Guyana News Updates, June 17-19, 2022

Latin America Energy Transition to Net ZeroAMI Webinar – Tuesday, June 21, 2022 https://americasmi.zoom.us/webinar/register/4716552301460/WN_vD49_OzaRJGaowVDbo0byw

Rebuilding Energy Security: The Role of U.S. Oil and GasCenter for Strategic and International Studies – Wednesday, June 22, 2022 https://www.csis.org/events/rebuilding-energy-security-role-us-oil-and-gas

“ExxonMobil at the Crossroads” premieres on Wednesday, June 22nd at 8 PM ET https://www.cnbc.com/exxonmobilatthecrossroads/ “In this one-hour documentary, CNBC’s David Faber goes inside one of the most powerful, storied, and consequential players in the energy industry: ExxonMobil. Once seen as untouchable, the company is now facing shareholder challenges over its direction and criticism that is fostered public uncertainty about global warming. As gas prices skyrocket around the world, Faber gains unprecedented access to company executives, workers, and facilities to examine ExxonMobil’s efforts to lower its carbon emissions and find out whether the company is ready for the energy transition. “ExxonMobil at the Crossroads” premieres on Wednesday, June 22nd at 8 PM

ET.”https://www.cnbc.com/exxonmobilatthecrossroads/ The TV ad promoting the documentary shows David Farber (one of CNBC’s Senior Correspondents) standing atop one of the Floating Production Storage Offloading (FPSO) vessels off the coast of Guyana.   

Guyana is number 17 for largest oil reserves in the world | OilNOWhttps://oilnow.gy/featured/worlds-largest-oil-reserves-by-country/

Guyana possesses potential to become South America’s leading oil producer: Village Voice News Global energy supermajor ExxonMobil and its partners Hess and CNOOC have made an astonishing number of high-quality oil discoveries in offshore Guyana. In April 2022 Exxon announced that it made three more discoveries in the 6.6-million-acre Stabroek Block, where it is the operator holding a 45% interest with 30% owned by Hess and the remaining 25% held by CNOOC. The discoveries were made at the Barreleye-1, Patwa-1 and Lukanani-1 well all of which lie to the east of the Liza oilfield and Payara development. 

Market value of Guyana’s oil fund nearly three-quarter billion US dollars | OilNOWhttps://oilnow.gy/featured/market-value-of-guyanas-oil-fund-nearly-us%c2%be-billion/

While climate lobbyists target Guyana, US boosting oil supply | OilNOWhttps://oilnow.gy/featured/while-climate-lobbyists-target-guyana-us-boosting-oil-supply/

ExxonMobil to start-up more wells to boost full production of Liza Unity FPSO:Guyana TimesStabroek NewsKaieteur NewsGuyana StandardGuyana ChronicleOilNOW        United States oil giant ExxonMobil is looking to ramp up production on the Liza Unity Floating, Production, Storage and Offloading (FPSO) vessel four months after start-up, with the aim of realising its full capacity of 220,000 barrels per day (bpd) by the third quarter of this year. This is after the gas compression and injection systems on the Unity FPSO were safely commissioned in what Exxon has said is around half normal industry time. 

CGX walks away from 1.1 million acres offshore Guyana, hedging all bets on Corentyne: OilNOWGiven their inability to honour their work obligations, Frontera Energy Corporation and CGX Energy Inc. have reached an agreement with the Guyana Government to relinquish the Demerara and Berbice Blocks, amounting to a combined 1.1 million acres. The attention of the Canadian partners will now be focused on the Corentyne Block which delivered a material discovery at the Kawa-1 well. Frontera said it will continue to integrate its findings from the Kawa-1 well into preparations for the second exploration well, called Wei-1, in the third quarter of 2022. 

No citizen owes Exxon $9M:Guyana Chronicle  — no debt guarantee issued to Exxon by Guyana, says VP JagdeoVICE-President, Dr. Bharrat Jagdeo has clarified that Guyana has not issued a guarantee for any debt contracted by ExxonMobil, and therefore neither Guyana nor any citizen owes any money to the company. Speaking at a press conference on Wednesday at the Office of the President (OP), the Vice- President sought to clarify the issue surrounding a report in another section of the media, which quoted a financial analyst who claimed that citizens would end up owing Exxon. 

Exxon guarantees Guyanese bearing none of its debt nor eventual shutdown costs:News RoomGuyana Standard   The oil companies operating in the prolific Stabroek Block offshore Guyana are responsible for the debts incurred and the eventual shut down of their operations as they invest in exploration and production activities, an ExxonMobil official has said. “There is no responsibility to Guyana or the Government of Guyana for our investments. “The investments are made by our investors in the project and it’s the projects themselves that need to pay back the investment,” Phillip Rietema, the Vice President and Business Services Manager of ExxonMobil’s local affiliate Esso Exploration and Production Guyana Limited (EEPGL), said on Wednesday. 

Guyana’s take actually bigger than Stabroek Block partners’ – Exxon:Guyana Standard  When one examines the manner in which Guyana’s royalty is calculated in the 2016 Production Sharing Agreement (PSA) governing the Stabroek Block, the two-year-old oil-producing State is actually taking home more than the contractor group. This was recently explained by ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL). The company said, “If, for example, you have US$100 coming in as revenue, 75 percent goes to cost recovery which covers the contractor group’s investments in exploration, development, and production costs. 

Flaring challenges at Liza Destiny ends in mid-July – Exxon assures:Guyana Standard  ExxonMobil Guyana has assured that the flaring issues plaguing the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel since 2020 are scheduled to end by the beginning of the third quarter. This is possible since the new, redesigned flash gas compressor has arrived in country for installation after extensive testing in Germany.Exxon said today that its team is working towards start-up in mid-July with the aim of also achieving background flare on that vessel as designed. 

