Axess & GLASS form services venture

Feb. 21, 2024

MOLDE, Norway

Axess Group and Guyana Logistics and Support Services (GLASS) agreed to form the joint venture Axess Glass, which the companies say will be Guyana’s largest engineering and asset integrity management company.

Axess has performed design, inspection, maintenance, certification, modification, engineering and installation services for equipment on offshore and onshore installations, since it started operating in Guyana in 2021. That includes cranes, lifting appliances, piping, structures, drilling and subsea equipment and other related items for the major energy and service companies.

GLASS started up in Guyana in 2011 and has been providing services related to international and domestic logistics, manpower recruitment, construction, transportation and warehouse storage facilities, including for the oil and gas sector.

 

 

SBM Offshore FPSO for fourth Exxon project leaves drydock

February 21, 2024, by Melisa Cavcic

Dutch FPSO operator SBM Offshore revealed that a floating production, storage, and offloading (FPSO) vessel, destined for work on ExxonMobil’s fourth oil project in the Stabroek block , recently left drydock and arrived along the quayside at the Seatrium yard in Singapore.

Two steel strike ceremonies in both Keppel FELS and Dyna-Mac yards marked the occasion of the construction of topside modules for the FPSO One Guyana in September 2023.

The FPSO, constructed for ExxonMobil Guyana, will join  SBM Offshore-operated FPSOs – Liza Destiny, Liza Unity, and Prosperity – in Guyana in 2025. Building upon the success of its predecessors, the design of the FPSO One Guyana incorporates the SBM Fast4Ward program. This FPSO will be used for the Yellowtail development project, within the Stabroek block, which comprises six drill centers and up to 26 production and 25 injection wells.

ExxonMobil sanctioned the project in April 2022 and followed it up with a contract confirmation with SBM Offshore for the supply of the FPSO. This vessel entered drydock in March 2023 at the Keppel yard in Singapore. The FPSO will perform produced water treatment functions as well as oil separation and gas injection.

The FPSO One Guyana will have an optimum production capacity of 250,000 barrels per day (bpd) of oil, a storage capacity of 2 million barrels of crude oil, a gas treatment capacity of 450 million ft³ a day, and a water injection capacity of 300,000 bpd. “With impressive gas treatment and water injection capacities,” SBM Offshore claims that the FPSO One Guyana is ready to make “a significant impact in offshore operations” and has been designed to be anchored in water depths of around 1,800 meters.The operator of the Yellowtail project is ExxonMobil Guyana Limited, which holds 45% interest while its partners,Chevron and CNOOC Petroleum Guyana Limited, hold 30% and 25% interest, respectively.

ExxonMobil plans to have six FPSOs on the Stabroek block by year-end 2027, with the potential for up to ten FPSOs to develop estimated gross discovered recoverable resources of over 11 billion barrels of oil equivalent.

 

 

DeepOcean in Guyana securing major contract with ExxonMobil

FEBRUARY 14, 2024, BY ZERINA MAKSUMIC

Norway-based ocean services provider DeepOcean has entered the Guyana market with its first major contract with ExxonMobil in the Americas.

Under this contract, DeepOcean is to plan and carry out a range of subsea activities, including subsea construction and jumper installations, and subsea IMR work at ExxonMobil Guyana operations at the Stabroek Block, 120 miles (about 193 kilometers) offshore Guyana.

“This is our first major contract with ExxonMobil in the Americas and our market entry into the exciting Guyana market. We consider this is a confirmation of our team’s expertise and the technical solutions we bring to the table,” said Tony Stokes, President of DeepOcean’s American operation.

DeepOcean is set to deploy the Siem Day multi-purpose vessel (MPSV) in order to conduct subsea operations, and it is also equipped with a 250te crane. Siem Day has a large deck space, dynamic positioning systems, as well as dual ROV spreads, which ensure superior performance and maximum productivity, according to the company.

“We are highly committed to delivering high-quality subsea services and solutions, and we look forward to working closely with ExxonMobil Guyana to support their operations in the various field developments in the Stabroek Block,” said Stokes.

The Stabroek Block is one of the world’s most promising oil and gas discoveries, with estimated recoverable resources exceeding eight billion oil-equivalent barrels to date. ExxonMobil Guyana operates the block and holds 45% interest while its partners, Hess Guyana Exploration and CNOOC Petroleum Guyana Limited, hold 30% and 25% interest, respectively.

DeepOcean is a world-leading ocean services provider, enabling energy transition and sustainable use of ocean resources, offering survey, engineering, project management, installation, maintenance, and recycling services for oil and gas, offshore renewables, deep sea minerals, and other ocean services.

Across the global offices, DeepOcean is a trusted independent solutions provider with highly skilled industry experts, using world-class fit-for-purpose tools and technology to drive cost-efficient and safe operations. The company delivers innovative engineering solutions focusing on remote and unmanned operations and digitally-enabled services while continuously striving to lower the carbon footprint.

DeepOcean is owned by Triton, a leading European mid-market sector-specialist investor. As an active owner, Triton supports its portfolio companies to reach their full potential and works closely with DeepOcean to drive value creation. Founded in 1997, Triton invests in businesses that provide important goods and services in the Business Services, Industrial Tech, Healthcare, and Consumer sectors.‍

 

 

 

MODEC profits US$800M from Guyana for FPSO order

Feb 18, 2024…

Japanese shipbuilder MODEC reported revenues of US$800 million in 2023 related to its Guyana work, which accounted for about a quarter of all its US$3.57 billion revenues for the year.   The company successfully secured an order for the Uaru project from ExxonMobil.

Under the engineering, procurement, construction and installation (EPCI) contract, MODEC will deliver the Errea Wittu floating production, storage and offloading (FPSO) vessel to the Stabroek Block. Notably, the revenue made by the company on the order does not include annual leasing costs which are likely to kick in once the ship is up and running.

The Uaru FPSO is expected to play a pivotal role in Guyana’s oil sector, with first oil anticipated in 2026. With an oil production capacity of 250,000 barrels per day (bpd) and a gas production capability of 540 million standard cubic feet per day, alongside a storage capacity of 2 million barrels of crude, it will be one of the largest FPSOs globally.

This capacity sets the stage for the project to be one of the highest revenue-generating projects undertaken offshore Guyana, significantly impacting oil production capacity. With the Uaru project’s operation, Guyana’s offshore oil production is set to exceed the 1 million barrels per day mark.

MODEC had entered into a joint venture so it could be better equipped to deliver larger FPSOs. Offshore Frontier Solution Pte. Ltd., a MODEC Group Company and a joint venture with Toyo Engineering Corporation, is responsible for delivering the FPSO Errea Wittu, which will utilise MODEC’s M350TM new-build hull.

The oil projects producing offshore will continue to reap billions of US dollars annually. Most of the proceeds, however, have been leaving Guyana, primarily benefiting Exxon and its partners. This is attributed to the terms of the Stabroek Block Production Sharing Agreement (PSA) signed between the previous government and Exxon. Despite the significant revenues generated by projects like Uaru, there continues to be growing scrutiny over the fairness of the distribution of wealth derived from oil reserves. Vice President Dr. Bharrat Jagdeo said that revenues will increase in the next few years.

In addition to the Uaru project in Guyana, MODEC’s 2023 financials were supported by three other significant EPCI projects, namely the Raia, Bacalhau, and Sangomar FPSOs, contributing to a total EPCI earnings of approximately US$2.5 billion for the year. The Raia and Bacalhau projects were commissioned by Equinor in Brazil, and the Sangomar project was ordered from MODEC by Woodside Energy for Senegal. None of these projects earned more revenue for MODEC than the Uaru project.

The Guyana FPSO also has the highest oil production design capacity of them all. The FPSO Sangomar is designed to produce 100,000 barrels of oil per day, with a storage capacity of 1.3 million barrels and a gas production capability of 130 million standard cubic feet per day. In Brazil, the FPSO Bacalhau is set for first oil in 2025, with a capacity to produce 220,000 barrels of oil and 500 million standard cubic feet of gas per day. The Raia FPSO, aiming for first oil in 2027, will have a similar storage capacity with an output of 125,000 barrels per day.

 

 

 

ExxonMobil mulls LNG production from seventh project

Kevin Crowley, Bloomberg February 21, 2024

Exxon Mobil Corp. is considering the potential to produce liquefied natural gas (LNG) in Guyana in what would be the first project of its kind in the world’s fastest-growing major oil basin. Country manager Alistair Routledge said a gas-focused development is one of three options being weighed by Exxon for its seventh project. The other two are additional oil developments from existing and new discoveries.

Exxon will drill five wells in the south-east portion of the Stabroek Block, near the border with Suriname, this year to better understand what are “substantial resources” of gas. The company is also working on several production concepts and methods of shipping the gas to global customers.

