Aker Solutions wins umbilicals contract for Uaru Project

19 May 2023

Aker Solutions has been awarded a sizeable [1] contract from ExxonMobil to provide dynamic and static subsea umbilicals for the Uaru project. The contract includes delivery of three dynamic and seven static umbilicals totaling over 52 kilometers in length. Project execution, engineering, and manufacturing will take place at the Aker Solutions facility in Mobile, Alabama. Work will begin immediately and delivery is planned for the first quarter of 2026.

The Uaru field is part of ExxonMobil’s Starbroek project and is expected to add approx. 250,000 barrels of daily capacity after targeted start-up in 2026.

Maria Peralta, executive vice president and head of Aker Solutions’ subsea business, said  ‘We are excited by the award of the Uaru umbilical system, and to continue our relationship with ExxonMobil in Guyana, following the previous awards of the Payara and Yellowtail umbilical. These projects constitute an important portfolio of work in one of the most exciting basins in the world.’

The contract will be booked as order intake in the Subsea segment for the second quarter of 2023.

(1) Aker Solutions defines a sizeable contract as between NOK 0.5 billion and NOK 1.5 billion.

 

 

Uaru FPSO for offshore Guyana proceeds to EPCI phase

May 8, 2023
Offshore staff

TOKYO, Japan — MODEC will proceed with engineering, procurement and construction on the Uaru FPSO vessel following a final investment decision on the Uaru project by ExxonMobil Guyana and its co-venturers on April 27.

MODEC says Uaru is a significant addition to its portfolio, as it covers the EPCI of the FPSO. MODEC will also provide ExxonMobil with operations and maintenance service of the FPSO for 10 years from its first oil production.

The Uaru FPSO is named Errea Wittu, which means “abundance,” and will be the fifth offshore FPSO in Guyana. The FPSO will combine the development of the Snoek, Mako and Uaru resources in the Stabroek Block. It will be deployed about 200 km offshore Guyana at a water depth of 1,690 m, using a SOFEC spread mooring system, and it will be able to store about 2 MMbbl of crude oil.

ExxonMobil’s co-venturers on the Stabroek Block are Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%).

Offshore Frontier Solution, a MODEC Group company and a joint venture with Toyo Engineering Corp., launched in August 2022, will be responsible for the engineering, procurement and construction of the FPSO based on MODEC’s M350TM newbuild hull. The FPSO will have a topside designed to produce about 250,000 bbl/d of oil and will have associated gas treatment capacity of 540 MMcf/d, water injection capacity of 350,000 bbl/d and produced water capacity of 300,000 bbl/d.

The FPSO will be MODEC’s first for use in Guyana, and it will be the 18th FPSO/FSO project delivered by MODEC for use in South America.

05.08.2023

 

 

Saipem authorized by ExxonMobil to proceed with oilfield project offshore

World Oil Staff May 04, 2023 (WO)

Saipem has received authorization to proceed with the final phase of the Uaru oilfield development project in Guyana from ExxonMobil Guyana and its Stabroek block coventurers.

The final phase of the awarded scope of work includes the design, fabrication and installation of subsea structures, risers, flowlines, and umbilicals for a large subsea production facility. Saipem will perform the operations using its flagship vessels FDS2 and Saipem Constellation.

In accordance with the terms of the original award communicated in December 2022, Saipem had initiated some limited activities, namely detailed engineering, and procurement.

Saipem was previously awarded four other subsea contracts by ExxonMobil Guyana for developments in the same area, namely Liza Phase 1 and 2, Payara, and Yellowtail, thereby further consolidating its presence in the country.

 

 

ExxonMobil orders TechnipFMC subsea production system

MAY 9, 2023, BY NADJA SKOPLJAK

TechnipFMC secured a large contract by ExxonMobil to deliver a subsea production system for a recently sanctioned oil development project in Stabroek block offshore.

Under the contract awarded by ExxonMobil affiliate Esso Exploration and Production Guyana,    TechnipFMC will provide project management, engineering, and manufacturing to deliver the overall subsea production system for the Uaru project.

The award covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.

TechnipFMC currently employs more than 100 Guyanese and expects to continue to hire and train additional local staff in support of this award.

The company defines a “large” contract as being worth between $500 million and $1 billion.

Jonathan Landes, President, Subsea at TechnipFMC, said: “We are very proud to continue our relationship with ExxonMobil Guyana through this award, which is our fifth within the Stabroek block. This is ExxonMobil Guyana’s first project utilizing our Subsea 2.0 system, which leverages our configure-to-order model to deliver on an accelerated schedule.”

ExxonMobil sanctions $12.7 billion oil development off Guyana

ExxonMobil and its co-venturers took a final investment decision for the Uaru project 

27 April.

Italian oilfield services provider Saipem was recently given the go-ahead to proceed with the final phase of work for the $12.7 billion oil development project. In addition, Japan’s FPSO provider MODEC disclosed on 8 May that it would proceed with engineering, procurement, and construction on the Uaru FPSO.

SBM orders eighth `replica’ FPSO hull

May 11, 2023
Offshore staff

MONACO – SBM Offshore has ordered the eighth Fast4Ward MPF FPSO hull under its Fast4Ward program.

CMHI (China Merchants Heavy Industry Co.) will construct the hull. To date, SBM has delivered six hulls to confirmed field developments and has granted exclusivity for the seventh to ExxonMobil Guyana.

In its latest results review, the company provided an update on the status of its various newbuild floaters.

Topsides integration is nearing completion for the FPSO Sepetiba, onshore commissioning is progressing, and first oil should flow oil in the second half of 2023.

Commissioning has started on the FPSO Prosperity for the Payara Field development off Guyana.       Here, too, first oil is later in the year.

The Fast4Ward MPF hull for the FPSO Almirante Tamandaré has reached the yard responsible for the topsides integration.      The completed platform should be delivered next year followed by first oil in 2025.

FPSO Alexandre de Gusmão’s Fast4Ward MPF hull has also been delivered to the integration yard, and topsides fabrication is making progress. First oil in 2025.

The FPSO One Guyana’s Fast4Ward MPF hull entered drydock in Singapore, and topsides fabrication is progressing.     Startup is expected by year-end 2025.

