SBM Offshore FPSO expected for ExxonMobil hits milestone

Keel-laying for the fifth Fast4Ward FPSO hull completed 7 months after first steel cut

8 December 2023
By Xu Yihe in Singapore

Chinese yard Shanghai Waigaoqiao Shipbuilding (SWS) s reached a milestone in building the hull and living quarters of the latest floating production, storage and offloading vessels based on SBM Offshore’s Fast4Ward concept.

This vessel is being built on a speculative basis but is likely destined for the ExxonMobil-operated Stabroek block to develop massive oil discoveries offshore Guyana

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Chevron boosts 2024 budget for Permian, Guyana oil, gas development

Kevin Crowley and David Wethe,

Bloomberg December 07, 2023

Chevron Corp. followed competitor Exxon Mobil Corp. in raising planned capital spending as the biggest U.S. oil operators seek to increase long-term crude production.

Chevron’s financial performance was the strongest of all the oil supermajors through the pandemic, but its stock has declined roughly 20% this year — twice the drop seen for Exxon — as investors fretted about growth potential outside the Permian.

Chevron Chief Executive Officer Mike Wirth is attempting to remedy that by purchasing Hess Corp., which would secure Chevron a 30% stake in Exxon’s groundbreaking Guyana project. After the deal closes in the first half of next year, Chevron said Wednesday its annual budget will be in the range of $19 billion and $22 billion.

Although BP Plc and Shell Plc have pivoted back toward fossil fuels after investors planned hard pushes into greener initiatives, indications are the European companies won’t see significant oil growth in the medium term.

The U.S. supermajors, in contrast, aim to maintain their premium stock-market valuations by using last year’s record profits to increase production, notably in the Permian basin.

Eco (Atlantic) results for period to 30 September 2023

01 Dec 2023

Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, announced results for the three and six month periods ended 30 September 2023.

Highlights:

Financials (as at 30 September 2023)

• • • The Company had cash and cash equivalents of US$3.85 million and no debt.
    • The Company had total assets of US$51.0 million, total liabilities of US$1.71
    • million and total equity of US$49.30 million.

Operations:

Guyana

• • • 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 (the “Transaction”).

Post-period end:

• • • On 15 November 2023, Eco announced that the Company had received Government approval for the transfer of 60% Working Interest and Operatorship in the offshore Orinduik Block in Guyana from the Minister of Natural Resources, Cooperative Republic of Guyana.
    • On 21 November 2023, the Company announced completion of the Transaction, upon which Eco became the designated Operator of the Orinduik Block and increase its aggregate Participating Interest to 75%, held via Eco Orinduik B.V. (60%) and Eco (Atlantic) Guyana Inc (15%). TOQAP Guyana B.V continues to hold a Participating Interest of 25%.
    • A formal farm-out process for the Orinduik Block has commenced and the Company expects to provide further updates in due course.

South Africa

Block 3B/4B

• • • 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.
    • Government of SA approval and therefore the $2.5m cash payment from Africa Oil are expected to be received by year end 2023.
    • The JV partners continue to progress a farm-out, in conjunction with preparations for a two well drilling campaign on the Block. Further updates will be made as appropriate.

Block 2B

• • • Eco has applied for a Production Right Application to the Petroleum Agency of South Africa, for Block 2B, and continues to assess opportunities available to deliver value from this licence for the benefit of stakeholders.

Namibia

• • • Following reports that significant multi-well drilling campaigns are about to be undertaken offshore Namibia, Eco continues to receive third party interest in its strategic acreage position.
    • 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.

Board Changes:

Post period end, on October 9, 2023, the Company announced the appointment of Miss Alice Carroll and Miss Selma Usiku as executive and non-executive directors respectively of the Company with immediate effect, with Helmut Angula retiring from the Board.

Gil Holzman, President and Chief Executive Officer, commented:

‘We have made progress on all fronts across our exploration portfolio in 2023. The most notable development was the acquisition of a 60% Working Interest in the Orinduik Block, offshore Guyana, from a subsidiary of Tullow Oil Plc. This transaction made Eco the Operator of the licence and brings our total stake in the Block to 75%. We have already commenced with a farm-out process and opened a data room, receiving early interest from multinational oil and gas companies.

“Also, offshore South Africa, we continue to progress plans for a two-well campaign on Block 3B/4B in parallel to continuing farm-out discussions with various large industry partners. In Namibia, we continue to receive incoming interest with regard to our highly strategic acreage position, which has increased following recent media reports of multi-well drilling campaigns being lined up.

“In closing, the last two quarters of 2023 have been a highly active period for us, and we look forward to sharing further updates on the ongoing farm out workstreams and drilling plans with our stakeholders as and when we are in a position to do so.’

The Company’s unaudited financial results and Management’s Discussion and Analysis for the three and six months ended 30 September 2023 are available for download on the Company’s website at www.ecooilandgas.com and on Sedar at www.sedar.com.

Source: Eco (Atlantic)

 

Final investment decision target set to develop twin discoveries offshore

CGX and Frontera pave the way to start output from the Kawa-1 and Wei-1 discoveries

12 December 2023 14:14 GMT UPDATED 12 December 2023 15:15 GMT
By Fabio Palmigiani in Rio de Janeiro

Canadian independent CGX Energy is hopeful it can make a final investment decision in 2026 regarding the development of a pair of promising discoveries in the Corentyne block offshore Guyana, with production tentatively earmarked to begin in 2030.

In a virtual presentation to investors to update the status of its operations in Guyana, CGX and project partner Frontera Energy estimate the Kawa-1 and Wei-1 finds combined hold between 514 million and 628 million barrels of oil equivalent in unrisked gross prospective resources.

JV seeks partners for offshore block to unlock hydrocarbon potential

 

December 11, 2023, by Melisa Cavcic

Joint venture (JV) partners in the Corentyne block – Canada’s CGX Energy and Frontera Energy – are on the lookout for partners to enable the development of discoveries on the Corentyne block offshore Guyana, as exploration results support the potential for a standalone shallow oil resource development across the block.

Noble Discoverer (former Maersk Discoverer) rig, which carried out the drilling campaign off Guyana for CGX and Frontera JV; Source: Maersk Drilling (now Noble Corporation)

CGX and Frontera highlight that additional upside has been identified in Campanian and Santonian horizons while 514-628 mmboe P.  Mean unrisked gross prospective resources are estimated in Maastrichtian horizons in the northern portion of the Corentyne block, which backs the potential for a standalone oil development across the block from Maastrichtian horizons.

This is based on four separate evaluations, two by independent, third-party resource evaluators, drilling results at Wei-1, and an updated interpretation of Kawa-1 well results.

Gabriel de Alba, Chairman of Frontera’s Board of Directors, and Co-Chairman of CGX’s Board of Directors, commented: “When Frontera and CGX formed its joint venture in 2019, it did so with the singular goal of discovering sufficient resources to underpin a potential standalone commercial oil development offshore Guyana. The joint venture is now well on its way to achieving its objective.

“The joint venture believes that approximately 514 to 628 mmboe PMean unrisked gross prospective resources may be present in the Maastrichtian horizons alone and that additional potential upside may exist in the deeper Campanian and Santonian horizons.”

As a result, the duo is pursuing a potential farm-down of interests in this block with support from Houlihan Lokey. The Guyana partners, which are in the process of concluding the exploration phase of the project, explain that typical deepwater developments can take four to seven years from discovery to first oil.

