IMF

Guyana Staff Concluding Statement of the 2023 Article IV Mission

September 11, 2023

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC: A staff team from the International Monetary Fund (IMF), led by Ms. Alina Carare, held discussions during August 28 – September 11 for the 2023 Article IV Consultation. The team met Vice-President Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, Minister of Parliamentary Affairs and Governance Gail Teixeira, Central Bank Governor Gobind Ganga, other senior officials, representatives from the private sector, banks, labor unions, and other stakeholders.

The Guyanese economy continues to grow very rapidly, supported by the government’s modernization plans, including the unparalleled oil sector expansion. Following record real GDP growth in 2022—62.3 percent, the highest in the world—real GDP is expected to continue to grow extremely fast in 2023 (38 percent).

Oil production is ramping up with the coming on stream of a third oil field, and growth in the non-oil sector is supported by the implementation of a fast-paced public investment program focused on providing transportation, housing, and flood management infrastructure, and raising human capital. Spillovers from oil and construction are supporting growth in the services and supplies sectors, while agriculture, mining and quarrying are also performing well.

After a strong 2022, in the first half of 2023 real non-oil GDP grew by 12.3 percent. CPI inflation reached 7.2 percent at end-2022, in line with other countries in the region, and declined to 1.2 percent on a y/y basis in July 2023, with the decline in transportation and communication prices. The external current account swung into a large surplus in 2022, of 23.8 percent of GDP, and another large surplus is expected in 2023. Banks are well capitalized and liquid.

The outlook for medium-term growth is better than ever before. Oil production will continue to expand rapidly as three new approved fields will come on stream between 2024-27, and a sixth field is expected to come on stream in the first half of 2028. Sustained real non-oil GDP growth of 5.5 percent is projected, as the government continues its ambitious plans to address developmental needs. Guyana’s favorable medium-term growth prospects are accompanied by upside and downside risks.

On the upside, further oil discoveries would continue to improve growth prospects. Construction growth and strong public investment may support higher than expected short-term non-oil growth but could also lead to inflationary pressures and the appreciation of the real exchange rate beyond the level implied by a balanced expansion of the economy, overheating, and the crowding out of credit to the private sector.

Adverse climate shocks, and volatile or lower than projected commodity prices, may also negatively impact the economy.

The fiscal and monetary policy mix is appropriate at this time. Staff view the current expansionary fiscal policy stance as appropriate, given the country’s development needs and the existing slack in the economy. Although there was robust employment growth in the oil, services and construction sectors, the unemployment rate was 12.4 percent in 2022, and staff estimates show that the output gap remains negative.

Monetary policy appropriately balances the expansionary fiscal stance. The increase in broad money of about 10 percent until June 2023 (since December 2022), and in credit to the private sector of about 5 percent in the same period, remain below the nominal growth of the non-oil economy. Although credit to the government is also increasing, it is not crowding out credit to the private sector. Bank of Guyana is monitoring macro-financial risks with eight indicators, including credit-to-GDP measures and the systemic risk matrix.

The authorities’ commitment to fiscal discipline is welcome and allows for a balanced growth path. Over the medium-term, moderating fiscal impulses are projected to achieve a zero overall fiscal balance by 2028. This will allow for an expansion of the economy (real GDP growth on average of 20 percent per year during 2024-28) without creating macroeconomic imbalances. Public investment is expected to be financed primarily by oil revenues in the medium term. Public sector debt is projected to decline gradually as a share of GDP over the medium term (after declining to 26 percent at end-2022, from 43.2 percent of GDP in 2021). The real exchange rate is expected to appreciate, and inflation to increase, as the economy closes its development gap. Gross international reserves (excluding the National Resource Fund) are expected to continue to accumulate, with reserves coverage indicators continuing to strengthen. At the same time, substantial savings will accumulate offshore in the medium term in the Natural Resource Fund (NRF).

Given the medium-term risks of inflationary pressures and real exchange rate appreciation beyond the level implied by a balanced expansion of the economy, staff recommend a continued focus on maintaining macroeconomic stability through an appropriate policy mix. Staff welcome the policies to sustain growth into the longer term while maintaining debt sustainability and a balanced growth path. Staff recommend continuing close monitoring of macroeconomic and financial indicators, tightening monetary policy stance and using macroprudential tools as needed (e.g. loan-to-value ratio or debt-to-income requirements). In the medium term, staff recommends a review of the exchange rate framework to ensure that it best serves the economy.

Staff recommend adopting over the medium-term a comprehensive medium-term fiscal framework (MTFF), together with further modernizing the public investment management and public financial management (PIM and PFM) frameworks. The MTFF would contain a clear medium-term fiscal anchor, a transition path, and an operational target. As a fiscal anchor, staff recommend setting a path for the non-oil primary balance (as a percent of non-oil GDP) that is consistent with the NRF ceilings on withdrawals of oil revenues and ensuring inter-generational equity. Staff recommend periodic expenditure reviews to ensure macroeconomic stability and preserve competitiveness by setting the pace of public investment to take into account absorption and institutional capacity constraints of the economy.

Staff strongly support the authorities’ efforts to maintain financial stability. Macro-financial risks are well monitored with a broad spectrum of indicators, including credit-to-GDP ratio and the systemic risk matrix. Staff welcome BoG’s asset quality reviews, the progress in conducting stress testing exercises, and the authorities’ strategies to promote financial inclusion.

Staff strongly support the authorities’ commitment to complete the implementation of the 2016 FSAP recommendations, including closely monitoring sectoral lending exposures, related party lending, banks’ ownership structure and increasing competition in the banking sector. Improving data collection and statistics on corporate and household balance sheets and real estate prices will also be critical to support strengthening banking supervision as well as the move towards broad-based risk-based supervision.

Staff commend the authorities’ progress in strengthening AML/CFT, governance, anti-corruption frameworks and support further advances in their effective implementation. The authorities have continuously engaged with the Caribbean Financial Action Task Force (CFATF) to prepare for the scheduled 4th round of mutual evaluation currently underway and are further strengthening the AML/CFT framework.

Guyana has approved a National Policy and Strategy for Combating Money Laundering, Terrorism Financing which addresses the risks identified in its 2021 National Risk Assessment and introduced in parliament legislative amendments to the AML/CFT Act.

Several pillars of the anticorruption framework have been further strengthened, including the Integrity and Public Procurement Commissions and the National Procurement and Tender Administration Board. The efforts of the Integrity Commission led to a significant increase in the number of timely asset declarations of public officials. Moreover, Guyana’s authorities are working to further strengthen their anti-corruption efforts, undergoing a review of the United Nations Convention Against Corruption (UNCAC) and the 6th round in the Follow-Up Mechanism for the Implementation of the Inter-American Convention against Corruption (MESICIC).

Staff commend the authorities’ progress to strengthen the management of oil wealth and its fiscal transparency. The NRF Act, amended in 2021, enhanced transparency and accountability of the use of oil revenues. In 2022, the governance of the NRF was strengthened with the appointment of three critical bodies: the NRF Board of Directors, the Public Accountability and Oversight Committee, and the Investment Committee. The year 2022 was the first year when oil revenues were transferred from the NRF to the budget. The use of the funds is reported in the budget documents, and all receipts are published. The process continued with the 2023 budget. At the same time, the authorities made progress in implementing the recommendations of the 2019 Extractive Industries Transparency Initiative (EITI) reports, notably on the reconciliation with the fiscal regime.

Staff support the authorities’ efforts to address remaining gaps, including in moving towards electronic disclosure and adequate follow-up. The 1986 Petroleum Exploration and Production Act was modernized and approved by parliament in August 2023. The new Act enhances the regulation of exploration and production of oil, and further paves the way for developing the oil and gas industry. A new Profit Sharing Agreement (PSA) has been designed, will be used for the auction of 14 new oil and gas blocks, and will increase the government share of oil profits.

