Eyes on Venezuela

2023, 04/06

Energy consultant Kevin Ramnarine, past energy minister in Trinidad says the ongoing corruption scandal in Venezuela that forced the resignation of the former oil minister Tareck El Aissami and the arrests of officials in Venezuela’s energy industry could hinder negotiations between Venezuela and T&T.

“Dragon Gas remains important to T&T. However, one cannot ignore the recent events in Venezuela and the scale of the corruption allegations being made in Venezuela. In some reports, it is alleged that over US$20 billion is missing from Venezuela’s state-owned oil company PDVSA. So something of that scale and magnitude would of course require the attention of authorities in Venezuela.”

T&T needs to “keep an eye” on the evolving events in the OPEC founder.

“I would think that it would be reasonable to assume that what is happening in Venezuela right now which is akin to a crisis would decelerate any negotiations related to the Dragon field. It is something that we need to keep our eyes on. It will impact the pace of negotiations, but the Dragon Gas field remains important to T&T.”

US sanctions as well as lack of capital, delayed the production start of the Dragon project, originally scheduled to begin over a decade ago.

The US government licence allows T&T to undertake business related to the Dragon field with PDVSA,Venezuela’s heavily sanctioned SOC. As per the estimates, the PDVSA-owned Dragon field has up to 4.2 trillion cubic feet of natural gas.

Large gas reserves
Venezuelan don and energy columnist Werther Sandoval, in an article in the daily , El Ultimas Noticias gave the view that despite the challenges for Venezuela, countries like T&T and multinational companies like Shell have no other choice but to do business with Venezuela because of its huge oil and gas reserves.

According to his data, the gas reserves estimated by PDVSA Gas reveal that Venezuela has four times the gas reserves of all of the rest Latin America, an accumulated volume that makes it the eighth in the world ranking, according to OPEC data. Latest data at the end of 2020, show the production capacity on Venezuelan territory exceeded 27 million cubic meters.

“Faced with the latent shortage of gas and fertilisers created by NATO’s attempt to encircle Russia militarily, the US gave a little relaxation to the sanctions applied to Venezuela, which allows T&T to negotiate the possibility of exploiting and operating the immense deposit.”

He mentioned T&T’s interest in Venezuela’s gas reserves.

“The fascination of T&T with the large reserves of Venezuelan gas is enormous and worthy of attention. T&T appreciates that it loses an opportunity to obtain a large income.

According to the Corporation of Strategic Reserves of Petroleum Products (CORES) supervised by the Ministry for the Ecology of Spain, in 2021 T&T fulfilled 5.2 per cent of Spain’s gas imports, while in 2022, when Spain asked for more gas, T&T exports fell to 4.3 per cent.”

He described T&T as historically one of the region’s large gas exporters.
“T&T’s natural gas production has declined in recent years. Let’s not forget that deposits are systems that run out, so production normally tends to decline over time,” he said, citing work done by energy consultant Simón Herrera, in his essay ‘Development of the natural gas project in the Dragon Field between T&T and Venezuela.’

T&T is the largest exporter of Liquefied Natural Gas (LNG) in the Americas after the United States, with a significant installed capacity to convert natural gas to LNG, as well as petrochemicals and electricity.”

He said T&T is interested in exploring the Dragon Gas field with Venezuela as the gas from the Dragon field would be used to restart an inactive liquefaction train at the Atlantic LNG facilities in Trinidad, for which the gas connection between the territorial waters of both nations is necessary.

The inactive Train I, had a natural gas supply contract that expired through a gas pipeline system of about 17 kilometres.  Sandoval said negotiations between T&T and Venezuela are still up in the air.

“Now it remains to be seen the result of the current negotiations between the Governments of Venezuela and T&T to confirm if the initial terms of the year 2018 will be ratified or modified, including if the Shell company is still interested in participating or another private company.

Much of it will be subject to the scope of the licence granted by the United States’ Office of Assets Control to T&T, the content of which is not public knowledge. Among the key issues to be determined would be to identify the company that would be responsible for the operation of the Dragon field, the price of natural gas, and the financing mechanism for the infrastructure investments that should be made.”

Colombia

ExxonMobil withdraws from VMM-37 block in Middle Magdalena Valley Basin

19 Apr 2023

Sintana Energy reports that ExxonMobil sent Patriot Energy Oil and Gas, a subsidiary of the Company, a notice stating that, based on the terms of the Joint Operating Agreement between ExxonMobil and Patriot, it decided to withdraw from the JOA as of May 31, 2023.

The notice also states that ExxonMobil will withdraw from the Contract with the Agencia Nacional de Hidrocarbons, effective after obtaining required Government approvals. Both the JOA and Contract pertain to the 43,158 acres property known as the VMM-37 block in the Middle Magdalena Valley Basin.

Chief Executive Officer Doug Manner commented: ‘We are disappointed that our VMM-37 partner for more than a decade, ExxonMobil, has voluntarily chosen to withdraw from both the JOA and Contract. Management has engaged legal and technical advisors for assistance in addressing this unexpected change of events‘.