“We do think that LNG needs to be in the mix because there’s no large market nearby within an economic range of pipeline infrastructure.” Exxon is “narrowing concept ranges” this year and should have a better idea of project timelines by 2025.

Exxon plans to double oil production from Guyana to 1.2 MMbpd by 2027 from five approved projects and one planned for approval later this year. The government is keen to monetize its large gas resources, which were of secondary importance to oil, until now. Vice President Bharrat Jagdeo said it’s imperative that Guyana develops its estimated 16 Tcfg resources quickly as the world transitions to cleaner energy.

“We believe that we can find enough gas there to now monetize it. . Exxon has “started looking at that and the signs are positive.”

 

 

 

 

Guyana will delay exploration near Venezuela until UN rules in border dispute

Kevin Crowley, Bloomberg February 21, 2024

Guyana will not approve oil exploration in waters near Venezuela at least until the International Court of Justice in The Hague, UN’ highest court, rules on the  border.  The Guyana government, along with most of the international community, rejects Venezuela’s maritime claim which rests north of a projected 70-degree line out to sea from Punta Playa on the border with Guyana.

Venezuela rejects the authority of the court which is considering the matter. Even so, Natural Resources Minister Vickram Bharrat, said Guyana will restrict oil-related activities to south of that unverified border to avoid inflaming the situation.

The minister’s comments come amid growing rhetoric from Venezuelan President Nicolas Maduro on his claims to the Essequibo region, about 70 percent of Guyana’s land territory. Exxon Mobil Corp. has been accelerating development of massive oil discoveries offshore Guyana that are transforming the sparsely populated petrostate.. The Texas oil giant produces about 645,000 bpd from Guyana, up from nothing five years ago.

“Because of our respect for international rule of law and the International Court of Justice, we’ve refrained from issuing approvals to Exxon to do any exploration activities above that 70 degree line. We will hold off on that at least until that decision is made formally. We are not a country that is in the habit of aggravating any situation.”

Exxon country manager Alistair Routledge said the part of the Stabroek Block north of Venezuela’s projected 70-degree line is under force majeure. Exxon last accessed the area in 2018 to conduct seismic surveys but exited after encountering Venezuelan vessels.

“We can’t access it, we can’t follow through on our obligations or our rights until such time as that force majeure is lifted  by the Guyanese government. We’re not going to push to do activity in that area.”

 

 

New drilling offshore is “well south” of territory disputed by Venezuela

Kevin Crowley, Bloomberg February 09, 2024

Exploratory drilling offshore Guyana will be “well south” of the disputed territory that Venezuela claims , according to Exxon Mobil Corp.     Alistair Routledge, president of Exxon Guyana operations, said Venezuela’s maritime claim rests along a “projected” 70-degree line out to sea from Punta Playa on the border with Guyana.. .

Exxon has been accelerating development of massive oil discoveries offshore Guyana, that are transforming sparsely populated Guyana, amid reports of a Venezuelan military buildup close to the disputed Essequibo region, fast becoming one of the Hemisphere’s major security concerns,

“Where we’re proposing to drill this year is well south of that 70-degree line.There’s been no history of dispute or any recent history of Venezuela intervening with activity in that area.”

Venezuela Defense Minister Vladimir Padrino this week pledged a “proportional, forceful and rightful response” if Exxon were to drill in any area the country considers its own.

Venezuela is moving tanks and other military equipment to the border between the two countries, the Wall Street Journal reported Friday. The seven wells Exxon plans to drill are at least 100 km (62 miles) away from Venezuela’s claimed territory. Five are in the south-east portion of the Stabroek Block, closer to Suriname, while two are in the central section.

“We recognize the government has signed an agreement with the Venezuelans not to antagonize the situation, and they want to resolve the issue in the ICJ which is the right venue,” Routledge said, referring to a case currently before the International Court of Justice. In recent years, Exxon has drilled three wells closer to Venezuela than those planned for this year without any problems.

“We’re getting on with development and activity within acreage that is clearly Guyana’s territory, It’s licensed to us to explore and develop. Where there’s controversy over the borders, that’s for the governments to resolve.”

 

 

 

 

Management of O&G paves way for sustainable growth

February 17, 2024

Economic development in Guyana is expected to progress in an accelerated manner, prompted in large part by the nascent oil and gas sector. In 2023, real gross domestic product (GDP) is estimated to have grown by 33 per cent, with the non-oil sector recording a commendable 11.7 per cent expansion.

Oil and Gas exploration in Guyana

Senior Minister for Finance and Public Service, Dr Ashni Singh detailed this in his recent presentation of the 2024 budget. He reminded that government policy consistently entails supporting traditional pillars of the economy while spurring growth in the oil and gas sector.

In addition to this, creating the enabling environment for sustainable exploration and production of oil while remaining aligned with the global net-zero emissions goal is also a top priority. Oil and gas exploration and production are set to intensify this year, with the newest addition to the fleet, Prosperity FPSO, set to achieve production of 220,000 barrels per day by March.

The oil and gas sector is estimated to have expanded by 45.9 per cent last year, with production of 142.9 million barrels of oil, compared with 101.4 million in 2022, due to increased production from the Liza Destiny and Unity FPSOs. For context, in 2023, the Liza Destiny FPSO produced crude oil at a rate of approximately 142,000 barrels per day (bpd), while the Liza Unity FPSO produced at a rate of 235,000 bpd. At this rate, Guyana is well on its way to achieving 1.2 million barrels of oil per day by 2027.

Against this backdrop, a keen effort is placed on ensuring transparency, accountability, and sustainable growth in the sector. The requisite legal, regulatory, and institutional framework has been an integral aspect in the move to maximise the benefits of the oil and gas industry.

The Local Content Act lays out 40 services that oil companies and their subcontractors must procure from Guyanese companies and nationals. It also imposes penalties for oil and gas contractors and sub-contractors who fail to adhere to the requirements set out in the law. This legislation opened massive avenues for Guyanese businesses and investors to create crucial partnerships and become employed to deliver a wide range of services. This means that a large portion of the revenue generated is poured into the economy, empowering locals with the tools to enhance their livelihoods. For effective management of the sector, the Petroleum Activities Act was enacted in 2023, setting out a strategic guideline for the effective exploration, production, storage and transportation of petroleum in Guyana.

Among other provisions, the act allows for the issuance of permits to conduct geological and geophysical surveys, both offshore and onshore. These identify the properties and potential natural and man-made hazards, as well as possible engineering constraints on the earth’s surface and subsurface. It also makes provisions for the smooth implementation of the hallmark Wales gas-to-energy project, by covering the storage and transportation of hydrocarbons via pipelines as well as the storage of natural gas liquids.

The government revised the Production Sharing Agreement (PSA), resulting in the development of model PSAs for deepwater and shallow water blocks in 2023. According to this revised PSA, each company is required to fulfill the minimum signature bonus requirements of US$10 million for shallow water and US$20 million for deepwater blocks. The agreement stipulates a 10 per cent royalty rate and a 65 per cent cost recovery cap. Profit sharing remains at 50/50 between the government and the contractor, with an additional 10 per cent corporate tax levied. The government is adamant that the essential fiscal terms of this agreement are non-negotiable.

Guyana also completed its inaugural licensing round in 2023, offering 14 oil blocks within its shallow and deep-water areas. Eight blocks were shortlisted based on the bidders’ ability to meet the criteria of the expected work programme and the required financial commitments. Negotiations with all selected bidders started in the fourth quarter of 2023. Awards and exploration activities and the issuing of licences are expected to begin early in 2024.

The government is also promoting transparency in the sector, maintaining a commitment to compliance with the Extractive Industries Transparency Initiative (EITI).

In keeping with the Natural Resources Fund (NRF) Act 2021, notifications of receipts of petroleum revenues were published in the Official Gazette and tabled in the National Assembly, The Bank of Guyana published monthly, a summary of the financial position and performance of the NRF, detailing the fund’s inflows and outflows. Quarterly NRF reports are also made available by the Bank.

In 2023, the NRF received US$1,398.9 million in profit from oil, US$576.6 million from Liza Destiny, and US$822.3 million from Liza Unity.  With respect to royalty payments, US$218.1 million was received from the Stabroek Block operator. Further, in keeping with stipulations in the NRF Act 2021 and with the amount approved by this honourable house to be withdrawn in 2023, US$1,002 million was withdrawn to finance national development priorities.

In 2023, US$1,617 million in petroleum revenue was deposited into the fund, and at the end of the year the overall balance, inclusive of interest income, stood at US$1,973.5 million.

 

 

 

 

ExxonMobil surpasses production milestones for Liza 1 & 2

Jan 30, 2024

The Ministry of Natural Resources reveals that ExxonMobil offshore oil projects are producing significantly more oil than their stated capacities. This observation in the Liza 1 and Liza 2 projects indicates that ExxonMobil may very well continue this trend moving forward.