Staff laud the authorities’ climate efforts. The government successfully reinstated the Low Carbon Development Strategy (LCDS), which combines utilizing the natural resources in a sustainable manner to combat climate change, by maintaining forest coverage and preserving the sequestration rates of Guyana’s forests, and receiving income for these efforts. For example in 2022, after Guyana was awarded the first jurisdiction scale certification of carbon credits, Guyana sold 37.5 million carbon credits for US$750 million, to be paid during 2022-32 (a third of the credits Guyana will receive over 2016-30), one of the largest transactions in the world.

The strategy allows for using the funds for flood management, diversifying the energy matrix, and provides resources for Amerindian communities. Staff supports the government’s enhancement of the LCDS, LCDS 2030—launched in July 2022, which expands the focus of nature conservation to include biodiversity conservation, watershed management, and the ocean economy, both for protection and by receiving payments for these efforts.

Staff strongly support the authorities’ efforts to improve the business climate, and address labor shortages. The authorities are preparing and implementing a range of reforms designed to increase the digitalization of the economy and to boost labor and total factor productivity (such as single window processing of permits, digital ID and digital banking records). Staff support the authorities’ efforts to increase electricity supply through a diversified energy matrix, improve its reliability, and decrease its cost. The authorities are also making sustained efforts to address labor shortages through providing facilities for vocational training, resources for online training, and incentives to set up businesses outside the capital.

Staff welcome the authorities’ efforts to modernize official statistics, which the IMF is supporting through capacity development. CARTAC is supporting the authorities’ efforts to rebase GDP and CPI. Staff stand ready to provide additional capacity development assistance, including with the development of capital markets and other pressing areas.

The mission would like to thank the Guyanese authorities and all other counterparts for the constructive, candid policy dialogue and productive collaboration, and warm hospitality.

IMF Communications Department

MEDIA RELATIONS PRESS OFFICER: ROSA HERNANDEZ PHONE: +1 202 623-7100  EMAIL: MEDIA@IMF.ORG

 

 

ECLAC report -‘significant’ decrease in public debt

September 11, 2023

A recent report by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), has outlined that public debt in Guyana has decreased significantly. ECLAC’s ‘Financing a sustainable transition: investment for growth and climate change action’ stated that Guyana’s debt is approximately 24.7 per cent of GDP, as of December 2022.

“As in Latin America, the upturn in economic growth generated a strong denominator effect since public debt levels remained broadly stable in absolute terms during the year. In this regard, there were significant reductions in Belize, Barbados, Guyana and Jamaica.”

Central government gross debt in the Caribbean represented 77.9 per cent of GDP in December 2022. In some countries, this debt represented 100 per cent of the GDP, for example in Barbados and Suriname.

Guyana’s economic standing has leapfrogged in recent years, to a point where the country has one of the lowest debt-to-GDP ratios in the world, guided by the government’s prudent financial policies.

In August, the government moved to adjust the limit of external loans from $650 billion to $900 billion, and the limit of public loans from $500 billion to $750 billion. Defending this move at the time, Senior Minister within the Office of the President with Responsibility for Finance, Dr Ashni Singh, said that the adjustment is crucial to the country’s development, especially against the backdrop of the PPP/C government’s stellar track record in the ‘maintenance, preservation and strengthening of debt sustainability’.

The minister reminded that, in 1992, Guyana’s debt was approximately over 900 per cent of its GDP. At that point, the country was deemed uncreditworthy. Upon assuming office in 1992, the PPP/C government set about restoring Guyana’s economic viability, and today, those efforts continue to yield results. By 2015, the nation’s debt has drastically reduced from 900 per cent to around 45 per cent of the GDP.

ECLAC noted that Guyana’s inflation rate was among the lowest in June 2023, when compared to the end of 2022, at 1.9 per cent. “The largest reductions were recorded in Chile, Costa Rica, Guatemala, Guyana, Honduras and Trinidad and Tobago, where inflation was down by more than 4 percentage points.”.

 

 

Overall real GDP grew by 59.5% in the first half, with non-oil growth of 12.3%

September 10, 2023

Guyana continues to achieve strong, resilient, broad-based economic growth. In the first half of the year, the Mid-Year Report of 2023 highlights that growth in overall real Gross Domestic Product (GDP) is estimated at 59.5 percent in the first half of the year, with the non-oil economy growing by 12.3 percent.

This reflects the focus of Government policies on modernising the traditional pillars of the economy and catalysing a growing and competitive non-oil economy. The revised full year real GDP growth in 2023 is now projected at 28.2 percent and 9.3 percent for the non-oil GDP.

Senior Finance Minister Dr. Ashni Singh, while reflecting on this year’s Budget presentation under the theme ‘Improving Lives Today, Building Prosperity for Tomorrow’, explained that it reflects Government’s commitment to address the most immediate issues and irritants facing the Guyanese people while at the same time laying the foundation for a bright and secure future for all citizens for the longer term under President Ali’s One-Guyana philosophy.

“Despite the challenging external and domestic environment, the Guyanese economy continued to achieve strong positive real growth, coming from both the oil and non-oil sectors. Particularly in the non-oil economy, strong performances have been returned by agriculture, other mining and quarrying, as well as services.”

The key macroeconomic highlights are as follows:

SECTORAL PERFORMANCE

Agriculture, Forestry and Fishing

The agriculture, forestry and fishing industries expanded by an estimated 7.6 percent in the first six months of the year, with growth observed for all subsectors – other crops, rice, livestock, fishing, forestry and sugar.

• The sugar industry grew by 30 .1 percent when compared with the first half of 2022 with the full-year projection maintained at 29.3 percent.
• The rice industry grew by an estimated 3.2 percent in the first half of 2023 with a revised growth rate of 7.4 percent for the entire year.The other crops subsector is estimated to have grown by 9.4 percent in the first half, with a revised growth rate projection of 4.9 percent for 2023.
• The livestock industry expanded by an estimated 4.7 percent in the first half of the year and is now expected to grow by 10.4 percent for the entire year.
• The forestry industry is estimated to have grown by 4.5 percent and is expected to grow by 4 percent for the year.
• The fishing industry is estimated to have expanded by 9.9 percent in the first half is expected to grow by 8.4 percent in 2023.

Extractive Industries

The mining and quarrying industries are estimated to have grown by 89.9 percent in the first half of the year, driven by growth in the petroleum and other mining industries.

• The petroleum subsector grew by 98.4 percent, with 68.7million barrels of oil produced in the first six months of this year. The industry is now projected to grow by 39.6 percent for the entire year.
• The other mining and quarrying industry which comprises sand, stone, diamonds, and manganese-is estimated to have grown by 45.2 percent in the first half, driven by greater activity in the construction sector. This industry is now projected to grow by a 17.1 percent in 2023.

Manufacturing, Services and Construction

• The manufacturing sector is estimated to have grown by 17.7 percent in the first half, largely driven by increases in the manufacturing of wood products, fabricated metal products, non-metallic products, paints, and plastic products. The sector is now projected to grow by 7.8 percent this year.
• The services industries are estimated to have expanded by 9.1 percent, driven largely by growth in administrative and support services and wholesale and retail trade and repairs. The overall 2023 growth rate for services is now 7.8 percent.
• The construction sector is estimated to have grown very substantially by 44.1 percent in the first half, reflecting large growth in the Public Sector Investment Programme (PSIP) and intensified private construction. The sector is now expected to grow by 26.9 percent in 2023.

BALANCE OF PAYMENTS

The overall balance of payments recorded a deficit of US$196.4 million at the end of the first half of 2023, with a smaller surplus on the current account and some improvement was observed on the capital account.

