Guyana bid deadline for gas-to-energy project

Fabio Palmigiani,  South America Correspondent

Published 16 October 2024

The Guyana government is scheduled to receive commercial bids on 14 November in a tender for the contracting of additional infrastructure for the landmark gas-to-energy project.

Phase two will encompass a 250 MW power plant and a second NGL facility.

Regional powerhouse

October 16, 2024

Focus on long-term sustainable growth

Business leaders and diplomats Nicole Theriot, Jane Miller and Rene Van Nes were at the inaugural International Business Conference, where President Dr. Irfaan Ali outlined a clear vision for the country’s future: to build long-term sustainable growth, strategically positioned as a competitive partner, its primary objective to foster enduring growth across the region.

“Let me be clear, we are not trying to be a regional powerhouse. Our goal is to build long-term, sustainable growth, positioning ourselves as a competitive partner in this region and beyond.”

Noting the necessity of regional cooperation, since no country can succeed alone in today’s interconnected global economy, he opened his presentation by saying, “We must work together, as a region, to move forward.” Answers to a dozen spontaneous questions from investors and policy makers formed the basis of his presentation.

The President confirmed ongoing collaboration between Suriname and Guyana which is establishing a training hub for deep-water offshore industries. This ambitious initiative will position Guyana as a leader in energy, within the oil and gas sector, highlighting the importance of partnerships in enhancing regional capabilities.

“This will not just be a facility for oil and gas training; it will be a center for everything offshore, serving as a global hub.“

With an investment exceeding $1 billion, the hub will offer advanced training programs, fostering human resource development to support offshore energy operations across the region.

 

It is expected to provide state-of-the-art simulations and training infrastructure, including the world’s largest Full-Scale  Floating Offshore Simulator (FESO), which will be pivotal in preparing the workforce for future deep-water exploration and production.  “This investment is not just about enhancing our local industry; it’s about setting up a globally competitive center for energy excellence.”

He emphasized the critical need to integrate regional energy infrastructure, transport and logistics. Guyana’s growing energy capacity, particularly in renewable energy, offers a unique opportunity to create a sustainable energy network across the region.“Energy resilience is key to our future,” he remarked, as Brazil, Venezuela and Suriname plan to connect energy grids. Integrating these infrastructures would provide energy security and lower costs for industries and consumers alike.

“We are already seeing energy demand outstripping supply, and we must act now to create a regional energy mix that supports growth.”

In addition to energy integration, he affirmed the importance of transportation and logistics. Guyana and Suriname are working to improve physical connectivity, including construction of a bridge across the Corentyne River, to facilitate trade and investment flows. Development of deep-water ports and logistics hubs would bolster the region’s manufacturing and industrial capacities.

“Imagine the possibilities with reliable, competitive energy and integrated logistics. We could transform the region into a manufacturing and industrial hub, serving a market of over 400 million,” he said, referring to the economic potential of the wider South American market.

He reiterate the importance of regional cooperation for long-term success. The Caribbean and Latin American regions have a collective GDP of over $5 trillion, and with strategic policy making, can be transformed into a competitive global player.

“We must ensure that we create a platform based on shared values, common goals and mutual respect to build long-lasting and resilient partnerships,” he said, urging continuous dialogue and collaboration among regional leaders.

His speech set the tone for the conference, as business leaders and policymakers look to the future of energy, infrastructure and regional collaboration.

 

 

U.S. promotes oil investments, Europe advocates for green transition

October 16, 2024

The inaugural International Business Conference sparked discussion on the country’s economic future, particularly its burgeoning oil sector.

U.S. Ambassador Nicole Theriot championed Guyana’s oil and gas industry, urging American businesses, diplomats, business leaders and local stakeholders to continue investing in the sector, a key area of collaboration between the two nations.

“We are very much involved in oil. The U.S. is the largest source of foreign investment here and while the government and President Ali are keen to diversify Guyana’s economy, we are also heavily engaged in oil and gas.”

Theriot encouraged investors to take advantage of the sector’s opportunities, as U.S. companies were leading in oil exploration and active in workforce development and training within Guyana. Her comments followed remarks from British High Commissioner Jane Miller and the European Union Head of Delegation, Rene Van Nes, both of whom advocated for a pivot away from fossil fuels and towards sustainable energy alternatives.