, SBM has secured a one-year extension to the contract for the FPSO Mondo at the Mondo offloading terminal offshore northern Angola.        The platform is undergoing maintenance, but production operations should resume shortly.

Finally, construction has finished of the three floating foundations for the floating offshore wind turbines for the Provence Grand Large project in the French Mediterranean.

Preparations continue for the load-out to allow for integration of the three x 8.4-MW turbines by Siemens Gamesa. On completion, SBM will perform the offshore installation of the floaters and the anchoring systems.      The pilot project should generate first electricity before the end of the year.

05.11.2023

Exxon earns US$11.4B in first quarter

Apr 29, 2023

Chairman and Chief Executive Officer (CEO), Darren Woods disclosed that ExxonMobil Corporation secured record first quarter earnings for 2023 totalling US$11.4B, boosted by prime oil projects in Guyana and the USA. Strong financial performance is a reflection of Exxon’s lean cost and execution efficiencies.

During his company’s earnings call, Woods said, “Following a record year, ExxonMobil delivered the highest first-quarter earnings in our history even as energy prices and refining margins moderated from the fourth quarter. This ongoing success reflects the hard work of our people, executing our strategic priorities, and fully leveraging our competitive advantages.”

Through investments in advantaged assets such as Guyana and the USA and cost and operating discipline, Woods said his company was able to deliver the structural earning improvements outlined in its Corporate Plan Update last December, and expand the energy supplies needed to meet growing global demand.

Compared to the first quarter of 2022, Woods said the company added about 300,000 oil-equivalent barrels per day to global supply, primarily from a 40% increase in production from Guyana where two ships are in operation as well as increased production in the Permian Basin. The increase more than offset divestments and the expropriation of Sakhalin-1 well operations in Russia, which it no longer accounts for but which, importantly, remains part of global supply.

Woods said he was pleased to announce that the company reached final investment decision for Uaru, the fifth offshore project in Guyana, expected to cost some US$12.7B. Uaru will bring on even more production from this low-cost, low–carbon intensity resource, providing an additional 250,000 barrels per day of gross capacity, with startup targeted for 2026.

The floating production, storage, and offloading vessel for Payara is on site and well ahead of schedule. Last year, the company pulled the Payara start-up date forward from 2024 to 2023 and expects the project to be up and running in the fourth quarter. Payara  will add another 220,000 barrels of gross capacity and will be the third consecutive FPSO to start production ahead of schedule. It will work alongside the Liza Destiny and Liza Unity vessels which are producing approximately 380,000 to 4000 barrels of oil per day.

Taking the foregoing data into account, Woods said, “You can see that our underlying performance remains rock-solid, and well ahead of our competition, reflecting the many improvements we’ve made over the last six years and, of course, the hard work of our people. I’m extremely proud to lead a company made up of so many talented men and women committed to finding innovative solutions, meeting society’s greatest needs. As our results demonstrate, we’ve built a strong portfolio of advantaged businesses that are better leveraging the synergies of our integrated businesses, our scale and, increasingly, our unique technical capabilities.”

When combined with the strength of its balance sheet, Exxon has the capability to win across a wide variety of market conditions and deliver strong returns while meeting the evolving needs of society, including the need to reduce emissions

 

Uaru project to boost oil output to 1.1M bpd

April 28, 2023

Guyana’s oil production is expected to jump from some 380,000 barrels per day to over 1,100,000 barrels by mid-2027, as the government approved ExxonMobil’s Uaru Field Development Plan, pushing Guyana to become one of only 11 countries producing over one million barrels of oil per day.

The Uaru Petroleum Production Licence was issued with the approval of the plan.

The Uaru project, valued at some US$12.683 billion is now the fifth approved production operation for offshore Guyana within the Stabroek Block and is expected to produce 812 million barrels of oil within the initial 20-year licence period, through a total of 44 wells, 21 producers and 23 water and gas injectors. The FPSO for the project, Errea Wittu, will be built by Mitsui Ocean Development & Engineering Company (MODEC) Inc. and is estimated to produce 250,000 barrels per day at peak production.

President of ExxonMobil Upstream Oil and Gas, Liam Mallon, noted that Exxon’s fifth, multi-billion-dollar investment in Guyana exemplifies ExxonMobil’s long-term commitment to the country’s sustained economic growth.

“Our Guyana investments and unrivalled development success continue to contribute to secure, reliable global energy supplies at this critical time.“

In 2022, Senior Minister for Finance, Dr Ashni Singh projected that the revenue inflows to the Natural Resource Fund (NRF) over the next few years would amount to twice the size of its $552.9 billion 2022 Budget. At the time, Guyana expected US$957,874,800 in revenues in 2022, US$1,165,443,900 in 2023, US$1,335,315,100 in 2024, and US$1,781,842,700 in 2025. These figures, accounting for profit oil, royalties and interests, amount to US$5,240,476,500. That amounts to almost GY $1.1 trillion.

Two FPSOs, the Liza Destiny and Liza Unity are currently operating offshore and produce an average of 375,000 barrels of oil per day in the first quarter of this year.

A third FPSO, the Prosperity, is expected to be operational later this year, adding 220,000 barrels of daily capacity from the Payara development.

ExxonMobil made a final investment decision on the fourth offshore project, Yellowtail, last year and aim to have six FPSOs online by the end of 2027, bringing Guyana’s production capacity to over 1.2 million barrels per day.

GOG approves Uaru Development Plan, issues Production License

April 28, 2023

The Government of Guyana through the Ministry of Natural Resources announced the approval of the Uaru Field Development Plan and the issuance of the Uaru Petroleum Production License.

The Uaru project is now the fifth approved production operation for offshore Guyana within the Stabroek Block. Uaru is expected to produce 812 MBO in the initial twenty (20) year license period through a total of 44 wells – 21 producers and 23 water and gas injectors. The FPSO, Errea Wittu, will be built by MODEC and produce 250 kbd at peak production.

The project anticipates first oil by the second quarter of 2027 and will boost Guyana’s overall production rate to over 1,100,000 barrels of oil per day. The project introduces a new major sub-contractor to Guyana – MODEC, a Japanese FPSO building and operating company, will now compete with SBM, which is responsible for the first four projects. Some notable changes in the FPSO design compared to previous projects are the use of a combined-cycle gas turbine for power generation and a closed-loop flare system. The combined-cycle turbine is more efficient and produces lower greenhouse gas emissions, while the closed-loop flare system reduces greenhouse gas emissions from the project.