• With respect to trade, export receipts continued their upward trend growing by 38.8 percent to US$6,039.3 million at the end of June 2023, largely on account of higher oil export earnings, which amounted to US$5,374.1 million in the first half of the year.
• Total import payments also grew substantially over the review period reaching US$3,717.3 million, growing 111.8 percent over 2023. This is largely attributed to the importation of the Prosperity Floating, Production, Storage, and Offloading (FPSO) vessel, which arrived in April, and imports of fuel and lubricants.

MONETARY DEVELOPMENTS

Domestic Credit

Net domestic credit expanded in the first half of the year, reflecting households’ and businesses’ demand for credit and banks’ willingness to lend – an indication of growth in private and public sector borrowing.

Total credit to the private sector grew by 5 percent when compared to December 2022, to $345.3 billion at the end of June 2023, on account of increased lending to businesses and households.

Credit to business enterprises in the services and manufacturing sectors grew by 3.3 percent and 8.9 percent to $121.8 billion and $40 billion, respectively.

Lending for the purposes of real estate mortgages grew by 7.3 percent to $112.7 billion driven by mortgages granted for private dwellings, and industrial and commercial properties.

Inflation

On account of Government’s commitment to easing the burden of growing commodity prices, a suite of measures was put in place over the last two years. This has contributed significantly to the slowing inflation rate observed locally.

• When compared with the end-2022 position, the consumer price index declined by 0.3 percent, reflecting some reversion in the spikes observed last year. When compared with June 2022, the index grew by 1.9 percent, on account of declining food prices.
• Inflation is projected to be in the order of 3.8 percent for 2023.

The Government will continue to be proactive to prevent persistent hikes like those observed last year, as some level of uncertainty still clouds the outlook for 2023,

Dr. Singh concluded that in its just over 36 months of the current term in office, Government’s implementation of Budget 2023 during the first half-year of 2023 saw significant gains being recorded on all fronts.

The economy continued to record strong positive economic growth, work commenced and advanced on major transformative infrastructural projects, more community roads are being rehabilitated than ever before, and jobs are being created in every sector of economic activity.

The Government is committed to ensuring the delivery of all the promises in the Manifesto, improving the life of every citizen and harnessing the advantages of our rich and beautiful diversity as One Guyana.

To view the entire Mid-Year Report 2023, click here: https://bit.ly/3P9YAS3

 

 

14 offers from oil companies for 8 blocks

Sep 15, 2023

Vice President, Dr. Bharrat Jagdeo considers the response for Guyana’s maiden oil blocks auction a “tremendous success.” He lauded the fact that six bidders submitted 14 offers for eight blocks, over half of the 14 concessions in the round, in view of external factors and a new robust regime for the sector,

“We are very pleased with the offers that we had from the bid round (which closed September 12, 2023). The blocks that we did not receive bids for are D3, S1, S2, S6, S9, and S11. So that means some of the blocks are very competitive. People are questioning whether this was a successful bid round or not but we are pleased with how the round has gone.”

The government is satisfied with the outcome, especially since the auction was held after the modernization of the legislative and regulatory framework. The chief policy maker for Guyana’s oil sector was pleased that the authorities kept the promise to not conclude the bid round without a new model Production Sharing Agreements (PSAs) in place to govern deepwater and shallow water blocks. He also hailed the passage of the Petroleum Activities Law.

With a more robust regime in place, Jagdeo said one needs to appreciate the global context within which the new system was implemented. , “Globally, we have a move now to net zero with all of its attendant consequences, the key one being the de-carbonization of many activities from the oil majors. In fact, many of them have been selling off of their assets in exploration in many parts of the world. Then there is the inability to raise financing for activities related to the fossil fuel industry.”

While most countries have detailed seismic studies and would undertake that exercise in hopes of attracting more companies, Guyana did not. Another critical factor is that several countries were also hosting their bid rounds for oil blocks too, thereby making the environment more competitive.

With those external factors in play, and the fact that Guyana has a more stringent fiscal regime that demands the payment of a 10 percent royalty and signing bonuses, Jagdeo said the interest for eight of the 14 blocks on offer was commendable. The next stage is for authorities to review the bids received, following which, more details would be released. Jagdeo anticipates that awards will be made before the year’s end.

One of the key lessons from this maiden auction, is that resources for investment in this particular sector do not come by easily. It is a reminder that Guyana is competing with other countries that have great prospects as well and they are prepared to have those investments by lowering the government take.

He remained confident, believing that the strategic vision for the oil sector—bolstered by robust environmental safeguards—will undoubtedly secure its leading position in the global arena.

Companies submitting bids include: Total Energies EP Guyana B.V, Qatar Energy International E&P LLC, & Petronas E&P Overseas Ventures SDN BHD (Malaysia); Delcorp Inc – Guyana, Watad Energy, Arabian Drillers (Saudia Arabia); Exxon Mobil Guyana Limited, HESS New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited; Liberty Petroleum Corporation (USA) and , Cybele Energy Limited (Ghana); Sispro Inc. (Guyana); and International Group Investment Inc. (Guyana), in joint venture with Montego Energy SA (London).

 

 

Exxon among bidders in offshore auction

Sep. 13, 2023 Carl Surran, SA News Editor

Guyana received offers for eight of 14 offshore oil and gas exploration blocks in a bidding round, including from a consortium led by Exxon Mobil (NYSE:XOM), Reuters reported.

The Ministry of Natural Resources confirmed that Exxon, Hess (HES) and China’s CNOOC (OTCPK:CEOHF) bid as a group, while a consortium of TotalEnergies (TTE), Qatar Energy and Malaysia’s Petronas also bid.

The auction, which had been delayed several times since last year, attracted interest amid the discovery of over 11B barrels of recoverable oil and gas resources by the Exxon-led group in recent years.

Guyana currently produces and exports ~ 380K boe/day of oil and gas and the Exxon-led consortium aims to reach 1.2M bbl/day of output by 2027.

TotalEnergies (TTE) said it will begin studies for developing a large oil project offshore neighboring Suriname adjacent to Guyana’s Stabroek block.

 

 

 

 

Exxon submits impact study for Canje Block

Sep 12, 2023

ExxonMobil Guyana Limited (EMGL) submitted a Cumulative Impact Assessment (CIA) to the Environmental Protection Agency (EPA) for a 12-well programme it hopes to execute in the Canje Block, one of the three largest deepwater concessions.

In the document prepared by Exxon’s consultants, Environmental Resources Management, JASCO Applied Sciences, and RPS Group, it was noted that the application was filed by Exxon on behalf of itself and co-venturers JHI Associates, Inc., Mid-Atlantic Oil & Gas, Inc., and Total E&P Guyana B.V.

EMGL had filed an application for Environmental Authorisation with the EPA in December 2021. Based on an initial assessment of the application, the EPA determined, pursuant to Section 11(2) of the Environmental Protection Act that the project by itself will not significantly affect the environment and, therefore, does not require an Environmental Impact Assessment (EIA).

However, the EPA ruled that the potential exists for the project combined with similar activities in the project location to result in significant cumulative environmental impacts. On this premise, the regulator demanded that Exxon produce a CIA that considers activities such as continued development and production works in the Stabroek Block, before an environmental authorization can be granted.

The purpose of the CIA is to provide the factual and technical basis required for the EPA to make an informed decision on EMGL’s application for environmental authorisation considering the potential cumulative impacts associated with the Project. After submission and review of this CIA, the EPA will decide whether and under what conditions to grant EMGL an environmental authorization for the Project.

The exact locations of the potential 12 wells comprising the project have not been finalized. While some wells could be drilled for exploration purposes, Exxon said it is also possible that some wells may be drilled as appraisal wells. Therefore, priorities and schedules are subject to change following any potential exploration well results.

