SBM committed to local content

January 24  2024

The petroleum industry has seen exponential growth that drastically improved the economic standing of Guyana and enhanced its global appeal. A transformational tapestry is being unravelled as development propels the country to new heights.

While implementation of mega projects to push the infrastructural development agenda is a key facet of the matrix, the administration is also placing a keen focus on ensuring that social infrastructure receives adequate investment.

The Local Content Act is one testimony to this commitment. The act was designed to ensure the industry supports an economy where small and medium-sized businesses can grow and benefit. The act led to the employment of over 6,000 locals in the industry and lays out 40 areas in the services sector that oil and gas companies and their subcontractors must procure locally.

SBM Offshore Guyana is one contractor that aligned its procurement and management policies with this legislation. The company was the first major Exxon contractor to receive approval for its local content master plan. With over 100 years of experience in the oil and gas industry, SBM Offshore is responsible for the construction of Floating Production Storage and Offloading (FPSO) vessels in the Stabroek Block. SBM Offshore Guyana’s General Manager, Martin Cheong reaffirmed the company’s commitment to investing in the local market, partnering with local businesses and ensuring that training programmes remain a hallmark of its local content framework.

“One focus for us primarily is building local capacity on two fronts; human capacity, that is, employees, ensuring we have a strong national footprint; and secondly, local vendors and suppliers. Going local just makes sense,” he told the Department of Public Information (DPI) during a visit to SBM Offshore’s corporate office. 112 Guyanese vendors were engaged, with nearly 600 purchase orders issued. These ranged from services, including transportation, accommodation, welding, fabrication and fresh foods.

Training initiatives are a crucial aspect of investments in the local workforce. The Trainee Technician Programme and Graduate Engineers’ Programme are two initiatives aimed at upskilling Guyanese in various capacities so they can support offshore operations. Eight engineers completed the Graduate Engineers’ Programme, which provided international training to support the FPSO vessels. Two of these graduates employed at SBM Offshore Guyana, shared experiences they described as transformational and exciting.

For Maryam Nasir, the oil and gas sector introduced new opportunities for young Guyanese, opening doors for innovation and creativity. She was trained in Monaco and the Netherlands, where she played a vital role in the creation of Digital Twin for the Prosperity FPSO. She explained that a digital twin is a replica of the FPSO intended to facilitate information management. Nasir is now employed as a data scientist within the company.

“”A lot of people think of SBM as an engineering company but there is also a field for innovation and technology. When I was at the University of Guyana studying Computer Science, I had an affinity for data science, but I didn’t know how that was going to work in Guyana because the field was not developed. So, SBM does spread a digital footprint locally, because I was able to become a data scientist.”

Malik Lewis  trained in the Netherlands and then Singapore for six months each. Being exposed to hands-on training on the Prosperity vessel was an invigorating venture.

“We got to go on the vessel and see all of the work that was going on. It was good to be part of the team and to gain that experience. I am now in marine engineering, a new and exciting experience for me. It has been productive, refreshing, and transformative.”

The company launched its Scholarship Programme for Indigenous Women in STEM, which provides full support for Indigenous Guyanese women pursuing tertiary education in Science, Technology, Engineering, or Mathematics.

40 per cent of employees are Guyanese. In 2023, 269 Guyanese were employed onshore and offshore.

Assistant Safety Officer aboard the vessel Liza Unity FPSO, Shaquwn Sealy, 24, plays a critical role in ensuring compliance with the safety regulations outlined by SBM Offshore. As the company emphasises safety of employees, Sealy takes her responsibility of advancing this charge very seriously. Safety has become an integral aspect of her day-to-day activities, even when she is onshore. Working offshore has not been easy, but she credits the welcoming and friendly environment created by management and staff for helping her to adjust.

“I had to overcome my personal challenges of self-doubt. Coming to this environment where everyone on-board is so welcoming and respectful, and seeing how the system works and everyone is eager to teach you, t made my journey a lot easier. The only challengee is missing my family, but out here we also have a family and we make the most of it. We have a women’s committee on-board for support, and that makes it a lot easier for me here as a woman.” Employees are involved in other bonding activities to boost morale.

She commended the accelerated pace of oil and gas development in Guyana which created massive avenues for economic and social development.

“I feel proud and more Guyanese should get involved. This is the future. This is where the major stuff is going to happen for Guyana’s economy. There has been a lot of job availability. You can see thousands more cars on the road. This is because things are being poured into our economy. I encourage persons to get on board and see where you can fit. Even if you have a small business, see where that can fit, whether it be farming or something else. We have to eat out here, so your farm could actually supply food here.”

Expansion of the oil and gas sector has a ripple effect on the rest of the economy. Tourism, infrastructure, education, health, and even agriculture are achieving tremendous growth. “Oil and gas bring tourism, because everybody is hearing about Guyana. So, they want to see Guyana. Tourists and expatriates coming here with families want to see Kaieteur Falls. So, even though we are producing oil, there are other aspects that are developing due to oil and gas.”

Other initiatives outlining the company’s continuous pursuit and support of sustainability under the Local Content Act include the Green Farms Initiative, the Education and Awareness Programme on the Barima-Mora Passage, the Enhancing Livelihoods Youth Literacy Initiative, and the Hubu Aquaculture Project.                     (DPI)

 

ABB electrical, digital systems for Uaru FPSO

Offshore staff,  Jan. 18, 2024

Offshore Frontier Solution contracted ABB to provide electrical systems and associated digital solutions for the FPSO for the Uaru oil development.

SINGAPORE — The MODEC/Toyo Engineering joint venture Offshore Frontier Solution contracted ABB to provide the electrical systems and associated digital solutions for the FPSO for the Uaru oil development offshore.

Errea Wittu will be the fifth floater on the ExxonMobil-operated Stabroek Block. Operating about 200 km offshore, it will handle production from the Snoek, Mako and Uaru accumulations.

It should start service by 2026, with an initial oil production capacity of 250,000 bbl/d. Its associated gas treatment capacity will be 540 MMcf/d. ABB will supply a topside and hull electrical system to the vessel through a pre-built eHouse modular substation. This is designed to limit risk exposure and costs through commissioning, installing and testing all the electrical systems at the shipyard prior to deployment offshore.

In addition, the company will provide power management solutions to optimize energy efficiency and the availability of all electrical equipment.