The Liza 1 project, utilizing the Liza Destiny floating production, storage and offloading (FPSO) vessel, was initially designed for production of 120,000 barrels per day (bpd), later optimized to 150,000 bpd. However, data from December indicates that the project consistently exceeded this limit, with a peak reaching as high as 163,000 barrels on December 17. This is 13,000 bpd more than its current capacity, and 43,000 bpd higher than the capacity the project was built to deliver.

Similarly, the Liza-2 project, which started in February 2022 with a capacity of 220,000 bpd, was also optimized to produce 250,000 barrels daily, as reported by Hess .

Yet, in December 2023, it exceeded this number on many days, and peaked at over 256,000 bpd on December 14. This is 6,000 bpd higher than its stated capacity, and 36,000 bpd higher than its original capacity.

The Payara project, which began production in November 2023, has quickly increased its production. With ExxonMobil estimating five months for the project to reach its capacity of 220,000 bpd, Payara reached 100,000 bpd in November, then exceeded 180,000 bpd by the end of December, showing the potential to reach its capacity much sooner than expected. Natural Resources Minister, Vickram Bharrat said that this project is expected to reach full capacity by February, thereby taking Guyana’s output to 600,000 barrels of oil per day.

These developments suggest that ExxonMobil might continue this trend of pursuing production beyond initial capacities through de-bottlenecking. The combined production capability of Liza 1 and Liza 2, initially estimated at 400,000 bpd, effectively stands at approximately 420,000 barrels per day, based on observed production figures.

As the oil company continues this status quo, concerns were raised about whether ExxonMobil’s strategy of rapid project development and ramp-up might compromise safety standards. In response, ExxonMobil has always maintained that safety remains a critical aspect of its operations. Delivering on this assurance will be crucial as the company prepares to bring additional projects online in the Stabroek Block, where it holds a 45% stake. and Hess (owned by Chevron) and CNOOC hold 30% and 25% stakes, respectively.

The upcoming Yellowtail project is planned to begin in 2025, followed by the Uaru project in 2026. The Whiptail project is awaiting government approval. Each of these projects has a projected capacity of 250,000 bpd, which, when achieved, will collectively add 750,000 bpd to Guyana’s oil production rate. This expansion would significantly elevate Guyana’s position in the global oil market, taking its capacity to produce oil for export, well above 1.2 million bpd. The company’s ability to maintain safety standards amid such aggressive expansion remains a point of keen focus for industry stakeholders.

 

 

 

 

 

 

ExxonMobil commitment to Guyana

 February 7, 2024

PRESIDENT of ExxonMobil Guyana, Alistair Routledge confirmed the company’s confidence in the validity of its contracts and operations within the country and reaffirmed its commitment in light of the ongoing border controversy with Venezuela.

Last December, Guyana’s western neighbour increased its aggressive claims to two-thirds of the country’s Essequibo region, rich in oil, timber, and other natural resources and threatened that companies operating in the vast Essequibo region should withdraw their operations. Venezuela has since committed to maintaining peace as part of the landmark Argyle Declaration.

At the company’s Georgetown office Routledge told media that despite the rhetoric and nervousness caused by the controversy, especially in the last quarter of 2023, ExxonMobil remains assured of its standing.

“We believe that the contracts we have with the country are valid under the local law, but also under international law,” Routledge said, highlighting the company’s rights to operate in specific blocks.

He mentioned the importance of resolving issues between countries through government negotiations, applauding the diplomatic progress made with the Argyle Declaration., an outcome of a meeting facilitated by the Prime Minister of St. Vincent and the Grenadines, Ralph Gonsalves and observed by Brazil, CARICOM, and a UN Under-Secretary-General, marking a significant step towards peace. Both neighbours committed to resolving their differences without the threat or use of force.

“We’re very thankful to hear that,” Routledge added, reinforcing ExxonMobil’s dedication to Guyana and its development commitments.

On the topic of Guyana’s global engagements and its burgeoning role as an energy provider, Routledge acknowledged the country’s increasing prominence.

“Guyana is on the Global Map… For the last five-10 years, Guyana has become more significant to the world, it’s becoming a source of… diversity to the world which needs to secure lower emission sources of energy and Guyana is becoming a provider…. I think the collaboration that we’ve seen for Guyana with other countries on the military front, as well as on the diplomatic and economic front reflects that…it’s healthy… it’s good for the Western Hemisphere that we see those kinds of cooperation.”

Guyana has been actively working with international partners, a major one being the United States, to boost its defence and diplomatic capabilities to respond to security threats and contribute to broader regional security.

ExxonMobil’s Chief Executive Officer, Darren Woods had previously said that Guyana isn’t standing alone. Woods, during an interview on CNBC, said while the controversy is between the two nations, Guyana is supported by many international partners and is engaging the International Court of Justice (ICJ).

“I’m not sure Guyana is standing on its own. We have all seen what happens when nations’ sovereignties are challenged, and unilateral actions are taken. The world and the outside communities have grown pretty sensitive to that, so my expectations are that there is broader support in the international community to make sure that the right process is followed [to] resolve this dispute.”

In December, owing to the growing tensions, CARICOM and CELAC decided to broker a meeting between Guyana’s President, Dr. Irfaan Ali and Venezuela’s President, Nicolas Maduro to address matters consequential to the border controversy. At the meeting in the Argyle International Airport in St. Vincent and the Grenadines, there was a mutual commitment to peace. The meeting, facilitated by the Prime Minister of St. Vincent and the Grenadines, Ralph Gonsalves, was observed by Brazil, CARICOM, and a UN Under-Secretary-General.

This historic meeting culminated in the “Argyle Declaration,” an 11-point agreement which addresses matters consequential to the border controversy, including the fact that Guyana holds firmly to its position that the substantive case is before the International Court of Justice (ICJ). President Ali has always maintained that Guyana will not retreat from its position that the border controversy with Venezuela is properly before the ICJ.

 

 

 

 

Guyana needs a second gas plant

Feb 07, 2024

President Irfaan Ali told the Private Sector Commission at the annual corporate dinner that Guyana requires a second gas plant as the 300 megawatts Wales gas plant that is yet to come on stream is inadequate to meet future energy demands. The Wales power plant, on the West Bank of Demerara (WBD), is part of a $US2B and counting gas-to-energy project that will end power outages and slash electricity bills by half.

“Already, based on our assessment, the power plant that we are engaged in from the natural gas, will be inadequate for the type of development that will come our way. So we have to already think about a second power plant”

This will cater to the country’s demands. The President wants a similar agreement to the one Guyana has for the Wales gas plant.

“So we have to already think about the second power plant and whether there is actually opportunity, not only for foreign investment to come with a second power plant on the same terms and conditions that the power purchase agreement would have with GPL on the first power offtake and that again might open up oportunities for local investors because we want again as much local capital that we can raise to place in that.”

The multi-billion-dollar gas-to-energy project has been criticised for being too costly for 300 megawatts of power, and runs the risk of not being profitable.

In response to the critics, the government, through Vice President Bharrat Jagdeo, on numerous occasions argued that the project is needed to curb electricity woes. and will significantly reduce the cost of energy consumed by the manufacturing sector, possibly slashing bills by half.

The government believes that it can earn revenue from the liquid gas by producing cooking gas and lighter fluids and selling it locally and further afield. The Vice President asserted that the project will be able to pay for itself and would not place a financial burden on taxpayers.

 

 

 

 

 

GTE project will benefit all

Feb 01, 2024

Although the power generated through the Gas-to-Energy (GTE) project will not reach remote Hinterland Regions, Prime Minister Brigadier (Ret’d) Mark Phillips assured citizens across the 83,000 square miles will benefit from the venture.

Responding to questions relating to Power Generation, during the Consideration of the 2024 Budget Estimates, in the National Assembly, he said that some citizens will benefit directly from the project, while some will benefit indirectly. Government has pegged the Gas-to-Energy (GTE) project at US$2B, however, the initiative will only power the national grid that supplies electricity to Regions Three, Four, Five and Six.

A pipeline will transport gas from the Liza Fields in the Stabroek Block and a Natural Gas Liquids (NGL) Plant will treat the gas a 300-megawatt power plant.

Opposition Member of Parliament (MP), David Patterson requested the Prime Minister (PM) to explain why government was not making efforts to reduce the cost of electricity in Lethem, Region Nine for those citizens to enjoy cheaper electricity.

“With this Budget we will be giving the gas to shore project almost $80B to augment (electricity in) Regions Three, Four, Five and Six. We are committing $80B to the Gas to shore project with the hope and the dream of a reduction in (electricity costs)…why is it we can’t do equally for our colleagues outside?”