The CIA also considered the impact of an oil spill. It noted that an unmitigated spill could reach the shoreline in Region One and the most northern shoreline of Region Two. An oil spill could hit three other geographic regions: Trinidad and Tobago and the northern South American coast of Venezuela; the southern Lesser Antilles (i.e., Grenada, St. Vincent and the Grenadines, St. Lucia, and U.S. Virgin Islands); and the southwestern Greater Antilles (i.e., Puerto Rico, Dominican Republic, Haiti, and Jamaica).

Pending approval, it is anticipated that the project will begin in the second quarter of 2024 and, if discoveries are made, well test(s) may be performed. The conclusion of the proposed drilling campaign is expected during the first quarter of 2025.

The project will generate benefits for Guyana through revenue sharing with the Government , a positive but minor increase in employment, and select project purchasing from Guyanese businesses.

 

 

Oceaneering won US$100M ExxonMobil contracts

Sep 05, 2023

On August 31, Oceaneering announced international contracts for offshore projects: Angola Block 17, Girassol Life Extension Project and Stabroek Block, Guyana. The United States based oilfield services provider was awarded two contracts valued over US$100 Million to work for Exxon offshore Guyana and in Angola. Oceaneering was named a consortium partner to support transportation and installation work on the Girassol Life Extension project.

The scope of work includes air and saturation diving services, project management, engineering, and procurement activities, in support of the prime contractor’s recovery and replacement of 12 risers. Having extensive experience in Angolan offshore developments, Oceaneering will provide Angolan personnel for the project and manage the in-country operations of the consortium. The company is expected to provide services in various phases, from late 2023 to late 2025.

Oceaneering won a contract for work on a jumper installation project in the Stabroek Block, Guyana for ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL). The company stated that the scope of the project adds to their growing body of work in the country in support of a key client.It consists of jumper and subsea field development installation and other associated tasks. The scope of supply is already underway and anticipated to last through the remainder of 2023.

Roderick A. Larson, President and Chief Executive Officer, said, “We are pleased to continue delivering quality offshore services to our expanding international client base. These awards substantiate our visibility into increased international activity, as cited in our recent second quarter earnings release. Our success with these projects supports our belief in the resurgence of international offshore activity and market expectations over the next several years.”

 

 

 

Public meetings for 6th Exxon oil project

Sep 04, 2023 News

 ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) will commence a series of public meetings on its sixth deepwater project, Whiptail on September 12, 2023.

“ExxonMobil Guyana Limited is progressing its sixth offshore project in the Stabroek Block – the Whiptail Development Project. The Environmental Impact Assessment (EIA) together with the Environmental Impact Statement (EIS) for the Whiptail Development Project were submitted to the Environmental Protection Agency (EPA) for evaluation and recommendations. Face-to-face sessions will be held to provide information on the Whiptail Project, the EPA’s Environmental Authorisation process, and the findings from the assessment to support public awareness.”

One session will be in Regions Three and Four, the two most populated regions.. Exxon’s first meeting will be held in Region Three, at the Leonora Technical Institute, West Coast Demerara, commencing at 10:00hrs. On September 13, 2023, Exxon will engage residents of Region Four at the Umana Yana, Kingston, Georgetown from 17:00hrs.

Two meetings are scheduled for Region One, one in Region Two, two in Region Five and one in Region Six.

Exxon’s sixth project will target the Whiptail, Pinktail and Tilapia discoveries, estimated to hold over one billion barrels of oil resources. The project is poised for startup in 2027-2028 and will produce between 220,000 and 275,000 barrels of oil per day (bpd).

The company submitted an application to the EPA in January for the project. According to the Project Summary, Whiptail is located in the south eastern portion of the Stabroek Block, approximately 183km from Georgetown. Current plans include drilling via drill ships to produce oil from approximately 40 – 65 production and injection wells.

Whiptail is pegged at US$12.9 billion. Vice President, Dr. Bharrat Jagdeo recently confirmed that no further fiscal increases such as a higher royalty rate would be sought for this sixth project.

 

 

Ministry quashes extension for Kaieteur and Canje Blocks

Aug 31, 2023

The current administration did not comply in full with the grant by the previous regime of a one-year extension on the exploration works to be executed on three deepwater oil blocks operated by ExxonMobil. According to the Ministry of Natural Resources, it only allowed the extension to be applied for the Stabroek Block and not the Kaieteur and Canje blocks.

The extension to ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) was granted a few days before the outgoing president handed the reins of office to President, Dr. Irfaan Ali.

The request for extension on the three blocks was made by EEPGL’s Head, Alistair Routledge in a letter to the last leader months after a tumultuous General and Regional Elections in March 2020. Routledge’s request cited the impacts of the COVID-19 pandemic and its effect on the company’s drilling programme.

The signed extension was released by the Ministry of Natural Resources to prove to the political opposition that it was its former Head of State,, who gave the now controversial extension and not the current government as the opposition had claimed.

Significantly, the ministry pointed out that the extension was not allowed for the Kaieteur and Canje Blocks. This may be due to the fact that Exxon was unable to prove that its exploration programme for those two blocks was indeed inhibited. During the 2020 to 2021 period in which Exxon was granted the extension, the oil giant drilled Guyana’s deepest well called Tanager-1 in the Kaieteur Block followed by three other wells in the Canje block.

Contrastingly, the government has maintained the one-year extension for exploration on the Stabroek Block where Exxon made over 33 discoveries. Executive Members of the Alliance For Change (AFC) and the A Partnership for National Unity (APNU) said they disagree with this decision since Exxon was in full production mode for all of 2020 at the Liza Phase One Project.

They also underscored that the extension carried a clear condition for quarterly reviews to better understand if that one-year extension required adjustments. Both political parties even demanded that the government show evidence that it did due diligence in this respect. Vice President, Dr. Bharrat Jagdeo has refused to do so.

The chief policy maker for the sector said Exxon submitted reports in 2020 which showed that its exploration programme was affected. Instead of being able to use six drill rigs, it was only able to use four. Jagdeo said the government was satisfied that this showed the extent to which the work programme was affected by the COVID-19 pandemic hence the extension was kept.

The extension for the block is a crucial matter as it delays from October 2023 to October 2024, the release of 20 percent of the lucrative Stabroek Block spanning 26,800 km2. That 20 percent would be equivalent to 5360km2. This portion is also larger than any of the 14 oil blocks the government has on offer for the country’s maiden oil round.

Exxon is also overdue for the relinquishment of portions of the Kaieteur and Canje Blocks. For the Kaieteur Block, the agreement governing this concession states that 25 percent should have been relinquished in 2019 and another 20 percent given up in 2022. The total portion to be relinquished would be equivalent to approximately 5414 km2.

In Canje, 20 percent of the block was returned to the State in 2019 which was equivalent to 1,220km2, thereby reducing the block to 4880km2. It now owes another 20% which amounts to 976km2.

In the oil and gas sector, “relinquishment” refers to the process where a company returns by specific timelines, portions of an area it was allowed to explore or produce oil and gas. Relinquishment, according to several pieces of literature, is considered critical for governments as they can auction those returned portions to other oil companies, thereby channelling more opportunities for revenues to the State.

 

 

 

Repsol seeks fresh Kanuku exploration licence

Aug 31, 2023

Spanish oil company Repsol wants to keep the Kanuku block, which it has operated for a decade. Vice President, Dr. Bharrat Jagdeo, confirmed that Repsol sought a fresh licence for the block.