Stabroek Block partners to spend $6 Trillion in Guyana by 2025:Guyana StandardiNews  ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL) is poised to spend a whopping $6 trillion in Guyana by 2025. This investment will take into account expenditure on the Payara and Yellowtail Projects. The foregoing was revealed on Wednesday by EEPGL’s Vice President and Business Services Manager, Phillip Rietema. During a media briefing at the company’s Duke Street Headquarters, he said investments to date total $1.3T. 

Hess eyeing approval for 6th production vessel in Stabroek block by 2023:Guyana Times  …says pace of development in Guyana’s waters “industry leading”Describing the pace at which development in Guyana’s waters is moving as “industry leading”, ExxonMobil’s partner in the Stabroek block, Hess Corporation, anticipates a sixth floating, production, storage and offloading (FPSO) vessel in the block would be approved by next year. Hess Corporation’s Chief Executive Officer (CEO) John Hess made this disclosure during a recent interview on Bernstein’s 38th Annual Strategic Decisions Conference. According to him, they are also hoping to get their fifth FPSO sanctioned by this year end.  

Oil and the decisions that lie ahead: Stabroek News(Business Editorial)What we are already beginning to discover is that for all the global concerns arising out of what we are told is the nexus between fossil fuels and the worrisome threat of cataclysmic climate change, Guyana’s remarkably rapid transformation from a ‘banana republic’ to one of the most-watched countries in the hemispheric is entirely a function of our new-found oil and gas resources. These resources are seen not only for the contribution that they can make to Guyana’s development, going forward,  but also for the cumulative regional, hemispheric and international attention that the country has attracted. 

‘Gas is free, pipeline to be paid for from cost oil’ – VP confirms | OilNOWhttps://oilnow.gy/featured/gas-is-free-pipeline-to-be-paid-for-from-cost-oil-vp-confirms/

Guyana to seek int’l project manager for Gas-to-Energy Project | OilNOWhttps://oilnow.gy/featured/guyana-to-seek-intl-project-manager-for-gas-to-energy-project/

Guyana could sell cooking gas, other products for about $70M yearly- Jagdeo – News Room Guyanahttps://newsroom.gy/2022/06/18/guyana-could-sell-cooking-gas-other-products-for-about-70m-yearly-jagdeo/Capitol News: ExxonMobil made an earning of US$254 Billion for 2021 Evening News – 10:05, NCN – 5:41: Exxonmobil’s investments in Guyana to exceed $6 trillion by 2025 NCN – 7:20, News Room: ‘Guyana owes to debt to Exxon’ – VP Jagdeo, VP EEPGL News Room: Phillip Rietema, the Vice President and Business Services Manager of ExxonMobil’s local affiliate Esso Exploration and Production Guyana Limited (EEPGL), assured the public that the company and its co-venturers are required to fund the decommissioning of the offshore projects. Decommissioning, essentially, refers to the gradual shutting down of the offshore facilities used to produce oil and it is expected decades after the startup of production. News Source – 14:22: Exxon promises less flaring  

Fire Juggling in the Energy Sector: Part 1: OilNOW(Columnist) Dr. Lorraine SobersThe intensity of the fire juggling act being performed by the oil and gas sector has been increasing in complexity year on year. For the novice, catching a single fire club is daunting. However, professional fire jugglers are capable of performing a mesmerizing, thrilling combination of speed, agility, skill, rhythm and focus with several clubs in the air. Similarly, the Guyanese energy sector has entered as a novice but is required to juggle the demands for clean energy, fossil fuel production and its socio-economic development. 

Oil companies recover US$355.7M for decommissioning costs in two years: Kaieteur News– more to be taken out annuallyFor 2020 and 2021, ExxonMobil and its partners, Hess Corporation and CNOOC Group, have recovered a whopping US$355.7M for decommissioning costs which would be incurred in another 18 years for the Liza Phase One Project. Decommissioning entails the removal of all equipment used for the extraction and production of oil and gas resources as well as the safe abandonment of wells involved. The activity takes place when the life of the project comes to an end. 

Jagdeo hoping non-oil sectors will meet growth projections: Kaieteur NewsGuyana’s non-oil economy such as its gold, forestry, agriculture and other sectors have in recent years failed to meet its growth projection but Vice President Bharrat Jagdeo is hopeful that the projections made will be met this year. The Vice President was at the time speaking to members of the media during a press engagement at the Office of the President when he spoke to the growth of the economy this year, growth to also be experienced in the non-oil economy. 

Guyana gets ‘greenlight’ to use US $83M Norway funds for solar farms – News Room Guyanahttps://newsroom.gy/2022/06/19/guyana-gets-greenlight-to-use-us-83m-norway-funds-for-solar-farms/

Guyana to make transformational leap towards decarbonisation with US$83.3M renewable energy project – IDB | OilNOWhttps://oilnow.gy/featured/guyana-to-make-transformational-leap-towards-decarbonisation-with-us83-3m-renewable-energy-project-idb/

Guyana mulls court action against companies trying to bypass local content laws | OilNOWhttps://oilnow.gy/featured/guyana-mulls-court-action-against-companies-trying-to-bypass-local-content-laws/

Exxon’s board members must act to prevent ungovernable gas sector here – Stabroek Newshttps://www.stabroeknews.com/2022/06/12/opinion/letters/exxons-board-members-must-act-to-prevent-ungovernable-gas-sector-here/

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