Guyana News Updates, August 2, 2022

Transforming Guyana, Episode III “Education & The Oil Windfall”

Guyana Business Journal Magazine + Caribbean Policy Consortium

Wednesday, August 10, 2022, at 10:30 AM EST

 

Guyana singled out as ‘high potential business partner’ for European companies – News Room Guyana

 

Guyana enters the big league as oil revenues break US$1B in 2022, grow to US$7.5B in 2030 – News Room Guyana

TechnipFMC awarded significant contract for gas to energy project: Stabroek News

TechnipFMC has been awarded a significant contract by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, for the Gas to Energy Project in Guyana, Business Wire reported yesterday. It said that subject to final project sanction, TechnipFMC will provide engineering, procurement, construction and installation of subsea risers and pipelines.  It was another sign that ExxonMobil and the Guyana Government are accelerating plans for the gas to energy project.

 

Government is robustly delivering on its manifesto promises: Guyana Chronicle  

THE official swearing-in of the newly elected Government of Guyana on August 2, 2020, led by His Excellency, Dr. Mohammed Irfaan Ali, was without question a watershed moment for the preservation of the democratic credentials of Guyana. The PPP/C Administration is already two years into the economic and social transformation of Guyana which will see the empowerment of every citizen in every part of the country… Natural gas being piped to shore from the offshore oil and gas basin, along with wind, solar and hydroelectric power will comprise a sustainable energy mix to power the country’s economic transformation at lower costs.

 

100M-barrel Jethro well could be Guyana’s first oil production project outside Stabroek Block: OilNOW

The fallout from Russia’s invasion of Ukraine has resulted in a spike in oil prices. Now, the Orinduik Block partners – Eco Atlantic, Tullow Oil, TotalEnergies and Qatar Energy – plan to revisit the commercialisation potential of the Jethro discovery. Two tertiary discoveries were made at the Orinduik Block in 2019 at the Jethro and Joe wells, both heavy oil finds. Jethro, in particular, had encountered 55 metres of net oil pay. Tullow’s Chief Executive, Paul McDade had told S&P Global Platts that the Joint Venture (JV) is “confident of the commercial value” of the project, even as a standalone development, but a development decision did not come to fruition.

 

Stabroek Block agreement equitable for both government, investors – Exxon: OilNOW

President of ExxonMobil Guyana, Alistair Routledge, says that the Stabroek Block Production Sharing Agreement (PSA) is one that is equitable to both Guyana and the consortium of investors. Routledge pointed this out in a recently published article by a Senior Contributor at Forbes, David Blackmon. “The terms of the Stabroek Block Petroleum Agreement are competitive with other agreements signed in countries at a similar resource-development phase,” Routledge said.

 

Gas-to-Energy: Exxon hires TechnipFMC to install risers, pipelines: OilNOW

TechnipFMC said Monday it was awarded a significant contract by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, for the Gas-to-Energy Project in Guyana. The company said ‘significant’ refers to agreements valued between US$75 million and US$200 million. The funds will pay for the engineering, procurement, construction and installation of the subsea risers and pipelines. Jonathan Landes, President, Subsea at TechnipFMC, commented: “The Gas to Energy Project is another example of how we are helping deliver the energy the world needs, and we are thrilled to be supporting another project in Guyana.

 

Guyana encouraging low-emission cars, clean energy technologies with tax exemptions: OilNOW

With the goal of stimulating growth with clean energy and low-carbon technologies, Guyana is encouraging investments in low-emission cars and renewable energy sources with tax exemptions. In the finalised Low Carbon Development Strategy (LCDS) 2030 – a national low-carbon advancement policy – the government has put in motion incentives for consumers when it comes to the importation of equipment and machinery for renewable energy generation, as well as the importation of liquefied petroleum gas (LPG) vehicles.

 

Part 2: An Updated Outlook of Guyana’s Take from Liza 1, 2, Payara and Yellowtail: Guyana Chronicle (Columnist) Spherex Analytics

RYSTAD Energy, an international energy-consulting and analytics firm recently published their updated report on Guyana’s upstream sector which was carried widely in the local press. Director of Corporate Finance | SPHEREX Analytics, Joel Bhagwandin, also participated in a panel discussion with the author of the Rystad Report which was hosted and moderated by Dr Terrence Blackman of the Guyana Business Journal and Magazine. The Rystad report, based on their financial model, showed that Guyana will earn approximately $7.5B by 2035 on the back of a forecasted daily production rate of 1.5 million boe/d by 2035, amounting to a cumulative $157B by 2040.

 

Rystad Energy study: Guyana will be among the top five elite global offshore producers by 2035 – Rystad Energy: OilNOW

With ExxonMobil and partners fast-tracking exploration and development projects in Guyana, the country is set to rank in the top five-list of elite global producers by 2035. This is according to Rystad Energy, an independent energy research and business intelligence company headquartered in Norway. In its recent analysis, Rystad said Guyana was already proving its potential to be a fierce global competitor as it emerged at the top of the leaderboard for most offshore discoveries since 2015 with 11.2 billion barrels of oil equivalent, amounting to 18% of discovered resources and 32% of discovered oil.

 

With competition rising, oil nations sweetening the pot to attract investors: OilNOW

In South America and the wider Caribbean region, Guyana is dominating the oil and gas market since emerging in 2015. And now, faced with heavy competition to pull major investors, other oil-producing nations are introducing new regulatory frameworks to make their business environments more attractive. Three nations – Argentina and Brazil, and on a lesser note Trinidad and Tobago – have all started the ball rolling on initiating new incentives meant to pique investor interest.