The Prime Minister informed the Assembly, “The entire country, every Guyanese on the coastland and the Hinterland will benefit from the Gas to Energy project. Some will benefit directly and some will benefit indirectly. When the gas to energy project comes on stream and on the coastland the price goes down by 50%, the savings will be utilized to ensure the Hinterland benefits too. This is a well-thought out project, this is not a piece meal operation.”

Presently, the township of Lethem receives power through a solar power initiative; however, they continue to pay the Lethem Power Company for the delivery of electricity.

According to the Prime Minister, each month government saves 31,000 litres of fuel. Citizens in Lethem there currently receive the first 15 kilowatt hour (kWh) free; however for 16-50 kWh they pay $60 per kWh, and for 51 kWh and above they are charged $80 per kWh.

Patterson asked why the savings on fuel were not being passed on to the consumers through a tariff reduction to the citizens in Lethem and surrounding communities.

Phillips replied, “We cannot pass on the savings because we start from a position where we have to provide a subsidy for Lethem. It is already heavily subsidized so by saving 31,000 litres per month with the solar system, that itself helps us to keep the lights on in Lethem, so there is nothing to pass on.”

 

 

 

 

 

Guyana oil is a high priority for Exxon

Feb 04, 2024

International Energy Advisor David L. Goldwyn described the 11 billion barrels unlocked in the Stabroek Block as one of the “giants” of the industry, and, for this reason the country is a “high priority” for ExxonMobil.

He told CNBC, the world’s leading network for business and financial news,  “For all of the international oil and gas companies, they look for big finds and Guyana is the biggest that anyone has found in a very long time and there may not be other giants, as they are called in the business, that are left so it is extremely important.”

“And I think that is why you see Exxon place such a high priority not only on the development of the asset but on the development of the country because for international companies these are 30-year projects, and they are going to be there for a very long time. So, if the country does not succeed, neither do they.”

While Guyana may be a high priority for Exxon, Goldwyn said it is critical that authorities put systems in place to avoid the dreaded resource curse. While a Natural Resource Fund (NRF) is a good place to start to avoid this curse, it should not be perceived as a “silver bullet” or panacea.

“In order for Guyana to avoid the curse they need to get to the next level. First, they have a NRF, but they need independent management of that fund as Norway has.” Guyanese authorities need to have a long-term view on investments and avoid wasting that money.

Another key mechanism is for the government to improve its capacity to manage oil and gas and all other sectors that will see expanded growth as a result. Guyana needs to strengthen its abilities to manage very large procurements such as billions that would be allocated for roads and other critical infrastructure that the country needs. Governments are not always inclined to go that route as it is not politically popular.

Nonetheless“without that government capacity, (proper) accounting, and budget supervision, they are going to have a hard time managing that money well.” The authorities need to channel some of the oil capital to the people who need it.

Overall, the foregoing would be crucial to helping Guyana keep the resource curse at bay. The resource curse describes the circumstance where a country does worse off with the discovery of a resource in significant quantities. In simple terms, the people are not better off with its discovery. While Goldwyn and others have expressed concerns about the country’s ability to avoid the resource curse, local authorities have insisted that the work is being done to avoid this pitfall.

Vice President and Chief Policymaker for the oil sector, Bharrat Jagdeo said the government is determined not to become overly dependent on oil revenues, adding that a portion of the wealth is being used to ensure the country has a diversified economy. This is being done with key investments in health care, education, infrastructure, agriculture, manufacturing, and energy transformation.

 

 

 

 

Populace has clear view of who stands with, for them

February 4, 2024

Dr Ashni Singh, Senior Minister with Responsibility for Finance and Public Service, drew attention to opposition APNU+AFC for their historical pattern of hindering progress within the legislative process of the National Assembly.

Following the passage of the historic $1.146 trillion budget, as Minister Singh was about to address the National Assembly, to table the second reading of the Fiscal Enactments Amendment Bill, APNU+AFC members walked out of the session.

“It should come as no surprise that the APNU+AFC, just as we were about to consider this Fiscal Enactments Bill, chose to leave the House in the manner that they did. Because they have a long and well established and well-documented track record of obstructing frustrating and derailing progress.“

Reflecting on past confrontations, Dr. Singh recounted the “shameful episodes of parliamentary lawlessness” exhibited by APNU+AFC members, particularly during the 2021 deliberations on the NRF Act. Opposition tactics included interrupting speeches, chanting derogatory remarks, and even an attempt to physically remove the parliamentary Mace, an act thwarted by swift intervention.

This unprecedented act was foiled by Speaker Manzoor Nadir’s personal assistant, who held the instrument tightly as he lay on the floor of the Arthur Chung Conference Centre. The Opposition had moved to the High Court to challenge the NRF Act but it was eventually thrown out. Their stance has not only affected legislative processes but also major national projects.

He cited the derailed Amaila Falls Hydropower Project, which, if not obstructed, “would today have been supplying Guyana’s national grid with 156 megawatts of affordable, clean, and renewable energy.”

Dr. Singh also addressed the controversy surrounding the adjustment of debt ceilings, clarifying that the move was not indicative of reckless borrowing but a necessary step for prudent financial management.

He contrasted the transparency of the People’s Progressive Party/Civic (PPP/C) administration with the previous coalition government’s concealment of debts and a significant signing bonus. He painted a stark picture of the parliamentary divide, with the governing PPP/C members present and engaged, while the opposition benches lay empty.

“The respective presence illustrates those who are standing on the side of the Guyanese people and those who are opposed to the Guyanese people, and will only ever act in a manner inimical to the interests of the Guyanese people,” he observed, indicating the absence of APNU+AFC members as evidence of their disinterest in the nation’s welfare.

The minister explained the Fiscal Enactments Bill’s objective to optimise the financing mix, ensuring a balance between immediate withdrawals and long-term savings from the NRF.
He also emphasized the strategic importance of the bill, aimed at amending the NRF Act of 2021 to facilitate oil revenues for development of public infrastructure and social services.

“…The financing that will be mobilised, under the auspices of this bill will deliver accelerated improvement to the lives of the Guyanese. And as their customary fashion, the APNU+AFC will do everything that they possibly can to frustrate the delivery of these benefits to the Guyanese people.”

The bill was passed after approval from the parliamentary committee without amendment.

Asserting the need for a flexible financing strategy in his Budget 2024 presentation, Dr. Singh highlighted the ambitious agenda for development.

This includes an expanded Public Sector Investment Programme (PSIP) and fortified social safety nets, ensuring that the revised NRF rules provide the fiscal flexibility to meet evolving economic challenges and opportunities without impeding developmental projects. Furthermore, the bill proposes pivotal amendments to key fiscal laws, including the Income Tax Act and the Value-Added Tax Act. These changes, such as raising the income tax threshold and eliminating VAT on essential goods, are intended to alleviate financial burden on citizens, thereby improving their access to technology, sports, and safety equipment.

Previously, Gail Texeira, Minister of Parliamentary Affairs and Governance had criticised opposition actions, questioning their commitment to Guyana’s democratic process. Texeira highlighted in 2022 when the Opposition walked out of the sitting just as significant reform bills were up for debate, labelling the opposition as increasingly “irrelevant.” She accused Leader of the Opposition Aubrey Norton of attempting to manipulate parliamentary proceedings, particularly criticising his motion regarding a “clean voters’ list,” which she viewed as a direct attempt to sidestep constitutional protocols.

The Speaker’s dismissal of Norton’s motion as non-urgent led to the opposition’s abrupt exit, leaving vital discussions on the table.

Texeira had expressed  her disappointment, charging they “abdicated their responsibility to participate in lawmaking for the betterment and development of the society.” She conveyed a broader concern about the opposition’s willingness to engage in constructive legislative work amid Guyana’s pressing political and social issues.

 

 

 

 

 

SOUTHCOM Commander dismisses claims of U.S. military base

February 4, 2024

Major General Evan Pettus, United States Southern Command (SOUTHCOM) Air Force Commander, dismissed baseless “rumours” being peddled by Venezuela about the establishment of a U.S. military base in Guyana. The Major General responded to questions from the media during a joint interview with Chief of Staff of the Guyana Defence Force, Brigadier Omar Khan, at Base Camp Ayanganna, where he clarified the situation.

“It’s an interesting rumour. It is not one that I’m aware of that has any foundation,” he said, as he featured the humanitarian and disaster response focus of their collaborations, which are longstanding and unrelated to the geopolitical dynamics with neighbouring Venezuela.

Major General Pettus detailed the long-standing partnership between the United States and Guyana, noting his recent visit as a pivotal moment for their collaboration, particularly focusing on the completion of an air domain awareness assessment.

“This is an ongoing relationship and I think that, specifically tying any of these things to current events in Venezuela, would be overstating the importance of relationships that we’ve had since 1966 with the independence of Guyana,” he said.

Both officials emphasized that the collaboration between Guyana and the United States transcends bilateral interests, contributing to broader regional security.