Miller, noting that UK trade with Guyana has grown significantly, emphasized that while the UK was actively engaged in a broad range of sectors—including agriculture and infrastructure—oil and gas was not a focus for British businesses.

“We work in all sectors except for oil and gas. We want to invest in renewable energy, in agriculture, and in infrastructure. We are looking at the future, not just the present.”

Van Nes from the EU echoed similar sentiments, pushing for a green transition in the region. European Union involvement in Guyana was part of a broader effort to drive investments in sustainable sectors like renewable energy and agriculture.

“The European Union’s global gateway initiative focuses on infrastructure, digital connectivity and renewable energy,” Van Nes said, before advocating for an increased focus on climate resilience. “We are pushing for investment in renewable energy and the protection of the environment,” he said, pointing to the EU’s long-standing commitment to sustainability.

These contrasting viewpoints highlight the pressures surrounding rapid economic growth driven by oil discoveries in Guyana, now one of the fastest-growing economies in the world. With international oil companies like ExxonMobil leading production, the sector remains a major contributor to GDP and it is expected to continue playing a pivotal role in Guyana’s development.

However, environmental and climate change concerns made a strong case for diversifying the economy, with advocates calling for an emphasis on greener industries. Guyana’s position has consistently been that it can balance the exploitation of its natural resources and protect the environment; the country has demonstrated this. President Ali reinforced this position after the diplomats spoke.

 

 

 

 

Immense potential for further US investment

October 17, 2024

Guyana is rapidly becoming a prime destination for international investors, with over 3,000 US small and medium enterprises (SMEs) exporting to the country in 2023. USAmbassador to Guyana, Nicole Theriot, highlighted the nation’s growing investment appeal at the Inaugural International Business Conference. Beyond the lucrative oil and gas industry, Guyana offers significant opportunities in non-oil sectors, including hospitality, security, and tourism. The favourable investment environment is attributed to the government’s efforts to strengthen the economy and develop key sectors such as gas-to-energy, healthcare, education and infrastructure.

Ambassador Theriot underscored the impact of U.S. SMEs on Guyana’s economic growth, stating, “It’s not just our large Fortune 500 companies that are making an impact. Small and medium enterprises trading with each other is arguably even more important for long-term diverse economic growth.”

Over the last four years, Guyana gained approximately US$14.5 billion in US foreign investments, representing 96 per cent of the country’s foreign direct investment (FDI) rates.

The ambassador expressed confidence in Guyana’s potential to become a leading exporter in the Caribbean Region.

“As Guyanese companies diversify and hone their offerings, I know many more of them will begin to export to the United States,” she said.

For the first half of 2024, Guyana recorded a substantial US$4,163.1 million increase in export receipts, with further growth expected by the end of the year. In addition to economic investments, the US has significantly invested in Guyana’s human resources and security. Recently, the government signed a US$16 million contract to acquire two advanced rotary wing aircraft and the United States deployed flight instructors to support the work of Guyana’s air corps.

A US trade delegation is also scheduled to visit Guyana in the coming week. (DPI)

 

 

 

The most attractive place to do business

October 16, 2024

Senior Minister for Finance, Dr. Ashni Singh, touted Guyana as one of the most attractive places for business investment in the world, at the second annual Regional Investments and Capital Markets Conference. The two-day event was hosted by the Jamaica Stock Exchange (JSE) under the theme “Financing for Success: Where Passion, Prosperity, and People Align.”

Addressing investors and business leaders on October 9 , Dr. Singh acknowledged the transformative impact of oil discovery.   However, Guyana’s progress began long before oil production began. Guyana’s economic growth is the result of decades of strategic efforts, particularly under the People’s Progressive Party/ Civic (PPP/C) governments.

“This isn’t a flash in the pan, this isn’t a bolt of lightning from the sky, decades of work have gone into getting Guyana to where we are. Of course, the discovery of oil has helped, and I would not insult your intelligence to suggest otherwise. Of course, it has helped us to do better and more quickly.”

The government’s focus has always been on building a competitive and diversified economy, which made Guyana an appealing destination for business long before oil was found. The economy has experienced unprecedented growth, with real Gross Domestic Product (GDP), increasing at an average annual rate of nearly 40% between 2021 and 2023.

The finance minister projected continued growth at around 29% annually for the rest of the decade.He noted robust expansion of non-oil sectors, which grew at an average of 11% over the last three years, with further growth expected at 7-8% per year.

