shanghai Waigaoqiao Shipbuilding (SWS) to build the hull and living quarters for a large floating production, storage and offloading vessel potentially destined for operation offshore Guyana.

The Dutch floater specialist is involved in advanced talks with SWS for one floater that could be deployed on ExxonMobil’s Stabroek block.

SBM has already signed an initial agreement for the FPSO, that would exploit ExxonMobil’s Whiptail discovery at Stabroek, after paying to book a dry-dock at SWS’ Shanghai yard.

 

 

Exxon’s US$160M H/Q

Feb 10, 2023

Country Manager Alistair Routledge confirmed that ExxonMobil Corporation subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) will build its US$160M headquarters at Ogle. Routledge told media the Ogle complex will serve as the main centre for EEPGL’s operations.

“We are currently straining in at the seams here (at our Kingston office) with 250 people and we are going to exceed 500 and we need an office to ensure people can work effectively and efficiently and (the cost) will be recovered. …We do monthly reports to the Ministry of Natural Resources on how construction cost and benchmarking is moving along and it is very efficiently priced. It is not going to be some fancy building with lots of glass on the inside. It is a fit for purpose development.”

The company will dedicate one floor of the building for control rooms and monitoring facilities connected by a fibre optic network.

EEPGL is constructing its new headquarters on land leased from Ogle Airport Inc., near the Eugene F. Correia International (Ogle) Airport. The campus will comprise two office buildings, an outdoor pavilion, parking areas and associated infrastructure. Construction on the structure that spans 120,000 square feet is expected to be completed in 2023.

 

 

Exxon seeks waste management investors

Feb 05, 2023

Exxon affiliate Esso Exploration and Production Guyana Limited (EEPGL) issued a Request for Information (RFI) seeking to understand the number of suppliers capable and interested in conducting a screening-level study of local industrial landfill opportunities,  to further develop EEPGL’s long-term waste management strategy.

At present, EEPGL said the Haags Bosch Landfill (HBL) is the only engineered landfill in Guyana for the disposal of municipal solid waste and non-hazardous commercial/industrial waste.

EEPGL said consideration is being given to performing a screening-level identification and assessment study of potential opportunities to develop a dedicated industrial waste disposal facility for non-biodegradable (no landfill gas), non-hazardous waste only. The main purpose of such a facility would be to support the growing waste disposal needs of its offshore activities. Identified opportunities, if feasible in light of technical considerations, socioeconomic factors, cost and required Government approvals, may potentially be funded by private investor(s) and may be privately operated.

EEPGL said suppliers must demonstrate that they have the expertise and capacity necessary to provide a screening-level assessment of current and future landfill opportunities for EEPGL industrial waste.

Key elements of the screening-level assessment would include:

1. developing a succinct summary of the existing (current) landfill infrastructure in Guyana; and
2. estimating future landfill disposal capacity needs for EEPGL’s industrial solid wastes(non-hazardous, non-biodegradable) extending up to 20 years into the future. It would also include summarizing options for addressing the estimated EEPGL industrial waste disposal needs (non-hazardous, non-biodegradable), including construction waste and debris, in both the near term (one to three years) and long term (three-20 years).

Other tasks and considerations to meet these key elements include the identification of potential sites for an industrial landfill development. This would include engagement with major stakeholders such as the Environmental Protection Agency (EPA) to assess practical suitability of the proposed locations and potential for Government buy-in.

Suppliers must also demonstrate their ability to assess challenges for the identified opportunities (e.g., road access or other infrastructure challenges, competing land uses, etc.). They must also identify Best Industry Standards for an industrial landfill design, including, for example, lining, leachate system, and monitoring wells.

The significant increase of waste and the need for proper management is also highlighted in EEPGL’s Cradle to the Grave Waste Management Analysis which was submitted to the Environmental Protection Agency (EPA) last year.

“EEPGL’s use of drilling fluids and LMP (liquid mud plants) operations are expected to increase substantially during the 2021–2023 time period, given that six drillships may be potentially operating concurrently.”

Stabroek Block Partner Hess Corporation, revealed that three of these ships are dedicated to development works while the others are poised to continue an aggressive exploration programme. 10 wells are being drilled this year by the Exxon consortium. Under the 2016 Production Sharing Agreement, all initiatives pursued by Exxon to support the Stabroek Block operations are subject to cost recovery.