However, such a renewal is not automatic. Though the original term for the Kanuku block agreement was slated to end in May, Repsol still held the block in August 2023. While the government has not decided on the application yet, this extended tenure can be attributed to a specific provision in the newly minted Petroleum Activities Act 2023, recently signed by President Irfaan Ali. This Act states that if a licensee applies for renewal of an exploration licence before the expiration of its original term, the licence remains active until the minister reaches a final decision.

In the wake of this development, Repsol’s ongoing activities, such as environmental surveys highlighted by Guyana’s Maritime Administration Department, are legitimate.

Thanks to the provisions of the Petroleum Activities Act, they can rightfully continue operations until the administration decides.

Since becoming an operator in May 2013, Repsol has embarked on a 10-year exploration journey, studying the block’s potential through drilling and research. However, the past decade did not lead to any commercial discoveries.

Repsol drilled the Beebei well in 2022, optimistic about uncovering 200 million barrels of recoverable oil equivalent. Though their drilling operations revealed good-quality reservoirs at both primary and secondary targets, the discovery turned out to be water-bearing, not oil-bearing. The Noble Regina Allen rig drilled the Beebei-Potaro well to a depth of 4325 metres in 71 metres of water and the well has been plugged and abandoned. The find was a considerable setback for Repsol.

Previously, the company made a discovery at Carapa-1 in 2020. Although it only found four meters of net oil pay, making it commercially non-viable, the find was still significant from a technical perspective. Tullow, Repsol’s partner, said the results suggest the extension of the Cretaceous oil play from the ExxonMobil-operated Stabroek block southwards into the Kanuku licence.

Repsol is the operator of the Kanuku block, with a 37.5% working interest. Tullow Oil also holds a 37.5% interest, while the remaining 25% is shared in a joint venture between TotalEnergies and Qatar Petroleum.

Sep. 13, 2023 4:49 PM ET
Exxon Mobil Corporation (XOM)HES, TTE, CEOHF

By:Carl Surran, SA News Editor

 

 

 

GCCI Committee meets Esso Exploration & Production Guyana Ltd

Sep 10

On July 6th, 2023, members of the Executive Management Committee of the Georgetown Chamber of Commerce & Industry discussed areas of mutual interest and opportunities for collaboration with Esso Exploration & Production Guyana Ltd.

Present on behalf of the GCCI were the President of the Chamber, Kester Hutson, Senior Vice-President, Richard Rambarran, Junior Vice-President, Gavin Ramsoondar, and Secretary, Kathy Smith. Present on behalf of ExxonMobil Guyana were the President, Alistair Routledge, Vice President and business Services Manager, Phillip Rietema, Socioeconomic Manager, Susan Scott, Local Content Supervisor, Natina Singh, and Local Content Advisor, Alexis Moniz.

The parties focused on areas on which they can collaborate with the ultimate goal of optimizing the development of the business community, starting with the MSMEs.

One area for collaboration was more frequent, targeted and consistent information-sharing sessions for ExxonMobil Guyana to educate the business community on matters relevant to operating successfully in Guyana’s oil & gas sector, specifically covering requirements and standards that must be met to work with ExxonMobil Guyana in a more comprehensive manner.

The GCCI presented priorities for the lifespan of the current Management Committee, mainly focusing on petroleum and trade and investment and deepening connections with relevant countries in various ways.

Senior Vice-President Mr. Rambarran stated that the GCCI has begun this strengthening process with President Hutson’s recent mission to Aberdeen and with the signing of numerous Memorandums of Understanding with various National Chambers of Commerce.

Districts where the Chamber may seek to host outbound missions include New Foundland and Labrador with their historical relationships and an interest in learning from their economic transformation, Cuba, India and Ghana due to recent connections and the opportunities for trade related to Agro-processing, and Houston given the large Guyanese diaspora there, in the Petroleum Sector.

Mr. Routledge believes the GCCI is taking the right steps towards continuous business development nationally and encouraged the team to ensure that GCCI are integrally involved in efficient and accurate knowledge-sharing through increased collaborations amongst regional chambers

 

 

Revolution of power infrastructure

September 8, 2023

Addressing the American Chamber of Commerce and other stakeholders at an Energy Mixer event, under the theme ” Delivering the Energy Benefits: The Transmission and Distribution System”, Prime Minister Brigadier (Ret’d), the Honourable Mark Phillips, responsible for the energy sector, outlined Government plans to transform power infrastructure to meet growing needs. Significant investments and initiatives both in the short and long term are underway as part of Government broader efforts to bring Guyana into the 21st century.

Platforms, like the event, “are essential for stakeholders in the industry as we work to understand the role we all play in building a sustainable and prosperous energy future for all. The energy sector is the lifeblood of development, the bedrock upon which economic prosperity, social progress and wellbeing of our people depend.”

Guyana Power and Light (GPL) made tremendous improvement under the current administration.

GPL has since undertaken extensive work on its transmission and distribution system and launched various initiatives to enhance its overall functionality and efficiency, addressing the historical problems of inadequate maintenance and frequent disruptions.

In moving Guyana to the next level of development, there needs to be an energy mix, which will give “Guyana thrust to enhance energy reliability, efficiency, sustainability and overall economic development, this is a strategic imperative.”

He detailed the medium-to-long-term plans, including the Gas to Energy Project with an investment of US$1.8billion, solving the energy problem in a substantial way. The project aims to provide an additional 300 MW of power by the end of 2024. Three critical components of this sizable project: are first, laying a pipeline that will bring gas ashore; second, building a power plant and third, rebuilding the transmission and distribution system. Upgrading the existing transmission network is crucial for successfully implementing these ambitious projects.

On Guyana’s commitment to a low carbon strategy, he stated, “Over the short, medium, and long term, we will, as a Government, fund numerous projects aimed at greater utilisation of clean and green energy – more solar, more wind, more hydro.” This will contribute to cleaner and greener energy across the nation within the decade.

By 2030, Guyana aims to produce 500 MW of electricity by embracing an energy mix composed predominantly of clean energy sources to accommodate the growing demand for electricity while remaining environmentally conscious. Government will continue collaborating with GPL to bring sustainable energy not only to households but also to industrial and commercial sectors .

 

 

Eco (Atlantic)

30 Aug 2023

Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, has announced its results for the three months ended 30 June 2023.

Highlights:

Financials (as at 30 June 2023)

• The Company had cash and cash equivalents of US$2.4 million and no debt.
• Eco has cash and cash equivalents of US$4.7 million as at 30 August 2023.
• The Company had total assets of US$53.31 million, total liabilities of US$3.56 million and total equity of US$49.75 million.

Operations:

Guyana

Post Period end, on 10 August 2023, the Company signed a Sale Purchase Agreement for its wholly owned subsidiary, Eco Guyana Oil and Gas (Barbados) Limited to acquire a 60% Operated Interest in Orinduik Block, offshore Guyana, through the acquisition of Tullow Guyana B.V., a wholly owned subsidiary of Tullow Oil Plc. in exchange for a combination of upfront cash and contingent consideration.

Eco, via its wholly owned subsidiary Eco (Atlantic) Guyana Inc., currently holds a 15% working interest in the Orinduik Block. On completion of the Transaction, which is subject to certain market-standard conditions precedent, including customary Government and JV partner approvals, Eco, as operator and majority interest holder in the Orinduik Block, intends to drive the exploration process and focus on its strategy to attract new partners to join the license and proactively engage in drilling.

South Africa

Block 3B/4B

Post period end, on 17 July 2023, the Company issued 1,200,000 shares to the Lunn Family Trust in place of the US$500,000 cash consideration due in respect of the acquisition of the 6.25% interest in Block3B/4B from the Lunn Family Trust as previously announced on 27 June 2022.