“You can be assured and you need not be worried that this is a basket case that has just found some oil resources and needs to be cautioned to act responsibly.”  Reassuring investors that the government is experienced in managing the economy responsibly, Dr Singh said, “There is no example anywhere in the world of such astronomical rates of growth over such a sustained period of time, no precedent…but there really is no comparison.”

The Local Content Act mandates that the oil and gas sector source a portion of its goods and services from locals and local companies. Enactment of the Act creates more opportunities for Guyanese businesses. Demand for goods and services far outstrips supply.

“I say to people that there isn’t a single category of goods or services for which demand does not outstrip supply in Guyana right now, It does not matter whether you’re speaking of hotel rooms, hospital beds, hamburgers, hot dogs, which category, goods and services, there is an opportunity in Guyana , possibly one of the most attractive places to do business in the world.”

Guyana is a stable and sensible environment for investment. Despite the rapid pace of development, institutions are working hard to keep up, with ongoing efforts to modernize and digitize government processes. “I won’t tell you that everything is perfect. We still have a lot of things to resolve, a lot of our institutions are still adapting to the pace at which things are happening …”

 

 

 

TOTALTEC Inc. launches E-Learning platform

October 20,  20/24

Guyanese Company TOTALTEC Inc., announced the launch of an innovative multi-sector e-learning platform, designed to equip the local workforce with in-demand skills. The initiative aims to provide access to internationally accredited training programs, equipping workers with skills necessary for thriving in key industries.

“Our e-learning platform is a powerful tool for up skilling all Guyanese, regardless of their location, and creating pathways to enhanced employment opportunities.”

The platform offers a comprehensive suite of courses designed to meet the evolving needs of Guyana’s dynamic economy.

Those include hospitality, which aims to elevate customer service, food and beverage management and front office skills.

The e-learning platform also offers construction, where participants can master essential trades such as carpentry, masonry, plumbing, and electrical work, all with a strong emphasis on safety.

The oil and gas module provides expertise in drilling, production, maintenance and health, safety, and environmental practices, aligning with international standards.

For those in the industrial sector, the program focuses on developing proficiency in manufacturing processes, quality control, and industrial safety protocols. The operations and maintenance training equip learners with skills in equipment operation, maintenance procedures, and troubleshooting techniques.

Developed in partnership with renowned international training institutions, the e-learning platform offers several key features to enhance the learning experience. One of its standout elements is flexible learning, which allows users to access courses anytime and anywhere, empowering them to progress at their own pace.

The platform also includes interactive content, providing engaging modules filled with videos, simulations, and assessments that reinforce the learning process.

Additionally, it emphasizes industry-relevant skills, focusing on practical knowledge that is directly applicable to the workplace. The platform ensures affordable access, offering cost-effective solutions that make up skilling accessible to a broader audience.

“Complementing the e-learning platform, TOTALTEC Training also offers hands-on vocational training at its 80,000 sq. ft. facility in Georgetown, adjacent to the Guyana Shore Base (GYSBI).”

This purpose-built facility has already trained over 4,000 Guyanese to international standards. Some programs include foundational safety, essential safety practices across all sectors.

The training program also includes specialized courses on lifting operations, which focus on the safe operation of cranes, forklifts, and other lifting equipment.

Participants will receive instruction on plant inspections and operations, covering the inspection and maintenance of industrial equipment to ensure optimal performance and safety in the workplace.

“TOTALTEC is the only accredited center in Guyana for both NPORS (UK National Plant Operators Registration Scheme) and LEEA (UK Lifting Equipment Engineers Association).”

Its Banks man & Slinger program is also accredited by LEEA, demonstrating its commitment to delivering high-quality training. TOTALTEC e-learning packages are available to government institutions, general public, and private sector, both domestic and international. This multi-faceted approach to workforce development is a significant investment in Guyana’s future, empowering individuals and driving economic growth.

 

 

 

US offshore crewing player enters second country

October 14, 2024, by Dragana Nikše

Texas-based Core Group Resources (CGR), specializing in the provision of personnel for, among others, the offshore industry, set up shop in Guyana to provide personnel and operational support for the oil and gas industry by launching Core Nations as its subsidiary.