 

 

SBM seeks supply chain management

Feb 05, 2023

Guyana Deep Water Operations Inc. (GDO), subsidiary of SBM Offshore, issued a Request for Information (RFI) seeking to understand the extent of in-country capabilities for the provision of international mobility services. GDO which is also the operator of two floating, production, storage and offloading (FPSO) vessels, Liza Destiny and Liza Unity, said the mobility services will be for its expatriates in every aspect of their relocation to Guyana.

“It is expected from bidders to demonstrate the capacity to execute all services related to assisting expats and families to relocate to Guyana and provide services as per the below areas:

1. 1. 1. Airport pick-up /
      2. Orientation /
      3. Assistance in moving pets across countries (Documentation) /
      4. Educational assistance (School recommendations) /
      5. House hunting and Reviews /
      6. Short-term living quarters /
      7. Settle in assistance /
      8. Lease contract support (Issuance and Renewal) /
      9. 24hr Support Assistance /
      10. Expat house management assistance /
      11. Bank account set-up support /
      12. Local documentation issuance support /
      13. Logistic assistance (shipping and handling of personal items) /
      14. Storage Facility.”

“The above are the key areas…, we can add to the scope if deemed necessary as it relates to the service.”

GDO said the RFI has several objectives and may use responses from participants to validate and further develop the company’s recommendations for the Request for Quotation (RFQ) for International Mobility Services.

The RFI process allows it to seek input and develop a list of qualified bidders before structured bid rules take effect. The RFI process provides participants with an opportunity to begin developing responses to some of the potential requirements if they are selected for the RFQ. Finally, depending on responses from participants, the company said it may unbundle the services described in this RFI and in a future RFQ (Request For Quotation) into several enabling agreements that may be awarded to more than one bidder.

Guyanese content development is the key factor to the success of its operation It is committed to establishing Guyanese partnerships and developing Guyanese content. In keeping with this business philosophy, SBM said companies answering the RFI will have to present their involvement for the Guyana community and/or any involvement in sustainability projects or development in country.

According to GDO’s 2021 financials, its principal activity is the operation and maintenance of the Liza Destiny and Liza Unity. The operations and maintenance for Liza Destiny started December 19, 2019, when a certificate of production was issued by its client, ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL).

In December 2018, the company signed a Readiness for Operations (RFO) contract with Esso Exploration and Production Guyana Limited for the FPSO Liza Unity. The operations and maintenance contract for the Liza Unity followed first oil in February.

In terms of future developments, the SBM affiliate said operations continue to experience strong growth, both offshore and onshore.

Preparations are also ongoing for the arrival of the FPSO Prosperity in 2023 and FPSO for the Yellowtail development project in 2025 for which the operations and maintenance contract award is subject to necessary government approvals and final work order to be received from the client.

The company continues to expand and embed its presence in-country with the opening of new purpose-built operational headquarters including an Integrated Operation Centre for offshore units.

 

 

Liza 1 expenses

Feb 10, 2023

Guyana repaid ExxonMobil and its partners, Hess and CNOOC, approximately US$4 billion for developing the Liza Phase One offshore project.

Country Manager for ExxonMobil Guyana, Alistair Routledge said that the project’s expenses have been cleared.

“On Liza, it all goes into the same cost bank but we have now recovered cost that would be equivalent to the original investment for Liza Phase One.”

Significant progress has also been made in terms of repaying the investment on the second deepwater project, Liza Phase Two. He could not state how much has been paid off to date but noted that these details would be included in the company’s financials in a few weeks.

Guyana shares revenue with ExxonMobil after the company deducts 75 percent towards the cost incurred to develop resources of the Stabroek Block. In this arrangement, Guyana pays for projects yet to commence production activities.

Each month bills from future producing developments are added to the list of expenses to be cost recovered by Exxon. After the 75 percent is deducted to pay back the oil company, Guyana then shares 50/50 of the 25 percent remaining with Exxon as profits. This amounts to 12.5 percent of profits from the operations.