This will be the company’s 14th collaboration with MODEC on FPSO projects offshore South America.

Related To: MODEC, Inc. tesy MO

 

 

Jumbo Offshore awarded contract to support works for fifth oil ship

Jan 12, 2024

Dutch transport and installation contractor, Jumbo Offshore, announced its latest contract award from MODEC Guyana Inc. This new project involves the pre-installation of the mooring spread for the Errea Wittu, Guyana’s fifth Floating, Production, Storage and Offloading (FPSO) vessel. Mooring refers to the process of anchoring the vessel to the seabed using a system of heavy anchors, chains, and cables. This system ensures that the FPSO remains stationary and securely positioned at its operational site, allowing it to safely and efficiently process, store, and offload the oil it extracts.

The pre-installation of the mooring spread is a critical step in preparing the site for the arrival and operation of the FPSO. The name Errea Wittu means “abundance”, and the FPSO will have the capacity to store two million barrels of oil. It will produce approximately 250,000 barrels of oil per day and will have a gas treatment capacity of 540 million cubic feet per day, and water injection capacity of 350,000barrels per day.

MODEC Group was authorised to proceed with the engineering, procurement, construction and installation (EPCI) scope for the FPSO in May 2023, following a final investment decision on the Uaru project by ExxonMobil Guyana Limited and its partners. The FPSO mooring system will be supplied by SOFEC, Inc., a MODEC Group company, and consists of 19 mooring legs.

Jumbo Offshore will be using its unique Heavy Lift Construction Vessel Fairplayer which allows the transport and installation of the 19 suction anchors, 8,800m of chain sections and 43,168m of polyester rope in the minimal amount of installation voyages, simplifying the logistics involved. After the announcement.

Igor Rijnberg, Head of Sales and Business Development Subsea at Jumbo Offshore said his team is grateful to MODEC for the opportunity to work on the Guyana project. “We will use the extensive deep-water mooring installation experience gained over the last years to deliver a reliable, smart and efficient project execution.”

His counterpart, Brian Boutkan , Manager of Commerce at Jumbo Offshore, said: “On behalf of the entire team, we are very much looking forward to undertaking this project. MODEC can count on Jumbo Offshore’s total commitment to providing a safe and reliable execution. As always, we will be approaching this project as a partner to our client, working in close collaboration with MODEC to ensure the outcome entirely meets their expectations.”

 

 

 

MODEC picks contractor for FPSO work

JANUARY 12, 2024, BY MELISA CAVCIC

Netherlands-based heavy lift shipping and offshore transportation & installation contractor Jumbo Offshore Installation Contractors will join Japan’s MODEC on a project for a floating production, storage, and offloading (FPSO) vessel, destined to work on ExxonMobil’s fifth oil development in the Stabroek block offshore.

Jumbo Offshore’s latest contract award is for the pre-installation of the mooring spread of the FPSO Errea Wittu, which will be located on ExxonMobil’s Uaru project – the U.S. energy giant’s fifth development on the Stabroek block offshore . The oil major sanctioned Uaru in April 2023. This project’s start-up is targeted in 2026.

The $12.7 billion Uaru development targets an estimated resource base of more than 800 million barrels of oil and includes up to 10 drill centers and 44 production and injection wells. MODEC secured a FEED contract for the Uaru FPSO, with the green light to proceed with the engineering, procurement, construction, and installation (EPCI) scope for the FPSO in May 2023.

The vessel, which will have the capacity to store 2 million barrels of oil, will produce approximately 250,000 barrels of oil per day. It has a gas treatment capacity of 540 million cubic feet per day and a water injection capacity of 350,000 barrels per day.

Igor Rijnberg, Head of Sales and Business Development Subsea at Jumbo Offshore, commented: “The Jumbo Offshore team is very grateful to MODEC for this opportunity. We will use the extensive deep-water mooring installation experience gained over the last years to deliver a reliable, smart and efficient project execution.”

The FPSO mooring system will be supplied by SOFEC, a MODEC Group company, and consists of 19 mooring legs. The Dutch firm will use its Fairplayer heavy lift construction vessel, which allows the transport and installation of the 19 suction anchors, 8,800 m of chain sections, and 43,168 m of polyester rope in the minimal amount of installation voyages, simplifying the logistics involved.

Fairplayer  heavy lift construction vessel,

Brian Boutkan, Manager of Commerce at Jumbo Offshore, remarked: “On behalf of the entire team, we are very much looking forward to undertaking this project. MODEC can count on Jumbo Offshore’s total commitment to providing a safe and reliable execution. As always, we will be approaching this project as a partner to our client, working in close collaboration with MODEC to ensure the outcome entirely meets their expectations.”

ExxonMobil plans to have six FPSOs on the Stabroek block by year-end 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of more than 11 billion barrels of oil equivalent. ExxonMobil Guyana Limited operates the block and holds 45% interest while its partners, Hess Guyana Exploration and CNOOC Petroleum Guyana Limited, hold 30% and 25% interest, respectively.

The U.S. oil major began production from its third oil development at the Stabroek block on November 14, 2023, with the start-up of its third FPSO, Prosperity, which was put into operation ahead of schedule.

 

 

 

 

 

MODEC books Jumbo for Uaru FPSO moorings pre-lay

ROTTERDAM —Offshore staff.  Jan. 11, 2024

MODEC has contracted Jumbo Offshore to perform pre-installation of the mooring spread of the FPSO Errea Wittu at the Exxon Mobil Uaru Field offshore .

MODEC has contracted Jumbo Offshore Installation Contractors to perform pre-installation of the mooring spread of the FPSO Errea Wittu at Exxon Mobil’s Uaru Field offshore Guyana.

The FPSO, with a crude storage capacity of 2 MMbbl, will produce about 250,000 bbl/d of oil, with gas treatment of up to 540 MMcf/d and water injection capacity of 350,000 bbl/d.

Exxon Mobil awarded MODEC the EPCI scope for the FPSO last May after the partners took FID on the project. MODEC subsidiary SOFEC will fabricate the mooring system, comprising 19 mooring legs.