 

If Govt. was serious, it would have unleashed an army of forensic auditors behind Exxon – Former Finance Minister: Kaieteur News

US$750K contract to audit Exxon US$9B bills …

Notwithstanding the barrage criticisms against the flawed 2016 Stabroek Block Production Sharing Agreement (PSA), Guyana still needs to take an eagle’s eye approach to the multibillion dollar bills being racked up by ExxonMobil and its partners says former Finance Minister, Winston Jordan. In an exclusive interview with Kaieteur News, Jordan said the monitoring of the costs being recovered by ExxonMobil’s affiliate and operator of the Stabroek Block, Esso Exploration and Production Guyana Limited (EEPGL), is one of the key ways Guyana can prevent revenue leakage and wanton abuse. He said too that it is a sure way of maximizing returns to the country.

 

‘Big corruption in award of govt. contracts’: Kaieteur News

– Glenn Lall laments exorbitant costs, lack of transparency 

Amid the breakneck speed with which the Irfaan Ali administration has been undertaking a number of civil projects, Kaieteur News Publisher and businessman, Glenn Lall has raised concerns about the exorbitant costs for some of these contracts and also lamented the lack of transparency in the deals. For years, Mr. Lall and other civil society groups both locally and overseas have flagged massive corruption in this country. Only recently, Article 13 co-founder, Dr. Yog Mahadeo said corruption was once again reaching dangerous levels here, making reference to the damning allegations disclosed during a Vice News expose on Vice President Bharrat Jagdeo and the PPP/C Government.

 

PPP Gov’t. now ExxonMobil’s biggest cheerleader, defender of lopsided contract: Kaieteur News

Two years in office…

After two years in office, the People’s Progressive Party (PPP) has not only refused to keep its manifesto promise to renegotiate the 2016 oil contract, but has now taken on the role of defending the deal and its partner, American oil major, ExxonMobil. Leading up to the 2020 Elections, the party while in Opposition, excited the Guyanese people with its plans to bring back the oil company to the table. The citizens still remain desperate for changes to the deal that the former A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition had entered into with the oil company.

 

Guyanese paying for gas pipeline, but in the dark on selection of contractor – Yog Mahadeo: Kaieteur News

For a government that boasts of transparency and accountability, these two important pillars are grossly lacking, especially in the local management of the oil and gas sector. This is the view of Dr. Yog Mahadeo, a founding member of civil society organization, Article 13. Mahadeo, a stern activist for transparency, has flagged the fact that Guyanese will be paying for a US$1.3 billion pipeline to transport natural gas from the Liza One and Two fields in the Stabroek Block, to Wales on the West Bank of Demerara; however, the oil company, ExxonMobil has moved to award the contract for these works, all behind closed doors.

 

Record profits for oil companies: Kaieteur News (Editorial)

Oil companies are awash from cascades of cash, and ExxonMobil is right there celebrating with the cream of the crop.  It is the best time to be an energy company, and ExxonMobil is among the best of the best of the best, where making money is concerned.  Just ask Guyanese whose oil wealth is a major contributor to ExxonMobil’s breathtaking profit numbers. The Wall Street Journal of July 29th reported oil company profit developments this way: “Exxon, Chevron, Shell report record profits on high energy prices.”  The New York Times coverage also carried coverage that noted Exxon and others “report record profits”.

 

Guyana is on a pumping spree: Kaieteur News

Guyanese are getting carried away. They have not done the math about the oil revenues and therefore are imagining that the country is awash with oil revenues. In this regard, something needs to be mentioned. Much of the work done in the first 18 months of the new PPP/C administration was achieved without the use of the oil revenues. It is only a few months now that the government has been able to draw down on its oil revenues. The Natural Resources Fund Act of Guyana, commonly referred to as the Sovereign Wealth Fund, sets a formula as to what can be withdrawn from the Fund in any fiscal year. It also lays out procedures for withdrawals.

  

Climate Change and Food Security: The challenges of the ageStabroek News (Editorial)

Were the question to be asked as to which challenges  pose the greatest threat to the well-being of the international community, the likelihood that food security and climate change would be right ‘up there’ with the ‘front runners’ is particularly high… Where climate change is concerned we appear to be caught between the increasingly shrill warnings of the climate change lobbyists railing against climate- unfriendly pursuits like the unchecked recovery and use of fossil fuels, on the one hand, and the powerful players in the global oil and gas industry, on the other. One might add that the lobbyists for increased global oil and gas recovery include several poor countries that appear to have ‘parked’ their climate change policies in pursuit of the opportunities that the fossil fuel industry offers.

  

Time to force conversation on the distribution of Guyana’s oil wealth- Hughes, Hinds: Demerara Waves

African Guyanese were Sunday night- Emancipation Day Eve- urged to agitate for a national conversation on the distribution of Guyana’s oil wealth. Attorney-at-Law Nigel Hughes and Working People’s Alliance (WPA) Executive Member David Hinds issued stirring appeals in speeches at the “Buxton Black is Beautiful Emancipation Cultural Programme”. Mr Hughes recommended that an analysis be conducted to ascertain how much African Guyanese communities have been deprived of so far so that they could recoup those and plan on getting a steady equally allocated stream in the future.

 

Ali ready to talk , Norton says “working together” depends on “getting what we deserve”: Demerara Waves  

President Irfaan Ali on Sunday pledged his readiness to talk with any Guyanese to discuss their concerns but cautioned that he would not wait indefinitely,  even as Opposition Leader Aubrey Norton ruled out talks with the government unless there is evident equitable distribution of wealth. Alluding to the United States government citing the need for inclusiveness during Dr Ali’s week-long meeting with the State Department and other US government political and other decision-makers, Mr Norton said he would only speak with the government on condition that government is making a genuine effort to address concerns.

 

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