While the total cost of a typical deepwater project varies due to several factors that challenge each project, the JV elaborates that these projects are more complicated developments that require appraisal drilling and conceptual modeling before a final investment decision (FID) can be made. Following FID, it takes around three years to complete detailed design, construction, and commissioning, prior to the first oil.

Professor Suresh Narine, Executive Co-Chairman of CGX’s Board of Directors, remarked: “We have weathered border challenges, economic downturns, and unsuccessful exploration wells; our joint venture with Frontera has maintained and strengthened this unwavering focus.

“With successful discoveries at Wei-1 and Kawa-1, we are encouraged by the definitive presence of oil in the Corentyne block, and our commitment is being rewarded with potentially commercially viable prospective resources in the Maastrichtian interval with potential upside in the Campanian and Santonian intervals.”

As previously disclosed, the duo retained SIA, a Subsea 7 – Schlumberger joint venture, to complete a conceptual field development plan for the northern portion of the Corentyne block including subsea architecture, development well planning, production and export facilities, and other considerations. However, additional appraisal activities will be required before commerciality can be determined.

Orlando Cabrales, Chief Executive Officer of Frontera, stated: “The joint venture remains excited about the Corentyne block’s potential in the highly sought-after Golden and Silver Lanes in one of the most exciting basins in the world.”

Currently, the joint venture has a 100% working interest in the Corentyne block with Frontera holding a 72% stake and CGX the remaining 28%.

IDB – US$550M to support lending

Dec 01, 2023

The Inter-American Development Bank’s (IDB) Board of Executive Directors approved a US$550 million financial commitment to support lending activities to Guyana. The Bank announced the approved Country Strategy with Guyana for 2023 through 2026. The strategy is focused on resilient infrastructure, human capital development with an emphasis on improving health and education outcomes and social services and strengthening institutional capacity. The financial commitment in the lending pipeline is poised to support Guyana’s journey toward sustainable development and inclusive growth.

Climate change, environmental sustainability and strengthening gender and diversity are cross-cutting themes of the new strategy. which also provides support on implementing the Low Carbon Development Strategy and meeting decarbonization objectives.

Additionally, there is an expected increase in private sector activities from IDB Invest, the private sector arm of the IDB Group in keeping with the economy’s growth trajectory and to foster access to longer-term financing for the private sector. This will strengthen the development of the private sector by deepening its links to the booming economy and improving the business climate in non-oil industries through productivity-enhancing, resilient infrastructure and a better equipped labour force.

“This new strategy puts people at the center, reflecting the government’s commitment to improve the well-being of the Guyanese population hand in hand with the economic growth.”

Through these areas of support the Bank will further contribute to economic transformation supporting more investment and employment and ultimately improving standards of living across the country.

IDB representative in Guyana, Lorena Solorzano Salazar, said, “It is a unique, once-in-a-lifetime opportunity to witness Guyana’s current resource boom. It gives momentum to innovative and sustainable solutions that can help improve the quality of public and social services and, ultimately, people’s lives. As a long-standing development partner to Guyana, at the IDB Group we remain committed to deepening our collaboration and ensuring our interventions are meaningful and impactful.”

Guyana will leverage resources from other facilities like the Bank’s Group Amazonia Forever Program and the forthcoming Program for the Caribbean to strengthen Guyana’s actions in areas such as regional integration, food security, and climate change among others. The Country Strategy is the result of an inclusive process of sustained dialogue and engagement with the Government of Guyana and consultation with a wide cross-section of civil society stakeholders.

 

 

IMF commends economic management; commitment to fiscal discipline

December 5, 2023

Following an official IMF mission visit to Guyana in September, the International Monetary Fund (IMF) in its 2023 Article IV Consultation report published today commended the Government for economic management, including implementation of policies and initiatives geared at transforming the economy.

Rapid Economic Growth Supported by Government Modernisation Plans

Real GDP is expected to continue to grow rapidly, after Guyana achieved the highest real GDP growth in the world in 2022 – 62.3 percent. It is estimated that the economy should record a 38.4 percent real Gross Domestic Product (GDP) growth rate this year, while growth should continue with an expansion of an expected 26.6 percent in 2024.

Oil production is rising, with a third oilfield – Payara – coming online, 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.

In relation to inflationary pressures, the Government introduced a suite of measures in 2022 and 2023, which contributed to a decline in the inflation rate in 2023. The external current account recorded a large surplus in 2022, of 23.8 percent of GDP, and another large surplus is expected in 2023. The IMF reported that banks are well capitalised and continue to improve their loan portfolios.

Outlook for Medium-Term Growth Better than Ever

Guyana is poised for continued rapid expansion, with on average growth of 20 percent per year during 2024-28. IMF projects that non-oil GDP growth will be sustained at 5.5 percent, as the government continues its plans to address developmental needs.

At the IMF and World Bank Annual 2023 Meetings in Marrakesh, Morocco, Senior Finance Minister Dr. Ashni Singh noted that Government is ‘using this period to make the strategic investments that are necessary to ensure that in the medium to longer term Guyana is not solely dependent on oil. We want to make sure that we have a growing, globally competitive non-oil economy so we are using this period to invest in infrastructure to improve connectivity with neighbours, increase the economic space in which we are operating, and therefore lay the foundation for more trade’.

Guyana’s favourable outlook is accompanied by upside and downside risks. On the upside, additional oil discoveries would continue to improve growth prospects. Growth in the construction sector, alongside strong public investment could support higher than expected short-term non-oil growth but may also lead to inflationary pressures and the appreciation of the real exchange rate. Adverse climate shocks, and volatile commodity prices have the potential to negatively impact the economy.

Appropriate Policy Mix

The IMF reported that current expansionary fiscal policy stance is appropriate, given the country’s development needs and is appropriately balanced by monetary policy.

Commitment to Fiscal Discipline

The IMF commended commitment to fiscal discipline, which allows for a balanced growth path, with the moderation of fiscal impulses over the medium-term projected to achieve a zero overall fiscal balance by 2028. This will allow for an expansion of the economy without creating macroeconomic imbalances.

At the meetings in Marrakesh, Dr. Singh explained that “we come from a time when Guyana was once one of the most heavily indebted poor countries in the world. There was a time when Guyana’s debt to GDP ratio was more than 600 percent and it took hard work to get us from where we were as a Heavily Indebted Poor Country (HIPC) with debt to GDP exceeding 600 percent and debt service to revenue exceeding 100 percent to bring us to a point where our debt to GDP ratio was about 60 percent and that is before we started producing oil”.

Progress to Strengthen the Management of Oil Wealth and Fiscal Transparency

The NRF Act, amended in 2021, enhanced transparency and accountability of the use of oil revenues. highlighted that governance of the NRF was strengthened in 2022 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 also the first year that oil revenues were transferred from the NRF to the national budget. In addition, notification of all receipts is published. This process continued in 2023.

The Government also made progress in implementing the recommendations of the 2019 Extractive Industries Transparency Initiative (EITI).

The IMF noted that the Petroleum (Exploration and Production) Act was modernised and approved by parliament in August 2023, improving the regulation of exploration and production of oil, and further paves the way for developing the oil and gas industry. Further, a new Production Sharing Agreement (PSA) has been designed, which will increase the government’s share of oil profits.

IMF Commended Climate Efforts

Guyana has made significant progress on climate actions, becoming a world leader in forest conservation and supporting global climate change mitigation. The Government successfully reestablished the Low Carbon Development Strategy (LCDS), combining the utilisation of natural resources in a sustainable manner to combat climate change with the monetisation of these efforts.