The Company fully reserves its rights under the contracts governing VMM-37 and applicable laws and regulations.

Further updates will be provided with respect to these matters as additional information becomes available.

According to the Sintana web site – In late 2015, the Company announced that the Manati Blanco-1 exploration well located on VMM-37 was successfully drilled and cased through multiple unconventional tight crude oil formations to a measured depth of 14,345 feet. The well confirmed approximately 2,600 feet of gross pay in the La Luna formations which is similar to the Eagle Ford Shale found in Texas.

In 2021, the National Hydrocarbons Agency (ANH) awarded a Special Research Project Contract called ‘Platero PPII’ to ExxonMobil which will evaluate the potential for horizontal drilling and hydraulic stimulations at VMM-37.

Source: Sintana Energy

Colombia

Arrow Exploration announces 2022 year-end reserves

29 Mar 2023

Before Tax NPV-10 values increased 97% for 1P and 51% for 2P reserves, 1P and 2P reserve replacement ratio was 165% AND 164% respectively

Arrow Exploration has announced the results of its 2022 year-end reserves evaluation by Boury Global Energy Consultants.

All reserves volume figures stated below are on a Working Interest Gross Reserve basis. Currency amounts are in United States dollars (unless otherwise indicated) and comparisons refer to December 31, 2021.

Highlights

Proved (‘1P’) reserves:

• • Increased by 11% to 3.37 million barrels of oil equivalent (‘MMboe’), driven principally through uplift at Tapir (Rio Cravo), Colombia;
  • Net present value before tax, discounted at 10% (‘NPV-10’) is $57.9 million ($17.15/boe) for 1P reserves.

Proved plus Probable (‘2P’) reserves:

• • Increased by 4% to 7.69 MMboe;
  • NPV-10 is $127.3 million ($16.56/boe) for 2P reserves.

Proved plus Probable plus Possible (‘3P’) reserves:

• • Increased by 1% to 11.68 MMboe;
  • NPV-10 is $205.8 million ($17.57/boe) for 3P reserves.

Before tax NPV-10 values have increased 97% for 1P and 51% for 2P, over year-end 2021, due to reserves growth and an increase in the oil price forecast used by BouryGEC at year-end 2022;2022

Proved Developed Producing (‘PDP’) reserves increased 27% to 1.31 MMboe supported by the improved performance of the new drilling in the Rio Cravo Field; PDP reserves represent 39% of 1P reserves, reflecting an attractive ratio of base production to low-risk drilling targets; and

Before tax NPV-10 per share of US$0.14/share, US$0.39/share, and US$0.63/share for 1P, 2P, and 3P reserve categories, respectively;
BouryGEC post tax NPVs impacted by changes in Colombian tax regime in the year but pre other corporate tax shelters (further detail below).

Marshall Abbott, CEO of Arrow, commented:

‘Arrow delivered an increase in volumes and pre-tax values across 1P, 2P and 3P reserves in 2022. We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets.

The BouryGEC 2022 report of course does not account for the current drilling campaign at Rio Cravo Este, where, given the encouraging results to date, we might expect further reclassifications and increase in reserves. Additionally, with the imminent drilling of the Carrizales Norte wells, we would expect to continue growing reserves in the near future.‘

Source: Arrow Exploration

Colombia

PGS Pacific Colombia MegaProject data available

11 Apr 2023

PGS has released the first data from its new Pacific MegaProject, providing E&P companies with an excellent opportunity to evaluate prospectivity across Colombia’s Tumaco and San Juan basins.

Modern processing techniques have been applied to reprocess all available data in the target area, including several vintages. The result is a single unified and rejuvenated MegaProject dataset, which provides new insights into potential petroleum system elements, including features that may be indicative of potential hydrocarbon-bearing traps.

Releasing Regional Understanding

MegaProjects are merged, post-stack datasets consisting of multiple 2D and 3D surveys that have been matched and merged to produce a phase-balanced and uniformly scaled contiguous regional volume.

The regional coverage provided by MegaProject data supports the understanding of tectonic and stratigraphic evolution across entire basins. Regional understanding leads to a robust understanding of existing and potential petroleum systems.

Colombia | Geology and Prospectivity

The Colombia MegaProject covers most of the Tumaco and San Juan Basins. This area is characterized by a forearc basin structural style in convergent margins, relating to the subduction of the Nazca Plate beneath the western part of South America. Along the Colombia pacific margin, thick Cenozoic sedimentary sequences have accumulated over blocks of transitional and oceanic-crust basement that accreted between the Late Cretaceous and Early Cenozoic. Overlying sedimentary fill is predominantly Tertiary in age.

Rejuvenated data provides new insights into the depositional environment and structural architecture, supporting renewed exploration interest across the offshore Tumaco basin.
The potential petroleum system is related to source rocks of the late Cretaceous and early Tertiary age, migrated to turbidite fan systems associated with the Miocene interval. Trap and seal are provided by Middle-Upper Miocene shales combined with early-Middle Miocene mud.