The Uaru Project is budgeted to cost US$12.683 billion which will be subject to cost recovery under the Stabroek Block Petroleum Agreement.

The Uaru development also benefits from ExxonMobil’s “Design One Build Many” philosophy for its Guyana projects, which enables projects to come on-stream more efficiently by leveraging similarities between black oil projects.

CGX Oil strike to change dynamics

CGX Energy’s over-budget Wei-1 exploration well finds oil, but going concern issues put a dampener on news

5 May 2023
By Iain Esau in London

Financially challenged, Toronto-listed junior CGX Energy hit oil in a wildcat offshore Guyana, one of the world’s exploration hotspots, but it is too soon to know if it has a commercial discovery on its hands.

ExxonMobil’s Stabroek block has a monopoly on viable oil discoveries in Guyana, with any wells drilled on adjacent acreage that find hydrocarbons being either too small to develop or housing poor-quality oil.

However, CGX and Frontera Energy — a far bigger player whose shares also trade in Toronto — hope to change that dynamic with their challenging Wei-1 probe in the Corentyne block, 10 to 20 kilometres or so from ExxonMobil discoveries in Guyana and TotalEnergies’  finds in Suriname.

Guyana opens embassy in Qatar

May 18, 2023

His Excellency President Dr Irfaan Ali called the opening of the Guyana Embassy in Qatar, a “momentous occasion” and a direct link to enhancing bilateral relations between the two nations.

The Head of State, on an Official Visit to the Middle Eastern petrostate noted that Guyana and Qatar share a number of similarities, promoting peace, stability and sustainability.

The embassy opening, was “significant because it symbolised the physical existence of the bond of friendship, love and commitment between two countries, who share common values to secure the prosperity of humanity and to advance a cause through which we create a better environment for the people of our countries and the people of this world”.

President Ali highlighted Guyana’s current development path and global leadership drive in climate, energy and food security.

“The core issues of food security, climate security and energy security are paramount to the existence of humanity. Qatar is showing by example through investment, technology, commitment, and the training of their human resource potential.”

Qatar has many “good examples” that Guyana can learn from; including the ways that the country’s resources were invested to diversify the economy, expand its reach, and promote prosperity of its people. Qatar’s Minister of State for Foreign Affairs, HE Sultan bin Saad Al Muraikhi said the embassy opening is a starting point in the advancement of relations between the two “friendly” countries.

“We at the Ministry of Foreign Affairs affirm our provision of all possible assistance that would contribute to supporting and strengthening bilateral relations at all levels, especially in the economic, political and cultural fields…”

President Ali and Senior Minister for Finance, Dr Ashni Singh met the Emir of Qatar, His Highness Sheikh Tamim bin Hamad Al Thani and members of his Cabinet. They were given a guided tour of the Baladna Farm in Al Khor, one of the largest cattle farms in the region.

Guyana and Qatar established diplomatic relations in 1996.

 

 

Vital role in climate talks

May 18, 2023

At the official opening of Guyans’s embassy in Qatar. President, Dr Mohamed Irfaan Ali said Guyana is a key player in the global conversation surrounding environmental conservation and climate security.

“Guyana is leading on the issue of climate change, globally. We are the first country to deploy large-scale carbon on the international market, the first country to sign an end-user agreement with Hess Corporation, and a bilateral agreement on the sale of carbon with the Kingdom of Norway. The forest, which is the second-largest forest cover globally, stores 19.5 gigatonnes of carbon. So, as we discuss climate change and environmental services, those discussions cannot be without Guyana as a main player and stakeholder.”

Since election in 2020, President Ali has made it a point to advance Guyana’s climate security, building on work begun by former president and now Vice-President, Dr Bharrat Jagdeo. This includes the release of the Low Carbon Development Strategy 2030, which is an enhanced version of the LCDS 2009, after taking into account local and international developments that focus on investments in clean energy to stimulate low-carbon growth, protection against climate change and biodiversity loss.

Last December, the government and Hess Corporation announced an agreement for Hess to purchase high-quality carbon credits for a minimum of USD $750 million between 2022 and 2032, directly from the government. The agreement will support Guyana’s efforts to protect its vast forests and provide capital to improve the lives of citizens through government investments as part of LCDS 2030.

Actively participating in international agreements and initiatives related to climate change, Guyana has been involved in the United Nations Framework negotiations and played a prominent role in promoting climate resilience. Guyana continues to honour its commitment to protecting and preserving wildlife and biodiversity, and playing its role in achieving ‘30 by 30,’ a worldwide initiative for governments to designate 30 per cent of its land and ocean area as protected areas by 2030.

 

 

IDB

Blackouts, political crisis, major hurdles to doing business

May 18, 2023

The unreliable power supply and unstable political climate are major obstacles to doing business in Guyana, the Inter-American Development Bank said in its Caribbean Economics Quarterly review titled: “Caribbean Economics Quarterly.”

For years Guyanese have struggled with frequent power outages despite billions of dollars in investments at the Guyana Power and Light (GPL) . The government has embarked on an ambitious gas-to-energy project, which Vice President Bharrat Jagdeo said will solve electricity woes. Yet to date no financial and/or any feasibility study for this project, which includes approximately 25km of on-shore pipeline, has been published despite repeated requests . Budget documents indicate the government is seeking GY$134 billion (US$646 million) from the US Exim Bank for the project, raising further concerns about the country’s debt record.

The Public Utilities Commission (PUC) reported that GPL has continuously failed to achieve the majority of its Operating Standards and Performance Targets (OSPTs), despite those targets being below industry norms and ‘nearly met’ the other targets. PUC Order 1 of 2023, a review of GPL’s performance in 2022, portrayed the agency in a grim light for achieving four of the eight standards and targets.

For System Average Interruption Frequency Index (SAIFI), the Commission stated that this standard is to limit the average number of outages which consumers received during the reporting year. For the year 2022, the target was set at 90 outages. GPL failed this standard as it was revealed that for last year there were a total of 94 outages.

Data collected by the company revealed that the main reason for the high number of customer outages, was as a result of feeder and transmission line trips and increased planned maintenance. As it relates to the System Average Interruption Duration Index (SAIDI), the intent of this standard is to limit the duration of outages experienced by consumers during the year. For the year 2022, the target set was 95 hours; however, the average duration of outages experienced by consumers during the year was 96 hours. As such, this standard was not met by GPL.