“Ultimately, regional security, national security for the Guyanese people is good for the region, and it’s good for the United States. It’s a mutually beneficial partnership,” Major General Pettus revealed

This sentiment was echoed by Brigadier Khan, who outlined the importance of collective security efforts and the role of international partnerships in ensuring regional stability. Khan stressed that Guyana’s military engagements aim to ensure both national and regional stability, countering the notion that these activities could be perceived by Venezuela as aggressive.

“I’ll tell you in my three decades of service to the nation, to the Guyana Defence Force, we have had so many engagements with the US and other partner nations who share the same values and mutual interest or collective security and stability of this region. So, I don’t want to say that it’s only now coming noticeable, but we are always working together.”

Engagement with the United States is part of a broader strategy that includes cooperation with other nations and regional organizations, reinforcing the security architecture of the Caribbean.

Looking forward, both nations anticipate further engagements to continue building Guyana’s defence capabilities, including discussions on cybersecurity, humanitarian assistance, and the acquisition of defence assets. During his three-day visit , Major General Pettus discussed the US defence partnership with Guyana with senior leaders in the Government of Guyana, Guyana Defence Force (GDF), and US Embassy.

Government officials had affirmed that Guyana has “no plan to take offensive action against Venezuela” following Venezuelan complaints after British offshore patrol vessel, HMS Trent, docked in Guyana waters.

Last month, President Dr Irfaan Ali had 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.

Despite the tensions, a recent declaration agreed by Guyana and Venezuela in St Vincent and the Grenadines, facilitated by Prime Minister Dr. Ralph Gonsalves, calmed the situation, with both countries committing to peaceful dialogue. Following a historic meeting with Venezuelan President Nicolas Maduro in St Vincent and the Grenadines on December 14, 2023, both leaders agreed “not to threaten or use force against one another,” reinforcing their commitment to peace and stability in the region. The two nations will also cooperate to avoid incidents on the ground conducive to tension between them.

In the event of such an incident, the two states will immediately communicate with one another, the Caribbean Community (CARICOM), the Community of Latin America and the Caribbean (CELAC), and the President of Brazil to contain, reverse and prevent its recurrence.

The genesis of the controversy dates back to the 1899 Arbitral Award, a landmark decision that delineated the land boundary between then British Guiana (now Guyana) and Venezuela. Despite historical arbitration, tensions persisted, leading Guyana to approach the ICJ in 2018, seeking affirmation of the legitimacy of the award.

The ICJ’s recent provisional measures are binding on the parties involved. Under the UN Charter, all states are solemnly bound to comply with the court’s orders, which can be enforced by the UN Security Council. The substantive case, which highlights the historical context and the 1899 Arbitral Award, remains before the World Court. Guyana enjoys the full, principled and unequivocal support of CARICOM, the Commonwealth and other partners from around the world.

 

 

 

Hess makes Bakken, Guyana gains in Q4 2023 on heels of Chevron acquisition

February 01, 2024
(WO)

According to Hess’ Q4 2023 financial report, E&P net income was $512 million in the fourth quarter of 2023, compared with $641 million in the fourth quarter of 2022. On an adjusted basis, E&P fourth quarter 2023 net income was $531 million, compared with $565 million in the prior-year quarter.

Net production was 418,000 boed in the fourth quarter of 2023, compared with 376,000 boed, proforma for asset sold, in the fourth quarter of 2022, primarily due to higher production in the Bakken and Guyana.

Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $13.29 per boe in the fourth quarter of 2023, compared with $12.72 per boe, proforma for asset sold, in the prior-year quarter.

Oil and gas reserves estimates. Oil and gas proved reserves at Dec.31, 2023 were 1.37 Bboe, compared with 1.26 Bboe at Dec. 31, 2022. Proved reserve additions and net revisions in 2023 totaled 261 MMboe, primarily from Guyana, which included sanctioning of the Uaru development, and from the Bakken.

The corporation replaced 178% of its 2023 production at a finding and development cost of $16.00 per boe.

Bakken (Onshore U.S.). Net production from the Bakken was 194,000 boed in the fourth quarter of 2023, compared with 158,000 boed in the prior-year quarter, reflecting increased drilling and completion activity, severe winter weather in the fourth quarter of 2022, and higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices.

NGL and natural gas volumes were 19,000 boed in the fourth quarter of 2023, compared with 12,000 boed in the fourth quarter of 2022, due to lower realized NGL and natural gas prices increasing volumes received as consideration for gas processing fees.

During the fourth quarter of 2023, Hess operated four rigs and drilled 33 wells, completed 30 wells, and brought 33 new wells online. The corporation plans to continue operating four drilling rigs in 2024.Gulf of Mexico (Offshore U.S.).

Net production from the Gulf of Mexico in the fourth quarter of 2023 was 30,000 boed, compared with 35,000 boed in the prior-year quarter.

In the fourth quarter, Hess the high bidder on 20 leases in Lease Sale 261 for $88 million., expects to be awarded these leases in the first quarter of 2024.

Guyana (Offshore). At the Stabroek Block (Hess – 30%), net production totaled 128,0002 bopd in the fourth quarter of 2023, compared with 116,0002 bopd in the prior-year quarter.

In November, production commenced from the Prosperity FPSO at Payara, which contributed 14,000 net bopd in the fourth quarter of 2023. The fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025.

The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The operator submitted the field development plan for the sixth development, Whiptail, to the Government of Guyana in October 2023.

Southeast Asia (Offshore). Net production at North Malay basin and JDA was 66,000 boepd in the fourth quarter of 2023, compared with 67,000 boepd in the prior-year quarter.

Capital and exploratory expenditures. E&P capital and exploratory expenditures were $1,480 million in the fourth quarter of 2023, compared with $818 million in the prior-year quarter, reflecting the purchase of the Liza Unity FPSO in the fourth quarter of 2023 for approximately $380 million, higher development activities in Guyana, and higher drilling activity in the Bakken.

Full year 2024 E&P capital and exploratory expenditures are expected to be approximately $4.2 billion, which includes the recent acquisition of leases from the Gulf of Mexico Lease Sale 261.

 

 

 

Hess praises Guyana for US$413M profits in 2023

Feb 01, 2024

oil resources also boosted its asset base

American oil producer, Hess Corporation continues to praise Guyana for booming oil production which helped it close 2023 with US$413M in profits. Net income of US$413M or US$1.34 per share in the fourth quarter of 2023 is US$84M less than what it made in the 2022 fourth quarter.

The decrease reflects a lower price it received for gas and natural gas liquids (NGL), partially offset by higher production volumes, in the fourth quarter of 2023. At the Stabroek Block where Hess holds 30 percent working interest, net production totaled 128,000 barrels of oil per day (bopd) in the fourth quarter of 2023, compared with 116,000 bopd in the 2022 quarter.

In November, production commenced from the Prosperity Floating, Production, Storage and Offloading (FPSO) vessel at the Payara Project which contributed 14,000 net bopd in the fourth quarter of 2023.

The fourth development , Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025.

The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026.

Stabroek Block operator, ExxonMobil, submitted the field development plan for the sixth development, Whiptail, to the Government in October 2023. Approval is expected this quarter.

Guyana played an important role in boosting Hess’ proven reserve base- the quantity of oil reserves that are confidently known to exist and are recoverable under current economic conditions and existing technological capabilities. Its proven reserves at December 31, 2023, which are subject to final review, were 1.37 billion barrels of oil equivalent (boe) compared with 1.26 billion boe at December 31, 2022.

“Proven reserve additions and net revisions in 2023 totaled 261 million boe, primarily from Guyana, which included sanctioning of the Uaru development, and from the Bakken.”.

Exploration and production capital expenditures stood at US$1.5B in the fourth quarter of 2023, compared with US$818 million in the 2022 quarter, reflecting the purchase of the Liza Unity FPSO in the fourth quarter of 2023. Hess’ share for the FPSO was approximately US$380 million. The US$1.5B catered for higher development activities in Guyana, and an increase in drilling activity in the Bakken, USA.

Due to the pending merger with Chevron Corporation (Chevron), Hess will not host a conference call to review its fourth quarter 2023 results. The statement it issued will suffice for the market.

 

 

 

Corruption

Jan 31, 2024

TI urges greater transparency in oil sector, emphasis on democratic governance

The fight against corruption stagnated after Guyana emerged from the morass during the previous government, Transparency International observed in its latest Corruption Perceptions Index. Three years since the ruling PPP/C returned to government, the ranking remained at 40 – ranking it at 87 out of 180 countries in its latest report:

“Guyana (40) has significantly risen in the CPI over the last 12 years, however recently the country has stagnated. The oil-rich nation must still place stronger emphasis on building a well-functioning democratic system and implement greater levels of transparency and oversight, especially in the extractive industry.”