In 2022, after being awarded the first jurisdiction scale certification of carbon credits, Guyana sold 37.5 million carbon credits for US$750 million, to be paid during 2022-2032 (a third of the credits Guyana will receive over 2016-30), one of the largest transactions in the world. The LCDS allows for the utilisation of these funds for flood management, diversification of the energy matrix, and the provision of resources for Amerindian communities.

The IMF supports the enhancement of the LCDS-to-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.

Government intention is to continue to manage the economy in a prudent, sustainable manner to continue the success through creating a successful diversified non-oil economy, among other approaches.

IMF Article IV 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, as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

 

Economy tripled since 2019 with record GDP growth – IMF

December 5, 2023

In its 2023 Article IV consultation staff report, the International Monetary Fund revealed that the economy has tripled since the start up of oil production in 2019. According to the IMF, Guyana’s rapid economic growth owes much to oil production, which started with the Liza Destiny Floating Production, Storage and Offloading (FPSO) vessel in the Stabroek Block. Guyana has per capita the largest oil reserves in the world and the highest real Gross Domestic Product (GDP) growth.

“The Guyanese economy has tripled in size since the start of oil extraction (end-2019), from one of the lowest GDP per capita in Latin America and the Caribbean in the early nineties. Oil production is ramping up rapidly, supporting the highest real GDP growth in the world in 2022 (62.3 per cent).

Going forward, oil production will continue to expand rapidly as four new fields will come on stream by end-2028. Sustained real non-oil GDP growth is also expected, as the Government continues to invest in human capital, lower energy costs, and build infrastructure, including for climate change adaptation. Real GDP is expected to continue to grow extremely fast in 2023 (38.4 per cent) and on average of 20 per cent per year during 2024-28.”

The People’s Progressive Party/Civic (PPP/C) Government began to invest heavily in overwhelming development needs, funded by oil revenues that were first transferred to the budget in 2022. With strong Government fundamentals, there were no signs of inflationary pressures or overheating associated with the pumping massive oil revenues into the economy.

With Government efforts to stave off inflation, the IMF noted that given the medium-term risks of inflation as the economy expands, a continued focus on maintaining macroeconomic stability by sound policies was recommended.

The Finance Ministry released a statement lauding the IMF findings and noting that the Government was commended, not only for fiscally-sound policies aimed at diversifying the economy but also for its management of inflation.

“..about inflationary pressures, the IMF noted that the Government introduced a suite of measures in 2022 and 2023, which has contributed to a decline in the inflation rate in 2023. The external current account recorded a large surplus in 2022, of 23.8 per cent of GDP, and another large surplus is expected in 2023. The IMF reported too that banks in Guyana are well capitalised and continue to improve their loan portfolios.”

Guyana has been projected to achieve a zero overall fiscal balance by 2028, which would allow the economy to expand even more without macroeconomic imbalances.

Finance Minister Dr Ashni Singh informed the World Bank meeting with the IMF in Morocco of Government priorities, including avoiding dependence on oil.

“We want to make sure that we have a growing, globally-competitive non-oil economy so we are using this period to invest in things like infrastructure to improve connectivity with our neighbours, increase the economic space in which we are operating, and therefore lay the foundation for more trade.”

Dr Singh had explained to the institutions the long road Guyana travelled, from being one of the most heavily-indebted poor countries, to a place where debt-to-GDP ratio was now 60 per cent.

There was a time when Guyana’s debt-to-GDP ratio was over 600 per cent and “it took hard work to get us from where we were as a Heavily Indebted Poor Country (HIPC) with debt to GDP exceeding 600 per cent and debt service to revenue exceeding 100 per cent to bring us to a point where our debt-to-GDP ratio was about 60 per cent and that is before we started producing oil.”

 

 

Transfer of US$100M from the NRF

November 29, 2023

In 2021, Government amended the Natural Resource Fund (NRF) Act to bring greater transparency and accountability in the management of oil resources, including the requirement of Government to seek annual Parliamentary approval for withdrawals from the NRF as stated in Section 19 of the NRF Act 2021.

Pursuant to that provision, as part of its consideration of the Budget Process, the Parliament approved US$1.002 billion (equivalent to G$208.9 billion) to be withdrawn from the NRF in 2023.

In accordance with the NRF Act 2021 and the approved Budget 2023, the Government made its seventh transfer, totalling US$100 million (equivalent to G$20.8 billion) from the NRF on November 23, 2023, to the Consolidated Fund. This transfer brings the accumulated withdrawals to date in 2023 to US$850 million (equivalent to G$176.8 billion), within the total of US$1.002 billion (equivalent to G$208.9 billion) approved to be withdrawn in 2023.

 

 

 

British investors see lucrative opportunities in petroleum economy

December 2, 2023

─ Trade Mission cements economic ties

British investors are keenly exploring investment opportunities in Guyana, recognising the burgeoning economy and favorable business environment. A reception at the British High Commissioner’s Residence for a visiting British Trade Mission highlighted this increasing interest.

This is the third trade mission to Guyana since the current administration took office in 2020. Trade between Guyana and the United Kingdom has surged during this period, underlining the strengthening economic ties between the two nations.

Minister of Tourism, Industry and Commerce Oneidge Walrond told the event
“Guyana is open for business,” and emphasised the government’s commitment to fostering a conducive environment for business development.

“This kind of movement doesn’t come lightly, it doesn’t come by a fly by night, it really comes from vision, it really comes from dedication from a government that understands how to navigate where we are and how we fit in the world economy and the fact that we are able to present to our investors, they have to come and they have to have confidence. We heard about 50 per cent of the businesses have been able to create partnerships and we’ve seen successful businesses out of these UK trade missions, it is because the confidence is there,”

British High Commissioner to Guyana, Jane Miller, enthusiastically promoted Guyana’s investment potential and the enduring reputation of British brands at the event. She emphasised Guyana’s welcoming business environment and the numerous opportunities available to British investors.

“We’re very proud to be bringing the British brand to Guyana.”

Miller highlighted the longstanding presence of British machinery in even the most remote corners of the country, underscoring the reputation of British brands for quality, innovation, and value for money. British investors are not merely seeking short-term gains but are committed to establishing long-term partnerships and contributing to sustainable development.

Her remarks align with the growing interest among British businesses in exploring investment opportunities in Guyana. The trade mission held about 60 meetings with the local private sector to explore mutually beneficial opportunities. The delegation represents a wide range of sectors, including construction materials suppliers, heavy equipment suppliers, project financing and financing for infrastructure services and goods, for equipment and equipment to support poverty reduction and pollution prevention.

Head of the delegation and Managing Director of the Caribbean Council, Chris Bennett, expressed optimism about the mission’s potential to generate concrete outcomes.

“When we do these trade missions, we really are very serious about trying to make something happen from them… And I’m really delighted to say that that is what seems to be working from the previous missions that we’ve organised. Over 50 per cent of the companies that have come have ended up signing some sort of partnership deal or contract with partners here in Guyana.”

Bennett noted the significant improvements in connectivity , with direct flights now available and a weekly cargo service from the UK. which have reduced costs, transit times and opened up new opportunities for businesses in both countries.

 

 

 

2023 review: Capacity-building remains a priority

December 3, 2023

A reflection on developments within the oil and gas sector for the year shows wins for local content, growth of the industry and benefits from the proceeds of the sector.

High on the agenda for ExxonMobil is the commitment to local content development. Two-thirds of the oil and gas workforce are locals. The latest update disclosed that nearly 6,000 local workers support their operations in country Over US$1.2 billion was spent in the economy since 2015 on more than 1,500 Guyanese suppliers.