 

Hess cut but still a ‘world-class growth story’

Jan. 27, 2023 By: Carl Surran, SA News Editor

Hess (NYSE:HES) -2.6% in Friday’s trading as Goldman Sachs downgraded shares to Neutral from Buy with a $170 price target, in a valuation call after surging 75% during the past year and touching an all-time high $160.52 in the previous session.

Goldman’s Neil Mehta said Hess’ outperformance has been warranted due to Guyana’s exceptional increase in resource potential, the in-service of Liza phases 1 and 2, and “the re-rating of the oil curve, where Hess has more liquids leverage than typical onshore U.S. E&Ps.”

Among large-cap energy names, Goldman prefers Exxon Mobil (XOM) for its international exposure including Guyana with additional tailwinds around refining; ConocoPhillips (COP) because of relative valuation; and select Canadian E&Ps such as Canadian Natural Resources (CNQ) and Suncor Energy (SU) for higher through-cycle free cash flow generation despite lower growth.

Hess (HES) shares gained during the past two days after reporting Q4 earnings that more than doubled and easily beat analyst estimates.

 

 

Guyana reserves big on Hess radar

January 27, 2023

Hess Corporation, one of the high-profile US oil companies, disclosed that it will allocate a huge slice of its 2023 US$3.7 billion capital and exploratory budget to exploratory work offshore Guyana., evidence that the proven world class petroleum resources continue to attract the attention of the world’s leading players in the industry.

The announcement comes just weeks before Guyana’s February 14th – 17th International Conference which is expected to bring a retinue of international oil companies and experts to further probe issues relating to the significance of recently confirmed huge resources and what those resources mean in the context of the wider global energy sector. Hess is part of a consortium led by US’ global oil giant, ExxonMobil, currently operating in the Guyana oil and gas basin, one of the most talked-about global hotspots.

 

Hess expects higher 2023 spending with focus on Guyana, Bakken

Jan 24 (Reuters)

U.S. oil and gas producer Hess Corp forecast higher Exploration & Production (E&P) capital and exploratory budget of $3.7 billion for 2023, of which over 80% would be allocated to Guyana and North Dakota’s Bakken shale field. The company forecast 2022 E&P capital and exploratory expenditure of about $2.7 billion.

The oil and gas producer is in a consortium which includes Exxon Mobil Corp that operates in Guyana, one of the world’s hottest oil basins .Hess said 39% of the $3.7 billion budget is allocated for production, 46% for offshore Guyana developments and 15% for exploration and appraisal activities.

$90 million was allocated to the Liza Phase 1 and Phase 2 developments on the Stabroek Block offshore Guyana, which are currently operating at a combined gross production capacity of more than 360,000 barrels of oil equivalent per day (boepd). $1.21 billion would be allocated for the developments on Stabroek Block’s Payara, Yellowtail and Uaru projects.

In the Bakken shale field, Hess plans to operate a four-rig program, helping the company to maximize free cash flow generation and further reducing unit costs.

Hess expects its net production to average between 355,000 and 365,000 boepd in 2023, compared with its forecast of 325,000 boepd in 2022.In 2023, net production at Bakken is expected to average between 165,000 and 170,000 boepd and about 100,000 barrels of oil per day in Guyana.

The New York City-headquartered company will report fourth-quarter results on Jan. 25.

Sourasis Bose ; Vinay Dwivedi and Krishna Chandra Eluri.

 

 

New chamber looks to boost trade, investment

By Cassandra Khan
February 17, 2023

The new British Chamber of Commerce Guyana (BritCham Guyana) has been established to promote and facilitate commercial business opportunities and mutually beneficial relationships between the United Kingdom (UK) and its largest trading partner in the Caribbean, Guyana.

British and Guyanese companies were encouraged to contact BritCham Guyana to sign up as members to enjoy the full benefits of its support in exploring and accessing each market.

Alongside the promotion and facilitation of bilateral trade and commerce, BritCham Guyana, which was launched at the International Energy Conference and Expo, will foster an open networking environment where companies can engage and discuss issues impacting their businesses and UK-Guyana trade, including events such as member meetings, business breakfasts, and seminars.

The independent, non-profit chamber will serve as a leading promoter and enabler of trade and investment between the UK and Guyana, one of the world’s fastest-growing economies.