Core Group says this marks its second international foray after opening its doors in Trinidad and Tobago in May. Local operations in Guyana will focus on urgent labor demands as regional energy projects continue to thrive and growth continues in the oil and gas exploration arena. Matt Fuhrman, CEO of Core Group Resources, said,

“Opening Core Nations is a significant milestone for us and underscores our dedication to providing high-quality personnel solutions in the Energy industry. We’re fostering long-term partnerships and look forward to being part of Guyana’s growth story for years to come. The Caribbean marketplace is booming with a need for personnel in industries such as construction, maritime and especially with projects in oil & gas, so it’s the right time for us to amplify our efforts and put down roots to support Guyana, its businesses and by extension its vibrant communities.”

Core Nations is set to operate as a majority locally owned, local content certified entity, which it expects will foster a positive economic impact. The Guyanese business will be managed by Core Group International’s Managing Director, Dan O’Connor, who is already at the helm of Core Trinidad & Tobago and Core Group Technical Services. Guyana has been hailed as the world’s fastest-growing oil region since its first offshore discovery in 2015, attracting multiple oil and gas majors.

ExxonMobil, is developing multiple projects in the offshore Stabroek block, which covers 6.6 million acres or 26,800 square kilometers. The U.S. player applied for an environmental permit to embark on its seventh oil project in the Stabroek block – Hammerhead. The Environmental Protection Agency (EPA) concluded that further insights into the potential environmental impacts of the project and mitigation measures are needed before reaching a decision.

SBM Offshore’s floating production, storage, and offloading (FPSO) vessel One Guyana, which will work on the Yellowtail development project, the energy major’s fourth oil project in the block, was recently completed at Seatrium’s yard in Singapore.

FPSO Prosperity, is working at ExxonMobil’s third development, Payara. Earlier this year, a final investment decision (FID) was taken for Whiptail, its sixth deepwater oil development in the Stabroek block, which will feature another FPSO by SBM Offshore, after the Dutch firm secured a pre-FEED contract for it last year.

 

 

 

Exxon plans to lift offshore output by 18,000 bpd

Denis Chabrol, Bloomberg October 11, 2024

(WO) – Country manager Alistair Routledge told media ExxonMobil Guyana plans to raise output from Stabroek block offshore by 18,000 barrels per day (bpd), once it has completed risk assessments and received approval from local authorities.

The company conducted preparatory work, such as increasing heat exchanges and trimming some valves, to raise the capacity for the Unity floating, production, storage and offloading vessel (FPSO) from 252,000 bpd to 270,000 bpd. Actual output cannot be increased until the company, environmental authorities and the Ministry of Natural Resources agree on the modeling, analysis and risk assessment.

“We won’t increase any production until everybody is satisfied that we’ve done the right work”.

ExxonMobil Guyana output is currently 665,000 bpd. Liza Phase 1 authorized capacity is 160,000, but its actual output is 157,000 bpd, while Liza Phase 2 and Payara are each at 252,000 bpd.

Routledge said a hulled ship would be converted into an FPSO for the Hammerhead project, instead of using a purpose-built vessel, catering for production output ranging from 120,000 to 180,000 bpd.

The company is also pushing ahead with plans for the start-up of Uaru and Whiptail in 2027.

Plans for gas production, especially from the southeast part of the Stabroek Block, would depend on analysis and modeling of the resource when production begins.

“Once we start producing as we have done on Liza and Payara, we can then tune those models and see how the reservoirs adapt both from a production and an injection point of view.”

Total oil production is predicted to rise to over 1.6 million barrels daily by 2030, as the government seeks to maximize returns from the industry before the predicted demand growth peak. If the peak demand predictions fail to materialize, the outlook for Guyana’s oil industry is even brighter.

The only production in the country comes from the Stabroek block, which is managed by a consortium led by Exxon, including Hess Corp. and CNOOC. Since they first struck oil in the block, the three have tapped total reserves estimated at over 11 billion barrels of crude, turning Guyana into the new star on the global oil scene.

The consortium advanced six production projects and is now working on Hammerhead, to submit its development plan to the authorities early in 2025. The seventh project should be completed by 2029 and boost Guyana’s oil production capacity to 1.4 million barrels daily.

 

 

 

Gas-to-Energy project

October 20, 2024

ExxonMobil sees no conflict of interest in working with the company’s former VP to monetize Guyana gas. President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge sees no conflict of interest with the award of a contract to the company’s former Vice President, Jesus Bronchalo, to monetize Guyana gas. CEO, Fulcrum LNG, Jesus Bronchalo worked for ExxonMobil prior to his resignation.  On October 9, Routledge was asked to comment on the issue.