These remarkable accomplishments confirm the extent of investment in building the capabilities of Guyanese and local businesses. Company support and empowerment through training programmes have been vital in driving workforce and supplier development Efforts to groom local talent and build capacity of the workforce have been channelled through one of their initiatives, the establishment of the Centre for Local Business Development in 2017, a business hub for the oil and gas sector.

The Centre has been instrumental in delivering training designed to enhance the competencies and skills of individuals and businesses in various sectors. Seven courses and three mentorship programmes are offered. These programmes cover a wide array of areas including Offshore Oil and Gas and Gas to Energy, Procurement, HSSE, Cashflow Management, QuickBooks, Costing, and Budgeting, while the mentorship programmes cover HSSE Management Systems, Project Management and Entrepreneurship.

Over 5,000 Guyanese have accessed CLBD courses . 66 percent of over 7,000 companies registered with the Centre are local. Through these efforts, ExxonMobil and its co-venturers have ensured that citizens can access valuable resources that will enhance their business’ growth.

In 2023, the CLBD continued its series of outreaches to benefit individuals who may not have easy access to training or resources. The aim is to educate persons and businesses on the available opportunities in both the public and private sectors. This year, outreaches were held in Berbice and Linden. By actively engaging with the communities, the Centre was able to create meaningful partnerships, foster local development through training and mentorship, and bridge some of the existing gaps to empower more individuals with knowledge and skills.

Multiple Requests for Information (RFI) sessions facilitated by the CLBD allowed potential bidders to ensure that they correctly interpret the requirements and also provided a platform to gain clarity. The impact of these efforts is tangible as a growing number of successful local businesses emerge serving the petroleum sector. Capacity-building initiatives implemented through the Centre have not only created employment opportunities but also fostered innovation and economic diversification.

It becomes evident that capacity-building of local companies has remained a top priority. Training programmes made available by the CLBD played a significant role in facilitating this. By investing in education and training, the full potential of people is unlocked, paving the way for a prosperous future.

 

 

 

Waxing higher in 2024

December 20, 2023

At the Private Sector Commission’s (PSC)’s 31st Anniversary Gala Dinner & Awards Ceremony, President Dr Irfaan Ali said that 2024 will be a significant year for all, as more initiatives will be rolled out to better everyone’s lives.

“Our development must leave no one behind.”.

As he reflected on the important roles that Guyana will play in the international and regional arena, the President highlighted that the nation is gearing up to assume its non-permanent seat at the United Nations Security Council (UNSC) on January 1, 2024.

Guyana will assume Chairmanship of CARICOM and will host the Guyana Energy Conference and Supply Chain Expo, and the CARICOM Heads of Government meeting.

As the nation continues to build relationships, the President said that in February 2024, Guyana will host “high-level” delegations from Brazil, Saudi Arabia, Qatar, the United Arab Emirates and Rwanda, among other countries.

The Urban Renewal Plan is an investment from a Qatari group. “That will open up tremendous opportunities along the Carifesta highway, and bring into realisation a plan of modern boardwalk along the seawall. This is the year that we’ll see new shore bases commencing.”

Expounding on the expansion and completion of local projects, Dr. Ali said that 2024 will be the year that we will see the Wales Development Authority (WDA) moving towards implementation.

“Guyana will be aggressively positioning itself globally in the energy, food, climate and environmental services, ecological and biodiversity services. We’ll be unloaded on global focus areas as pillars of the economy moving forward.”

With the nation aiming to continue making a name for itself, developmental works will be pursued and all citizens can expect a more enhanced Guyana. On infrastructure, the Diamond to Buzz Bee Dam highway will be completed and works will commence on the Buzz Bee Dam to Soesdyke Highway.

“This is bonus… the programme that we were elected on did not have this,” he said, while underscoring the massive road works that his administration has pursued. The Schoonord to Crane four-lane by-pass will be completed. The signing and commencement of the Corentyne River Bridge will connect Guyana to Suriname in 2024.

“We’ll see substantive completion or completion of the New Demerara Bridge…continuation of Ogle-Eccles bypass to Providence…,” the President said while expounding on the plans in progress for easing traffic woes. Government will sign the contract for the construction of the new Wismar four-lane bridge.

Completion of the fortified superhighway bridges to Lethem will follow and work will begin on the finalisation of a model for the Kurupukari Bridge and the New Amsterdam Creek Road project.

“We’ll see the completion of many of our new hospitals and schools, but we’ll see expanded collaboration and partnership with universities, teaching and research medical institutions around the Western Hemisphere. We’re going to launch a special initiative on innovation completion of the development of the regional food hub…”

Efforts continue to upskill and provide opportunities for young people with plans to have 2,000 persons trained for nearshoring jobs related to the oil sector. In 2024, the government will commence the operation of the first innovative drug development programme which will apply the best technology

“This is the year that we will be moving forward on the building of three new stadiums and the completion of the stadium in Anna Regina, We’re at the final stages of negotiating the hosting of the women’s CPL in Essequibo.”

In Regions Three and Six, a new stadium will be built along with the completion of the football and cricket stadiums in Region 10. Guyana is hosting the Cricket World Cup and finals of the Cricket Carnival. “…We are already acutely aware with the fact that once we develop this capacity with all these new rules, new hotels and a new restaurant we have to be able to bring people in, bring consumers in…,”

 

 

 

EU increases forest-management funding to €$3.8M

November 28, 202

Minister Vickram Bharrat, and Ambassador of the European Union to Guyana, Rene van Nes signed an aide-mémoire at the meeting of the Joint Monitoring and Review Committee of the Guyana-EU FLEGT VPA

The Ministry of Natural Resources signed an aide-mémoire with the European Union (EU) under its Voluntary Partnership Agreement (VPA), a critical component of the Forest Law and Enforcement Governance and Trade (FLEGT) action plan. The signing agreement was facilitated by Minister of Natural Resources Vickram Bharrat at the second Joint Monitoring and Review Committee (JMRC) meeting held at the Guyana Forestry Commission. Minister Bharrat assured the meeting of the government’s continued commitment to the VPA, as it sees great value in what it has contributed thus far, and its benefits in the future.

“The JMRC is the body that is ultimately responsible for the way in which the agreement is implemented, since it provides key oversight in the process.”

Although another document was signed and ratified under the VPA, both the government and the relevant stakeholders will still have to ensure that momentum is maintained during the agreement’s implementation phase.

“The current timeline of the joint implementation framework developed by the parties identifies critical activities in the success of the issuance of the licence. These timelines need to be adhered to; this may require greater effort from all sides,” the Minister stressed.

He urged stakeholders to work together to operationalise the Guyana Timber Legality Assurance System (GTLAS), which is considered to be the heart of the VPA.
He stressed that the government is committed to enforcing legal and sustainable forest practices, and, as a result, considers the FLEGT VPA critical to the development of the forestry sector.

Ambassador of the European Union to Guyana Rene Van Nes stated that the new agreement increased resources to Guyana, telling the JMRC meeting,

“As a result of the very good progress that you are making on the implementation of the VPA, it was decided to give you more resources. So, in the past, it was agreed that you would get two-and-a-half million euros for this, this has actually been increased, you will get $3.8 million euros,” .

The EU ambassador further disclosed that Guyana and its local counterparts will benefit tremendously from other resources that will be provided by the EU, such as an Information Technology system, which will allow persons within the forestry sector to monitor Online forestry procedures.