Jumbo Offshore will deploy its heavy-lift construction vessel Fairplayer for the campaign, which will transport and install the 19 suction anchors, 8,800 m of chain sections and 43,168 m of polyester rope.ourtesy Jumbo Offshore

 

 

 

 

 

 

Jumbo wins contract for Guyana-bound FPSO

Fabio Palmigiani in Rio de Janeiro 11 January 2024

Errea Wittu FPSO will start production from the Uaru field in 2026

Netherlands-based group Jumbo Offshore has been awarded a contract by Japan’s Modec for the pre-installation of the mooring spread of a large floating production, storage and offloading vessel destined to be deployed in Guyana.

The Errea Wittu FPSO was ordered by US supermajor ExxonMobil to produce from the Uaru field in the Stabroek block offshore and Modec was contracted to build and deliver the unit.

The floater will have processing capacity of 250,000 barrels per day of oil and 540 million cubic feet per day of natural gas, with operation due to start in 2026.    The Errea Wittu FPSO mooring system will be supplied by Modec subsidiary Sofec and will consist of 19 mooring legs.

Jumbo will use its heavy lift construction vessel Fairplayer in the transport and pre-installation of the 19 suction anchors, 8800 metres of chain sections and over 43,000 metres of polyester rope.

“We will use the extensive deep-water mooring installation experience gained over the last years to deliver a reliable, smart and efficient project execution,” said Jumbo chief executive Igor Rijnberg.

(Copyright)

 

 

 

 

Eco (Atlantic) provides Orinduik Licence update

22 Jan 2024

Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, has announced an operational update on entering the next license phase for the Orinduik block and confirms, further to its announcement of 2 January 2024, that Dr Oliver Quinn has been appointed as a Non-Executive Director with immediate effect.

Orinduik License Operational Update

As Operator, Eco Orinduik BV, gave notice to the Minister of Natural Resources of the Cooperative Republic of Guyana (‘MNR’) to enter the Second Phase of the Second Renewal Period of the Orinduik License effective as of 14 January 2024. This Second Phase has a commitment to drill one exploration well to the Cretaceous formation during the remainder of the license period which ends on 13 January 2026.

Further, Eco advised MNR last week that TOQAP Guyana B.V (the SPV joint entity held by TotalEnergies and QatarEnergy 60:40) has relinquished their 25% WI for strategic reasons and will not participate in the next phase, the former TOQAP Guyana B.V 25% WI will be assigned to Eco Guyana. Subject to the requisite government notifications, Eco will remain the Operator holding 40% WI in Orinduik License as Eco Guyana and 60% WI as Eco Orinduik BV.

Non-Executive Director Appointment

On 2 January 2024, the Company announced that Dr Oliver Quinn had been elected as a Director of the Company subject to completion of the due diligence by Strand Hanson, the Company’s Nominated Adviser, in accordance with the AIM Rules for Companies and Nominated Advisers.

The Company is pleased to confirm that the aforementioned process has now been completed and Dr Oliver Quinn has been appointed to Eco’s Board with immediate effect as the nominee Director of Africa Oil, which holds 14.84% of the Company’s issued share capital.

Dr Quinn was appointed as the Chief Commercial Officer of Africa Oil in September 2023, having previously been employed as Senior Vice President, Corporate Development at Kosmos Energy Ltd. Dr Quinn started his career at Shell and has 19 years of experience in the Oil & Gas industry. He is a graduate of the University of Manchester, where he studied for a BSc (Hons), Environmental & Resource Geology, and a graduate of the University of Edinburgh where he completed a PhD in Petroleum Science. While Dr Quinn replaces Keith Hill as Africa Oil’s board nominee, the Board is pleased to confirm that Mr Hill has agreed to remain as a Non-Executive Director of the Company.

Gil Holzman, Co-founder and Chief Executive Officer of Eco Atlantic, commented:

‘I am delighted to welcome Oliver to our Board. His extensive technical and commercial experience are an excellent addition for our Company entering into 2024 which is lining up to be a transitional year for the Company.

‘With respect to Block 3B/4B, we are pleased to have received final approval from the South African Government for our transaction with Africa Oil, which now paves the way to completing a further farm out in respect of the Block and the drilling of our identified targets of up to five wells.’

Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic, commented:

‘Knowing the material value and potential of Orinduik Block, Eco acquired Tullow’s 60% WI and has remained focused on drilling a massive, stacked pay interval in the Southeastern quadrant of the block. Eco Atlantic now approved Operator intends to bring in new partners and to drill the significant potential of the Cretaceous interval on the Guyana oil fairway. With this well commitment, we now move into planning and engineering preparations to drill in next 12-18 months.

‘We feel extremely positive about the future of the Orinduik block, receiving significant interest from key industry partners and IOCs in our recently commenced farm out process. We will provide further updates to shareholders on operational and farm out progress throughout the year. Eco is grateful to the Government of Guyana and specifically the MNR for their collaborative efforts and support in enabling Eco to now progress towards drilling.’

Source: Eco (Atlantic)

 

 

 

 

Economy blossoming

 

January 16, 2024

Growth – 33 per cent GDP growth in 2023, projected to grow by 34.3 per cent this year –non-oil economy on course for double-digit growth driven by consistent expansion in all sub-sectors,

DRIVEN by critical investments and prudent management by the Government, Guyana recorded significant economic growth of 33 per cent last year, with “stronger-than-expected” expansion in non-oil Gross Domestic Product (GDP) of 11.7 per cent, according to Senior Minister with Responsibility for Finance, Dr. Ashni Singh.

The expansion of the overall real economy in 2023 can be largely attributed to continued growth in oil and gas activity, with the notable achievement of first oil at the new floating, production, storage, and offloading (FPSO) vessel, Prosperity, in November.

Additionally, while growth in the non-oil economy was mainly driven by expansions in the construction and services sectors, notable increases were also observed in all subsectors within agriculture, forestry, fishing and manufacturing, as well as in the other mining and quarrying sub-sector.

“….government’s policies continue to be focused on supporting growth in the traditional pillars of the economy while managing the oil and gas sector effectively,” Dr. Singh said.

Owing to continued focus in traditional and non-oil sectors, growth in this area is expected to reach 11.9 per cent next year. driven by consistent expansion in all sub-sectors in the agricultural, forestry and fishing sectors, continued expansion in construction and services, as well as a recovery in bauxite and gold mining.

“Once realised, the non-oil economy will have recorded four years of consecutive growth, and an average growth rate of 9.9 per cent annually since its 7.3 per cent contraction in 2020,” he said.

