GUYANA UPSTREAM: A RYSTAD ENERGY INDUSTRY AND COUNTRY BENCHMARKING UPDATE – JUNE 2022
Caribbean Policy Consortium & Guyana Business Journal
Thursday, July 21, 2022 @ 10:30amEDT
A conversation with H.E. Irfaan Ali, President of the Co-operative Republic of Guyana – Atlantic Council
Monday, July 25, 2022
A Conversation with President Irfaan Ali of Guyana
Tuesday July 26, 2022
Strengthening the Guyana – U.S. Relationship | Center for Strategic and International Studies
Wednesday July 27, 2022
‘No diplomatic blunder’ – Ali says partnership with Saudi Arabia a strategic move – News Room Guyana
Guyana’s Prime Minister Calls On Telecoms To “Prioritise Long Term Returns Over Short-Term Windfalls” To End The Digital Divide | CANTO
Republic Bank commits to financially supporting Guyana’s food security efforts – Guyana Times
Guyana’s Fossil-Green Economy as a Model Climate Change Agent
Iconic Guyanese-owned Pegasus Hotel completes major expansion | OilNOW
ExxonMobil to drill over 60 exploration wells offshore Guyana in six years: OilNOW
After having made more than 30 discoveries offshore Guyana with a success rate close to 90%, ExxonMobil sees the potential for the Stabroek Block’s near 11 billion oil equivalent barrels to more than double. In addition, the company sees immense potential in the Kaieteur and Canje Blocks, two other acreages it operates offshore Guyana. Therefore, ExxonMobil plans to drill more than 60 exploration wells offshore Guyana in six years – more wells than it has drilled in the past.
In just three months, Guyana received a total of GY$48,406,316,589 (US$232,164,587.96) in royalty and profit oil payments in the Natural Resource Fund (NRF), according to a notice published in the Official Gazette dated July 18, 2022. Giving a breakdown, the Finance Ministry said that Guyana got a royalty payment of GY$4,390,903,379 (US$21,059,488.63) for Q1 production on April 28. Then, a payment of GY$21,381,304,933 (US$102,548,225.10) was received on May 25 for an April 25 oil lift from the Liza Unity vessel.
Halliburton sees drilling demand lasting “multiple years” despite lower earnings in Q2 | OilNOW
Large number of ships heading to South America, Caribbean with refined products | OilNOW
China’s LNG imports to see unprecedented decline in 2022 – WoodMac | OilNOW
Guyana’s current debt level sustainable without future oil revenue: Guyana Chronicle (Letter to the Editor) by Joel Bhagwandin
ECONOMIC Adviser to the Opposition Leader, Elson Lowe, in a recent article published in the Kaieteur News edition dated July 13, 2022, argued that “at present, Guyana is borrowing based on its projected oil-and-gas revenues,” in his review of the first-quarter report 2022, published by the Bank of Guyana. Indeed, it is never a good idea to borrow against future oil revenues simply because of price volatility of the commodity. If one were to perform a debt-sustainability analysis, one would find that Guyana currently has the lowest debt to GDP ratio in the region and possibly the world, of less than 30 per cent projected for this year, and an external debt to GDP ratio of 16 per cent.
The Environmental Protection Agency (EPA) has granted one month for the public to provide objections/appeals to Esso Exploration and Production Guyana Limited (EEPGL)’s 35-well exploration/appraisal drilling campaign for the Stabroek Block. The Exxon subsidiary plans to execute the programme by the third quarter of 2023. If discoveries are made, well tests may be performed. Furthermore, Guyana Standard understands that the conclusion of the proposed drilling campaign is expected by the fourth quarter of 2028.
Seven years on…Guyana still to protect self from being cheated on oil revenues: Kaieteur News
– Former Finance Minister Jordan acknowledges flaws in Exxon contract
Former Finance Minister, Winston Jordan has acknowledged that in hindsight, there are certain provisions in the Stabroek Block Production Sharing Agreement (PSA) which could have been better negotiated. Be that as it may, he is of the view that seven years after the discovery of oil, Guyana is yet to be fully armed with the institutional and legal instruments needed to ensure it is not being cheated on its oil revenues.
Permit for 35 new wells – EPA at it again: Kaieteur News (Editorial)
Exxon has applied to Guyana’s Environmental Protection Agency (EPA) for the approval to conduct drilling operations involving 35 new wells in the fabled Stabroek Block. (KN July 18). It is a staggering number, which could up the billions of barrels of oil equivalents already found. Some of those planned drilling operations are said to be close to areas that were previously explored. It is not surprising that Exxon would want to march full speed ahead with drilling, exploring, and commerciality assessing, as part of its forward planning process, and reserve replacement interests.
GUYANA RACES AGAINST THE CLOCK TO BANK ITS OIL BONANZA: Kaieteur News (Letter to the Editor) by Mike Persaud
“Guyana races against the clock to bank its oil bonanza”, is the title of an article by Reuters, published on Yahoo online news (July 18th). The author, Sabrina Valle had a face-to-face interview with Mr Jagdeo in which he said the following (to paraphrase): Mr Jagdeo argued that calls to halt the developments for the country to realise a larger share of its oil revenues, would not benefit the country, as it could introduce added inflationary pressures to Guyana’s domestic economy. Elsewhere in the Reuters article Mr. Jagdeo called for ramping up oil production… Would Mr. Jagdeo sell his house for say, one-tenth of the value (bigger share, fair value is bad)? Let Exxon get a bigger share. Ramping up production means letting Exxon drill the resource quickly [before decarbonisation begins] – and let Exxon get the bigger share.
Spare us the opinions of foreign ‘experts’ with agendas: Guyana Times (Letter to the Editor) by Robin Singh
The latest Chatham House Fellow, Dr. Valerie Marcel, has said: “In an energy transition, it is important to think about how the mandate of the NOC (National Oil Company) can adapt to a world of the declining value of petroleum assets”, on July 19, 2022 in a section of the media. I can only ask if this ‘industry expert’ has seen today’s price of oil, currently at US$101.20 per barrel (Brent Crude). Declining indeed! I would ask that Chatham House spare us the opinions of foreign ‘experts’ with agendas, and allow Guyanese to utilise their innate common sense and logical abilities.
‘Guyana be warned’ – Article 13 tells Govt. as thousands of Surinamese, Sri Lankans protest corrupt governments: Kaieteur News
Guyana’s Dutch speaking neighbours in Suriname on Monday attempted to storm President Chandrikapersad Santoki’s office, in protest against the high cost of living, slashing of government subsidies on water and electricity and the suspicious transfer of funds from the central bank to a private account. As hundreds took to the streets in Paramaribo on Monday to vent their frustrations over the prevailing economic situation in the country, citizens of Sri Lanka also have moved into 100 days of consecutive protest action, demanding changes in the government also, owing to the mismanagement of the country’s resources.