The IDB review stated the top six obstacles to doing business were electricity, tax rates, skilled labour, collateral requirements for loans, interest rates on loans and customs and trade regulations. The bank said 64% of firms cited electricity as either a major or very severe obstacle to doing business, while 47% cited customs and trade regulations. In contrast, for the Caribbean overall, electricity remains a challenge, but not the main one, as 49% of firms identified it as a major or very severe obstacle.

Regionally, the three most significant obstacles were collateral requirements for loans, identified by 63% of surveyed firms, followed by customs and trade regulations (59%), and skilled workers (59%).

“The greatest divergences between Guyana and the region are in the categories of political environment and electricity, which are identified as more serious obstacles in Guyana, while collateral requirements, customs and trade regulations, and labour regulations are reported as more serious obstacles in the region.”

The bank said some obstacles appear to have become more serious recently in Guyana. In comparing the survey results between 2014 and 2020, electricity, tax rates, skilled workers, collateral requirements, interest rates, customs and trade, and land have been reported to be major and very severe obstacles by a larger share of surveyed firms.

“Electricity continues to be a significant challenge, as it was reported as an obstacle by more than 60% of firms in both surveys. Similarly, there has been little variation across the surveys in the obstacles reported in customs and trade, the political environment and corruption. However, there has been significant variation in areas such as collateral requirements, land and skilled workers, with almost 30% more firms identifying collateral and 20% more firms identifying access to land as an obstacle. This result is not surprising in the context of a booming economy, considering the high levels of capital inflows.”

The bank noted that increased business opportunities demand higher levels of credit and skilled workers, while at the same time property values have increased, making access to land more difficult.

The bank stated that a higher share of firms reported having power interruptions, but fewer reported mobile and internet service interruptions compared to the Caribbean average. In 2020, 79% of surveyed firms reported experiencing power service interruptions over the last year compared to 70% in the Caribbean. However, only 15% of firms in Guyana reported having mobile phone connection interruptions, compared to 32%, and 40% having internet service interruptions compared to 56% in the Caribbean.

 

 

US$150 million MOU signed with Saudi Fund for Development

2023 05  12

Guyana signed a US$150 million memorandum of understanding (MOU) with the Saudi Fund for Development for infrastructural works in Guyana.

The statement by the Ministry of Finance said that Senior Finance Minister Dr. Ashni Singh signed the MOU with the chief executive officer of the Saudi Fund for Development, Sultan A. AlMarshad ”regarding the Fund’s participation in the financing of development projects in Guyana.”

The projects are infrastructural development works for the housing sector and construction of the Wismar Bridge, both projects totalling US$150 million.
The MOU was signed on the sidelines of the 2023 Islamic Development Bank (IsDB) Group’s annual meeting in Saudi Arabia.

Singh, who is leading Guyana’s delegation to the meeting “thanked the Saudi Arabia government for its invaluable cooperation and partnership in Guyana’s development”.

As Guyana continues its “aggressive drive to transform the country’s landscape, this transformation is particularly visible in the area of transport infrastructure”.

 

 

EPA appeals High Court decision

May 10, 2023

The Environmental Protection Agency (EPA) filed a Notice of Appeal against the High Court ruling in favour of Guyana receiving unlimited parent company guarantee from Esso Exploration and Production Guyana Ltd. (“EEPGL”) and its parent company, Exxon Mobil in the event of an oil spill.

Justice Sandil Kissoon ordered the EPA to issue an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, Exxon Mobil to ensure it provides unlimited parent company guarantee to safeguard Guyana against the devastating effects of an oil spill by June 10.

The ruling stipulates that failure to comply with the court order will result in the suspension of the environmental permit A Notice of Appeal was drafted and filed by Attorney-at-law and People Progressive Party/Civic (PPPC) MP, Sanjeev Datadin.

The EPA is seeking to reverse the High Court decision on the grounds that the trial court erred in law in interpretation, consideration and application of the combined effect of Clause 14 of the Environmental Permit issued to EEPGL and erroneously concluded that the financial assurance must be provided by EEPGL.

The EPA argued that the trial court erred in law and misconstrued the Environmental Protection Act and its Regulations to determine that the Appellant, a statutory body had specific statutory powers which it did not.

The EPA argued that the trial court erred in law and misconstrued the substance and effect and wrongly ascribed to it an interpretation superior to the Environmental Protection Act and thereby ascribed meaning to it which was expressly contrary to the specific provisions of the said Act and its Regulations.

The EPA submitted that the trial court erred in law in directing and determining the exact manner of the exercise of the discretion of the EPA in a manner contrary to established law and practice.

In effect the EPA said that the trial court substituted its own discretion as the decision of the EPA when the Agency at all material times, exercised its discretion and acted well within its statutory and regulatory powers.

As a result, the EPA seeks a stay of execution of the judgment of the Court as it contends that irreparable harm would be suffered by the nation’s economy.

Director of the EPA, Kemraj Parsram in an affidavit inter alia said that he was advised that the grave disruption to the national economy coupled with the good prospect of success of the Appeal is sufficient for the court to grant a stay of execution of the order and judgment of the High Court. Parsram said that the court orders are quite coercive; including its mandate to the EPA to serve a statutory notice on EEPGL, and if no adequate response is received then the permit stands suspended. The judgment will have severe consequences and the direction of the Court has the effect of removing entirely the discretion of the agency.

Guyana as a nation now earns billions of dollars annually from the petroleum activities conducted on the Liza 1 and Liza 2 fields; both are subject to the permit suspension or cancellation which will have a catastrophic effect on national funds for development and also the private sector which supports the activities on the Liza 1 and 2 fields.

President of the Transparency Institute of Guyana Inc (TIGI), Frederick Collins and another citizen, Godfrey Whyte, took the EPA to court to enforce a critical clause in the Liza Phase One renewed environmental permit that was issued to EEPGL. The case was filed in the High Court on September 13, 2022 by Attorneys Seenath Jairam, SC, Melinda Janki, and Abiola Wong-Inniss.