‘These basins have significant exploration potential, and the new PGS MegaProject dataset has been produced in response to renewed interest in this area,’ says Sharon Walker, Vice President of Sales NSA at PGS.

Find Out More

Contact nsa.info@pgs.com to view the depth data from the Pacific Colombia MegaProject.

Data Library | Pacific MegaProject

Covering most of the Tumaco offshore Basin, including the San Juan Basin, the petroleum system setting presents an attractive array of potential hydrocarbon-bearing traps. Click here for MultiClient Data | Coverage for Colombia

Source: PGS

 

 

Jamaica woos Africa

2023, 04/04

Jamaica’s Tourism Minister Edmund Bartlett told the African Tourism Investment Summit a closer relationship between Africa and the Caribbean would provide “a wonderful opportunity for a reverse diaspora experience”.

Bartlett believes that “we, from the new world, can give back to Africa based on our expertise and our investment resources in building the tourism that the Caribbean has become very famous and proficient in delivering. This is our chance to give back to Africa and tourism can be the vehicle,” he told the roundtable discussion titled “Developing a Sustainable Tourism Industry in Africa by Integrating Cultural, Environment, Good Governance and Social Concerns|.

The discussion included presentations from government ministers, finance executives and administrators from South Africa, Botswana, Spain and Sierra Leone. The African market of 1.3 billion people is eyed as the next big source market for tourists to Jamaica as the industry seeks to diversify beyond traditional markets in North America and Europe. In furtherance of this objective, exploratory talks have been held with representatives of Ethiopian Airlines, Kenya Airways, and Rwanda Air concerning regular air service between Africa and Jamaica.

“This will not only open up the African market to the Caribbean but, also, Jamaica will become the gateway by which persons in North America, Latin America and the Caribbean may travel to the African continent,” Bartlett said.

There has been extensive cooperation between Jamaica and Africa in the era of tourism resilience.

In February, Jamaica hosted an African Caribbean Tourism Summit as part of the historic Global Tourism Resilience Conference in Kingston. The Global Tourism Resilience and Crisis Management Centre (GTRCMC), headquartered in Kingston, aims to expand its satellite network in Africa. where there is one centre at Kenyatta University in Kenya. However, initial talks were held with Nigeria and Botswana.

Part of Africa Travel Week, the African Tourism Investment Summit attracted delegates including government ministers, investors, private equity firms, venture capitalists, decision makers, international buyers and travel professionals.

 

 

Nigeria urged to end dispute with Eni , Shell for deepwater development

Alberto Brambilla and William Clowes April 19, 2023(Bloomberg)

A senior Nigerian minister urged the country’s president to end a long-running dispute with Eni SpA and Shell Plc to allow the companies to finally develop a prized deepwater oil license.Investigations and lawsuits relating to the energy giants’ acquisition of the permit 12 years ago should be halted so Africa’s largest crude producer can “take advantage of the fast-disappearing opportunities in the global oil exploration industry,” In a letter of Feb. 6, 2023, Attorney General and Justice minister, Abubakar Malami advised President Muhammadu Buhari that delays to development of the block had “negative economic consequences” for Nigeria.

While Buhari’s administration alleged that much of the $1.1 billion paid by Eni and Shell to the Nigerian government for the rights to Oil Prospecting License 245 was subsequently diverted to bribes and kickbacks, it suffered high-profile defeats in courts in Italy and the UK. Eni initiated arbitration proceedings against Nigeria in 2020, accusing the government of breaching its obligations by refusing to convert the permit into one that allows production of hydrocarbons.

Malami advised Buhari to direct the termination of a lawsuit brought against the two companies in Nigeria by the Nigerian anti-corruption agency and of all investigations concerning the license, according to the letter, which was first reported by Lagos website The Cable. The oil industry regulator should “expedite conversion of OPL 245,” said Malami.

After the firms and serving and former executives were acquitted of corruption charges in Milan, Buhari, Nigeria’s oil minister – consented in May 2022 to the conversion of the permit pending the conclusion of all disputes between the parties, according to Malami’s letter. Malami’s spokesman declined to comment on the contents of the letter. Eni also declined to comment. Spokespeople for Buhari, the Nigerian Upstream Petroleum Regulatory Commission and the Economic and Financial Crimes Commission did not immediately respond to requests for comment. Shell has “always maintained that the 2011 settlement related to OPL 245 was legal,” a company spokeswoman said by email.

At the end of May, Buhari is due to be replaced by his ally Bola Tinubu, who won a presidential election in February. The government’s defense against Eni’s arbitration claim “becomes doubtful particularly when viewed in the context of serial losses already recorded,” while the Nigerian suit does not offer “any prospect of success,” Malami said in the letter.