BritCham Guyana will also work closely with the British High Commission in Georgetown and UK government departments to support their advocacy work in Guyana. The new organisation will be chaired by Guysons Group Chief Executive Officer (CEO) and UK/Guyanese citizen, Faizal Khan, supported by a board of leading business executives with close ties to both countries, with an office at Pegasus Suites and Corporate Centre in Georgetown.

Khan said that BritCham Guyana aims to become the trusted partner and platform for fostering business between the UK and Guyana, driving foreign direct investment into the Guyanese market, expanding horizons for Guyanese firms, and improving the ease of doing business for its members in both markets.

“Guyana and the UK have enjoyed a cordial, strong relationship for more than five decades, and the business community between the two nations is growing quickly as Guyana’s economy booms.There are already significant opportunities for companies in both markets, which we only expect to increase in the years to come. We encourage enterprises based in the UK to join BritCham Guyana so that we can help them understand, navigate and tap into Guyana’s rapidly expanding economy.”

Khan urged Guyanese businesses to sign up to explore opportunities in the large, diverse UK market and partnerships with UK companies and investors. BritCham Guyana will offer its members increased access to and knowledge of each market, investment opportunities, expert and technical skills, advisory services, a wide range of industry, policy, and regulatory insights across sectors, and competitive pricing.

Jane Miller, the British High Commissioner to Guyana, stated that BritCham presents a chance to unite a wide range of UK exports, investors, and services with solid governance, world-class standards, and experience that complement the goals of Guyana’s business community through long-term and sustainable partnerships.

Guyana is the UK’s largest trade partner in the Caribbean. In 2021, the country accounted for 21.6 per cent of all the UK’s trade with the Caribbean, and, to date, there has been a 45.9 per cent increase in trade between the two nations for 2022.

The move to establish the new business chamber comes on the heels of the announcement of visa-free travel to the UK, a direct British Airways flight from the end of March, and the signing of a partnership arrangement by Guyana’s Minister of Foreign Affairs and International Co-operation, Hugh Todd and His Majesty’s Trade Commissioner for Latin America and the Caribbean, Jonathan Knott, CMG in November 2022.

The Chamber will provide further information in due course regarding membership opportunities, governance, and upcoming launch events.

“Companies or individuals interested in joining the chamber should visit britchamgy.com to download an application form and submit the completed form via email to admin@britchamgy.com,” the release stated.

 

 

2016 Stabroek Block deal

Feb 12, 2023

Head of ExxonMobil Guyana, Alistair Routledge feels the 2016 Stabroek Block Production Sharing Agreement (PSA) deal offers Guyanese more benefits than it does for the investors.

Routledge told media the widely publicized view that ExxonMobil, Hess Corporation and CNOOC Petroleum Limited, are walking away with the lion’s share of benefits from the 2016 PSA is untrue.

He said that talks of renegotiating the deal to seek a supposed “rebalancing of terms” would be destructive to investor confidence.

“Guyanese are benefitting more than the investors and it is very clear under the Stabroek Block Production Sharing Agreement that 50 percent of the profit goes to the country and 50 percent to the investors. But then in addition to that, there is a two percent royalty which comes out of the investors’ share of the profits from the block. In essence, 52 percent goes to the country.”

“Now beyond that, what is incredibly important for any country or any business is the stability and we have made now over US$30B worth of investment commitment to the country based on the contract as it stands. To change the contract when you have already made that level of commitment would be very destructive to investor confidence in the Stabroek Block and I would expect more widely in the country.”

 

 

ExxonMobil, Qatar to draft gas leak, monetization plans

Denis Chabrol 1 February 2023

Minister of Natural Resources Vickram Bharrat told the National Assembly that Qatar plans send two experts to Guyana to assist with the development of gas leak and gas monetization plans being crafted by ExxonMobil.

During the consideration of 2023 budget estimates of expenditure he said that no money has been included in this year’s budget for the gas leak plan for the gas-t0-shore project because ExxonMobil would be financing that aspect.

“The operator has been assisting with all the studies along with our technical team so you would not see an allocation assigned to it but it is being done between ourselves and the operator; they are actually paying f0r it then.”