The VPA would ensure that timber from Guyana is EU-certified in a manner that follows best practices in sustainable forest management. Talks on the FLEGT VPA began in 2009, with formal negotiations made in 2012, and eventually saw ratification and a formal signing being done in early 2023. (DPI)

 

 

Market-based incentives integral to achieving net-zero emissions

December 4, 2023

As the United Nations Climate Change Conference of Parties (COP28), continues to zero in on effective solutions for tackling climate change and limiting global carbon emissions, Vice President, Dr. Bharrat Jagdeo reiterated the call for climate financing and forest incentives to achieve these goals. In an interview with BBC News on the sidelines of COP28,

Dr. Jagdeo touted Guyana’s expanded Low Carbon Development Strategy (LCDS) 2030, as a viable solution to promoting forest preservation, while ensuring people-centred development. Jagdeo, who met President of Brazil, Luiz Inácio Lula da Silva at COP28, said Guyana stands on a platform that demonstrates the value of implementing market-based mechanisms and incentives to push forest conservation, thus reducing the carbon footprint.

Guyana became the first country to earn money for protecting its rainforests through the sale of its carbon credits under the Architecture for REDD+ Transactions (ART) TREES credit programme. The agreement signed with Hess Corporation saw Hess purchasing high-quality carbon credits for a minimum of US$750 million. Carbon credits provide financial incentives to preserve forests and biodiversity that are at risk due to the growing economic activities and demand for natural resources.

With some 80 million hectares of intact forests and the second-highest percentage of forest cover on earth, Guyana could earn about US$2.5 billion in the next 10 years, according to the vice president, by capitalising on favourable market conditions.

“Considering we’re just one per cent of tropical forests, the remaining 99 per cent have had less than US$2.5 billion pledged for conservation. There is a paucity of public funds, and given the inability of the world to capitalise the GCF (Green Climate Fund) and to put money in the loss and damage fund at adequate levels, you’re not going to find adequate public monies to outcompete the alternate use of the forest. That’s why the market is so important. An incentive should be created to grow the market-based approach to preserving forests,”

From the sale of its carbon credits, the government allocated 85 per cent for adaptation measures, while 15 per cent has been set aside for indigenous communities. 242 Amerindian communities received their 15 per cent allocations which fund 500 projects.

At COP28, Guyana promoted climate adaptation funding for small and developing nations to realise the global net-zero emissions vision. Implementation of market-based mechanisms for forest conservation, reduction of fossil fuel production and the removal of large polluters from the supply chain can achieve this goal.

 

 

 

‘Doctrinaire’ approach cannot achieve Net-zero

December 1, 2023

President Dr. Mohamed Irfaan Ali challenged global leaders at COP28 to embrace a more inclusive approach to achieve net-zero emissions goals. At the Dubai summit, President Ali argued that the current ‘doctrinaire’ approach risks jeopardising the interests of developing nations and the poorest populations.

He emphasised the need for a paradigm shift, urging leaders to “reset and reflect” on how climate challenges can be tackled inclusively and without disproportionately harming vulnerable communities. This reset, requires rebuilding global relationships on a foundation of stronger trust and solidarity.

“If the debate of COP28 is framed by two camps; one, calling for no cuts in fossil fuel production including the most polluting form such as coal, and the other saying that the only solution to net zero is an end to fossil fuel production, then, we’ll fail once again to achieve a viable outcome and not give our world the energy it needs to grow and prosper.”

Net zero is possible through a combination of mechanisms, including the reduction of fossil fuel production and the removal of large polluters from the supply chain, as well as keeping world forests intact.

“We maintain our call for the removal of subsidies, incentivising the reintroduction of renewables at scale, addressing the demand for energy, upscaling technology…A reduction in deforestation and land degradation through incentives and incentivising the protection and sustainable management of forests,”

Only through such an approach can the world effectively confront pressing challenges like climate change, food and energy crises and achieve sustainable development.

He outlined three priorities that should be discussed , which must involve leaders agreeing to an orderly and affordable transition away from excessive fuel use and, “ensure at scale and accessible climate finance for a developing world that is of a scale that matches what needs to be done.”

Global leaders must recognise the importance of maintaining tropical forests and advancing sustainable land use specifically in tropical forests. Guyana is leading this cause as it sits as a co-chair on the carbon markets working group of the Forest & Climate Leaders’ Partnership (FCLP), which consists of 30 countries. Through partnership with the FCLP, Guyana is working to build high-quality carbon markets to allow forested communities and countries to prosper while keeping nature intact.

“The COP must finally turn the promise of climate action into reality, halting and reversing forest loss globally by 2030. It’s potentially one-third of the available solution to keep 1.5 degrees in reach [and] finance is key” .

In 2008, Guyana became the first developing country to produce a Low Carbon Development Strategy (LCDS), maintaining the most intact forests with one of the lowest deforestation rates, storing over 19.5 gigatons of carbon dioxide. The country is building an eco-system economy with forest-carbon markets, generating 4.5 per cent of the government income in 2023 alone. Over 500 projects in indigenous communities are also funded by the forests’ carbon markets.

President Ali emphasised that Guyana stands in solidarity with every country working to create a better future for all, especially in developing countries, and will always put practical solutions to the table.

“We are a carbon net positive country and aim to stay there. We accept the responsibility that comes with being a new oil producer. Our economy will grow more than three-fold while keeping energy emissions flat.”

Absent from the COP28 Summit are obvious solutions to the energy crisis- curbing population growth doubling to 2.8 billion in AU which can be electrified with, Sahara solar power, exploiting geothermal resources for power as volcanoes warm the earth in eruptions, spew tonnes of GHG and raise sea level with lava flows. The earthquakes causing tsunamis also raise sea level as the seabed is uplifted in tectonic activity.

Guyana can end marketing products of The West Indian Tobacco Company, a member of British American Tobacco group, which can invest in food and biofuel, divesting a polluting industry consuming gas to create addiction and an epidemic. As a signatory to the WHO Treaty on Tobacco Control, Guyana can ban advertising, promotion and sponsorship, increase smoke-free public places and add health warnings to packaging.

 

 

 

COP28 and Essequibo

Dec 1, 2023 Vishani Ragobeer in Dubai

Among 70,000 people in Dubai for the UN climate summit, COP28.with their own ambitions and interests Guyana is seizing the opportunity to explain its boundary controversy with Venezuela. The new petrostate championing the role of forests in battling climate change is forging ahead with plans to protect and profit from its forest , hoping to set an example for the world of how a low carbon economy can work. President Dr. Irfaan Ali,

President Ali will return to Guyana by December 2, the day before Venezuela plans a referendum (a public vote) that is seen as the gateway for the Spanish-speaking OPEC founder to annex the Essequibo region, a resource-rich area that spans two-thirds of Guyana’s landmass.

A whirlwind of meetings for the President and the Vice President with President of the United Arab Emirates (UAE), Mohammed bin Zayed Al Nahyan, King Charles III and British Foreign Secretary (and former Prime Minister) David Cameron. filled the first two days.

King Charles and Lord. Cameron, restated their commitment to support Guyana in its position that the 1899 Arbitral Award settled the boundary between Guyana and Venezuela. President Al Nahyan supports the final settlement of the controversy at the International Court of Justice (ICJ), where Guyana has taken its case.

Meetings are planned with Brazilian President Luiz Inácio Lula da Silva and India’s Prime Minister Narendra Modi, the stars at COP28 in the absence of the Presidents of the United States, Russia and China.