 

 

 

Vital Skills for Offshore Oil and Gas Workers

by Andreas Exarheas|Rigzone Staff|, March 30, 2023

Representatives of Petroplan and Piper-Morgan Search have their say.
One of the many attributes needed to thrive in an offshore environment is resilience.

That’s what Petroplan’s Managing Director of APAC, Dan Torpy, told Rigzone when asked what skills are vital for offshore oil and gas workers.

“While communication systems have improved dramatically over the last decade the nature of the work means long periods away from family and friends. This, combined with the confinement of the working space, can inevitably lead to tension among the teams working on the facility.”

Technical competency and high levels of emotional intelligence are two key factors which build resilience among the team and ensure that operations are conducted in a safe and efficient manner.

“When recruiting for teams to work in an offshore environment, it is vital to focus on how they will work together effectively. Cultural differences and backgrounds must be considered and one way to combat this is to maximize diversity. While this drives a need for collaboration it also provides the broadest range of experience and expertise which in turn delivers outstanding results in a high performance, but also high risk, environment.”

“At Petroplan we strive to not only focus on the individuals but also the teams which we are building as a whole and continuously drive for high performing, effective, resilient teams that deliver for our clients in some of the world’s most challenging locations.”

Hard/Soft Skills

Offering his view on what skills are vital for offshore oil and gas professionals, Gladney B. Darroh, the founder and president of Houston based Piper-Morgan Search, put forward a list of hard and soft skills.

“Hard skills – general mechanical skills, specific job knowledge, efficient task execution, high degree of safety awareness at all times. In addition to the mandatory three day Basic Offshore Safety Induction and Emergency Training Program, workers should be current on all other OSHA Certifications relevant to their specific job, plus I highly recommend the same for similar jobs co-workers are performing.

“Recommended certifications would include, but not limited to, safety regulations, emergency response, first aid, hazardous materials handling and storage.”

Looking at soft skills, Darroh flagged “communication skills” and “situational awareness at all times”.

 

 

Offshore Is Back

Earlier this month, Rystad Energy announced that “offshore is back”, adding that the offshore oil and gas sector is set for the highest growth in a decade in the next two years, “with $214 billion of new project investments lined up”.

Annual greenfield capital expenditure will pass the $100 billion mark in 2023 and 2024, according to Rystad Energy, which highlighted that this would be the first breach for two straight years since 2012 and 2013. Offshore activity is expected to account for 68 percent of all sanctioned conventional hydrocarbons in 2023 and 2024, Rystad said, pointing out that this figure stood at 40 percent between 2015 and 2018.

In November 2022, Wood Mackenzie revealed that, according to its 2022 global deepwater report, global deepwater production will increase 60 percent by 2030, reaching 17 million barrels of oil equivalent per day.

“Deepwater is the fastest growing oil and gas resource theme,” Marcelo de Assis, the director of upstream research for Wood Mackenzie, said.

email andreas.exarheas@rigzone.com

 

 

 

Americans in Guyana on alert amid threats

Denis Chabrol , 29 March 2023

The US Embassy tightened security and put Americans in Guyana on alert.

“Out of an abundance of caution, we want to inform U.S. citizens that the embassy has increased security protocols due to receiving threats against U.S. interests.”

A high-ranking Guyanese police officer declined to respond to questions about the nature and origin of the threats, if anyone was detained or arrested and what are the US interests that have been threatened. An embassy official similarly declined to provide details but said Guyanese authorities have been asked to help.

“Unfortunately I can’t provide additional information but the alert refers to U.S. interests in Guyana. We are working with local authorities to monitor the situation.”

Americans in Guyana have been advised to “stay alert” and “exercise heightened caution.”

Assistance:              U.S. Embassy Georgetown, Guyana
100 Young and Duke Street, Georgetown
Emergencies: 592-225-4900
Non-emergency inquiries:                ACSGeorge@state.gov
Website:             https://gy.usembassy.gov

Enroll in the Smart Traveler Enrollment Program (STEP) to receive security updates
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New ICJ ruling against Venezuela in Essequibo case

Friday, April 7th 2023

“Guyana is confident that the court will uphold its long-standing international boundary with Venezuela,” Guyanese President Irfaan Ali said

The Venezuelan administration of President Nicolás Maduro was dealt another international setback when the International Court of Justice (ICJ) turned down new objections filed by Caracas regarding the territorial dispute with Guyana over the oil-rich Essequibo.

Guyana defends a boundary established in 1899 by an arbitration court in Paris, while Venezuela’s claims are based on the so-called Geneva Agreement, signed in 1966 with the United Kingdom before Guyanese independence, which established the bases for a negotiated solution and disregarded the previous treaty concerning the 160,000 km2 territory. Since 2018 the case is in the hands of the ICJ, the largest UN jurisdiction based in The Hague.

The court “rejects the preliminary objection raised by the Bolivarian Republic of Venezuela” by 14 judges to one, ICJ Chief Justice Joan Donoghue announced, meaning the tribunal can now proceed to hearings on the merits of this dispute. Guyanese President Irfaan Ali said,

“Guyana is confident that the court will uphold its long-standing international boundary with Venezuela. Guyana has always been fully committed to the peaceful resolution of the dispute with its neighboring and sister republic in accordance with international law.”