On 11 July 2023, the Company signed a legally binding Letter of Intent with Africa Oil to farm out a 6.25% Participating Interest in Block 3B/4B, offshore South Africa for up to US$10.5 million in cash. On 14 August 2023, the parties signed the final Assignment and Transfer agreement. Additional US$2.5m cash consideration is expected to be received upon Government of SA approval of the transfer, with the initial consideration of US$2.5m already having been received.

In March 2023, Africa Oil released a New Competent Person’s Resource Report confirming that the Block contains an estimated P50 Prospective Resources of approximately four billion barrels of oil equivalent (“BOE”), one Billion BOE net to Eco Atlantic prior to the sale of the aforementioned Participating Interest which is expected to complete shortly.

The JV partners continue to progress plans to conduct a two-well campaign on the Block in conjunction with progressing the collaborative farm out process, up to 55% gross working interest, with various potential parties.

Block 2B

On 15 November 2022, a Production Right Application to the Petroleum Agency of South Africa, for Block 2B, based on the existing oil discovery of AJ-1 and potential future operations was submitted by the JV Partners.

Eco continues to believe that Block 2B contains considerable hydrocarbon resources and looks forward to providing further updates as the Company looks to deliver value from the licence for all stakeholders.

Namibia

Following the significant drilling success in the area, Eco continues to receive third party interest in its strategic acreage position offshore Namibia.
The Company continues to assess farm out opportunities with its four licences in the region as it considers options for progressing exploration and commercial activity on its acreage.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:

‘Our Q1 results serve as an important opportunity to remind investors of the strategic work which is happening across all areas of the portfolio. Recently announced deals in both South Africa and Guyana are examples of the team’s efforts to position the portfolio to continue creating high-impact catalysts for investors. I am excited for the future and look forward to progressing our work programmes across our entire Atlantic Margin portfolio.’

Source: Eco (Atlantic)

 

 

CDB small business training initiative

September 1, 2023

With significant sections of the population in the Caribbean opting for entrepreneurial pursuits over salaried jobs, or else, pursuing small business undertakings to supplement pre—-existing salaried jobs, the Caribbean Development Bank (CDB) is opening up more training support opportunities for the region’s substantive and emerging entrepreneurs.

A report from the Bank’s Bridgetown headquarters a week ago, stated that the CDB had recently trained one hundred and seventy four (174) persons from across the region “directly engaged with Micro, Small and Medium-sized Enterprises, (MSMEs)” in order to provide “much-needed capacity development within the sector.”

 

 

U.S. committed to Guyana’s development

Sep 01, 2023 News

United States Ambassador to Guyana, Sarah-Ann Lynch hosted her final press conference in Guyana  after serving almost five years.

“First, I want to thank all of you – the members of the media corps -for your wonderful cooperation and excellent partnership over the years. You serve a crucial and important function in any strong democracy, and you are absolutely essential to Guyana’s sustainable and transparent growth in the coming years,” Lynch said in her opening remarks.

U.S. Ambassador Lynch presented her credentials on March 13, 2019, to former President David Granger. Ambassador Lynch was confirmed by the U.S. Senate on January 2 and was sworn in on January 11, 2019.

She highlighted some of the critical efforts on which the U.S. and Guyana collaborated during her tenure. .

“With the goal of shared prosperity, security, and governance, we have achieved notable success with partners in government, the private sector, and civil society. We have worked hard to tell Guyana’s story of transformation and attract U.S. investors, not the least of which is the historic gas-to-energy partnership that will drastically lower the cost of electricity for Guyanese citizens. We have supported and will continue to support the preservation of Guyana’s biodiversity and I hope there are more deals like the landmark US$750 million carbon credit deal with the U.S. Company, the Hess Corporation.”

In partnership with the Guyanese people, the U.S. tripled their bilateral trade over the past four years. The U.S. Embassy contributed to that success by hosting multiple large trade missions, which will continue to happen on the commercial front so that U.S. businesses can build meaningful partnerships with local companies, educational institutions and government ministries.

“U.S. companies always bring high standards and responsible business practices to their work, further promoting shared prosperity. The United States Government remains committed to Guyana’s security and territorial integrity. The U.S. Embassy has proudly helped train hundreds of security professionals and government experts, on everything from how to perform professional financial audits, to providing tools to combat trafficking in persons and improve community policing. The excellent collaboration and continued partnership between the United States and the Guyanese law enforcement community has helped improve the capacity of Guyana’s police and defence forces and overall security sector.”

Ambassador Lynch underscored that positive change takes continued efforts, noting that the U.S. government is proud to be a partner who is here to stay.

“We will continue to partner with Guyana in the critical areas of governance, economic development, and security and we will also continue to invest in Guyana’s growing and vital civil society. It has been an honor and a privilege for me to serve as the U.S. Ambassador to Guyana at this historic time of transformation here, and I look forward to watching Guyana continue to develop and grow in the coming years with the United States remaining a key partner.”

 

 

 

Explore all available tools to ensure free, fair elections

Sep 01, 2023

During the press engagement, the outgoing U.S. Ambassador was asked what Guyana can do to ensure the upcoming 2025 elections are not a repeat of the 2020 General and Regional Elections. Ambassador Sarah-Ann Lynch underscored that Guyana should explore all options to ensure free and fair elections.

 “I think there was a number of important lessons learned at the 2020 elections and the most important takeaway for me is that all political parties all have the same goal, from what I gathered they all want Guyana to succeed, they want the people of Guyana to have opportunities, access to increased opportunities, access to jobs, all health care…”

Going forward, it is important for the political parties in Guyana to converse and talk about mutual agreements.

“Of course, they are political parties so won’t agree to everything, but it is important for them to converse.”

Speaking on the country’s electoral system, she highlighted that the recent local government elections were free and fair. However,   there are always recommendations to improve the electoral system.

“The electoral process is critical to a strong democracy, so I would advise the people of Guyana, the Government, and all parties to look at those recommendations very closely, look at the recommendations that were made after the 2020 elections to see what stands out, what things can be worked on now.”

Waiting until the last minute to make changes to ensure a smooth electoral process would not be the right route to take. Some recommendations would take some time to implement, so it’s better to get ahead now.

One takeaway from the 2020 Elections for the U.S. Embassy is that some polling stations did not have facilities to accommodate persons with disabilities. She recommended that Guyana should ensure there is infrastructure to support everyone. She understands that the Guyana Elections Commission (GECOM) is working on a report on Elections, which will contain several recommendations to improve the system.

Opposition party, A Partnership for National Unity (APNU) made several calls for the use of biometrics for elections declaring that the technology should be part of GECOM’s efforts toward upgrading and improving the electoral process.

The Ambassador said, “My understanding is that Guyana is exploring biometrics and I think many nations now are exploring biometrics, that’s one additional tool that can be used to ensure that elections are fair. I don’t know what the final decision will be but I think it is important to explore all tools that Guyana has access to, again in order to ensure that elections continue to be free.”

In August 2020, the Guyana Police Force (GPF) announced that they will be conducting a comprehensive investigation into the criminal conduct of the former GECOM officials and others, in relation to the March 2, 2020 General and Regional Elections and the events that followed. Following the probe, several GECOM officials were arrested and placed before the court to face electoral fraud charges. Those cases are still before the Court.

The European Union this year deployed an Election Follow-up Mission (EU EFM) to Guyana to assess progress towards electoral reform. The EU Election Observation Mission in 2020 offered 26 recommendations to stakeholders, addressing diverse aspects of elections, including the legal framework, election administration, the campaign and campaign finance, media and social media, and electoral dispute resolution. In May 2023, it was revealed that two of the 26 recommendations were fully implemented.