In his final hours , President Ali will address the high-level summit of world leaders, speak at Guyana’s side event on its Low Carbon Development Strategy (LCDS) and push for other bilateral engagements.

“COP28 brings together leaders from across the world but it also gives us this opportunity to engage on important issues. … I have the opportunity to engage many leaders in bilaterals that I would have otherwise had to travel (to their countries) for,” President Ali said on the sidelines of COP28.

The controversy

In 1899, the borders of Guyana (then British Guiana) and Venezuela were settled, with Venezuela inheriting 13,000 square kilometres of what was then British Guiana territory – an area bigger than Jamaica or Lebanon.

Venezuela participated in that tribunal and accepted the legal boundary award for about six decades until 1966 when British Guiana was about to become an independent state, Guyana. Venezuela then challenged the award, raising concerns about the 1899 award. The political 1966 Geneva Agreement established a framework to resolve the controversy. For decades after this agreement, Guyana and Venezuela continued bilateral talks and a UN-backed engagement known as the Good Offices process.

In mid-February 2017, the new UN Secretary-General António Guterres appointed Dag Halvor Nylander of Norway as his Personal Representative on the Border Controversy, in a final effort at dialogue to settle the matter. That failed and on January 31, 2018, the UN Secretary-General referred the matter to the ICJ and Guyana filed its case. In 2020, the ICJ found that it has the jurisdiction to hear the border case and earlier this year, it threw out Venezuela’s preliminary objections that, among other things, the United Kingdom must also be part of the case.

Guyana hopes for a final, binding ruling from the ICJ that reaffirms the 1899 Arbitral Award and makes it clear that the Essequibo region is its own. Venezuela refuses to recognise the Court and is forging ahead with its referendum.

A clear climate connection

The controversy deals with Guyana’s sovereignty and territorial integrity but the area claimed by Venezuela includes a majority of the over 18 million hectares of the famous forests of Guyana, valuiable to Guyana and the world. About 19.5 gigatonnes of carbon dioxide is stored in those trees; about 18% of the world’s forest carbon. If the forests are cut down, those gases would be released into the atmosphere and exacerbate climate change. Increasing emissions means intensified global warming and worsening disasters like wildfires and floods.

At left is a map of Guyana, from the Guyana Lands and Survey Commission, showing the natural regions and at right is a map of Guyana and Venezuela, from AFP, that includes the Essequibo region.

Venezuela’s government, through the referendum, is pushing the creation of a new Venezuelan state (Guayana Esequiba) from Guyana’s Essequibo region, covered in vast, dense forests. Venezuelans are also being asked if they support the issuance of Venezuela identification cards to inhabitants there.

Vice President Jagdeo, in a public meeting with residents of Region Two (Pomeroon- Supenaam) said Guyanese are not interested in Venezuelan ID cards and are intent on keeping their land. Guyana also asked the World Court to block those questions in the referendum that interfere with Guyana’s territorial integrity and sovereignty.

In Dubai, President Ali is telling colleagues around the world of Venezuela’s “reckless and adventurous” actions but he makes it clear that this controversy has no influence on Guyana’s plans to keep protecting its forests and get compensation for doing so.

“First of all, we are very clear on where our borders are. We are pushing the forests because it is Guyana forests so we are not really factoring in the controversy in these climate talks. The ICJ will rule but we are very sure of our borders and all our resources within our borders and the natural assets within our borders and we are speaking definitively on the development of all our assets within our borders.”.

Though there is some time yet before the Court’s ruling on the substantive border controversy, the ICJ will rule on the p[rovisional measures Guyana requested regarding the Venezuelan referendum.

Climate Tracker through the COP28 Climate Justice Reporting Fellowship supported this report.

 

 

 

ExxonMobil CEO confirms Guyana focus amid intensifying boundary dispute

Jennifer A. Dlouhy and Kevin Crowley, Bloomberg December 04, 2023

At the COP28 climate summit in Dubai, ExxonMobil Corp. CEO Darren Woods said the Texas energy giant is focusing on producing oil in Guyana as efficiently as possible to help the petrostate in its dispute with Venezuela.

“I’m not sure the press has captured the true intensity of the situation there, but we’re keeping an eye on it,” We can do what we can do, which is making sure that we’re helping the government of Guyana by producing the resources efficiently.”

Venezuelans voted on referendum questions over whether to claim a disputed border area known as the Essequibo, currently controlled by neighboring Guyana. Elvis Amoroso, head of Venezuela’s electoral body, said preliminary results show an “overwhelming victory” of positive answers as the government uses the issue to stoke nationalism among the electorate ahead of presidential elections in 2024.

Guyana and Venezuela have been disputing their boundary since the late 1800s, when an international arbitration panel awarded the territory to Britain in 1899. In 1962, Venezuela said the decision was invalid and has periodically demanded the area be handed over. Guyana achieved independence from Britain in 1966.

The dispute gained renewed fervor since Exxon discovered oil offshore Guyana in 2015 and quickly turned the country into one of the fastest-growing producers of crude. Separately, then-president Hugo Chavez nationalized Exxon’s operations in Venezuela in 2007.

“I think there’s a lot of things happening in Venezuela from a political standpoint,”

Here’s more from the interview with Woods:

Is Exxon financially assisting Guyana’s government in the dispute?

“No, we’re not. We’re limiting our role to the area of our expertise, which is to basically help them responsibly develop their resources.”

Does Exxon expect any regulatory pushback on its roughly $60 billion acquisition of Pioneer Natural Resources Co.?

“We’re in the early stages of that. I think, if you look at the merits of that transaction, it shouldn’t trip any regulatory hurdles or clearance hurdles. The two of us together represent less than 15% of production coming out of the Permian. We represent less than 5% of the production in the US and less than 3% for the world. From a fair-trade standpoint or a fair competition standpoint, it doesn’t reach any thresholds that would be a concern.”

How are relations with the Biden administration?

“I spend more time engaging with this White House than I did with the White House before that. So I think there’s a genuine effort by the Biden administration to strike the right balance: To focus and drive emission reductions and improve greenhouse gas emissions, but at the same time, a recognition of the important role oil and gas plays — the need to continue to provide affordable, reliable energy supply.”

How worried are you that the Inflation Reduction Act may be pulled back after the next election?

“Any time you build a business based on government support there’s always that risk. But our view is, fundamentally, emissions need to be reduced. And so there may be short term pluses and minuses, but ultimately, we’re staying focused on long-term objectives. Society has got to find a way to reduce emissions. We think the approach that we’re taking is sound under any regime. It’ll be competitive under any regime.”

Why is Exxon joining initiatives to encourage national oil companies to reduce emissions?

“It’s important that we get as much of the industry committed to raising the bar. We have a philosophy that we’re working to in the company to be the most responsible operator. So, for as long as there’s a demand for oil and gas, you want the most responsible companies producing that.”

 

 

 

ExxonMobil in Guyana for the long term despite territorial dispute

December 12, 2023

GEORGETOWN, Guyana (AP) — Oil giant ExxonMobil will keep ramping up production offshore Guyana despite the escalation of a territorial dispute with Venezuela which claims that oil-rich region.. ExxonMobil Guyana said it was reaffirming its “long-term commitment to Guyana” as tensions grow between the two South American countries that share a border.

“We are not going anywhere – our focus remains on developing the resources efficiently and responsibly, per our agreement with the Guyanese government.”