“Venezuela does not recognize the judicial mechanism as a means of resolution” of the dispute with Guyana,” Venezuelan Vice President Delcy Rodríguez said, in a statement which added that Caracas will “evaluate” the implications of the ICJ ruling “in an exhaustive manner” and “will adopt all measures at its disposal for the defense of its legitimate rights and territorial integrity.”

The dispute was reignited in 2015 when US oil giant Exxon Mobil found oil deposits off the coast of Essequibo, which is equivalent to two-thirds of Guyana. The Venezuelan state argues that the area belongs to it because it was part of the Spanish Empire’s Captaincy General of Venezuela and that the boundaries in South American countries were established under the “utis possidetis iuris” principle, which implies that they are entitled to the territory they had during the Colony.

Guyana, on the other hand, claims that the current border is valid due to the 1899 ruling, which Venezuela deems a “fraudulent arbitration” and insists that the 1966 agreement is “the only valid instrument to settle this dispute.”

The ICJ ruled in 2020 against Venezuela’s objections that it had jurisdiction to analyze the dispute. The United Nations agreed in 2018 to have the case brought before the ICJ. While Caracas initially refused to attend its hearings, some representatives ended up attending.

“All member states of the United Nations, including Guyana and Venezuela, are obliged under the UN Charter to comply with the judgments of the courts,” said Ali , who recalled that it is the “second time” that the ICJ rejects Venezuela’s “jurisdictional objections.”

In Caracas, opposition leaders such as Julio Borges, María Corina Machado, and Andrés Velázquez expressed their opposition to this ICJ decision but held the Maduro administration accountable for it.

“A serious government, responsible and responsive to the interests of Venezuela, would never have allowed this situation of real threat to our territorial integrity and National Sovereignty to be reached,” said Machado, the national coordinator of Vente Venezuela.

She insisted that the Essequibo is a strategic and fundamental part of the country, therefore, after this ICJ ruling, the country must summon expert jurists to defend sovereignty.

 

Statement by His Excellency, Dr Mohamed Irfaan Ali, President of the Co-operative Republic of Guyana on the ICJ ruling

April 6, 2023

Today in The Hague, the International Court of Justice handed down its ruling in the case between Guyana and Venezuela on Venezuela’s Objection to the Court’s Jurisdiction. The Court rejected Venezuela’s objection and upheld its jurisdiction to decide the case by a vote of 14 to 1.

This means the Court will now proceed to decide the dispute between the two States on the merits, and ultimately issue a final and binding determination on the validity of the 1899 Arbitral Award that fixed the land boundary between Venezuela and then-British Guiana. Venezuela and the United Kingdom recognised the validity of that Arbitral Award and the resulting international boundary for more than 60 years. Upon its independence in 1966, Guyana also recognised the Award and the boundary, but Venezuela had changed its position and begun claiming more than two-thirds of Guyana’s territory west of the Essequibo River.

This is the second time the International Court has rejected jurisdictional objections raised by Venezuela. In December 2020, the Court overruled Venezuela’s objections by a vote of 12-4. In June 2022, Venezuela raised a new objection. Oral hearings were held in November 2022, during which both parties appeared and presented their arguments before the Court. Today’s ruling disposes of that objection, and will require Venezuela to submit its written pleadings on the merits of the case – that is, on the validity of the Arbitral Award and the international boundary that it established.

Guyana remains confident that its longstanding international boundary with Venezuela will be confirmed by the Court.

Guyana has always been fully committed to the peaceful resolution of the dispute with its neighbour and sister Republic in accordance with international law. That is why, after attempting unsuccessfully to achieve a diplomatic settlement through talks mediated by the United Nations Secretary-General over more than two decades, Guyana brought the matter to the International Court of Justice for a final and binding determination. All Member States of the United Nations, including Guyana and Venezuela, are obligated under the United Nations Charter to comply with the Court’s binding judgments.

I thank you and I take this opportunity to also thank our legal team, our agent, all the stakeholders, every Guyanese for the continued commitment and outstanding work as we proceed with this matter in the International Court of Justice.

 

 

ICJ rejects Venezuela’s preliminary objections in border case

April 6, 2023

The International Court of Justice (ICJ) in a 14 to one vote, and based in large part on the 1966 Geneva Agreement, has ruled that the United Kingdom cannot be considered an indispensable party in the Guyana/Venezuela border controversy case, as the agreement indicates that the UK was no longer a participant in any other engagements regarding the case.

President of the International Court of Justice, Judge Joan E. Donoghue read the Court’s judgement on Thursday at a sitting of the Court in Hague.

Judge Donoghue said, “While article one of the agreement describes the dispute as one existing between the United Kingdom and Venezuela, article Two provides no role for the United Kingdom in the initial stage of the dispute settlement process. Rather, it places the responsibility for appointment of the representatives to the mixed commission on British Guiana and Venezuela.