Corruption in this sector implies the loss of billions of dollars, which could improve public services and development in one of the poorest countries in the hemisphere. Transparency International said the 2023 CPI shows that corruption is thriving across the world.

It noted that the CPI ranks 180 countries and territories around the globe by their perceived levels of public sector corruption, scoring on a scale of 0 (highly corrupt) to 100 (very clean). Over two-thirds of countries score below 50 out of 100, which indicates serious corruption problems. The global average is stuck at 43, while the vast majority made no progress or declined in the last decade. 23 countries fell to their lowest scores to date this year.

Injustice and trouble at the top
The global trend of weakening justice systems is reducing accountability for public officials, which allows corruption to thrive.

“Both authoritarian and democratic leaders are undermining justice. This is increasing impunity for corruption, and even encouraging it by eliminating consequences for criminals. Corrupt acts like bribery and abuse of power are also infiltrating many courts and other justice institutions across the globe. Where corruption is the norm, vulnerable people have restricted access to justice while the rich and powerful capture whole justice systems, at the expense of the common good.”

Countries ranking high on the CPI have an impunity problem , even if this isn’t reflected in their scores. Many cross-border corruption cases involved companies from top-scoring countries that resort to bribery when doing business abroad. Others have implicated professionals who sell secrecy or otherwise enable foreign corrupt officials. Top-scoring countries often fail to pursue perpetrators of transnational corruption and their enablers.

Americas
Weak and unaccountable public institutions in Latin America create fertile ground for organised criminal networks to flourish, fuelling violence and insecurity.

“These are among the main concerns for Latin Americans, along with corruption and the economy. In many countries, law enforcement and corrupt officials collaborate with criminal gangs or accept bribes in exchange for turning a blind eye to their illicit activities. In Honduras (23), Guatemala (24) and Peru (36), evidence suggests that organised criminals wield a strong influence over candidates and politicians, financing electoral campaigns or even running for public office themselves,”

Impacts of these intertwined criminal and political interests are felt particularly by the most marginalised groups in society and witnessed in the destruction of natural resources. Across the region, women, girls and migrants are victims of human trafficking , which usually involves public officials demanding sexual acts in exchange for services like awarding passports or granting passage through border controls. Corrupt networks also fuel wildlife trafficking, illegal logging, illicit gold mining, and slash-and-burn land clearance.

In the Amazon, the drug trade brought violence to the ancestral territories of indigenous and Afro-descendent peoples, which coincide with critical areas of high biodiversity. In 2021, Latin American countries recorded the highest number of killings of human rights defenders. Colombia (39) had the highest numbers of killings of human rights defenders with 138, followed by 42 in Mexico (31) and 27 in Brazil (38). Too often, murders of environmental and anti-corruption defenders go unpunished due to corrupt and criminal networks’ infiltration of local governments and the justice system.

To tackle organised crime and gang violence some governments take extreme measures that concentrate power in the executive branch, reducing transparency and accountability, and posing serious threats to human rights and basic freedoms. The declaration of states of exception during 2022 in El Salvador (33), Ecuador (36) and Honduras (23) – whilst constitutional and officially temporary – granted extraordinary powers to the executive branch to suspend constitutional guarantees. They impacted people’s rights to assembly, access to information, transit and basic procedures during an arrest. In the name of security, these governments closed down civic space, shrinking its oversight capabilities and considerably increasing democratic backsliding and risks of corruption

 

 

 

 

Rules for oil account meet political needs of ruling party

Jan 31, 2024

International Financial Expert, Tom Sanzillo fears that Guyana’s Natural Resource Fund (NRF) which holds oil revenues lacks enough safeguards to prevent it becoming a slush fund for the ruling party.

In an interview on CNBC, the leading business and financial news network, Sanzillo, and other key industry experts and analysts, shared his thoughts on the use of a NRF to stave off the resource curse. (In simple terms: The resource curse describes the circumstance where a country is worse off following the discovery of a new resource that dominates the economy.)

Sanzillo, Director of Financial Analysis at the Institute for Energy Economics and Financial Analysis (IEEFA) said, “The NRF is a very poor fiscal choice by the government, to put the money in a fund like this, and to not have it subjected to normal rules of accountability. I am a former comptroller for the State of New York and I have managed both investments fund and the fiscal side of government and this is not how you manage this amount of money unless all you want to do with it is put it into the budget to meet the political needs of the party in power.”

During the period 2003 to 2007, Sanzillo was the first deputy comptroller for the State of New York. Among his responsibilities was the management of a US$150 billion globally invested public pension fund. That fund was so well managed that it was cited by Standard and Poor’s as one of the best managed funds in the nation. Due to an early resignation of the elected State Comptroller, Sanzillo, as first deputy comptroller, served for a short period as the New York State comptroller. During that time, he also managed audit plans of the state of New York including 400 annual audits of state and local governments.

Sanzillo has been critical of Guyana’s Production Sharing Agreement (PSA) with an ExxonMobil-led group, reiterating “It’s a one-sided deal. Because Exxon pays no taxes, Exxon didn’t put up the insurance they are responsible for putting up, and Exxon has a special arrangement with a maximized profit where they get their profits first and Guyana gets theirs later.”

While the Guyana Government acknowledged that the deal with Exxon is in favour of the company, it has refused to demand a renegotiation. The government’s position is that asking for a revision of the lopsided terms will hamper investor confidence and sully the nation’s reputation on the global stage. The administration insists that Guyana must make do with what it has.

The administration has also maintained that its NRF and overarching law are not only a massive improvement over what it inherited from the APNU+AFC regime but has also received the imprimatur of the International Monetary Fund (IMF). That financial institution in its latest report on Guyana’s economic well- being, commended the government on the structure of the fund, stating that it will allow for substantial savings to accumulate in the medium-term. It said too that annual transfers from the NRF to the budget will finance most of the increases in public capital spending to meet developmental plans. The IMF said these plans include investing in a gas-to-energy project, building new schools and 13 new hospitals to develop human capital.

 

 

 

 

Joining OPEC would be unwise

Jan 31, 2024

Chatham House Fellow and Energy Expert, Dr. Valerie Marcel told CNBC, “For a country like Guyana, it’s probably not in its interest to join OPEC because (Guyana) wants to produce as much as it can and as quickly as it can and that is not the game in OPEC – it’s all about curtailing production to manage the market,”

“So I think a country like Guyana which is a bit on the margins, it would be more in its interest to be a bit of a free rider and benefit from OPEC’s management of the market without itself having to cut back on production.” Vice President and chief policymaker for the oil sector, Dr. Bharrat Jagdeo has said on several occasions that Guyana is not interested in joining OPEC at this time. His position is also shared by President, Dr. Irfaan Ali.

Founded in 1960, OPEC has served as an intergovernmental organization of oil-producing countries which include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela. OPEC member countries collectively hold about 80% of the world’s proven oil reserves; hence they have significant influence on the global oil market and prices.

OPEC’s main objectives include coordinating the petroleum policies of its member countries and ensuring the stabilization of oil markets in order to secure an efficient, economic, and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.

Significant oil and gas discoveries in the Stabroek Block have positioned Guyana as a rising star in the global energy sector. The Stabroek Block, covering an area of 26,800 square kilometers, has been a focal point for these discoveries. To date, exploration activities have uncovered more than 11 billion barrels of recoverable oil and gas.

ExxonMobil, the primary operator in the Stabroek Block, has been instrumental in these exploration efforts. It holds a 45% stake, with Hess Corporation and China National Offshore Oil Corporation holding 30% and 25% stakes, respectively. Since beginning production in December 2019, the Exxon partnership has been expanding its Stabroek Block operations at an unprecedented rate.

Currently, Guyana’s oil production has crossed significant milestones, with daily output reaching over 550,000 barrels. This number is expected to increase significantly in the coming years. By 2027, the consortium operating in the Stabroek Block plans to ramp up production to as much as 1.3 million barrels of oil equivalent per day.

Estimates suggest that the country could earn around US$3.6 billion annually by 2030 and potentially US$12.4 billion annually by 2040 from operations in the Stabroek Block.

As a result of Guyana’s oil bonanza, it is considered by the International Monetary Fund (IMF) and the World Bank as the fastest growing economy in the world.

 

 

 

 

 

Guyana, Ghana to enhance local content

January 31, 2024

Guyanese engineers/engineering students to receive training at Sentuo Oil Refinery

IN a significant move to enhance local content creation and participation in Guyana’s burgeoning industries, the Ghana Chamber of Commerce Guyana, in partnership with Sentuo Oil Refinery, has entered into an agreement with the Government of Guyana.

In a press release, the Ghana Chamber of Commerce Guyana noted that the collaboration marks a pivotal step towards fostering mutual growth and co-operation between the two nations.

The announcement comes in the wake of President Irfaan Ali’s visit to the Sentuo Oil Refinery in Accra, Ghana, on January 26, 2024.