The last position Bronchalo held for the company was Vice President and Chief Commercial Officer for Guyana operations. Five months after tendering his resignation in February 2023, Bronchalo launched Fulcrum LNG, with “experience and expertise across all aspects of the oil and gas value chain, including low-carbon solutions.”

The company will be responsible for the design, financing, construction and operation of gas infrastructure, inclusive of the necessary pipelines required to connect the gas infrastructure crucial for monetizing upstream gas. The company will have exclusivity to negotiate with the government for its entitlement of gas to ensure the viability of the project and the overall value chain. The project will be strictly financed and owned 100% by Fulcrum LNG.

The Parliamentary Opposition raised concerns regarding a possible conflict of interest given Bronchalo’s extended tenure with ExxonMobil.  Routledge  set the record straight that Exxon sees no conflict of interest in the contract award.

“We don’t see a conflict of interest in any way. He resigned from ExxonMobil almost two years ago. He has no ties to the company; we have no tie to him, so we don’t see a conflict of interest.”

ExxonMobil is focused on ensuring the development of the gas resources in the country in a bid to maximize value for Guyana and to contribute to the work the government is doing.

“We understand why the government went through the process it did and selected a company to work with. We said we will cooperate but , we believe we have the rights to develop the gas. We’re focused on what we can do to maximize the value for the country and that’s the work that we have in hand.”

 

 

LNG potential of Guyana, Suriname gas

Amanda Bandeira, Latin America Upstream Oil and Gas

  November. 5, 2024

Potential gas projects offshore Guyana and Suriname could bring new LNG supplies to the global market by the early 2030s, according to Wood Mackenzie.

The consultancy’s “Can Guyana and Suriname LNG compete against new global supply?” report predicts that the two countries could generate up to 12 MM metric tons/year by that point.

The Haimara cluster (the 12th discovery in the ExxonMobil-operated Stabroek Block offshore Guyana in February 2019) and the Petronas-operated Sloanea in Suriname’s Block 52 in partnership with Exxon Mobil, could collectively hold 13 Tcf of non-associated gas. Theoretically, these resources could be developed as LNG at a breakeven price of about $6/MMbtu, excluding shipping and regasification costs.    Globally there is a requirement for 105 MMt/year of pre-final investment decision LNG to close the supply/demand gap by 2035.

 

 

 

Lindsayca-CH4

September 18, 2024

The joint venture Lindsayca-CH4, contracted to construct two gas plants at Wales, West Bank Demerara is conducting pile driving works for the delayed project. The US$2B Gas-to-Energy (GTE) project, initially scheduled to come on stream by the end of this year, was delayed by site preparation works.

Despite a dispute over cost overruns for the delay, works for the two plants are steaming ahead. The government report indicated that Exxon completed connecting the offshore pipeline to the Liza Destiny and Liza Unity Floating Production Storage and Offloading (FPSO) vessels.

“The pipeline is on schedule to be completed by the end of 2024, with the hook-up to the station expected in the first half of 2025.”

The Material Offloading Facility (MOF) built by Exxon is being utilized with pile driving ongoing for the commencement of the foundation activities for the plants. In December, the joint venture signed a US$759 million contract with the government for the design, procurement and construction of the plants. The firm will be tasked with building a Natural Gas Liquids plant and a 300-megawatt natural gas fired plant for electricity at Wales.

American joint venture Lindsayca-CH4 placed the highest of five international bids at US$898M to build the plants. However, Vice President, Bharrat Jagdeo announced that the project cost was reduced to US$759M.

The government had applied to the United States Export Import Bank (US-EXIM) Bank since April last year for a US$646M loan to support the gas projects but to date, the loan has not been approved.

While politicians remain optimistic about its approval, the project is being funded through the National Treasury. The Ministry of Natural Resources said that the government spent US$520M on the GTE project to date. The government spent $24.813B in 2022 followed by $43.3B in 2023. This year, the National Budget set aside another $40B of local funding for the project.

This means a total of $108,113,000,000 or US$520M (using Bank of Guyana’s exchange rate of 208) from the National Treasury has been budgeted to date for the project.

In addition to the pipeline and two gas plants, the GTE project includes upgrading the transmission and distribution lines, supervisory contracts, and construction of a new substation. The project would reduce the cost of electricity by half but the agreements with key details of the project were not published.