Mr. Collins, a former insurance professional said, “An oil spill would be devastating for our country and Region as many Guyanese and Caribbean peoples depend on the ocean for their livelihoods. That is why we have decided that the time has come to take matters to the court for relief.”

The litigants said that their resort to the court is to make sure that the company takes full financial responsibility in case of harm, loss and damage to the environment. The High Court ruled in favour of the TIGI Head and Whyte granting them several reliefs requested.

 

U.S. Assistant Secretary ends productive visit

May 12, 2023

Geoffrey R. Pyatt, Assistant Secretary, United States Department of State Bureau of Energy Resources (ENR) discussed energy security in Guyana, the USA, and globally, with government officials and business leaders on May 10, 2023. He met Vice President, Bharrat Jagdeo and Minister of Natural Resources, Vickram Bharrat.

Assistant Secretary Pyatt reviewed the U.S.-Caribbean Partnership to address the Climate Crisis 2030 (PACC 2030) including the advancement of clean energy resources and resilient energy infrastructure in a timely manner, and on a sustainable and affordable basis.

The United States Embassy in Guyana said that Pyatt took the opportunity to examine Guyana’s immense forests, plans for economic diversification and major infrastructure upgrades such as the transformational Gas to Energy project.

“PACC 2030 establishes a framework to elevate U.S. cooperation with Caribbean countries to support climate adaptation and strengthen energy security, while building the resilience of critical infrastructure and local economies to the climate crisis. PACC 2030 will serve as the U.S. government’s primary mechanism for regional climate adaptation and resilience and energy cooperation through 2030, as we work toward meeting the long-term goals of the Paris Agreement and the 2030 Sustainable Development Goals (SDGs).” .

 

New Envoy of Australia

May 11, 2023

The new High Commissioner of the Commonwealth of Australia to Guyana, Sonya Koppe handed over her Letters of Credence to President Irfaan Ali at the State House in Georgetown.

President Ali told the incoming envoy that Guyana is aligned with many of the policies and programmes that Australia promotes and called for stronger cooperation between the two nations.

 

EU Electoral Experts arrive

May 11, 2023

Electoral experts from the European Union (EU) arrived to discuss electoral reforms with election stakeholders in preparation for General and Regional Elections in 2025.

The delegation will stay for a few weeks and the first two members arrived on Sunday. The delegation will include Spanish journalist and member of the European Parliament, Javier Nart, who will arrive at the end of the month.

EU Ambassador to Guyana, Rene van Nes, announced arrival of the delegation at an event at the Georgetown Club.

“There are electoral experts right now in Guyana, who are here and who, over the coming weeks will discuss electoral reforms ahead of the general elections in 2025.”

The two experts will be here for the entire month, while Nart will spend three days.

“The two technical experts with technical expertise will prepare for his visit. They will do all the groundwork. They will talk to everyone that is involved in the electoral process to have a good picture of where they stand and they will then brief him [Nart] so that during his visit, he can talk based on a technical assessment that has already been made,” van Nes said

Notwithstanding the co-occurrence, the delegation is not here in relation to Guyana’s Local Government Elections (LGE) scheduled for June 12. He explained that the delegation is, in fact, a follow-up to EU Observation Mission that appraised Guyana’s 2020 General and Regional Elections.

“Everyone will think that it is in relation to the local elections, but it is not. It is just that this was the only moment that we could get all of the agendas aligned ahead of the elections for 2025,” van Nes said.

In their final report on the 2020 elections, the Observation Mission had noted several recommendations, which this delegation will discuss with stakeholders.

“When we did the elections observation mission in 2020 we had here [a number of] experts, and we agreed then with the government that we would do a follow up mission,” van Nes said

“So they [the Observation mission] left behind the report with recommendations on their suggestions and what they think Guyana can improve its electoral system, and now they are here to talk to the government about where are you in that process. Of course these were recommendations; it doesn’t mean that Guyana has to implement them. So they are here to have a conversation and see what happened with these recommendations.”

Van Nes noted that over the years, the EU has always supported Guyana in its efforts to strengthen democratic institutions, promote good governance, and combat corruption. This delegation is part of that. Such follow-up visits are a regular feature of the EU Observation Missions in countries they visit.

“In 2020 we said we’re not just going to write a report and come back five years later, and say ‘well here I am again, how are you doing?’, but instead we would have a follow up mission. so this is part of that process. We do this in many other countries as well when we have an elections observation mission. We come back to talk about that process and where they are,” van Nes said.

 

 

Partnership with EU to continue growing stronger

May 10, 2023

President Dr Mohamed Irfaan Ali told guests at annual Europe Day celebrations in the Georgetown Club that Guyana’s long-standing relationship with the European Union (EU) is only expected to grow stronger over the years. Guyana tremendously values its relationship with its allies, especially those like the EU, that share common values of democracy, freedom, and the upliftment of people. More importantly, government is cognisant of those who supported the country’s development during difficult circumstances.

“The European Union, as the ambassador said, has invested tremendously in Guyana; building our infrastructure, securing our sea defences.”

EU support on sea defence projects was particularly important not only for securing the land from the ocean, but for the agricultural sector in sustaining food production by ensuring the protection of farmers and crops.

The EU was a key part of Guyana’s budget support programme. Guyana was able to develop as a sustainable and resilient country, ‘leapfrogging’ into the future with great pride and a great degree of global presence.

“At the [recent] Commonwealth leaders’ summit, many leaders… engaged me on our LCDS, and asked key questions on how we were able, in such a short time, to relaunch this strategy and get the level of success that we got out of the strategy. And the key question was, how can we help? And this is important for us as a people. The question was not [about] how they can help, but how can Guyana help to fashion a global strategy to put forests at the centre of COP28 so that everyone can understand the true value and importance of the forest in this fight on climate change,” Dr Ali expressed.

This, is testimony to the strong relationship that exists between the EU and Guyana, as well as the other development partners. The EU is working closely with Guyana on multiple initiatives to mitigate climate change and boost sustainable development.

“I am very confident that the relationship that will develop will continue to advance. It will get stronger, but more importantly, it is moving beyond government-to-government partnership. We are seeing more people-to-people partnership. We are seeing the private sector in the EU being more active here in Guyana, and we want the local private sector to become more active in the EU, because there are tremendous opportunities in the UK and in the European Union for Guyanese and Guyanese products in our local private sector.