President Ali’s presence at the refinery’s official commissioning, as part of his engagement in the Africa Prosperity Dialogues 2024, underscores the strategic importance of cross-border partnerships in driving economic development.

Under the agreement, Sentuo Oil Refinery has committed to hosting and providing training for 12 Guyanese engineers or engineering students annually, for a duration of six months.

The comprehensive programme includes provisions for accommodation, transportation to and from the refinery, as well as a stipend to support participants throughout their stay in Ghana.

Stanley Amarteifio, President of the Ghana Chamber of Commerce Guyana, expressed optimism about the initiative’s potential to empower local talent and facilitate knowledge exchange.

He emphasized the chamber’s dedication to working closely with the Government of Guyana to ensure the seamless execution of the programme.

The collaboration signifies a shared commitment to fostering skills development, technology transfer, and sustainable economic growth in both Ghana and Guyana. By leveraging each other’s strengths and resources, the partnership aims to create a conducive environment for innovation, entrepreneurship, and job creation.

As the programme takes shape, stakeholders anticipate its positive impact on various sectors, including oil and gas, engineering, and vocational training. Beyond addressing immediate skill gaps, the initiative sets a precedent for future collaborations aimed at advancing regional integration and prosperity.

 

 

 

 

CNOOC

High-profile arrests, senior executives under scrutiny
Several senior CNOOC officials face allegations in corruption probe

2 February 2024
By Xu Yihe in Singapore

Chinese authorities have detained Qi Meisheng, chairman of CNOOC Gas and Power Group, as part of an investigation into potential corruption, multiple sources familiar with the matter told Upstream.

They said that Qi was apprehended during a CNOOC internal meeting . Several other high-ranking CNOOC officials, who formerly held top leadership roles within the company, have also been arrested, according to another source.

 

 

 

 

 

US threatens to reimpose sanctions on Venezuela

Published 30 Jan  By Vanessa Buschschlüter
BBC News

The US has threatened to reinstate sanctions on Venezuela’s oil sector, days after the country’s top court upheld a ban on opposition candidate María Corina Machado. She won a primary to become the opposition’s unity candidate for the 2024 presidential election.

Venezuela’s Supreme Court confirmed a 15-year ban on Ms Machado running for public office. Venezuela rejected the US warning as “rude and improper blackmail”.

The oil industry is crucial to Venezuela’s economy. The US imposed sanctions on Venezuela’s oil sector after President Nicolás Maduro was sworn in for a second term in 2019, following an election widely dismissed as neither free nor fair.

The US loosened those sanctions in October after the Maduro government reached a deal with the opposition, laying some of the groundwork for free and fair presidential elections to be held in the second half of 2024.

Shortly after the deal was reached in Barbados, the US Treasury issued a licence temporarily allowing transactions involving Venezuela’s oil and gas sector. It stressed that the licence would only be renewed if Venezuela “met its commitments under the electoral roadmap”, which included lifting the bans imposed on María Corina Machado and a number of other opposition candidates.

The oil exemption is due to expire on 18 April and the US state department announced it would not renew it unless “political progress” was made between the Maduro government and the opposition “particularly on allowing all presidential candidates to compete in this year’s election”.

, Venezuela’s Vice President Delcy Rodríguez rejected the “ultimatum” from the US government as “blackmail”. She threatened to immediately halt deportation flights for Venezuelan migrants who are in the US illegally if the “economic aggression” intensified.

The US had earlier announced that it would also reinstate sanctions on Venezuela’s state-run gold mining company – another source of foreign currency for the Maduro government. Ms Machado’s overwhelming victory in October’s opposition’s primary – she received over 90% of the votes – has instilled Venezuelans who want to see a change of government with hope that she can become president – if the election is free and fair.

As part of the Barbados deal, the Maduro government agreed to allow international observers to monitor the election. But the fact that the Supreme Court – dominated by Maduro loyalists – has upheld the ban on Ms Machado prompted many, including Ms Machado herself, to conclude that the Barbados deal is “dead”.

.Ms Machado has promised to stand firm, insisting that she has been given a mandate in the primary which she said she would fulfil: “We are going to win and they must prepare to lose… They cannot hold elections without me.”

Jorge Rodríguez, a close ally of Mr Maduro who represented the government at the Barbados talks, insisted that the government had upheld its end of the bargain: “Those who wanted to appeal appealed and also pledged to respect the outcome.” He said the process of banning Ms Machado from office had been above board and fair

 

 

 

 

TT & US SOUTHCOM to co-host security conference

31 jan

US Secretary of State Antony Blinken, left, during his meeting with Prime Minister Dr Keith Rowley in the US. – Photo courtesy Office of the Prime Minister.

Trinidad and Tobago will partner with the US Southern Command (SOUTHCOM) in hosting a Caribbean security conference later this year.

This was disclosed in a US Department of Defense (DoD) readout after the Prime Minister met senior US government and military officials at the Pentagon in Washington, DC.

DoD spokesman, Lt Col Devin T. Robinson, said, “The DoD leaders expressed appreciation for Trinidad and Tobago’s leadership in the Caribbean Community and in co-hosting the Caribbean Nations Security Conference alongside US SOUTHCOM in November 2024.”

Deputy Under Secretary of Defense for Policy, Melissa Dalton, underscored the DoD’s strong support of the US defense partnership with Trinidad and Tobago.

Illicit trafficking and maritime security, defense force modernization and training, cyber security and frameworks to facilitate expanded bilateral security cooperation were discussed at the meeting.

Robinson said the meeting also acknowledged the partnership between the Trinidad and Tobago Defence Force (TTDF) and the Delaware National Guard, celebrating its 20th anniversary this year through the State Partnership Program.

The meeting concluded with a reaffirmation of the US and the DoD’s commitment to partnership with Trinidad and Tobago and “working together to improve Caribbean regional security and intelligence.”

Energy Minister Stuart Young, Foreign and Caricom Affairs Minister Dr Amery Browne, TT Ambassador to the US Anthony Phillips-Spencer and TTDF Chief of Staff, Air Vice Marshall Darryl Daniel accompanied Dr Rowley.

Deputy Assistant Secretary of Defense for Western Hemisphere Affairs. Daniel Erikson, US Ambassador to TT Candace Bond, , Deputy Assistant Secretary of Defense for Cyber Policy Mieke Eoyang and Col Robert Creason, Americas Division Chief, Western Hemisphere were among the US government officials at the meeting.

After this meeting, Rowley and his delegation met with Central Intelligence Agency (CIA) director William Burns at CIA headquarters in Langley, Virginia.

Rowley left Trinidad and Tobago for Washington, DC, on Sunday. He is scheduled to hold a series of meetings there with US government representatives and officials on a series of matters of mutual interest.

 

 

PM discusses funds for national security with US

The Prime Minister held discussions with officials of the US Export-Import (EXIM) Bank in Washington, DC, about investment in national security projects, energy infrastructure and different sectors of the economy.

Dr Rowley met with US Exim Bank president Reta Jo Lewis to discuss investment opportunities in Trinidad and Tobago. Lewis told Rowley the bank wanted to deepen its engagement with Trinidad and Tobago. The bank was committed to working with the Government to explore new opportunities for growth and development.

The OPM said, “The meeting identified various sectors for investment which are earmarked for the diversification of the economy. Participants also discussed specific energy infrastructure and national security projects which are of interest to both parties.”

Energy Minister Stuart Young and Foreign Affairs Minister Dr Amery Browne accompanied Rowley to this meeting.

Earlier, Rowley held discussions with US Secretary of State Antony Blinken and US trade representative Ambassador Katherine Tai. The discussions with Blinken included a focus on violent crime and firearms trafficking in the Caribbean.

Later , Rowley met US government and military officials at the Pentagon. before travelling to the Central Intelligence Agency’s (CIA) headquarters in Virginia for a meeting with its director William Burns.

After the meeting at the Pentagon, a readout issued by the US Department of Defense (DoD) about the meeting said Trinidad and Tobago and the US Southern Command will co-host a Caribbean nations security conference in November. The meeting also dealt with matters such as illicit trafficking and maritime security, defence force modernisation and training, cyber security and frameworks to facilitate expanded bilateral security co-operation.

At a UNC anti-crime town hall meeting in San Fernando, Opposition Leader Kamla Persad-Bissessar slammed Rowley for engaging US government officials on national security matters pertinent to Trinidad and Tobago and the Caribbean.

 

 

UWI Leading with intelligence
Bridging research, industry, and policy with AI

2024,  01/26 – Craig Ramlal

As a university focused on using research for the upliftment of its community, the University of the West Indies (UWI), St Augustine, the premier tertiary institution in the region, producing world-class scholars, believes science should be accessible to the public. We offer this media series, UWI Scientists Speak, where our scientists, three of whom were recently awarded the highest award of the nation–the Order of the Republic of Trinidad and Tobago, will present some of their work.