The 190-mile pipeline from Liza will land on the West Coast Demerara and then continue to Wales where a 300 megawatt natural gas-fired electricity generation plant and a natural gas liquids plant will be constructed by the American joint venture CH/LINDSAYCA at a cost of US$759 million. The 12-inch pipeline is expected to feed the plants with 50 million standard cubic feet of natural gas.

To a question about the wisdom of asking ExxonMobil to formulate its gas leak management plan rather than government hiring independent experts to do so, Bharrat said the operator was now required to have such a plan in keeping with the new production licences for Payara and Yellowtail but government would still conduct its own review. He told the Committee of Supply,

“It is not us accepting what the operator gives to us; it is us reviewing and making our input but it is built into the licence, it is part of their responsibility. It takes the expense away from us but we still have a major say in reviewing and putting our inputs into any plan,”.

Mr Bharrat acknowledged that concern was genuine and that is why GY$25 million have been allocated to hire consultants to review the operator’s reports and studies.

The Minister said following the recent visit by Qatar’s Petroleum Minister Sherida Al-Kaabi to Guyana, that country would be sending two experts next week to this oil-rich South American nation to assist with the gas leak, and gas utilisation-monetisation plans “at no cost to us.”

Government allocated GY$100.7 million to review the Whiptail Field Development Plan which is expected to be submitted in late 2023, and when that comes on stream it would be the sixth development.

 

 

Busy year for Upstream sector

Feb. 1

Rystad Energy expects Guyana to remain at the forefront of global upstream activity in 2023

Courtesy Rystad Energy ECub

The announced discoveries in Guyana and average volumes are highlighted by Rystad Energy.

Discoveries and average volumes by Rystad Energy.

Offshore staff

HOUSTON — Rystad Energy reported that Guyana had a “stellar 2022” with the announcement of 10 new finds, which included a record nine new discoveries in a calendar year within the Exxon Mobil-operated Stabroek Block and one in CGX’s Corentyne tract.

This success yielded estimated new cumulative recoverable resources of about 1.8 Bboe, securing Guyana pole position among countries with the highest conventional discovered volumes last year. The “outstanding success” in the country, particularly on the prolific Stabroek Block, led E&P players to allocate a sizeable portion of upstream spending toward further exploration as well as maturation of discoveries toward development, meaning Guyana will continue to be at the forefront of global upstream activity in 2023, Rystad said.

Guyana added about 1.8 Bboe of additional resources last year, according to Rystad Energy’s conservative approach, surpassing all other countries in terms of cumulative recoverable resources unearthed in the year. The fresh resources came from 10 new finds, nine of which were on Stabroek and the remaining one,

Kawa, on CGX’s Corentyne Block and which added 99 MMboe.

The nine discoveries on Stabroek comprised

1. 1. 1. Yarrow (74 MMboe),
      2. Sailfin (334 MMboe),
      3. Lau Lau (338 MMboe),
      4. Fangtooth (175 MMboe),
      5. Barreleye (246 MMboe),
      6. Lukanani (122 MMboe),
      7. Patwa (115 MMboe),
      8. Seabob (139 MMboe) and
      9. Kiru Kiru (105 MMboe).

Rystad said these 10 new finds have helped strengthen the already established discovery trend line and have seen the resurgence of a secondary parallel zone. They have expanded the play fairway with fields that are viable for commercial development, strengthening the ambition of Exxon Mobil and its partners CNOOC International and Hess of eventually deploying 10 FPSO vessels on Stabroek.

The Kawa discovery is significant in being away from Stabroek, outside of which exploration results to date have been disappointing. Kawa de-risks future exploration on Corentyne, where operator CGX and its partner Frontera Energy have in recent days spud their second well, Wei-1.

Guyana is in talks with Qatar, Britain, the United Arab Emirates and India on the possibility of allocating offshore blocks for oil and gas exploration under a bidding round this year, President Irfaan Ali said on Jan. 23. With over 11 Bbbl of oil and gas discovered, the petrostate scheduled an auction of offshore exploration areas and would consider government-to-government talks with national oil companies.

Prior to that news, Guyana announced revenue from oil exports and royalties this year is expected to climb 31% to $1.63 billion, Finance Minister Ashni Singh said on Jan. 16, on higher output from addition of a third production facility near year-end.

02.01.202