“The court notes that the reference to British Guiana contained in article two, which can be distinguished from references to the United Kingdom contained elsewhere in the treaty and particularly in article one supports the interpretation that the parties to the Geneva agreement intended for Venezuela and British Guiana to have the sole role in the settlement of the dispute through the mechanism of the mixed Commission.”

The court will now proceed to evaluate Guyana’s application with regards to the validity of the 1899 Arbitral Award.

In May 2018, Guyana applied to initiate proceedings against Venezuela with the International Court of Justice (ICJ), following decades of assiduous efforts made to strengthen mediation. The application requested that the court declare that ‘the 1899 Award is valid and binding upon Guyana and Venezuela, and the boundary established by that Award and the 1905 Agreement is valid and binding upon Guyana and Venezuela.’. It also attested that the 1899 award was a “full, perfect, and final settlement” of all questions related to determining the boundary lines between the colony of British Guiana and Venezuela.

Further, the application presses that “Guyana enjoys full sovereignty over the territory between the Essequibo River and the boundary established by the 1899 Award and the 1905 Agreement, and Venezuela enjoys full sovereignty over the territory west of that boundary; Guyana and Venezuela are under an obligation to fully respect each other’s sovereignty and territorial integrity in accordance with the boundary established by the 1899 Award and the 1905 Agreement”.

 

 

ICJ REJECTS VENEZUELA BORDER STANCE

April 7, 2023
mf/rc (AFP, Reuters)

The International Court of Justice rejected Venezuela’s objections, saying its judges can rule on a 19th-century border dispute. The country is at odds with neighboring Guyana over a fossil fuel-rich region.

The International Court of Justice (ICJ) allowed a long-running border dispute between Venezuela and Guyana for jurisdiction. The two countries have remained entangled in a dispute over an oil and gas-rich region known as Essequibo. The Hague-based court can now adjudicate on the 19th-century border dispute, which has seen many escalations since oil was discovered in the region.

The court’s ruling :
In 2018, Guyana had pleaded with the ICJ to confirm that the border was drawn in an 1899 arbitration between Venezuela and the then-colony of British Guiana. However, in an attempt to stall the case, Venezuela had argued that Britain should be involved since it was the colonial power at the time of arbitration. Rejecting Venezuela’s argument, the court said it has jurisdiction over the matter. “The court… rejects the preliminary objection raised by the Bolivarian Republic of Venezuela” by 14 judges to one, ICJ chief judge Joan Donoghue said.

 

 

Guyana oil boom: dream or nightmare?

Welcoming the court’s decision, Guyanese President Irfaan Ali said: “Guyana remains confident that the court will confirm itslongstanding international boundary with Venezuela.

The decision marks the second time the court has rejected Venezuela’s arguments, Ali said, adding that “Guyana remains confident that the court will confirm its longstanding international boundary with Venezuela.”

Despite the recent ruling, it could take years for a final verdict in the case.

Reason for the dispute

In 2015, US oil giant ExxonMobil discovered crude oil offshore Guyana, which until then had no history of oil production. However, with the discovery of oil in the Essequibo region, it now has the potential to become a top oil producer in Latin America. A consortium of oil companies produces oil in the offshore Stabroek block, part of which is located in waters claimed by Venezuela.

Guyana has upheld the validity of borders and maintains they were laid in 1899 by an arbitration court decision in Paris involving Venezuela, Britain and then-British Guiana but Caracas has rejected the claim.

 

 

 

Petrostate Barbados plan to “overhaul World Bank and IMF”

 07/04/2023

Prime Minister of Barbados Mia Amor Mottley delivers the 20th Nelson Mandela Lecture at the International Convention Centre in Durban, South Africa, on 12 November 2022.

While conflict and inflation will dominate World Bank spring meetings , campaigners are pushing for a redesign of global financial architecture to help countries cope with climate change.

Experts say developing nations are struggling to find the funds needed to stop burning planet-heating fossil fuels and prepare for tomorrow’s climate disasters, as they grapple with rising costs, soaring debts and extreme weather events. The question is what to do about it, amid international tensions driven by Russia’s invasion of Ukraine and trade tussles between the US and China.

Enter Barbados Prime Minister Mia Mottley.

“We believe that we have a plan,” the head of the Caribbean island nation, threatened by storms and sea level rise, told world leaders at the COP27 climate summit in Egypt in November. Known as the Bridgetown Initiative, her ideas include using the International Monetary Fund to turn “billions to trillions” in investments to cut carbon pollution, as well as a tax on fossil fuel profits to cushion the economic blows of climate impacts. While the proposals are still being debated, they have gained traction among the large economies that hold sway over the World Bank and IMF, raising hopes of action in the coming months. The World Bank is under particular pressure, in the wake of the resignation of chief David Malpass amid questions over his stance on climate change.