Agricultural, forestry and fishing sectors expanded by seven per cent in 2023. This performance is attributed to increases across all sub-sectors, namely other crops, cultivation of rice- and suga, livestock, fishing and forestry. This was despite the impact of El Niño on the production of a number of crops.This sector is projected to grow 10.4 per cent this year, supported by increased production across all sub-sectors.

The mining and quarrying sector expanded by 42.6 per cent in 2023. As with recent years, the estimated growth is driven largely by an expansion in the oil and gas and support services industry which, when combined with growth observed in the other mining industry, outweighs the declines observed in gold and bauxite-mining activities. This sector is projected to expand by 43.6 per cent this year amidst further growth in oil and gas and other mining and quarrying, as well as an expected recovery in the gold and bauxite-mining sub-sectors.

The manufacturing sector is estimated to have expanded by 25 per cent in 2023, with growth recorded in all three sub-categories. Sugar and rice production expanded by 28 per cent and 8.3 per cent, respectively and other manufacturing by 31.8 per cent. Within other manufacturing, growth was driven mainly by the manufacturing of fabricated metal products and non-metallic products. This year, the manufacturing sector is projected to continue its growth trajectory to expand by 16 per cent, with increases across all three sub-sectors.

The construction sector is estimated to have expanded by 26.8 per cent in 2023, building on the growth of 26.3 per cent observed in 2022.

“Growth in the sector continues to be driven by intensified activity in both the private and public sectors, with a strong construction component in the Public Sector Investment Programme (PSIP).”

As in 2023, the impetus in the construction sector is expected to be maintained this year as the sector is projected to expand by 23.4 per cent. This is in alignment with the robust level of construction activities in the PSIP expected in 2024, as well as the continued investment in the private sector, particularly in the areas of hospitality and housing.

The services sector expanded by 10.3 per cent last year, with growth recorded across all of the service industries.

The overall 2023 performance is largely attributed to growth recorded in administrative and support services, wholesale and retail trade and repairs, accommodation and food services, and transport and storage. These industries grew by 20.6 per cent, nine per cent, 13 per cent, and 12.1 per cent, respectively.

Building on the growth achieved in 2023, the services sector is projected to expand by 6.9 percent in 2024. Expansion is expected to be supported by spillovers from the other sectors – agriculture, construction, housing, and extractives – with the renewed interest in Guyana as a burgeoning investment and tourist destination. Notable expansions are projected for wholesale and retail trade and repairs, administrative and support services, information and communication, and transport and storage. These are expected to increase by 8.3 per cent, 8.6 per cent, 12.9 per cent, 8.2 per cent, respectively.

Overall, Guyana’s economy is set to expand at an even faster pace in 2024, with real GDP growth projected at 34.3 per cent. Once realised, this will represent the fifth consecutive year in which the economy will be growing at more than 20 per cent, and will result in growth at an annual average of 38.8 per cent over that five-year period. The projected expansion this year can be primarily attributed to further increases in oil production as the Prosperity FPSO ramps up its operations.

 

 

 

 

$1.146 trillion historic 2024 Budget

January 15, 2024

– aimed at improving lives of all

The government tabled a $1.146 trillion budget for the year in the National Assembly, making history as it is the biggest budget to date that contains a mix of people centered measures while forecasting economic performance. Presented by the Senior Minister with Responsibility for Finance, Dr Ashni Singh, the budget was themed ‘Staying the course, building prosperity for all”.

The budget can be described as 46.6 per cent larger than 2023, making it the largest one ever in the country. It was fully financed with no new taxes. Minister Singh who made several revelations at the Arthur Chung Conference Centre said that the 2024 budget is economically friendly. The budget met every aspect of the country, from infrastructural development, to resources and to adequate financing of the citizens, ranging from children to adults.

“Mr Speaker, this is budget 2024. A budget that will improve the lives of each and every single Guyanese citizen. A budget that addresses today’s priorities but also blatantly sets the stage for tomorrow,” the minister stated.

The budget was made to navigate every challenge that the country is facing while keeping its pace at the rate at which development is progressing. Budget 2024 continues the PPP\C work to build out Guyana, where every single family is able to meet their basic needs.

Major announcements included the $7B to ease the cost-of-living burden, increase of the income tax threshold to $100,000, reduction in the fuel tax, the increase of the Because We Care Cash Grant to $45,000, increases in pension and public assistance and increases in NIS pension, among a plethora of measures that benefits all .

$129.8 billion was allocated to continue the transformation of the health sector while $135.2 billion is aimed to upgrade the education sector. Huge allocations were also made for the security sector, infrastructural development, tourism and hospitality among others.

 

 

 

Greater Guyana Initiative: Upskilling youth for energy industry

January 14, 2024

Some 6,000 Guyanese workers support the oil and gas industry in Guyana, directly and indirectly. The growing number of locals employed by the industry reflects increasing efforts to upskill and build the capacity of Guyanese to occupy roles in the sector. It shows that Guyana has come a long way from 2015 when the first oil discovery was accompanied by the concern that Guyanese did not have the skills to service the industry.

Over the last several years, young people across Guyana have been benefiting from initiatives by both industry players and local institutions to prepare them to work in the lucrative sector.

One such effort is the Greater Guyana Initiative (GGI), which is providing Guyanese with the tools needed to tap into the sector. This is a US$100 million, 10-year investment made by the Stabroek consortium – ExxonMobil Guyana, Hess and CNOOC. It is geared towards developing the local workforce, building human capacity, enhancing education and improving healthcare, to promote sustainable economic diversification.

Among some of the impactful projects that GGI has been executing are the partnerships with several technical institutes across the country, through which funding is being provided for programmes such as Electrical Installation and Welding and Fabrication.

The institutes include the Georgetown, New Amsterdam and Linden Technical Institutes. These collaborations allow Guyanese to access training that would position them to work in the oil sector. The Valedictorian from the 2023 graduating class at the Linden Technical Institute was among the 69 graduates who completed the Electrical Installation programme s sponsored by the GGI.

At the University of Guyana, the GGI collaborated in building capacity of human resources. Millions of dollars have been invested in curriculum development, technical support and facilities that will aid the university in expanding its workforce development efforts.

Most recently, the sod was turned for the construction of a state-of-the-art science and technology building at the University’s Turkeyen campus funded by GGI. Support also includes retrofitting of labs in the faculty and the addition of three new labs into the existing Faculty of Engineering building.