 

 

 

 

No plans to renegotiate production sharing agreement

2024, 10/10

President of ExxonMobil Guyana, Alistair Routledge, has ruled out renegotiation of the Production Sharing Agreement (PSA) because it would adversely impact the company’s planned US$55 billion investment. He told media,

“We have no interest in invoking that Article. .. we’ve made US$55 billion worth of commitment to the country. To go back and to undermine the basis of that investment would seriously challenge any future investments.”

If the basis for the investment changes, including at least an increase in the royalty from two to five per cent, it would undermine its basis if the original numbers change.

“If we start to have uncertainty around the basis for the investment, not just the geologic risk, the execution risk, then it seriously starts to undermine that investment thesis.”

Routledge discussed the issue after the Opposition Leader, Aubrey Norton, outlined his 20-point plan for the hydrocarbon sector should the main opposition PNCR win the 2025 general election. The plan includes invoking Article 32.1 of the PSA that states the company must give permission for any of several things, including renegotiation, to be done with the PSA.

“Except as may be expressly provided herein, the Government shall not amend, modify, rescind, terminate, declare invalid or unenforceable, require renegotiation of, compel replacement or substitution, or otherwise seek to avoid, alter, or limit this Agreement without the prior written consent of Contractor.”

Asked if Guyana was entitled to more revenues now that Guyana-Suriname Basin has been de-risked, Routledge said investments and revenues were hinged on the existing agreement covering 30 years.

It is better to have a “fair share of a much larger number and ultimately that’s more meaningful for the country” instead of a large share of a smaller number.

Routledge was of the opinion that the Local Content Act provides a guideline for oil and gas companies and opens doors to numerous opportunities for local businesses and citizens.

Passed in 2021, the legislation allows Guyanese businesses to benefit from employment and contractual opportunities that supply a variety of goods and services to the oil and gas sector.

The Act defines 40 sub-sectors that include transportation, accommodation, legal services, marketing, and public relations. The Act makes it mandatory that a percentage of these goods and services must be provided by Guyanese. Routledge said the legislation provides another avenue for Guyanese to benefit from developments in the oil and gas sector.

“We recognise that this is Guyana’s resource, [and] we want the people not only to benefit from what we pay in royalties and profit share or taxes but also in the development phase; we are making opportunities available as quickly as we can for people to be employed and for businesses to benefit and grow.”

Routledge pointed out the Act’s usefulness is ensuring foreign companies have the opportunity through a clear framework to partner with local businesses to provide a higher level of service to companies operating in the oil sector.

“I think where the Act has been helpful…is for new entrants to the country being clear on the basis of which they are expected to come in and encouraging them to partner with local investors and companies. I think that has been helpful, [giving] clarity for new investors in the country.”

The Local Content Secretariat manages the Local Content Register, a database containing the names of over 900 local companies qualified to benefit from opportunities provided under the Act.

Routledge said the agency has played a critical role in streamlining communication between the Guyana government and ExxonMobil. As a result of the Local Content Act, local companies have earned nearly one billion US dollars, with a government statement indicating that by the end of the year, other opportunities will open in transportation, electrical, plumbing and administrative support.

 

 

 

UK companies win contracts to market crude

October 22, 2024

Two British companies, who were previously contracted to market Guyana’s share of crude from the Stabroek Block operations, won new contracts with the Government . JE Energy had been contracted as the marketer of oil coming from the Liza-1 platform which uses the Liza Destiny FPSO. BB Energy had been contracted as the marketer for oil from the Liza-2 and Payara platforms which use the Liza Unity and Liza Prosperity FPSOs, respectively. The duration of this contract will be for 12 months commencing in 2024.

27 firms including JE Energy and BB Energy, submitted their tender to provide marketing services for Guyana’s oil from the Liza Destiny, Liza Unity and Payara Prosperity Floating Production Storage and Offloading (FPSO) vessels.

The Ministry of Natural Resources disclosed that the two companies were selected once again. “In keeping with the Request for Bids, the evaluation was on a lots basis where the most substantially responsive bidder in relation to the combined lots was determined in keeping with the evaluation criteria,”

The National Procurement and Tender Administration Board (NPTAB) awarded the contracts. BB Energy Trading Limited gained the contract to market crude from the Liza Unity and Prosperity FPSOs. JE Energy won the contract to market crude from the Liza Destiny FPSO. The ministry disclosed that the combined premium per barrel to be received from the two companies for the crudes from the three FPSOs amounts to US$1.85, reflecting a substantial 93% increase compared to the US$0.96 premium secured in the previous period (2023- 2024).