Earlier this month, Venezuelan President Nicolás Maduro proposed that companies operating in the vast Essequibo region in Guyana, rich with minerals and located near massive oil deposits, should withdraw their operations within three months. The government seeks to ban companies in Guyana from operating in Venezuela where lawmakers are debating a bill containing the proposed ban. He argued he has the authority to issue such orders following a referendum aimed at annexing the area. ExxonMobil is producing about 600,000 barrels of oil a day after successfully drilling over 40 wells offshore Guyana’s Essequibo region. The Exxon-Mobil consortium bid and received approval to develop three more areas in the region believed to contain additional oil deposits.

Many of Guyana’s largest gold, diamond, manganese and other mines are located in Essequibo. Most are Canadian-owned but no companies have reacted yet to Maduro’s statement. Chinese companies have timber operations in the area. ExxonMobil issued the statement a day after Guyana’s president, Irfaan Ali, told reporters that investors have nothing to fear.

“We want to encourage our investors to invest as much as they want,” he said.

Ali and Maduro will discuss the territorial dispute with regional leaders urging talks to avoid further conflict.

New map including Essequibo at the Foreign Ministry in Caracas,

 

Royal Navy rekindles tensions

Venezuelan President Nicolas Maduro deployed over 5,000 troops of the Bolivarian National Armed Forces. equipped with missile launchers and amphibious vehicles to the border of Essequibo, claimed by Caracas, Fighter jets patrolled warships in military exercises in response to the “unacceptable threat” from arrival on 29 December 2023 of HMS Trent, armed with cannon.

The hefty hegemon condemned the British presence as “an act of hostile provocation and a violation of the peace declaration.” of 14 December by Guyana and Venezuela, now superseded by events. Britain dismissed this rant as unjustified. Guyana has no plans to attack Venezuela.

 

 

 

 

Rutley reaffirms UK support

December 19th 2023

“The United Kingdom supports Guyana,” Rutley wrote

British Minister for the Americas, Caribbean, and Overseas Territories David Rutley met President Irfaan Ali to reaffirm the United Kingdom’s support to Guyana in the controversy with Venezuela over the 160,000 km2 petroliferous Essequibo. Rutley insisted the issue has been settled for over 120 years and sovereign borders must be respected. He welcomed the agreement in St. Vincent and the Grenadines where both parties pledged to avoid any further escalation.

Ali and Venezuelan President Nicolás Maduro pledged not to “threaten each other, nor use force against each other under any circumstances.”

“The United Kingdom supports Guyana,” wrote Rutley with a photo in which he shakes Ali’s hand.

Talks between Ali and Rutley “focused on the continuation and expansion of the relationship between the United Kingdom and Guyana, especially in areas of security and sustainable economic development,” according to Guyana authorities.

Calling Rutley a “filibuster”, Venezuelan Foreign Minister Yván Gil replied that “the former empire, invader, and slaveholder, which illegally occupied the territory of Guiana Essequiba and acted in a cunning and devious manner against the interests of Venezuela, insists on intervening in a territorial controversy that they themselves generated. This controversy will be resolved directly between the parties.”

Venezuela maintains Essequibo is a part of its territory from its time as a Spanish colony.

 

 

 

 

Weaponised flag, map and ID on La Soufriere

Venezuelan President Nicolas Maduro claimed to come “in peace “to do his country’s business at the Argyle Airport in St Vincent and the Grenadines (SVG) at talks with Guyana President Dr Irfaan Ali.

Aiming to prevent Essequibo eruptions, CARICOM, chaired by Dominica PM Roosevelt Skerrit and Community of Latin American and Caribbean States (CELAC) chaired by SVG Prime Minister Dr Ralph Gonsalves convened the now obsolete event. Gonsalves had warned against any escalation over Essequibo.

Ali told media Guyana was not the aggressor in the dispute and “very strongly” complained of a contrast between Venezuela’s words of peace and Maduro’s stated intention to annex Essequibo, based on a purported popular mandate after a consultative referendum.

Maduro and Ali arrived separately with their teams, recorded by Caracas-based Telesur and Guyana News Room. Gonsalves greeted each leader on the runway with a military guard of honour. The Bolivarian brigade wore white shirts and Maduro embraced Gonsalves.

“We arrived in St Vincent and the Grenadines, with the flag of peace and the mandate of the Venezuelan people held high…to advance through dialogue and the word of peace, defending the rights of the people and our homeland. We are seeking effective, satisfactory and practical solutions as mandated by the Geneva Agreement. I am pleased that CELAC and Caricom have achieved this step. We will make the most of it for peace!”

Gonsalves said, “We have two leaders who are mature and wise, Presidents of Guyana and Venezuela, and I expect them to apply their maturity and wisdom and patience and calm.”

Ali, in a blue business suit, wore a wristband displaying a map of Guyana, including Essequibo. He met CARICOM Heads, Keith Rowley, Roosevelt Skerrit, Mia Mottley and Philip Davis, CELAC and UN officials.

Ali told them the border controversy must be resolved by the International Court of Justice (ICJ) and Guyana’s only intention is to secure, ensure peace, security in the region, reiterating Guyana’s position in accepting the invitation, that the border controversy was

“not up for discussion, negotiation or deliberation.”

Maduro then joined the meeting, shook hands with Ali and with Brazilian diplomat Celso Amorim, named to chair the talks. Maduro, who sat directly opposite Ali, explained the purpose of this first conversation with Guyana’s President Irfaan Ali.

“It is to seek, through dialogue and negotiation, effective, satisfactory, and practical solutions, as mandated by the Geneva Agreement.”

Maduro raised tensions over Guyana’s oil-rich Essequibo region earlier by declaring it part of Venezuela after claiming a ten-million voter mandate in a consultative referendum.

He issued a map portraying Essequibo as part of an enlarged Venezuela, named a purported military governor of the area, ordered Venezuelan companies to undertake and administer oil exploration and promised a census of the local population, who would receive Venezuelan ID cards.

Maduro thus defied the recent ICJ order for Venezuela to refrain from any action on the Essequibo, pending its ultimate ruling, against a backdrop of Brazil moving troops to its border and the US Southern Command announcing military flights over Essequibo.

Gonsalves invited Ali and Maduro to the talks, which Brazil President Lula da Silva was asked to chair but who instead named Amorim. Gonsalves had urged Ali and Maduro to summon the proverbial “wisdom of Solomon, the patience of Job and the foresight of all the ancient prophets” to engender neighbourliness, peace, justice, security and prosperity. The two leaders could “help to save the region from intense conflict” which will bring pain and suffering and will set it back more than a generation.

After the meeting, Ali told media, “There is absolutely no retreat by Guyana in ensuring that this matter is determined by the ICJ and that the outcome of this matter at the ICJ be respected by all.”

He said Caricom had repeated the view that the 1899 arbitral award must be determined by the ICJ, whose ruling all must respect. Ali noted the phases of the meeting – Caricom-Guyana; Caricom-Venezuela; and Guyana-Venezuela (with Caricom, CELEC, Brazil and the UN) – recalling the last.

“In that meeting, I outlined, once again, Guyana’s clear position, that is we are a peace-abiding country and people. We have no other ambition than to pursue the peaceful co-existence with Venezuela and every country in this region.”

Ali asserted Guyana’s rights.

“I made it very clear that Guyana has all the right to exercise its sovereign right within its territorial space to approve of and facilitate any development, any investment, any partnership, any training, any collaboration, any co-operation (or) the issuing of any licence and the granting of any concessions within our territorial space and within our sovereign space. I made it clear that the controversy must be resolved at the ICJ. And we are unwavering and resolute in ensuring that Guyana’s case is presented, defended under the ICJ.”