The facility is expected to double the number of engineers that graduate from the University. The increase in engineers means Guyanese will be able to capitalise on the career opportunities created by both the government and the private sector.

Vice Chancellor of UG, Professor Paloma Mohamed-Martin revealed that international companies, including SBM Offshore Guyana and CNOOC have been absorbing engineering students even before they graduate.

There has also been a conscious effort by the GGI in collaboration with the University to target students entering secondary school in its career awareness initiative. This is done via the Regional Accelerator for STEM Students Readiness (RASSR) programme. Targeting 100 students, RASSR exposes them to a cutting-edge curriculum built around core concepts, problems and applications for Math, Chemistry, Biology, Physics, Integrated Science, Technology and Engineering. RASSR gives students insight into possible career paths they can explore.

Given the direction the country is heading, moulding the minds of young people is crucial in meeting the need for specialised talent to continue its accelerated growth.

The GGI is also supporting the Agriculture and Innovation Entrepreneurship Programme which will see the expansion of hydroponics farming in Regions Two, Five and Ten. The programme aims to empower hundreds of young people, while significantly increasing the output of agricultural produce.

They are expected to be provided with agricultural skills using hydroponics technology that will assist CARICOM to reduce its food import bill by 25 per cent by 2025.I n 2023, Guyana’s economy grew by 38.4 per cent and is slated to further grow by 20 per cent on average from 2024 to 2028 according to the International Monetary Fund. The production of oil offshore Guyana was credited for the accelerated growth.

While the Government is doing its part to develop human resources, the programmes funded by the GGI are strategically positioning Guyanese to recognise the opportunities ahead and to take advantage of what the future holds.

 

 

 

More private investment in energy

2024, 01/15

Guyana is urging the private sector to design, finance, construct and operate the required gas infrastructure to support upstream development.

The Ministry of Natural Resources wants private investors to propose how they can construct a centralised gas connection, storage and transport facility for all natural gas accessed and produced by all oil companies operating in Guyana.

“The Government of Guyana (GoG) is seeking the safe and timely development of its gas resources as well as creating an open-access infrastructure system for all existing and future Upstream participants to support current and future Upstream developments in Guyana,” the ministry states in its Request for Proposals (RFP).

In the RFP, the ministry defines “Upstream” as meaning the upstream oil and gas developments including the necessary pipelines to connect, as needed, to such gas infrastructure required to monetize upstream gas

The strict deadline for submission to the National Procurement and Tender Administration Board is February 27, 2024.

“All late submissions shall be rejected and returned to Applicants unopened,” the RFP notes. Proposals will be valid for 120 days from the date of opening.

The Ministry envisages that the project will be strictly financed and owned 100 per cent by the private sector.

As part of this RFP process, the selected applicant, if any, with the most optimum solution for the project, will be allowed to exclusively “negotiate with the government of Guyana for its entitlement of gas to ensure the viability of the project and the overall value chain”.

The government wants prospective developers to state in their proposals:

1. 1. 1. their capability and credibility to execute such a project;
      2. clear written agreements among the parties, and if a consortium, evidence of consortium agreement for this project;
      3. site Plan for the project;
      4. summarized and detailed project schedule;
      5. project costs and project structure diagram.
      6. the proposals must include a business plan;
      7. a list of legal agreements,
      8. a proposed capital structure and
      9. details of proposed Local Content.

Addressing the commissioning of a wharf facility on the West Bank Demerara President Ali, said that the project would “look at how we are going to utilise our gas to stimulate wealth and create opportunities in positioning Guyana as an important capital in the energy security matrix of the region”.

 

 

 

 

 

Taxes funding gas project until USEXIM loan

Jan 12, 2024

Vice President Bharrat Jagdeo revealed that the Gas-to-Energy (GTE) project has been delayed but not due to lack of financing for the venture. He told media that the project is being funded by the national coffers while the Government awaits the approval of a US$646 million loan from the United States Export Import (USEXIM) Bank,

“It hasn’t been approved but we are paying for it from the treasury; we are meeting all of our commitments to the contractor. We haven’t stalled the project or said hold on the project until the loan is approved. I explained here that the loan will be approved, it will be retroactive financing and secondly we have alternatives should this not be approved but right now we had good engagements with EXIM Bank and we expect it will be approved.”

Regarding the cost of power generation, he said there have been no changes to the 50 percent reduction in consumer bills.

The GTE project entails three components –

1. 1. 1. a pipeline financed by ExxonMobil,
      2. the Natural Gas Liquids (NGL) plant and the
      3. 300 megawatt power plant.

Attorney-at-law , Elizabeth Deane-Hughes in a letter dated April 22, 2023 to the US-EXIM Bank flagged seven discrepancies in the project, requesting that the loan being sought by the government to fund the initiative be blocked.

Her points were raised with the President and Chairman of the Board of Directors of the institution, Reta Jo Lewis and US Ambassador, Sarah Ann-Lynch,. She objected to the loan application by the GoG given the lack of a feasibility study. The activist pointed out that to date no financial and/or any feasibility study for this project, which involves approximately 25km of on-shore pipeline, has been sighted by Guyana, despite repeated requests.

She advised that a civil court case numbered 456/2023-FDA has been filed in the judicial system, challenging the Environmental Permit (EP) issued to Exxon for the pipeline aspect of the project, on the basis of lack of adherence to the rule of law as is stated in the Environmental Protection Act and its guiding regulations.

Jagdeo responded to efforts to block the loan last year, certain the bank would not be influenced by “naysayers”.  Even with the loan application still pending, Exxon is still to make a Final Investment Decision (FID) for the project, more than a year after it received regulatory Permits.

An FID is a crucial stage in mega energy projects as the final stage to decide whether to proceed with the project or not. It is the final stage to determine if the investment in the project would be beneficial or not. The company is however progressing with the construction of the pipeline with a price tag of US$1B.

 

 

 

 

 

46 discoveries of Oil and Gas are a blessing

JANUARY 10, 2024

Guyana changed forever when ExxonMobil discovered major oil deposits offshore in 2015, Known for its thick rainforest, the country was suddenly on course to sudden wealth.   While a mining boom may seem like only a good thing, it can often be bad long-term.   Guyana appears able to avoid the so-called resource curse.