“I will say to our local private sector that there is enormous opportunity for you, to look beyond the borders and find strategic partnership. To look at strategic partnership not only in the oil and gas sector.“

EU states and Guyana continue to collaborate on issues of food security, agricultural investment, climate and environmental services, health, education, and technology.

“Our relationship is an expanding one, and… we need to think beyond the normal…. We must ensure that we are preparing ourselves to be sustainable, resilient, and competitive in the new world 2030 and beyond. And we see the European Union as an important partner in bridging this technology.”

Guyana will work with the EU ambassador to Guyana to ensure that all requirements are met to guarantee the ease of conducting trade.

“We must work on tangible things, tangible targets; things that are measurable… As we continue, Guyana values its relations with the EU. These relations have definitely supported Guyana’s national development, and the EU has provided tangible support to Guyana…. Let us now move this relationship forward as we expand the relationship between the two private sectors, and the people-to-people contact relationships. That is most critical. It is when people become integrated with each other that the fullness of the relationship can be felt and understood.”

Europe Day is an annual celebration held on May 9 to mark the anniversary of the signing of the Schuman Declaration on May 9, 1950 which allowed for the creation of a European Coal and Steel Community (ECSC) to pool resources from multiple countries under a common authority. The aim of the declaration was to promote economic cooperation among European countries and prevent another war in Europe. This was the first step towards the creation of the European Union.

 

 

‘One Guyana’ banner on Indian Arrival Day

May 5, 20230

Acknowledging ancestors from different parts of the world, in his Arrival Day message President Irfaan Ali urged Guyanese to work together to “unshackle” themselves from divisiveness.

“Arrival Day reminds us that while our ancestors may have come in different ships, today we are all in the same vessel – this beautiful country called Guyana, blessed with warm, friendly and hospitable people and abundant resources. It is for us to work together, unshackled from divisiveness, so as to create the conditions that would yield a better life for ourselves and progeny.”

“Arrival Day also coincides with the celebration of Indian Arrival Day, the anniversary of the arrival of the first batch of Indian indentured immigrants to our country. One hundred and eighty-five (185) years ago, Indians set foot on this soil and in the ensuing years almost a quarter of a million indentured immigrants would arrive, the majority of whom stayed and made this country their permanent homeland.

“These indentured immigrants and their descendants have made an undeniable and unmistakable contribution to our country’s development and its struggles for national liberation and human dignity. Indians have been integral to our country’s quest for freedom, economic empowerment, and its political, economic, and social development. They have enriched and added to Guyana’s multicultural diversity.”

Indian Arrival Day is celebrated annually on May 5, when the first Indian farmers arrived in British Guiana to rescue sugar plantations after emancipation of Africans. Arrival Day controversially includes celebration of the arrival of indentured Chinese and Portuguese to honour their contributions. After the 1964 massacre of Indians and election fraud of 2020 usurping their victory, many fear that racial envy, homogeneity and uniformity will suppress diversity.

President Ali said that Arrival Day is a celebration of the multicultural character of our nation, to pay homage to African, Asian, European and West Indian ancestors who, with indigenous peoples, laid the foundation of the country’s ethnic diversity, with each group contributing, in no small measure, to attainment of freedom and its development. Arrival of various groups of people created a diverse and multicultural society, distinguished from the rest of the world.

“Guyana’s multiculturalism brings together the cultural traditions of Asia, Africa, Europe and the West Indies and in this process helps to forge a sense of oneness. These distinct and varied strands are being weaved into a singular, strong and unified national fabric, where differences are acknowledged, recognized and respected.”

Since election in 2020, President Ali has promoted a “One Guyana” agenda aimed at unifying the country which esteems the diversity from which oneness springs.

“Under the One Guyana banner, none is more equal to any other and none will be treated as superior to the other. One Guyana is about fashioning a more inclusive and equal Guyana where our people are bonded by shared values and common aspirations.

“Diversity must not become a spear of division. On this Arrival Day 2023, I beseech the people of Guyana to reject attempts, from whichever quarter, that are aimed at fostering prejudice, hatred, strife and division. I urge all Guyanese, regardless of race, religion or class, to continue to work together to build a One Guyana.”

 

 

Use oil wealth to promote, preserve cultural history

May 05, 2023

In recognition of the arrival of 420 Indian immigrants aboard the British ships WHITBY and HESPERUS on 5th May 1838, the Indian Action Committee (IAC), wishes all Guyanese a Happy Arrival Day and especially urges citizens to remember the 185th Anniversary of the arrival of East Indians in Guyana.

The IAC organisation which promotes and preserves Indian culture and deals with issues and concerns of persons of Indo-Guyanese origin, wishes to remind all Guyanese that the organization protested in front of Parliament in 2003 for the recognition of Indian Arrival Day as a national holiday.

The IAC, over the years, provided Guyanese with historical information regarding the arrival of just over 239,000 Indian immigrants who came aboard 245 Ships, which made 534 long voyages across two oceans between 1838 and 1917.

The IAC continues to recognise the endeavours of these Indian immigrants and their descendants, the persons of Indo-Guyanese origin, to develop this country. The IAC, which acknowledges important contributions of persons from Berbice, Demerara and Essequibo, as well as Indo-Guyanese in the Diaspora, is aware that tens of thousands of East Indians have made valuable efforts in all fields of human activity in this country, including business and commerce; banking and finance; sugar and rice industries; coconuts and other crops; fishery and livestock; mining and quarrying; forestry and sawmilling; education and academia; medicine and law; journalism and communications; accounting and insurance; private and national security; the hospitality and aviation sectors; the alcohol and beverage industries; sport and entertainment; culture and religion and politics and governance.

The IAC, in light of the continuous discoveries of massive amounts of oil and gas offshore, urges the authorities to expend some of this newfound wealth as part of the government’s One Guyana initiative to promote and preserve the cultural history of Guyana in the form of new museums, cultural centres, and educational academies.

The IAC, in the full knowledgethat many will be consuming alcohol on this holiday, is exhorting all Guyanese to be safe and responsible and not cause harm to their fellow citizens in their enjoyment of this historic event; and remain deeply focused on their cultural history in order to understand the present and to plan for a prosperous future.