On the previous contract with the two companies, Minister of Natural Resources, Vickram Bharrat had revealed that the contract stipulates that neither of the companies charge the government for the marketing and will instead pay, in the case of BB Energy Limited, US 26 cents on every barrel it sells. JE Energy plans to pay US 70 cents on each barrel of crude it markets.

 

 

 

President Ali pays tribute to King Charles

October 26, 2024

President Dr Mohamed Irfaan Ali honoured His Majesty King Charles III during a dinner for leaders at the Commonwealth Heads of Government Meeting (CHOGM) in Samoa.

The Guyanese head of state praised the monarch’s leadership and personal commitment to global betterment, recalling his visit to Dumfries House in Scotland. There, he witnessed initiatives focused on youth empowerment, traditional skills preservation and STEM education. He hailed the integration of tradition and modernity, particularly through sustainable housing and a wellness center for mental health, which supports the National Health Service.

“I share these stories because they reveal at a very human level, His Majesty’s dedication to bettering the world and a determination to reach those who might otherwise be overlooked, helping them to transform their lives. If we can all visit that estate and learn about the contribution of that estate and the transformation of that community and witness for ourselves the innovation, we will all want to have such an estate of harmony and innovation in our countries.”

These undertakings should serve as an inspiration to all the Commonwealth countries.The initiatives are part of King Charles’ holistic vision that focuses on climate action, biodiversity, urban environments, and youth support across the Commonwealth. Guyana is collaborating with the King’s Foundation on Sustainable Urban Development. President Ali urged Commonwealth nations to follow in these steps.

Reflecting on Queen Elizabeth II’s legacy, he commended King Charles for upholding a life of service and adapting to contemporary challenges and recognised Queen Camilla’s support and dedication to various causes. King Charles expressed optimism that discussions facilitated and the commitments made to each other ‘will plant the seeds of a more resilient future’. Soft power and democracy are hallmarks of the Commonwealth of 56 countries, across all inhabited continents, with 33 small states, including 25 small island developing states. Funded by the UK Foreign Office, former colonies enjoy massive benefits from British taxes, including security from the Royal Navy which offers humanitarian disaster relief and interception of drugs and arms trafficking in the West Indies.

 

 

 

 

 

Oil reserves under 11B barrels

October 10, 2024

The Ministry of Natural Resources in August claimed that the Stabroek Block reserves grew from 11 billion barrels to 11.6 billion barrels, following eight discoveries since the last update. ExxonMobil disputed the government figures, providing its own resource estimate. Country Manager Alistair Routledge told the media the Stabroek Block reserves are under 11 billion barrels.

“The government released a number of 11.6B oil equivalent barrels, ExxonMobil’s estimate is lower than that…our number remains a little under 11 billion oil equivalent barrels.”

The company is obligated to make reports to the US Securities and Exchange Commission. Exxon was not keeping the figures away. Explaining the variation between Exxon figures compared to those of the government, Routledge said the state conducts independent studies, although supplied with data by the company.

“They also do independent studies (and) verifications with other consultants, and work that they do themselves, the GGMC and Ministry of Natural Resources so it’s quite normal to have a slightly different view of the number.”

He stressed the importance of focusing on translating those reserves to development.

“We can have a wish list of estimated ultimate recovery but what’s material to the country is ‘are we moving it into sanctioned projects’ with finance, with a development plan and, as we’ve talked about before, I think we are around the 5B oil equivalent barrels that we’ve now moved successfully in the six projects into that category.”

Oil reserves

Since the announcement in August by Natural Resources Minister, Vickram Bharrat that Guyana’s oil reserves grew by 600 million barrels, government failed to say how it arrived at this new figure despite being questioned on multiple occasions.

CNOOC, a shareholder in the Stabroek Block, revealed that one of the eight discoveries- Lancetfish- averaged 100 million tons, an estimated 746 million barrels of oil. CNOOC later announced that Bluefin also had over 100 million tons of oil and gas. CNOOC has 25% shares in the Stabroek Block; Hess Guyana Exploration Ltd. holds 30% interest while ExxonMobil, the operator of the Stabroek Block, holds 45% interest.