46 oil discoveries on Stabroek Block include:

1. Liza 2. Payara 3 Liza deep 4 Snoek 5 Turbot 6 Ranger 7 Pacora 8 Longtail, 9 Hammerhead

10 Pluma 11 Tilapia 12 Haimara 13 Yellowtail 14 Tripletail 15 Mako, 16 Uaru 17 Redtail 18 Uaru 2, 19 Longtail 3,

20 Whiptail, 21 Whiptail- 2, 22 Pinktail 23 Turbot 2, 24 Cataback, 25 Fangtooth, 26 Barreleye, 27 Lau Lau, 28 Patwa 29, Lukanani,

30 Seabob, 31 Kiru Kiru, 32 Sailfin,33 Yarrow, (awaitring names for 34 35 36 37 38 39

40 41 42 43 44 ) 45 Lancetfish 1, 46 Lancetfish 2.

 

 

Venezuela-Guyana Drama

Venezuela eyes petroliferous Essequibo for its riches, despite past agreements to settle the border dispute, Venezuela is testing the waters for the use of military force in a referendum on the incorporation of Essequibo territory in Guyana.

Glenn Ojeda and Atul Singh  JANUARY 09, 2024 06:37 EDT

On December 3, Venezuelans took to the polls but not for an ordinary election. Rather, the Venezuelan government held a referendum on the subject of annexing oil-rich Essequibo territory, in neighboring Guyana., over which Venezuela and Guyana have been involved in a decades-long dispute.

A former British colony, Guyana gained independence in 1966 but Venezuela has claimed two-thirds of Guyana’s land since 1899. However, the International Court of Justice ruled in favor of British-occupied Guyana in the 1899 Paris Tribunal, granting the British Empire the Essequibo territory. The tribunal drew the territorial line between the states of Venezuela and Guyana. For 124 years, Venezuela has denounced this line.

Hope came for Venezuela in the form of the 1966 Geneva Agreement on the eve of Guyana’s independence. Venezuela and the British Empire signed this agreement with the understanding that Venezuela and Guyana would agree to settle the border dispute at a later date. It seems that now Venezuela is coming to collect on this agreement but is doing so unilaterally.

Venezuela questions people’s support

Composed of five questions, the referendum aimed to understand the position Venezuelans took on the current situation of Guyana.

1. The first question asked if the citizens rejected the decision of the 1899 Tribunal. Venezuela sees this tribunal as taking away its national sovereignty. If the country’s citizens reject the tribunal decision, then Venezuela can assert its ownership over Guyanese land with popular support.
2. The second question asked if citizens embraced the 1966 Geneva Agreement. Despite being signed in 1966, no move has been made towards fulfilling the agreement. The territorial lines remain as they were in 1899. Venezuela must assert the authority granted through the agreement if it wishes to take back its territory.
3. The third question undermines the second: Do Venezuelan citizens reject the jurisdiction of the International Court of Justice? This question sets up the idea that the Venezuela-Guyana dispute must be settled domestically rather than internationally. Both the 1899 Tribunal and the 1966 Geneva agreement were settled with major colonial players. This time around, Venezuela is hoping to settle this within Latin America.
4. However, in order to settle this within Latin America, Venezuela must know where its citizens stand on the issue of military force. This is what the fourth question asks: If Guyana comes to defend the territorial line with its own military, will citizens support forceful action? Or will Venezuela’s own citizens deny the use of the military?
5. On December 3, 2023, Venezuelan Defense Minister Vladimir Padrino cast his vote in full combat fatigues.  The fifth question poses Venezuela’s solution to newly acquired territory. It asks if citizens would embrace the declaration of a new state within Venezuela’s territory. This new state would issue distinct “Guyana-Essequibo” IDs to identify former Guyanese citizens.

In other words, Venezuela is seeking support to add a new state within its borders.

Venezuela reported that over 95% of the millions of voters answered “yes” to every question, claiming near-unanimous support for the annexation of oil-rich Guyanese land. However, these numbers may have been falsified. Many observers said that the turnout was much lower than the reported numbers.

Venezuela relies heavily on military forces
The unreliability of voter turnout is in keeping with the election fraud committed by current Venezuelan president Nicolás Maduro in 2018.

It is well known that Maduro’s reign has undermined democracy in Venezuela. So, it is no surprise that the referendum numbers do not reflect reality. The issues the referendum raises have no real impact on normal citizens.

It is an anti-Western, political move. However, the potential invasion and subsequent annexation of Guyana still lies in the indeterminate future.

Despite the lack of investment, the country’s bankruptcy, Western trade sanctions, and its inability to drill for oil, Venezuela still eyes more oil-rich territory. This aggressive posturing is a risk because the Venezuelan military is still strong. Its strength comes from the Chavista movement of the 1990s. The militaristic ideologies of revolutionary leader Hugo Chávez may have been introduced in 1992, but his influence remains ingrained in Venezuelan politics.

The influence of the Chavista movement is only one facet of this dispute. Other factors are in play, namely the lack of media attention to tensions between Venezuela and Guyana.

With conflicts in Ukraine and Israel-Gaza taking center stage, Venezuela is banking on the hypothesis that the world is tired of conflict. A world tired of conflict won’t have the energy to turn its news cameras onto Guyana.

It takes no imagination to predict what will happen if Venezuela and Guyana fail to reach an agreement. The presence of uniformed military personnel at Venezuela’s voting centers makes the country’s stand on the use of force clear. As the eyes of the world are turned away from Guyana, the toxic legacy of the powerful Chavez haunts Venezuela, feeling free to enter the mineral-rich Essequibo territory.

Only one question remains unanswered: What will Guyana do? And what will other countries do to protect Guyana? USA, UK, EU, OAS, Commonwealth and Caricom rallied to support Guyana.   Copycat Venezuela, prepared a paper invasion of maps, passports and flags, aping the armed annexation of Ukraine.

 

 

 

 

Guyana president meets US defence official amid border row

By AFP10 January 2024

President Irfaan Ali met U.S. Secretary of State Antony Blinken at the State Department in Washington, U.S., July 25, 2022.

President Irfaan Ali discussed regional security with a senior US defense official as Guyana remains embroiled in a border row with Venezuela over the oil-rich Essequibo region. Daniel Erikson, Deputy Assistant Secretary of Defense for the Western Hemisphere, was in Georgetown as tensions simmer over Essequibo, about two-thirds of Guyana’s territory, long claimed by Caracas.