 

 

 

US drive to remain Guyana’s No.1 ally

September 4, 2023

Outgoing US Ambassador Sarah-Ann Lynch says Washington does not fear losing influence to Beijing here and has amplified its own strategy to ensure that it remains Guyana’s and the Caribbean’s number one ally. The US understands that China wants to expand its presence here as the lucrative oil and gas sector was attractive but the US has its advantages.

 

 

 

Petroleum Data Centre

August 30, 2023

The Ministry of Natural Resources is addressing a recently identified issue with the timeline line graph feature as part of the Data Centre found on the ministry’s website of the Petroleum Management Programme. Our thorough checks have revealed that users have encountered difficulties changing the graph’s display based on the selected period.

In response to this, the ministry is actively investigating the root cause of the problem to ensure a seamless user experience. We have replaced the timeline line graphs with static line graphs as a temporary solution. This approach will allow users to access critical information without disruption while we work diligently to resolve the underlying technical glitch affecting the interactive charts.

We remain committed to delivering accurate and accessible data to the public and these measures reflect our dedication to maintaining the highest standards of transparency. The Ministry of Natural Resources appreciates the public’s understanding and patience during this process.

 

 

 

 

Rainforest conservation ‘a rare commodity’

August 30, 2023

Former British Prime Minister acknowledges forest-protection efforts, ability to provide credible leadership at COP 28

At over 87 per cent forest cover, Guyana is one of the most heavily forested countries in South America and global leaders are now looking at this oil state to provide guidance at the upcoming global talks about forest conservation and climate .

Former Prime Minister of the United Kingdom, Tony Blair said that the country’s forest conservation is a “rare commodity,” and the efforts undertaken by officials will see Guyana playing a pivotal role in providing credible leadership at this year’s UN Climate Change Conference/Conference of the Parties of the UNFCCC known as COP 28 in Dubai.

“I think you’re in a very strong leadership position on this because you are one of the very few countries in the world that actually preserved their rainforests,” Blair said, during a conversation on the environment with President, Dr. Irfaan Ali, at the University of Guyana’s Turkeyen campus.

He highlighted the country’s aptitude to not only preserve its rainforest but also monetise it and strengthen its credibility in the fight against climate change.

“…there have been extraordinary efforts to preserve it …the position of this country in leadership terms at COP28 will be extremely important,” the former British leader added.

He reflected on the work by Guyana throughout the years with the development of its Low Carbon Development Strategy (LDCS) introduced in 2009. The country has since updated its LCDS.

“One thing that I think is remarkable is that it was done in 2009 when frankly it was quite difficult to do a strategy like that. The President and his team will be able to come to COP and speak from a position of credibility and frankly in the climate debate that is a rare commodity,” Blair said.

In December 2022, the Architecture for REDD+ Transactions (ART), issued the world’s first TREES credits to Guyana.   This marked a milestone as it was the first time a country was issued carbon credits specifically designed for the voluntary and compliance carbon markets for successfully preventing forest loss and degradation — a process known as jurisdictional REDD+.

Following the completion of an independent validation and verification process and approval by the ART Board of Directors, ART issued 33.47 million TREES credits to Guyana for the five-year period from 2016 to 2020. This paved the way for a historic agreement between Hess Corporation and the Government of Guyana, whereby the oil giants opted to purchase about one-third of all Guyana’s credits (issued and anticipated) up to 2030.

Guyana’s forests store approximately 19.5 gigatonnes of carbon.  The agreement will generate a minimum of US$750 million for Guyana over the coming decade and represents a major milestone on the journey towards a vision first set out in 2007.

President Ali said that his government will pursue more finance to further protect the environment, not only for Guyana but the Caribbean Community (CARICOM).

“We must be able to deal with the climate vulnerability fund. We must be able to deal with the reform of financial systems to address climate vulnerability and climate financing. We must be able to find a formula through which we pledged resources for adaption…These are first and foremost on my mind as a regional leader and championing these regional issues is key for me and Guyana.”

Guyana’s forests store approximately 19.5 giga tonnes of carbon and the President candidly said that the country should be paid more for its carbon credits. The price for a tonne of carbon trapped by the trees should be about US$70 instead of the current price of about US$7. A way to value the carbon trees store is by issuing forest carbon credits by independent verification organisations.

Companies can purchase these tradable credits as a way of recognising that carbon stored in forests is one aspect of the solution to achieve a global climate, where one tonne of carbon dioxide has been decreased, avoided, or sequestered for every carbon credit

President Ali said that leaders have a responsibility to advocate for funding for citizens and development:  : “We have one of the lowest deforestation rates in the world and understanding that value and what it brings not only gives us the good international branding of having a forest that contributes to humanity, and contributes positively in the climate change equation.”

This year’s COP 28 conference is being held with a view to building on previous successes and paving the way for future ambitions to effectively tackle the global challenge of climate change.

 

 

 

Guyana seeks US$70 per tonne carbon credit price on world market

August 30, 20230

Guyana remains a staunch advocate for a better price for carbon credits on the world market, with President Dr. Irfaan Ali revealing the aim remains to push for a US$70 per tonne carbon credit price.

President Ali was participating in a discussion at the University of Guyana, with visiting former British Prime Minister, Tony Blair. In response to a question about balancing development with protection of rainforests, he noted that there currently exists a severe financing gap. The region requires $2.3 trillion to achieve the essential Sustainable Development Goals by 2030. Guyana faces further complications when the underwhelming prices for carbon credits on the world market is considered.

“We are blessed with a lot of natural resources. But if you have a country with a standing forest and there’s no market for the standing forest. The people of that country still have to eat. The people of that country still have to (focus on) development. So, what is very critical, as all the studies would have shown, for us to achieve the transition we want with energy, and for us to achieve the shift in development focus, the carbon price must be US$70 per tonne. It is not even US$7. And that is why the market is so important. We have to fix that fundamentally.”

The region as a whole must collaborate in order to fix this fundamental pricing issue. Until this is done, the question of achieving a balance in developing and protecting the resources will remain prominent.

“Unless we’re able to fix the fundamentals, this question and this balance would continue to confront us. How is it we can get the world to agree that the price for carbon credits, based on what we want to achieve, net zero, must be US$70? Are we willing to make that bold and important decision?”

In December 2022, Guyana signed a contract with Hess Corporation to earn US$750 million for 30 per cent of its forest within a ten-year period. In Guyana’s agreement, a rate of US$15 per tonne of carbon was secured and so far, 15 per cent ($4.7 billion) is allocated towards Amerindian development.

Blair noted the enormous potential it held to learn from and promote education. Further, he made it clear that Guyana has proven its credibility on the world stage in the climate change fight through its forest conservation efforts… something he called a “rare commodity.”

“I think you’re in a very strong leadership position on this because you are one of the very few countries in the world that actually preserved their rainforests. The President will be able to come to [the upcoming global climate change talks] and speak from a position of credibility. Frankly in the climate debate, that’s quite a rare commodity.”

The upcoming climate talks are a reference to the United Nations Climate Change Conference/ Conference of the Parties of the UNFCCC known as COP 28, which is being held from November 30 to December 12 in Dubai, United Arab Emirates (UAE).

According to Blair, the credibility Guyana has through its piloting of the Low Carbon Development Strategy (LCDS) will come in handy at the event and may even lead the further development of the strategy.

“We have to create a mechanism whereby the supposed contrast of ‘do you develop or protect the environment?’ is eliminated. And that’s where this LCDS is important because it has worked for you over the years but it can be developed over the next few years if you get the right propulsion from the COP28 to something very, very big.”

In addition to its rich biodiversity and ecosystem, Guyana’s total forest cover of some 18.4 million hectares stores more than 19.5 giga tonnes of carbon and removes some 154 million tonnes of carbon dioxide from the atmosphere annually.