David Malpass stepped down as World Bank president after pressure over his stance on climate change

French President Emmanuel Macron has embraced the reform push and will seek to keep up momentum with a climate finance summit in June, ahead of Bank meetings and UN climate summits later this year.

Reform plans are gaining momentum because they fill a “policy vacuum” over funding for the global climate response, said Avinash Persaud, the economist running the Barbados campaign with “one and a half people and a spreadsheet”.

“I feel we’ve got a moment here,” he told AFP.

 

 

‘Burning and drowning’

United Nations climate science experts have said time is running out to invest in the changes needed to limit warming to 1.5 degrees Celsius above preindustrial temperatures. Currently the world is far off track, risking enormous costs, for nature, human societies and the global economy.

“Unless money is put on the table, we won’t be able to solve the climate crisis,” said Harjeet Singh, Head of Global Political Strategy at the Climate Action Network campaign group. The last few years have seen waves of crop-withering heat waves, droughts and floods in key global breadbaskets.

Climate disasters in recent years included floods that ravaged Pakistan in 2022

In nuclear-armed Pakistan,, the economy was already struggling after years of political upheaval, but a global energy price surge and catastrophic floods last year pushed it to the brink. Persaud said developing countries are already losing “big chunks” of their gross domestic product each year to climate impacts.

“We are burning up and we are drowning in the same year, that’s climate change for you.”

The Bretton Woods financial architecture was created to help rebuild countries shattered by the Second World War and boost global trade and development. The world has now reached a new inflection point, said Cameroonian economist Vera Songwe, who told AFP, “If you combine all these crises we have today, it feels like we just came through a war.” Of those crises, climate change is now “the most critical and the most sustained of risk, permeating every aspect of global economic development.”

 

Climate financing responsibility

Financial institutions take action.

The IMF created a new loan-based Resilience and Sustainability Trust to help poorer or vulnerable countries boost sustainable growth. Barbados was the first recipient. The World Bank says it delivered a record $31.7 billion last year to help countries tackle climate change and has started to draft a roadmap for change. Even as wealthy nations have failed to meet their own target of providing $100 billion annually to help developing nations invest in clean energy and boost resilience to climate impacts, research has shown the true costs already far exceed that figure.

Songwe co-led the Independent High-Level Expert Group on Climate Finance, set up under the UN, which last year said they will need over $2 trillion a year by 2030 to respond to the climate crisis.

‘Change the world?’
The Barbados plan seeks to raise those trillions using roughly $500 billion in IMF reserve assets – known as Special Drawing Rights – as collateral in a new climate trust, which could borrow cheaply to invest in private sector emissions-reduction projects. It also calls for multilateral development banks to significantly increase their lending, while stressing that debt arrangements should include, as Barbados has, disaster clauses allowing a country to pause repayments for two years after an extreme event. And the plan calls for taxes – for example on fossil fuel profits – to help countries cope with climate losses and damages. Singh welcomed the proposal, although campaigners want debt cancellation on the table and a greater acknowledgement of responsibility from rich polluters.

 

The inequalities of climate change

© Julia Han JANICKI / AFP

Persaud said the hope was to build a broad coalition of countries on the climate frontlines – roughly 40 percent of the world’s population – to push for change.

“You will change the world for 3.2 billion people, especially because that group is growing,.”

(AFP)

Therein lies the crux of the crisis- overpopulation, doubling to 2.8 billion in the unstable AU, where conflicts continue from north to south and thousands die from disease and famine amid abundant resources and colossal foreign aid.

US to help T&T confront crime, arms

2023, 04/21

In response to the plea by Caricom leaders for support to stop the flow of illicit guns from the US into the region, the United States embassy in Port of SPain said the USA is T&T’s closest friend and partner in the world and addressing firearms trafficking is a US-Caribbean priority.

Firearms trafficking has been the focus of ongoing talks with the US Government at various levels, including Foreign and Caricom Affairs Minister Dr Amery Browne with US Secretary of State Antony Blinken and US Ambassador to T&T Candace Bond.

Given the additional information and analysis presented at the Caricom crime symposium in Trinidad earlier this week, Prime Minister Dr Keith Rowley and Jamaica Prime Minister Andrew Holness discussed the matter with Bond who attended the symposium. A US Embassy spokesperson referred to Bond’s pledges of commitment to work with the T&T Government to fight violent crime.

“The Embassy of the United States of America continues to work with, and provides significant security assistance to, the Trinidad and Tobago Police Service and other national security agencies to support efforts to address the root causes of crime and violence and improve citizen security.”

The US State Department March statement on US-Caribbean cooperation to stop firearms trafficking said that disrupting illicit firearms trafficking in the Caribbean is a shared priority for the US

“and our Caribbean partners, and an important aspect of our cooperation to address rising levels of crime and violence in the region. As a top priority by Caribbean partners in the May 2022 Caribbean-US Security Cooperation Dialogue, US security assistance through the Caribbean Basin Security Initiative includes building regional capacity to disrupt illicit firearms trafficking.”