“Discussions were based on areas of mutual interest including regional security, food security, climate change, information sharing, narcotics monitoring and disaster risk management,” Ali wrote of his meeting with Erikson.

Without specifically mentioning Erikson’s visit to Guyana, Venezuelan President Nicolas Maduro accused his neighbors of acting “under the mandate of the gringos.”

In Georgetown, Erikson also met Carla Barnett, Secretary General of the Caribbean trade bloc CARICOM, according to the United States Embassy in the Guyanese capital.

Erikson’s visit to ally Guyana comes a month after joint US-Guyana military exercises were denounced by Venezuela as a “provocation,” stirring fears of an escalation in the neighbors’ long-running row.

Caracas has long laid claim to Essequibo, administered by Guyana for over a century and the subject of border litigation before the International Court of Justice (ICJ) in The Hague. Of the country’s 800,000 citizens 125,000. live in Essequibo, which comprises two-thirds of Guyanese territory .

The dispute was revived in 2015 when US energy giant ExxonMobil discovered massive crude reserves in Essequibo. In a major escalation, last month Maduro’s government held a controversial, non-binding referendum which overwhelmingly approved the creation of a Venezuelan province in Essequibo.

At a meeting mid-December Maduro and Ali agreed not to resort to force to settle the dispute but the arrival two weeks later of a British warship off the coast of Guyana prompted Caracas to deploy over 5,000 troops to the border for a “defensive” exercise

 

 

 

 

US, Guyana in efforts to modernise defence capability

January 10, 2024

North American nation committed to supporting Guyana’s growing regional, global role

Joint efforts are underway with the USA to boost local defence capability through strategic planning and sustainability in modernisation efforts, as Guyana forges ahead with its development agenda,

US Deputy Assistant Secretary of Defense for the Western Hemisphere, Daniel Erikson, on a two-day visit to Guyana discussed various aspects of defence and security with government,   leaders and the Guyana Defence Force.

At the US Embassy  Erikson,, highlighted the importance of the ongoing collaboration and the desire to enhance Guyana’s defence capabilities. One key focus of the discussions was on maritime domain awareness. Erikson acknowledged the necessity to increase the domain awareness of the Guyana Defence Force, highlighting the importance of deepening information sharing.   He told media,

“We’re well positioned to have a really robust set of exchanges between the United States and Guyana. Guyana is seeking to modernise its defence capabilities, and we’re in conversations about what the scope of that capability should be, We look forward to working with them on that, especially in terms of deepening information sharing. We’ve also just discussed cybersecurity and some steps that can be taken in that area.”

The Deputy Assistant Secretary emphasised that the US government recognises Guyana’s pivotal role in the region and the global arena. He expressed confidence in the potential expansion of Guyana’s maritime and air assets, stating:

“Looking forward, I can see a time when Guyana does seek to expand its maritime and air assets beyond what it has.”

Erikson underscored the significance of strategic planning and sustainability in modernisation efforts.

“We want to make sure that our defence relation with Guyana continues to meet the times as the situation continues to evolve. That does so through a plan that is strategic, that’s nested in its overall defence institutions, and that’s sustainable over time.”

As Guyana gears up for its role as the chair of the CARICOM committee and holds a seat on the UN Security Council, Erikson commended the professionalism of the Guyanese Defence Forces. He confirmed the United States’ commitment to supporting Guyana’s growing regional and global role. His visit marks the beginning of what is expected to be a year of heightened collaboration between the United States and Guyana.

Commander-in-Chief of the Armed Forces and President of Guyana, Dr. Irfaan Ali, announced the government’s commitment to bolstering Guyana’s defence capability, revealing plans for increased investments in both material and human resources for the GDF. He acknowledged the evolving nature of threats, pointing out the need for a proactive response to safeguard Guyana’s sovereignty and territorial integrity.

“As we grow, the threats are going to become more sophisticated, and the criminals are going to become more sophisticated.”

It is for this reason that Budget 2024 will reflect the increase in planned investments encompassing various aspects of the security apparatus, including the expansion of the air wing, maritime assets, and Coast Guard capabilities.

President Ali stressed the importance of a comprehensive approach, stating: “Those are important investments that we’re making. But also, critical training and other hardware equipment, cybersecurity, all of this will see extended expenditure in security.”

He highlighted the interconnected nature of economic growth and security challenges.
“Not only will the economy become more sophisticated, but the type of criminals we will have operating in the economic space of Guyana will be far more sophisticated.“

Last month, Vice-President, Dr Bharrat Jagdeo, explained that the primary objective is to bolster Guyana’s security apparatus in a defensive capacity, clarifying that there are no intentions to launch attacks on any nation, including Venezuela which had increased its aggression towards Guyana. The Vice-President referenced recent discussions between Presidents Dr. Irfaan Ali and Venezuela’s President Nicolas Maduro at the Argyle International Airport in St. Vincent and the Grenadines, where there was a commitment to peace.

 

 

 

Guyana, India boost hydrocarbon ties, pool green energy resources

JANUARY 9, 2024, BY MELISA CAVCIC

Blessed with multiple discoveries, Guyana has quickly emerged as a global petroleum exploration hotspot. In recognition of this, India greenlighted the inking of a memorandum of understanding (MoU) between its Ministry of Petroleum and Natural Gas and Guyana’s Ministry of Natural Resources to join forces in the hydrocarbon sector and collaborate on clean and renewable energy development. .

The stamp of approval for the proposed MoU came from India’s Union Cabinet, chaired by Prime Minister, Shri Narendra Modi. This MoU encompasses the complete hydrocarbon value chain , covering sourcing of crude oil from Guyana, participation of Indian companies in the exploration and production (E&P) sector, cooperation in crude oil refining, natural gas sector, capacity building, strengthening bilateral trade, developing regulatory policy framework in Guyana’s oil and gas sector; and cooperation in clean energy including biofuels and renewables such as solar energy..

With Guyana turning into the world’s newest oil producer, its wave of 46 discoveries with 11.2 billion barrels of oil equivalent amounts to 18% of total global petroleum discoveries and 32% of discovered oil. Within OPEC’s World Oil Outlook 2022, a significant ramp-up in production was projected in Guyana with liquids supply growing from 0.1 mb/d in 2021 to 0.9 mb/d in 2027.