 

 

 

President welcomes former UK PM on historic visit

August 29, 2023

His Excellency President Dr Irfaan Ali welcomed former Prime Minister of the United Kingdom, the Right Honourable Sir Tony Blair, Monday, for a historic two-day visit to Guyana.

Mr Blair, who served as prime minister of the UK from 1997 to 2007 is the first former or sitting British Prime Minister to visit the country.

While in London, for the coronation of King Charles III in May of 2023, President Ali and the former British Prime Minister engaged in talks and realised that they share the values of democracy, openness and equity.

President Ali then extended an invitation to the former British Prime Minister to build on their shared vision.

Mr Blair is the Executive Chair of the not-for-profit, TBI, which empowers governments and leaders to materialise bold ideas into reality by advising on strategy, policy and delivery.

Upon his arrival in Georgetown on Monday, he met with the Head of State at State House.

On Tuesday, he is scheduled to participate in a sit-down conversation with President Ali which will be moderated by Vice Chancellor of the University of Guyana, Professor Paloma Mohamed-Martin. They will discuss global climate challenges, Guyana’s leading role in environmental protection and the importance of education and scientific research.

Mr Blair is also expected to visit a number of infrastructural projects and mark the inauguration of the Sophia Point Rainforest Research Centre founded by UK politician David Lammy and his wife Nicola Green.

 

 

 

Rainforest research

August 30, 2023

A new rainforest centre that offers vast potential for terrestrial, freshwater and marine research was established at the confluence of the Cuyuni, Mazaruni and Essequibo Rivers.

Sophia Point Rainforest Research Centre, a non-profit facility was inaugurated at the University of Guyana, Turkeyen Campus.The event was attended by President, Dr. Irfaan Ali and former British Prime Minister Tony Blair who is currently visiting Guyana.

The centre will partner with the Protected Areas Commission (PAC), the Guyana Marine Conservation Society (GMCS), the South Rupununi Conservation Society (SRC), and the World Wildlife Fund (WWF).

The centre will make the environment accessible, providing a platform for students, particularly academics and researchers, to study unbroken forests in the area.

The centre, two and a half hours away from Georgetown, will also facilitate education beyond the biological sciences. The facility is solar powered and was designed in consultation with academic field practitioners and locals. It spreads across 40 acres of expansive rainforest and is strategically positioned to provide an immersive environment for students and scientists alike. The Sophia Point Rainforest Research Centre represents a pioneering initiative in Guyana, offering unprecedented accessibility to wildlife and rainforest research.

It will serve as a hub for studying critical ecosystems and biodiversity. It will also play a pivotal role in safeguarding the rainforest and creating opportunities for young Guyanese, empowering them to emerge as tomorrow’s leaders in the sciences.

 

 

 

Oil revenue used for cash grants, pension increase and part-time workers

Aug 30, 2023

Vice President (VP), Bharrat Jagdeo told Indigenous leaders that oil income is benefitting their communities through the ‘Because We Care’ cash grant and other government initiatives ..

He made a presentation on the Low Carbon Development Strategy 2030 (LCDS 2030) as part of the National Toshaos Council (NTC) Conference 2023.

The Vice President said less than one-third of this year’s budget is financed from oil resources.

He highlighted that the People’s Progressive Party/ Civic (PPP/C) reintroduced the cash grant which the previous regime had revoked and increased it to $40,000 per child.
“By 2025, as we promised it will get to $50,000 so guess how much is spent on our children $8.4B so let’s put down $8.4B. The pension increased from, $20,000 to $33,000, and it will get to $40,000 by 2025 as we promised in our manifesto.”

74,000 pensioners, including Indigenous people, benefitted from the $13,000 increase – which resulted in a $14.5 Billion investment.

Jagdeo said in addition to monies spent on the cash grant and the pension increase, the government also increased wages for public servants like teachers, policemen, soldiers and others – a $37 Million investment since the PPP returned to office in 2020.

Another benefit is the $10 Billion investment for 15,000 people hired for part-time jobs.

“So when you look at it, that is how the resources is going back to our people, our children, our pensioners, our part-time workers…you (hinterland and riverine areas) have about 4,500 working, of which maybe 2,000 are part-time workers, with (benefits) going back to these areas.”

 

 

 

Former UK Prime Minister in historic visit

Aug 29, 2023

Former Prime Minister of the United Kingdom (UK), the Right Honourable Sir Tony Blair, arrived for a historic two-day visit . Mr. Blair, who served as prime minister of the UK from 1997 to 2007 is the first former or sitting British Prime Minister to visit the country and met President Irfaan Ali at State House.

The Office of the President said that while in London, for the coronation of King Charles III in May of 2023, President Ali and the former British Prime Minister engaged in talks and realised that they share the values of democracy, openness and equity.President Ali then extended an invitation to the former British Prime Minister to build on their shared vision.

Mr. Blair is the Executive Chair of the not-for-profit, TBI, which empowers governments and leaders to materialise bold ideas into reality by advising on strategy, policy and delivery.

Today, Mr. Blair is scheduled to participate in a conversation with President Ali which will be moderated by Vice Chancellor of the University of Guyana, Professor Paloma Mohamed-Martin. They will discuss global climate challenges, Guyana’s leading role in environmental protection and the importance of education and scientific research. Mr. Blair is also expected to visit a number of infrastructural projects and mark the inauguration of the Sophia Point Rainforest Research Centre .

 

 

 

Chevening scholars journey to UK education

September 8, 2023

The government said that the four new Chevening scholars will embark on a life-changing experience at universities in the United Kingdom and when they are finished successfully, they will serve their country by contributing to its development.   At an award dinner hosted by British High Commissioner, Jane Miller,  Chevening scholar and Senior Minister for Finance, Dr Ashni Singh told the scholars that they will be exposed to diverse cultures and people. Dr Singh expressed the government’s well-wishes and appreciation on behalf of the four awardees for the opportunity.

“UK universities over the years have established themselves as amongst the preferred choices for students seeking higher education from around the world. Spending a year in the UK at a British university gives you an opportunity to be exposed to perhaps a more diverse population,”

Minister of Culture, Youth and Sports, Charles Ramson Jr., said that this scholarship is helping to identify leaders who can work for the benefit of their country.

“The appetite for education in the country especially amongst young people who are already doing tremendous things shows how it is and it also shows as a country, we are already fortified, crystalized in our view that education is an important passport out of poverty and the development of ourselves.”

He encouraged the scholars to focus on their schooling while taking in all the changes and experiences that come with it. The students expressed their gratitude to the UK for granting them this exciting opportunity.

The first Chevening scholar from the fashion industry, Keisha Edwards said that she is ready to study in her favourite fashion country and encouraged other designers to apply for the next entry,

“I feel really good to be selected for this prestigious scholarship. I didn’t know that Chevening was an opportunity for me and when I got selected it was an incredible journey.”

Joshua Benn stated, “I thought that this would be a good stepping stone and giving the direction that Guyana is going in with oil and gas and the focus on renewable energy, I thought what a better way to kick start this by doing an LLM-Master of Law in oil, gas and renewable energy,.”

Amrita Narine’s motivation came from interacting with Chevening alumni, whose leadership she admires.

“When I learned about the scholarship, I was 20 years old. I will be studying for my Masters in Data Science and Artificial Intelligence for the creative industry, it’s a niche that I enjoy. So, I’m super excited to explore the UK and also bring my skill set back to Guyana.”

On the 40th anniversary of the Chevening Awards for Scholars, High Commissioner Miller congratulated the recipients and encouraged them to do their best.

“We have chosen future leaders in a variety of areas whether it be academia, in government, in civil society, captains of industry, throughout the fabric of society.”

The UK provided 157 scholarships in Guyana.The next round of applications will be opened on the 12th of September. The Chevening Award allows study in any subject in Britain.