The US Bipartisan Safer Communities Act signed into law in July 2022 “dramatically increased criminal penalties for straw purchasers and US-sourced firearms trafficking.”

Provisions under the Stop Illegal Trafficking in Firearms Act assign further penalties for smuggled firearms or ammunition out of the US with intent to promote transnational organized crime. Further US assistance, including US investigative and capacity-building support to the Caribbean was also listed. Law enforcement officers from 19 Caribbean countries along with Interpol, Caricom, the World Customs Organization, the US Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and HSI cooperated on a joint operation that led to the seizure of 350 weapons, 3,300 rounds of ammunition, and ten tons of cocaine.

“Also, in October 2022, three members of a Caribbean arms trafficking ring, two of whom are nationals of Trinidad and Tobago, were charged with conspiracy to smuggle goods from the United States. Six months later, in April 2023, they pleaded guilty to arms trafficking and face several years in prison.

“Various US law enforcement agencies, also resident at the US Embassy in Port-of-Spain, including the FBI, DEA, ATF, diplomatic security, the State Department’s Bureau of International Narcotics and Law Enforcement and US Customs and Border Protection, work closely with Trinidad and Tobago law enforcement to combat narcotics and arms trafficking that fund and drive crime in Trinidad and Tobago.”

Bond, on assuming duties, pledged to continue to work with the T&T people and government to help address the violent crime scourge…

… “and bring the best and most comprehensive capabilities of the United States to help make safer TT communities.: To the greatest extent possible, we will work together to chip away at this scourge of violent crime and disruption to everyday life and bring our best and most comprehensive capabilities to help make communities safer. This will require a laser focus on our long-standing security partnership and the diligent implementation of Caribbean Basin Security Initiative-funded citizen safety programmes that work to prevent gang violence, reduce violent crime, and strengthen Trinidad and Tobago’s judicial system.”

The Embassy noted Bond’s commitment “to developing and implementing win-win initiatives that work for both sides, as these are initiatives that secure results with sustainable impact.”

 

 

 

US assistance against Weapons trafficking

Caribbean Crime Gun Intelligence Unit (CCGIU)

In November 2022, the CARICOM Implementation Agency for Crime and Security (IMPACS), with US interagency support, inaugurated the CCGIU to improve intelligence and information sharing among Caribbean and US law enforcement agencies. The CCGIU supports Caricom member states with seizing firearms, related parts and components, as well as in identifying, charging, and prosecuting co-conspirators for firearms crimes. The CCGIU works with US and international law enforcement partners including the US Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), US Homeland Security Investigations (HSI), UK National Crime Agency (NCA), Interpol and the Regional Security System (RSS).

US Investigative and Capacity-Building Support to the Caribbean

US Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) attachés in Jamaica, The Bahamas, and T&T investigate firearms trafficking cases with partner-country law enforcement agencies and US investigators.

US Homeland Security Investigations (HSI) enforces US export laws and investigates firearms and ammunition smuggling operations violating these laws.

The United States supports projects by the World Customs Organization, UN Office on Drugs and Crime, and the International Organization for Migration to increase port and border security to combat illicit trafficking.

Regional Coordination

In May 2019, Caricom HoGs formally adopted the Caribbean Firearms Trafficking Priority Actions which consist of a list of reforms and regional engagements identified by US and Caribbean experts to effectively address firearms trafficking within the region.

In 2020, with US support, the Caricom Implementational Agency for Crime and Security (IMPACS) and the United Nations Regional Centre for Peace, Disarmament and Development in Latin America and the Caribbean (UNLIREC) developed the Caribbean Firearms Roadmap. This framework provides timelines and baselines for implementing the Caribbean Firearms Trafficking Priority Actions.

12 Caribbean countries drafted national action plans under the auspices of the Firearms Roadmap and Priority Actions. The United States stands ready to help countries implement their individualized priorities, plans, and timelines upon completion of their respective national action plans.

Operational Successes

In March 2022, through Operation CITADEL, US Homeland Security Investigations (HSI) deployed agents and analysts throughout the Caribbean Region to bolster firearms smuggling investigations and intelligence-sharing capabilities. HSI Operation CITADEL efforts and multiple HSI-led international controlled deliveries resulted in 111 firearm-related seizures, including 446 firearms and 188,256 rounds of ammunition.

The UK Royal Navy is also providing security around the Caribbean Sea.
North Atlantic Patrol Tasking is normally conducted by a single vessel from the Royal Navy or Royal Fleet Auxiliary. Currently, RFA Wave Knight holds the honour, alongside HMS Medway. Daily duties include boarding a suspected drug-smuggling vessel, or patrolling the region to act as a deterrent to criminals.

Wave Knight also carries a specialist disaster relief team from the Royal Fleet Auxiliary and the British Army’s 7th Infantry Brigade, as well as a Royal Navy Wildcat helicopter. Together, they are able to restore vital infrastructure and services, such as roads, electricity and running water to communities devastated by natural disasters.