BP Statistical Review of World Energy 2022 showed India is the world’s third-largest energy consumer, the third-largest consumer of oil, the fourth-largest refiner, and the fastest-growing major economy with rising energy needs. Both BP Energy Outlook and the International Energy Agency (IEA) estimate that India’s energy demand will grow at about 3% per annum until 2040, compared to the global rate of 1%.

India is likely to account for around 25-28% of the global energy demand growth between 2020-2040. With this at the forefront, India is focusing on fostering new partnerships in the hydrocarbon sector, both through diversification of crude oil sources and through acquiring quality overseas assets, to ensure energy access, availability, and affordability to citizens, underpinned by the energy security of the country. These steps also dilute dependencies on a single geographical/economic unit and increase India’s strategic maneuverability.

“The MoU on cooperation in hydrocarbon sector with Guyana will strengthen bilateral trade, foster investment in each other and help diversify source of crude oil, thus augmenting the energy & supply security of the country. It will also provide opportunity to Indian companies to participate in E&P sector of Guyana, gaining experience by working with global oil & gas companies in upstream projects, thus fostering the vision of ‘Aatmanirbhar Bharat,’” explained India’s government.

The MoU will enter into force on the date of its signing and remain in force for five years. The cooperation agreement will be automatically renewed thereafter on a quinquennium basis unless either country gives the other a written notice three months in advance of its intention to terminate this MoU.

One of the biggest players in Guyana is ExxonMobil, which plans to have six FPSOs with a gross production capacity of over 1.2 million barrels of oil per day online on Stabroek block by the end of 2027, with the potential for up to ten FPSOs to develop the estimated gross discovered recoverable resources of over 11 billion barrels of oil equivalent.

The U.S. oil major began production from its third oil development at the Stabroek block on November 14, 2023, with the start-up of the company’s third FPSO, Prosperity, which was put into operation ahead of schedule.

The company’s Yellowtail and Uaru, the fourth and fifth projects, are in progress and will each produce approximately 250,000 barrels of oil per day. ExxonMobil is working with the government of Guyana to secure regulatory approvals for a sixth project at Whiptail.

 

 

 

 

India to enter into five-year MoU with Guyana

2024, 01/05

India announced that it approved the signing of a five-year memorandum of understanding (MoU) with Guyana for cooperation in the hydrocarbon sector including sourcing of crude oil.

“The proposed MoU covers the complete value chain of the hydrocarbon sector, including sourcing of crude oil from Guyana, participation of Indian companies in exploration and production (E&P) sector of Guyana, (and) cooperation in areas of crude oil refining.”

The MOU also covers capacity building, strengthening bilateral trade, collaboration in the natural gas sector, collaboration in developing regulatory policy framework in the oil and gas sector in Guyana; cooperation in clean energy including biofuels as well as renewables sector including solar energy.

India, the world’s third-largest energy consumer and importer, is diversifying its sources of oil imports and the authorities say Guyana is one of the countries it is examining.

The MoU, which has been in discussion for over two years, will be for an initial period of five years, with a provision for automatic renewable if the two countries agree.

“The MoU on cooperation in the hydrocarbon sector with Guyana will strengthen bilateral trade, foster investment…and help diversify source of crude oil, thus augmenting the energy and supply security of the country.”.

It will provide an opportunity for Indian companies to participate in the exploration and production sector of Guyana, gaining experience by working with global oil and gas companies in upstream projects, thus fostering the vision of ‘Aatmanirbhar Bharat’.

Guyana has gained significant importance in the oil and gas sector becoming the world’s newest oil producer. The new discoveries of 11.2 billion barrels of oil equivalent, amounts to 18 per cent of total global oil and gas discoveries and 32 per cent of discovered oil. In OPEC World Oil Outlook 2022, Guyana is projected to achieve a significant ramp-up in production, with liquids supply growing from 0.1 million barrels per day in 2021 to 0.9 million bpd in 2027.

India is the world’s third-largest energy consumer, third-largest consumer of oil and fourth-largest refiner and the fastest-growing major economy with rising energy needs.

“With a view to giving a further impetus to ensure energy access, availability, affordability to citizens underpinned by energy security of the country, India is focusing on fostering new partnerships in the hydrocarbon sector, both through diversification of crude oil sources and through acquiring quality overseas assets. This dilutes dependencies on a single geographical/economic unit and increases India’s strategic manoeuvrability.”

NEW DELHI, India, Jan 5, CMC

 

 

 

 

5th EITI Report – Extractive revenues up by 36% in 2021

Jan 06, 2024

In the fifth Extractive Industries and Transparency Initiative (GYEITI) Report launched and approved by the Multi-stakeholder Steering Group (MSG) on December 29, 2023, Guyana recorded a 36 percent increase in revenues generated from the extractive sector in 2021. The report covers the fiscal year 2021 and includes material payments made by mining, oil and gas, agriculture and forest companies to the Government of Guyana (GoG).

“The report shows an increase in extractive revenues from GYD 93.78b in 2020 to GYD 127.66b in 2021, representing a net increase of 36%.”

For 2021, oil and gas recorded GYD 112.43B, representing 88% of revenues from the extractive sector.

Revenue recorded from the mining sector accounted for 11% of the earnings, a total of GYD 13.9B.

The forestry sector accounted for 1% of the extractive revenues earned by Guyana, a total of GYD 1.18B.

Fisheries contributed $150M, less than 1% of the extractive earnings in 2021.

The MSG recruited Hart Group / BDO Guyana as Independent Administrator to produce the report. In keeping with Requirement 7.2.c of the EITI Standard, data in the report is also published in an Open Data format on GYEITI website at: https://eiti.gy/reports/explore-guyanas-fifth-eiti-country-report-fy-2021/

To build on these efforts, the MSG has also approved the 2024 Workplan which includes implementing the Beneficial Ownership Roadmap, feasibility study on systemic disclosures of EITI data, awareness and community outreach, publication of Guyana 6th EITI report, amongst other activities.

The Guyana Extractive Industries Transparency Initiative (GYEITI) is a part of the global initiative, the Extractive Industries Transparency Initiative (EITI). EITI seeks to promote revenue transparency in the extractive sector in resource-rich countries. It strives to ensure transparency over payments made to and revenues received by the Government from companies in the extractive sectors. Guyana joined the EITI in 2017 and has published five EITI reports. GYEITI is governed by a broad coalition of government, civil society, and the private sector.