This week, we hear from Dr Craig Ramlal on his work and the work done at the Faculty of Engineering using artificial intelligence (AI) to solve real-world problems.

Dr Ramlal leads the control systems group and coordinates the postgraduate studies and research for the Department of Electrical and Computer Engineering at The UWI, St Augustine Campus. He serves as the principal investigator of the Intelligent Systems Lab and is a technical adviser to regional AI-related policies.

Prof Rose-Marie Belle Antoine, principal, UWISTA

“As thought leaders, it is very important that we give back to our communities and that our students take note of our activities. I believe it is more meaningful for students to learn from our experience and benefit from the world we are trying to build, and when it is their turn, they also follow suit. Recently, my research has been aligned with intelligent control strategies, game theory, and artificial intelligence. I am engaged in this field through three key avenues”.

Firstly, through active involvement in crafting intelligent control, learning, and reasoning algorithms, we seek to understand how these systems perceive and interact with the world. Secondly, by applying these algorithms to address real-world challenges in industries and educational environments. Lastly, through dedication to shaping policies and regulations that ensure the responsible and secure implementation of these technologies.

“In 2019, Dr Arvind Singh and I co-led the ARC Labs team of UWI, partnering with researchers from Tallinn University and Estonia’s national power company Elering AS to develop deep-learning object detectors for predictive asset management of their electrical grid. We successfully developed algorithms that could accept extremely large resolutions of fly-by image data and process it to give a Health Index of the electrical infrastructure. This enables the grid operators to determine where to spend effort and resources before a blackout can occur.

“In 2020, I was part of UWI’s Engineering COVID-19 response team to develop solutions to mitigate the spread of the virus. We were tasked with developing face masks, face shields, protect-a-doctor kits, and splash boxes. I was the principal investigator for developing ventilators, CPAP devices, air decontamination systems, and UV sanitisation robotic systems. The robotic and decontamination systems used machine learning algorithms to determine cleaning regiments based on room and airflow parameters.

“We worked with researchers from the University of Florida and officials from the Ministry of Health, with funding from the National Gas Company (NGC) and the Canadian High Commission, to develop and implement these systems. Through this process, we established standards, redundant supply chains, and industrial linkages to rapidly deploy protective systems against future pandemics.

“In 2022, I partnered with researchers from Rutgers University to develop collaborative omnidirectional robots capable of transporting objects on a deformable sheet via optimisation and reinforcement learning algorithms. The applications of this technology are widespread as the robotic team can lift any shaped objects, rotate, and transport them. This research paved the way for exploring areas like attack resiliency, given the vulnerability of collaborative autonomous systems to wireless hacking. From this, my postgraduate research students are investigating platoons of electric autonomous vehicles and the intelligent control algorithms that enhance their resilience to cyberattacks.

“Large language models (LLMs) are now well-accepted by the public and industry. I have been involved in machine reasoning and separately large language model research for some time, developing our LLMs and making them smaller and more intelligent. Part of my work is to better educate our nation’s workforce to use these tools responsibly and safely and understand their limitations. This is necessary to boost productivity and to keep globally competitive. In that trend of thought, with faculty colleagues, we have developed short courses through our department targeted at a wide range of education profiles. The industry has been keen on the adoption of this technology. I have worked with organisations to implement these systems in their supervisory control and data acquisition, alarm, and control systems.

These LLMs also impact education research and its future. My work in this realm has been two-fold; in the immediate case, it revolves around how education institutions should react to students’ use of LLMs to ensure integrity and honesty in students’ submissions. Secondly, I explore what the future of teaching could look like with reasoning machines. In this case, the LLM algorithms and integrated systems are modified to support pedagogy and the course’s learning outcomes rather than the current global norm, which is the use of LLMs as a tool within the course.

“The latter, if not done well, can significantly degrade the quality of teaching. To this end, with an interdepartmental group at UWI, we have developed a novel AI-enabled software platform for the application of digital twins. In this work, AI aids in training, decision support and designing controllers for robotic, power, and industrial systems. This tool can help both industry and students to study systems and their behaviours.”

 

 

 

Energy collaboration

Coming on the heels of the announcement of the restructuring of Atlantic LNG and the cinching of the Dragon gas field deal with Venezuela, there was a decidedly buoyant mood in the Prime Minister’s call to energy stakeholders for collaboration at this week’s Energy Conference

However, as noted by many experts, it could take years for the recent breakthroughs to result in revenue coming through the pipeline. Four years might pass before gas arrives from Venezuela. Meanwhile, survival actually dictates a deepening of diversification.

In a week in which the world observes the International Day of Clean Energy, the PM’s resort, yet again, to rhetoric which paints the hydrocarbon sector as being under global attack was both revealing and somewhat out of step. If the sector is under attack, it is certainly showing little evidence of being in any way substantially damaged.

Last year was the planet’s warmest on record, according to the US National Centres for Environmental Information. There were significant climate anomalies and events. December was also the hottest December on record. All the scientists agree that the situation is alarming and are clear on what needs to be done.

And yet, in that month, COP28 rejected the notion of an immediate phase-out of fossil fuels in favour of a “transition away.”

The next conference, COP29, which takes place later this year, is unlikely to result in a different outcome as it is to be hosted by yet another fossil-fuel producer, Azerbaijan, a country that reportedly plans to scale up production in the coming years.

If the gas sector is under “attack,” that has not affected demand. Many projections seem to suggest world demand for gas will grow, even considering the sobering climate-change realities that inform calls for change.

Instead of seeing things in a combative sense, Dr Rowley should adopt a more pragmatic approach which does not risk alienating potential partners in green energy.

January 26 marks five years since the founding of the International Renewable Energy Agency (IRENA), of which this country is a party. The agency works to assist countries in energy transitions, providing state-of-the-art data and analyses on technology, innovation, policy, finance and investment. This country should deepen its collaboration with IRENA as well as all other international bodies which can assist in shaping a robust green-energy policy.

Closer to home, there is also a need to re-examine the role and functioning of the Environmental Management Authority (EMA) and the laws governing it. Since the EMA was launched in 2005, the world has changed drastically and environmental issues have become more fraught. With carbon capture and storage an emerging aspect of the landscape, there is need for regulatory oversight for the implementation of government policy.

Ostensibly, the State is committed to making green energy service 30 per cent of energy needs by 2030. Organisations like the EMA could play a role in making that objective more than just a pipe dream.

 

 

 

Statement by IMF Deputy Managing Director Kenji Okamura at the Conclusion of His Visit

February 15, 2024 Georgetown:

Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement in Georgetown at the end of his visit to Guyana:

“I am delighted to be in Guyana. This is my first visit, and I would like to thank President Irfaan Ali, Vice President Bharrat Jagdeo, Prime Minister Mark Phillips, Finance Minister Ashni Singh, as well as other ministers and senior officials for their warm hospitality and for the productive meetings. I would also like to thank the representatives from the health and housing sectors for the site visits arranged, and the Amerindian community of Moraikobai, and the private sector, for their welcome and useful discussions.

“I congratulated the authorities on the unparalleled economic expansion. Guyana today is in the position to reap the benefits of rapidly increasing oil revenues due to the hard-won gains from implementing reforms and adjustment over the years. The plans put in place by the authorities and the strong progress are benefiting the entire population through better healthcare and educational programs, housing policies, energy, and transportation infrastructure. Most importantly, these plans are also providing current and future generations with entrepreneurial and work opportunities through very strong economic growth, and a more diversified and climate resilient economy.

“I commended the authorities for the visionary Low Carbon Development Strategy 2030. The sale of carbon credits and use of these funds supports the Amerindian population, finances climate adaptation needs, and fosters renewable and cleaner energy needed for development. The strategy, which includes marine conservancy and increased biodiversity goals, is ambitious.

“Notwithstanding the recent economic boom, Guyana still faces significant human and infrastructure development needs. I strongly support the authorities’ efforts to improve economic welfare through public investment, while avoiding the non-trivial risk of economic overheating. The authorities have managed this transformation successfully thus far, and we agreed that continuing to maintain macroeconomic stability and debt sustainability are paramount.

“In addition, we discussed the authorities’ efforts to develop a large skilled labor force to ensure a balanced growth path with low inflation and opportunities for well-paying jobs throughout the country.

“We also discussed, and I applauded the authorities for driving the charge to reduce food imports by 25 percent in the Caribbean region by 2025 and move closer to the goal of achieving food security.

“Lastly, I gained a deeper understanding of Guyana’s impressive economic transformation, and I very much appreciate the excellent, long-standing relations between Guyana and the IMF. I look forward to our continued partnership through regular policy dialogue and technical assistance, including through the Caribbean Region Technical Assistance Center.”

IMF Communications Department