A Happy Arrival Day to all

 

 

 

Oil boom transforming Guyana

2023 05 07

The Pegasus Suites and Corporate Centre adds new commercial spaces on the delta of the Demerara River and Atlantic Coast, in Georgetown.

ANN’S GROVE, Guyana (AP) — Villagers in this coastal community, one of Guyana’s poorest, shared grievances with the prime minister and other officials who organised a meeting to hear people’s concerns and boost their party’s image ahead of municipal elections.

Speakers listed what they wanted:

• • • a library, streetlights,
    • school buses, homes,
    • a grocery store,
    • reliable electricity,
    • wider roads and better bridges.

The list of needs is long in this country of 791,000 people, poised to become the world’s fourth-largest offshore oil producer, ahead of Qatar, the USA, Mexico and Norway.

The oil boom will generate billions of dollars and spark bitter fights over how the wealth should be spent in a place where politics is divided along ethnic lines:

• • • 29 per cent of the population is of African descent and the majority,
    • 40 per cent of East Indian descent, from indentured farmers brought to Guyana after slavery was abolished to rescue agriculture.

Change is already visible in the “Venice of the West Indies”, crisscrossed by canals and dotted with villages that co-exist with gated communities. In the capital, Georgetown, buildings of glass, steel and concrete rise above colonial-era wooden structures, with shuttered sash windows. Farmers are planting broccoli and other new crops, restaurants offer better cuts of meat and the government hired a European company to produce local sausages as foreign workers transform Guyana’s consumption profile.

With US$1.6 billion in oil revenue so far, the government launched infrastructure projects including 12 hospitals, seven hotels, scores of schools, two highways, its first deep-water port and a US$1.9 billion gas-to-energy project that will double energy output and halve high power bills. While the projects created jobs, Guyanese rarely work directly in the oil industry. The work to dig deep into the ocean floor is highly technical and the country does not offer such training.

Experts worry that Guyana lacks the expertise and legal and regulatory framework to handle the influx of wealth. It could weaken democratic institutions and lead the country on a path like that of neighbouring Venezuela, a petrostate that plunged into political and economic chaos.

“Guyana’s political instability raises concerns that the country is unprepared for its newfound wealth without a plan to manage the new revenue and equitably disburse the financial benefits,” according to a USAID report that acknowledged the deep ethnic rivalries.

A consortium led by ExxonMobil discovered the first major oil deposits in May 2015 more than 100 miles (190 kilometres) off Guyana, one of the poorest countries in South America despite its large reserves of gold, diamond and bauxite. Over 40 per cent of the population lived on less than US$5.50 a day when production began in December 2019, with some 380,000 barrels a day expected to soar to 1.2 million by 2027.

A single oil block of over a dozen off Guyana’s coast is valued at US$41 billion. Combined with additional oil deposits found nearby, that will generate an estimated US$10 billion annually for the government. That figure is expected to jump to US$157 billion by 2040, said Rystad Energy, a Norwegian energy consultancy.

Guyana, which has one of the highest emigration rates with over 55 per cent of the population living abroad, now claims one of the world’s largest shares of oil per capita.

It expects to have one of the fastest-growing economies, according to a World Bank report. The transformation lured back Guyanese such as Andrew Rampersaud, a 50-year-old goldsmith who left Trinidad with his wife and four daughters, encouraged by changes in his country. He makes some 20 pairs of earrings and four necklaces a day, mostly with Guyanese gold. He noticed a difference in real estate. Rampersaud owns seven rental units and before the oil discovery, he’d get a query every month or so. Now, three to four people call daily and, unlike before, they always pay on time in a country where a two-bedroom apartment now costs US$900, triple the price in 2010.

Guyanese, including those in Ann’s Grove, wonder whether their community will ever see some of that wealth.

“I expected a better life since the drilling began,” said a 36-year-old mother of three.
A 31-year-old making cinderblocks said he didn’t bother attending the recent meeting with officials.

He doesn’t believe his village will benefit from the ongoing projects that employ an electrician. helping build one of the highways and earning double what he did three months ago. The 25-year-old bought land in western Guyana and is now saving to build his first home and buy a new car. His boss said that while people aren’t seeing oil money directly in their pockets by way of public wage increases, construction projects generating jobs and new roads will boost the economy.

“They say it’s going to look like Dubai, but I don’t know about that,” he said with a laugh.

At a job fair at the University of Guyana, excitement and curiosity were in the air as students met oil companies, support and services firms and agricultural groups. Greeting students was a former hospital switchboard operator and manager of a local inn who joined a company that provides services such as transportation for vice presidents of major oil companies.

Jobs like hers have become plentiful but a former construction worker had the foundation, with some additional training, to begin working as a roustabout, assembling and repairing equipment in the offshore oil industry two years ago. His salary tripled, and his family benefits:

“We eat better. We dress better. We can keep up with our bills.”

Beyond the infrastructure projects and jobs, experts warn the windfall could overwhelm Guyana.

“The country isn’t preparing and wasn’t prepared for the sudden discovery of oil,” said a professor at New York’s Skidmore College.

Three years after the 2015 oil discovery, a political crisis erupted in Guyana, which is dominated by two main parties: the Indo-Guyanese People’s Progressive Party and the Afro-Guyanese People’s National Congress which formed a coalition with other parties. That coalition was dissolved after a no-confidence motion approved by a single vote in 2018 gave way to snap general elections in 2020. The Indo-Guyanese People’s Progressive Party won by one seat in a race still being contested in court. USAID accused the previous administration of a lack of transparency in negotiations and oil deals with investors, adding that

the “tremendous influx of money opens many avenues for corruption.”

Prime Minister Mark Phillips, asked about concerns over corruption, said his party had a zero-tolerance policy: “Wherever corruption exists, we are committed to rooting it out.”

Guyana signed the deal in 2016 with the ExxonMobil consortium, which includes Hess Corporation and China’s CNOOC but did not make the contract public until 2017 despite demands to release it . The contract dictates that Guyana would receive 50 per cent of profits, compared with other deals in which Brazil obtained 61 per cent and the US 40 per cent, according to Rystad Energy. Many criticised that Guyana would only earn 2 per cent royalty, something the government would seek to increase to 10 per cent for future deals.

“The contract is front-loaded, one-sided and riddled with tax, decommissioning and other loopholes that favour the oil companies,” reported Ohio-based Institute for Energy Economics and Financial Analysis.