Ali said he made it clear that the ICJ was employed under the Geneva Agreement, which lets a UN secretary- general decide where to determine the controversy, that is, the ICJ.

“I want to say that we agreed with all the regional partners that the priority is peace, and that every threat of force or the use of force must be denounced and that every party must take responsibility. We made it very clear that Guyana is not the aggressor. Guyana is not seeking war. But Guyana reserves the right to work with all our partners to ensure the defence of our country. All our partnership is based on the defence of our territorial integrity and our sovereignty.”

He vowed Guyana would do all in its sovereign space to promote development and ensure the defence of what was lawfully its own. However, he said Guyana and Venezuela both committed to ensuring the region remained a zone of peace. Ali praised Caricom, CELAC and Brazil for helping the day’s dialogue.

He did not comment on Venezuela’s timelines to act inside Essequibo on its referendum results.

“Let us see. I am not going to go beyond where the meeting is right now. Let’s see what comes out of the next meeting.”

Asked about a Venezuelan delegation aircraft displaying the slogan, “The Esequibo is ours”, Ali held up his wristband, which portrayed Guyana, including the Essequibo.

“This tells you. All of it belongs to Guyana. This is the map of Guyana. No narrative, propaganda, decree, can change this.”

Asked about his hopes for the talks, Ali replied, “Respect for sovereignty and territorial integrity and working for peace and stability in the region.”

Telesur reported the two leaders indicated a willingness to meet again. However, for further discussions are doomed after HMS Trent was dispatched by the Royal Navy of His Britannic Majesty King Charles

The optics illustrate the predicament of former British colonies and recent events indicate the futility of future meetings. British Indians are now dominant in the hydrocarbon sector of CARICOM- Trinidad, Guyana and Suriname. This community is a minority in CARICOM, dominated by People of African Descent with whom two CELAC leaders of Iberian origin, sympathise – the Portuguese Gonsalves and the Spanish Maduro.

CARICOM, a bureaucratic remnant of the failed West Indies Federation, integrated only in the University of the West Indies and the Cricket Team, claims to be democratic but is riven by strife with a high homicide rate. The majority joined Petrocaribe for discounts on Venezuelan fuel and are thus indebted to Caracas. Trinidad obtained a US sanctions waiver to develop gas from the Dragon field in Venezuela for its petrochemical industry and is similarly beholden. As UN members dependent on aid from imperial masters, CARICOM knows that if it abandons Guyana, Bolivarian forces will invade with help from PRC and Russia and even claim Suriname and the cosmopolitan paradise of Trinidad.

CELAC is a socialist alternative to the democratic OAS, founded in Venezuela to counteract the USA. Venezuela is not a UN member and is not obliged to obey the ICJ. It lacks empathy for British Indians, the last of the colonial communities who endured persecution by PAD, driven by racial envy in Guyana and Trinidad, where homicides approach 600.

This geopolitical development is a direct consequence of decolonization by CARICOM Reparations Commission chaired by UWI VC, driving the regional university to bankruptcy while it campaigns for cash from international taxpayers. Amid abundant resources, Africa can repatriate its CARICOM diaspora to homelands in over 1.2 billion acres, free from hurricanes, earthquakes and volcanoes, where they can develop resources with solar power among lookalikes, thus defusing the threat of invasion of Guyana and its neighbours and offering a novel solution to the perennial problems of the Bolivarian regime.

 

 

 

Essequibo conflict raises insurance costs for Guyana

December 20th

Oil drilling will entail higher premiums

Amid escalating concerns about the Essequibo crisis with Venezuela, Guyana has been included in the list of greatest risk for maritime transport drafted by insurers Lloyd’s Market Association for vessels visiting offshore facilities in the former British colony’s Exclusive Economic Zone, beyond “territorial waters.”

The Lloyd’s Market Association Joint War Committee warned that the move is likely to increase the cost of shipping crude oil from facilities run by ExxonMobil. “Any additional shipping costs are likely to be small at first. While listing an area means war risk premiums may be charged, they generally only increase when conflict breaks out,” .

The new assessment comes after Venezuelan President Nicolás Maduro insisted he would “fully recover” the Essequibo, a 160,000 square-kilometer petroliferous territory. Venezuela announced it was activating business units for Essequibo, under full Guyanese control since its independence.

Large reserves of oil and natural gas in Essequibo were discovered in 2015 by ExxonMobil and amount to around 11 billion barrels of oil, which led Guyana to the highest economic growth in the world (57.8% in 2022).

Guyana President Irfaan Ali promised to continue oil production, guaranteeing the protection of all operators making investments in the Essequibo region. He met UK Minister for the Americas, Caribbean, and Overseas Territories David Rutley, who ratified the Britains support in the controversy.

Maduro then demanded that British authorities “take their hands off” Latin America and claimed that some countries continued to believe they owned their past colonies. The conflict grew when Venezuelans voted in a referendum on December. 3 to annex the disputed area.. An “action plan” followed with the settlement of a military division near the area and the appointment of a military governor until elections can be held.

Maduro and Ali agreed in Saint Vincent and the Grenadines not to threaten or use force and to refrain “whether in word or deed, from escalating any conflict or disagreement arising from any controversy.”

 

 

 

 

As Guyana stands firm in SVG: MADURO: I COME IN PEACE

‘We are not taking Venezuela’s narrative for granted’ – President tells BBC

December 4, 2023

His Excellency, Dr Mohamed Irfaan Ali again emphasised that Guyana is not taking Venezuela’s rhetoric and narrative relating to the border controversy for granted. In an interview with the BBC on the Guyana-Venezuela border controversy he reaffirmed that Guyana’s response will continue to adhere to international law, which respects the dignity of people and leads to continuation of peace within the region.

“I am concerned that Venezuela can indeed follow up the rhetoric and the narrative and act in a reckless manner. This is concerning because, already we have a dangerous situation in Venezuela, where the people are suffering as a result of the type of governance…Where the respect for the rule of law, democracy, and all these things are threatened.”

The president said his country is concerned that reckless and adventurous action can lead to more displacement of Venezuelans, creating added regional pressures on migration and other issues. Guyana will continue to respect the rule of law, as it continues to garner more support from allies to uphold its territorial integrity and sovereignty.

“As a country, we are not taking the narrative out of Venezuela for granted. That is why we have been working with our neighbours, friends, CARICOM, Commonwealth, the OAS…They have all issued very strong statements and called on Venezuela to respect the rule of law and the order of the ICJ.”

The UN International Court of Justice (ICJ) unanimously ruled that until the court renders a definitive verdict in the border case, Venezuela shall not take any actions that may impair Guyana’s jurisdiction over the Essequibo area. Five questions were released by Venezuela’s National Electoral Council for the referendum . Among other questions, Voters were asked whether they support establishing a state in the disputed Essequibo territory, granting citizenship to current and future area residents and rejecting the jurisdiction of the United Nations’ top court in settling the disagreement between the South American countries.

In October, Guyana requested a court injunction prohibiting Venezuela from taking any action to seize, acquire, encroach upon, or establish sovereignty over the Essequibo in a Request for Provisional Measures that it sent to the ICJ. With the ICJ ruling, President Ali restated that Venezuela is not to act upon the outcome of the two questions and the outcome of the referendum.

“And that Venezuela must respect the status quo as it exists today in Guyana and that is Essequibo belonging to Guyana…I believe that Venezuela has a responsibility to honour the order and respect the 1899 Award. “

In the 1899 Arbitral Award, the boundaries of Guyana and Venezuela were fully settled, which was jointly agreed to by both nations