Guyana News Updates, July 13, 2022

Media Advisory: Guyana Business Journal & Caribbean Policy Consortium hold a webinar, Episode II in the series Transforming Guyana: Sovereignty and a developing country’s rights to develop its oil and gas sectors-How should Guyana balance exploiting her oil and gas resources and protecting the environment.

July 13, 2022

 

 

Use oil resources in Guyana, Suriname and T&T instead of Venezuela’s – Regional Science Advisor

https://newsroom.gy/2022/07/13/use-oil-resources-in-guyana-suriname-and-tt-instead-of-venezuelas-regional-science-advisor/

 

Guyana to host Regional Meeting of the Int’l Solar Alliance in August | INews Guyana

 

 

 

CARICOM Heads: Still in slow motion | Commentary | Jamaica Gleaner

https://jamaica-gleaner.com/article/commentary/20220713/elizabeth-morgan-caricom-heads-still-slow-motion

 

South America and the Caribbean: The Forming of Strategic Energy Alliances That Can Impact This Decade and the Next

https://jpt.spe.org/south-america-and-the-caribbean-the-forming-of-strategic-energy-alliances-that-can-impact-this-decade-and-the-next

 

World’s 2nd largest oil producer told to invest now in Guyana, or pay more later: OilNOW

A delegation from Saudi Arabia was told on Saturday that investing now in South America’s newest oil producing nation, Guyana, would be less expensive than even a year and a half down the road since the new petroleum hotspot is undergoing a major economic boom. “I am just going to say to you one thing today, come and invest now, it will be too expensive for you to invest a year and a half from now, the decision is in your hands, the ball is in your court,” Guyana’s President, Dr. Irfaan Ali, told the visiting Saudi group, comprising government and private sector representatives.

 

Guyana plans to establish an international center for biodiversity research: OilNOW

As part of its landmark Low Carbon Development Strategy (LCDS), new oil producer Guyana plans to establish an international center for biodiversity research. The center will work with local and international partners, including the University of Guyana, to understand the country’s rich living natural assets. Through these partnerships, the center will connect research work at national and local levels and provide networking facilitation.

 

Guyana’s rollout of solar power for 30,000 hinterland homes set for early 2023: OilNOW

Chief Executive Officer of the Guyana Energy Agency (GEA), Dr. Mahender Sharma, told Indigenous leaders on Tuesday the government will start rolling out a massive solar project for hinterland communities by early 2023. The initiative, announced over a year ago, will see 30,000 150-watt solar photovoltaic units being installed in hinterland communities, with batteries and lighting kits. It is being funded through a line of credit of US$7.2 million from the Government of India.

 

Exxon seeking multiple suppliers in Guyana as operations expand: OilNOW

ExxonMobil is on the hunt for multiple suppliers for a host of local services as its oil and gas operations in Guyana’s offshore Stabroek Block rapidly expands. Its Guyana affiliate, Esso Exploration and Production Guyana Limited (EEPGL), plans to put in place an agreement for the provision of Integrated Office Facility Management Services. The company also has planned to implement agreements for Integrated Residential Facility Management Services and for the provision of Catering, Cafeteria and Food Management Services – all to be done in and around Georgetown.

 

New Guyana exploration well targeting 200Mb – Bnamericas

https://www.bnamericas.com/en/news/new-guyana-exploration-well-targeting-200mb

 

Oil and Gas sector: 24 Guyanese to receive training in Canada: Guyana Chronicle

IN efforts to grow SBM Offshore’s local team in Guyana, on April 19, 2022, the second cohort of recruits began onboarding into the trainee technicians programmes. They are expected to spend one year in Canada, receiving extensive training as electrical, mechanical, instrumentation, and operations technicians. This is according to a Facebook post made by SBM Offshore, which stated that the programme would equip the trainees with the skills and knowledge required on board the Floating Production Storage and Offloading (FPSO) units that SBM Offshore is operating in Guyana.

    

Stabroek Block profits pull Hess from brink of debt: Kaieteur News  

…positioned to be company’s engine of growth in future

“…Just as the West seeks to use less oil, its demand is being replaced quickly by the emerging markets.”

Three months ago, the parent company for Hess Guyana Exploration Limited, Hess Corporation based in the US had a debt to capitalization ratio of 55 percent but according to analysts, “with so much revenue coming in, that is much less of a concern.” This, according to Investors Alley analyst, Tony Daltorio—currently the editor of Market Mavens—who in a recent analysis noted that, “the real excitement for investors in Hess is centered on the growing Stabroek Block, offshore Guyana.”