The opposition People’s National Congress that was part of the coalition that signed the deal, said that it made mistakes. It was concerned about the focus on building infrastructure instead of developing people and worries the oil wealth will intensify ethnic divisions in Guyana and create other problems:

“It will result in the rich getting richer and the poor getting poorer.”

Activists raised concerns that the oil boom will contribute to climate change, given that one barrel of fuel oil produces on average about 940 pounds (about 425 kilograms) of carbon dioxide, according to the US Environmental Protection Agency.

Jagdeo, the vice president who once served as president, said his party created a special fund for oil revenues with safeguards to prevent corruption, including appointment of an independent monitor and a board of directors to oversee the fund with the finance minister. Parliamentary approval is needed to decide how the funds would be used. Oil revenues currently represent only a third of Guyana’s budget and increases in salaries might happen later:

“At this point in time, we are not awash with money. We have seen the mistakes made by other countries. We have to be cautious.”

Despite the oil boom, poverty is deepening for some as the cost of living soars, with goods such as sugar, oranges, cooking oil, peppers and plantains more than doubling in price while salaries have flatlined.

Many are still scraping by. “All we live on is promises.”

When the meeting between residents and officials ended, the prime minister pledged that most requests would be fulfilled.  Officials nodded and vowed to return with more details .

 

 

ExxonMobil set to cede part of prolific Guyana block to government

21 February 2023

20% of Stabroek block will be relinquished and offered to other companies.

ExxonMobil must shortly decide on which areas of its incredibly prolific Stabroek block offshore Guyana it will need to hand back to the government, which intends to re-licence this acreage.

Vice President Bharrat Jagdeo said the US supermajor is legally required to relinquish 20% of the block on which it has so far found 11 billion barrels of oil equivalent of resources, absolutely dominating the country’s upstream domain. The vice president said “we need more competition”, pointing out Guyana is pursuing a multi-pronged strategy to lessen the grip on the country’s oil resources held by the Stabroek partners, ExxonMobil and CNOOC International Ltd and spur new oil production.

The US-China group produces 380,000 barrels per day of oil and gas from two floating production, storage and offloading vessels, and expects to increase output to 1.2 million bpd by 2027. The least-developed country in South America expects to collect $1.63 billion in oil royalties and fees this year. ExxonMobil has six drillships active on the block as it strives to discover the block’s sweetest spots ahead of relinquishment.

A year ago, Jagdeo said Guyana wanted state-controlled oil companies to explore for and develop new fields. He explained ExxonMobil must relinquish a minimum of 20% of the contract area not retained under a exploration or production licence.

“Exxon cannot keep it, that would be illegal.”

ExxonMobil said the Stabroek partners are in compliance with Guyana’s Petroleum Agreement and Petroleum Act, including their acreage relinquishment requirements.“We are in ongoing discussions with the government regarding those requirements, in respect to both timing and area.”.

The government is prepared to offer this relinquished area and blocks which are not included in an ongoing licensing round to certain countries “on a bilateral level”.

This out-of-round acreage includes two nearshore blocks relinquished by Toronto-listed companies CGX Energy and Frontera Energy.

“If bilateral talks don’t go well, next year we will offer another round,” Jagdeo said, stressing that any “deal has to be favourable to Guyana”.

The government proposed offering out-of-round blocks to India, Qatar and the United Arab Emirates or national oil companies, although all these parties could also participate in Guyana’s first competitive offshore licensing round where 14 blocks are available.

Guyana has been in direct talks with Qatar, India and the UAE over bilateral oil agreements, under different terms from those granted for private oil producers he said.

“I believe that some of them will bid on the 14 areas and still explore bilateral discussions,” Energy Minister Vickram Bharrat said.

Eight companies — including well-known oil companies — paid to access data rooms ahead of the official launch of the offshore round in April. ExxonMobil and QatarEnergy publicly disclosed their interest.

Jagdeo said he hopes to engage Brazil’s Petrobras and the Brazilian government, where his old political ally Luiz Inacio Lula da Silva started his third presidential term in January.

“We want Petrobras to be involved here. We are waiting anxiously for Lula to settle in.”

In December, Guyana released new fiscal terms that increased its share of oil proceeds from 14.5% to 27.5%, plus a corporate tax of 10% after profits. Companies including ExxonMobil are now waiting for the government to release a new production sharing agreement model that will set terms for the latest blocks on offer, as well as projects that have yet to start being developed.

The PSA draft will go through public consultation until 8 March and is expected to be finalised before 14 April when the new licensing round will be launched.

[ Regional stakeholders doubt that SOC entry will deliver. and hope Exxon will win more acreage as the world pivots from RE following soaring energy prices and conflict. Closure of the Trinidad refinery, Venezuelan meltdown, Caricom corruption and criminality driven by racial envy endanger progress in Guyana.  ]

 

Trendsetter Engineering to provide ExxonMobil Guyana with  “innovative” subsea connection system

World Oil Staff May 24, 2023

 Trendsetter Engineering Inc. has been awarded a contract to provide Esso Exploration and Production Guyana Limited (ExxonMobil Guyana) with an order of TC11 Connection Systems. ExxonMobil Guyana plans to use Trendsetter’s innovative clamp connectors on their Gas-to-Energy project in Guyana.

The contract includes Trendsetter’s TCS subsea connectors, hubs, and an assortment of pressure caps and tooling. The contract also includes subsea valves, sourced from Advanced Technology Valve (ATV) in Colico, Italy. The equipment is slated for delivery in mid-2023.

Trendsetter Engineering, Inc. is a privately owned oil and gas service company based in Houston, Texas which provides specialized subsea hardware and offshore service solutions globally, from exploration drilling through abandonment.

The Trendsetter Connection System (TCS) is a family of subsea connector solutions developed to meet industry needs for reliable, innovative connector products. The heart of the TCS is Trendsetter_s proprietary TEX metal-to-metal (MTM) gasket system.

Trendsetter first introduced its subsea connector and TEX gasket technology to the industry in 2013. These include options from 2″ through 20″ nominal sizes, as well as multi-bore, 400°F and 20,000 psi capabilities.

“Gas-to-Energy is a truly transformational project for the country and people of Guyana and we’re proud to be a part of it,” said Tony Matson, Vice President of Trendsetter Engineering.