 

New BOOT arrangement for Amaila must be cheaper – Energy Technologist: Kaieteur News

Vice President Bharrat Jagdeo is determined to pursue the Amaila Hydropower project via a Build Own Operate and Transfer (BOOT) model, in which Guyana will not be standing expenses for the venture upfront, but will purchase power through an agreement and take ownership after 20 years. However, Energy Technologist, Mr. Alfred Bhulai has signaled that any new arrangement must be cheaper in order to benefit the Guyanese people… On Monday, Vice President Bharrat Jagdeo related that negotiations with China Railway First Group have been terminated, with the Government of Guyana shifting its focus on the Gas to Energy project.

 

Oil and Gas must not drive Govt. borrowing spree: Kaieteur News

– Economists warn of increasing debt

Local economist, Elson Lowe has warned that Guyana should not allow its debt to climb due to the projections of the oil and gas sector. According to Lowe, this type of borrowing is risky since it is based on projections from oil and gas prices which are subject to extreme volatility. “At present, Guyana is borrowing based on its projected oil and gas revenues but the government must take into consideration that oil prices are subject to rapid rise and fall based on the situations of the global economy…

 

An explanation is needed for this financial conundrum: Kaieteur News (Letter to the Editor) by C. Kenrick Hunte, Ph.D., Professor and Former Ambassador

In a recent article, captioned, ‘Without renegotiation, Exxon contract ties Guyana to meagre share until oil is exhausted…’ (KN July 6, 2022), Mr. Phillip Rietema, EEPGL’s Vice President and Business Services Manager, stated, “With the plans we have in place out to 2025 will take investments north of $6 trillion”. Undoubtedly, this is indeed a significant amount of investment, which is more than one thousand times the size of Guyana’s GDP (G$5.47B in 2020). This, therefore, signals a high degree of business confidence in the expected profitability that EEPGL has in the Guyanese oil sector. 

 

Evening News – 7:52: Ramps Logistics yet to submit documents needed for local content certificate – Bharrat

 

What is the basis of the requirement for a local content certificate?: Stabroek News

The year 2015 marked a watershed in the economic development of Guyana. From the time of the first oil discovery and thereafter with successive impressive finds, the country’s economic fortunes have been reported as being on an upward trajectory… From accounts in the press, it would seem that RAMPS, in the estimation of the Local Content Secretariat, ran afoul of the Act in three aspects: i) as regards the nationality of the company; ii) the composition of its directorate; and iii) notification of the increase in its share capital. While the first is a question of law, the latter two can be contended on the facts.

  

GMSA weary of difficulties at local banks, Jagdeo says gov’t considering a request for revolving fund: News Room  

Access to capital has long been a hindrance to the formation and expansion of local businesses but the Guyana Manufacturing and Services Association (GMSA) has a proposal that could change that. During its mid-year business dinner on Tuesday night, the Association’s President, Rafeek Khan acknowledged this impediment and said a revolving fund would be appropriate to address the issue. In his words, the fund could “help businesses not to be beggars at international and local banks.”

 

Govt reviewing applications from several merchant banks – VP: Guyana Times

…says Guyana will see increase in non-depository institutions

Guyana is on the cusp of seeing an influx of non-depository financial institutions entering the local market, with Vice President Bharrat Jagdeo saying that the Government is currently reviewing applications from several merchant banks… “How do we get a greater flow of financing to people who already have contracts to the oil and gas companies or the first-tier contracts? We’re looking at (meeting) with the bankers.

 

Despite multiple discoveries, no timeline yet for first oil in Suriname: OilNOW

Suriname’s Block 58 has churned out five discoveries in total, but operator TotalEnergies E&P Suriname B.V. is yet to make a Final Investment Decision (FID). Government officials expressed hope during the recently held Suriname Energy, Oil and Gas Conference (SEOGS) that this could be made by the end of 2022, delivering the country’s first offshore oil production project. But TotalEnergies’ Managing Director, Philippe Blanchard, when asked to give a more precise date, told OilNOW that the company is awaiting the results of the other wells.

 

T&T opens bid round; one nearshore, 10 onshore blocks up for grabs: OilNOW

Trinidad and Tobago’s prime onshore and nearshore oil blocks are up for grabs as the twin-island republic launched a fresh competitive bid round, running up to January 9, 2023. All interested bids must be submitted by that deadline. Information from T&T’s Ministry of Energy and Energy Industries indicates that the bid round contains 10 onshore blocks – Aripero, Buenos Ayres, Charuma, Cipero, Cory D, Cory F, Guayaguayare, Southwest Peninsula Onshore, St. Mary’s and Tulsa. These are in the Central to Southern onshore acreage of Trinidad.

 

Trade opportunities with Guyana ripe for the picking – Barbados Today

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