Guyana News Updates, August 16, 2022

Guyana Media Advisory: Transforming Guyana, Episode III, Education, and the Oil & Gas Windfall

August 12, 2022

Guyana Business Journal Magazine

UWI SRC-CPC webinar Friday September 2, 2022

US-CARICOM TIFA/TIC Trade and Investment Relations

Register for the webinar at: https://zoom.us/webinar/register/WN_cGtRSOS7RMqxEkfZNjcSjA

AfriCaribbean Trade and Investment Forum 2022 – One People. One Destiny

September 1-3, 2022 Barbados

https://africaribbean-trade-investment-forum-2022.b2match.io/

XXXI La Jolla Energy Conference

September 28-29, 2022

https://iamericas.salsalabs.org/la-jolla-conference-2022-preliminary-agenda?wvpId=e61fc00c-5202-4561-bdf9-9381c4304e10

Guyana Basins Summit

October 4-6, 2022

http://guyanabasinsummit.com/en

Gas-to-energy project will provide foundation for renewable energy – Exxon Guyana President: Guyana Times

…will allow more investments in renewables

The gas-to-energy project, which is being financed by oil giant ExxonMobil, is a transformative venture that according to Esso Exploration and Production Guyana Limited (EEPGL) President Alastair Routledge, will provide Guyana with a foundation for its renewable energy efforts. In an interview shared by the company with the local media, Routledge described the present and future as an exciting time for Guyana. This is particularly in the context of the infrastructural works and their local content efforts.

Evening News – 4:03: US$200M OIL REFINERY PROPOSED FOR EBD TO EMPLOY 300 PERSONS

Evening News – 9:24: High demand for support services in the oil and gas sector – UG Vice Chancellor

Right fiscal regime key to Guyana getting most out of upcoming bid round – Rystad Energy: OilNOW

With the right fiscal regime in place, Guyana could reap the most benefits from the upcoming oil block auction, Norway’s Rystad Energy said. The highly anticipated auction will be the first time Guyana hands out oil licenses through a competitive process. Its investment prospectus mentioned the 9,600 km2 Area C, a deepwater acreage bordered by the Kaieteur and Canje blocks, and the Suriname border. There is also the relinquished portion of the Canje block, with an area of about 1,352 km2.

First phase of GAICO’s dry dock laydown & storage yard on track for October completion: OilNOW

Work on GAICO Construction and General Services Inc.’s dry dock laydown and storage yard at Nismes Foreshore, West Bank Demerara is moving apace with the company on track for phase one to be completed in October. Its Chief Executive Officer (CEO) Komal Singh told OilNOW the facility will then be “open to international vessels.” That first phase construction includes the laydown area spanning six acres with heavy lift capacity of 10 tons per square metre. This will be done using geotextile fabric along with white sand, loam and first-grade crusher run.

Guyana has earned over US$1.2 billion since oil production started – nearly half its 2022 budget: OilNOW  

The Natural Resource Fund, established to receive revenues from oil sales and royalties, has received more than US$1.24 billion since first oil in December 2019. This scale of revenue flow is significant for Guyana, since from this single sector, these revenues are almost equivalent to half of Guyana’s 2022 budget which Finance Minister, Dr. Ashni Singh, presented at US$2.65 billion (GY$552.9 billion) in January. Of the amount received into the Fund, the government has withdrawn approximately US$400 million to support Guyana’s infrastructure-heavy 2022 budget.

Response to letter in Kaieteur News – The notion that the oil companies are walking away with 85.5 per cent take is an incorrect and misleading interpretation: Guyana Chronicle (Letter to the Editor) by Joel Bhagwandin

THE notion that the oil companies are walking away with 85.5 per cent take by adding the 75 per cent cost recovery and the 12.5 per cent profit oil then less the two per cent royalty is an incorrect and misleading interpretation. According to a modelled forecast conducted by SPHEREX analytics, using the project economics for the approved developments so far, namely: Liza 1, Liza 2, Payara and Yellowtail, a discount rate of eight per cent, average price of US$60 per barrel, estimated recoverable reserves of US$2.64 billion barrels of crude, and capital expenditure across the four projects of an estimated US$29.3 billion, the total estimated revenue from all four projects combined is US$177.3 billion.

Column – By Scott B. MacDonald: Time for Guyana’s stock exchange to take off?: OilNOW

The Guyana Stock Exchange (GSE) is small by global standards at US$2.8 billion in market capitalisation. It is also a relative latecomer to the stock market investment game, only having opened its doors in 2003. 

Bulkan calls for more detailed study of marine environment where Exxon operates: Stabroek News  

-stresses need for safe operating limits for drillships

The impact assessment of the cumulative effects for Exxon’s planned 35 Multiwell Exploration and Appraisal (E&A) Drilling Programme should fill major gaps of the four existing EIAs including a much more detailed study of the marine environment than was previously done, says environmentalist Janette Bulkan. On July 19th, the Environmental Protection Agency (EPA) announced that an impact assessment of the cumulative effects of Exxon’s 35 multiwell drilling programme is required and invited members of the public to make written submissions with questions they required to be answered or considered in the project’s Environmental Impact Assessment (EIA).

Ramps’ logistics contract with ExxonMobil expiring in November: Stabroek News  

-company still awaiting word on local content certification

With its current contract to support oil and gas activities set to expire in November, Ramps Logistics is still to receive word on the status of its local content certification. Weeks after submitting amendments to its application to the Local Content Secretariat, Chief Executive Officer of Ramps Logistics Guyana, Shaun Rampersad said the last update they received by phone call was that the application is still being reviewed.

New T&T companies set eyes on Guyana market – News Room Guyana

The ball is now in ExxonMobil’s court: Stabroek News (Letter to the Editor) by Alissa Trotz

In a letter to Stabroek News published on August 6, 2022, Ms. Janelle Persaud, writing in her capacity as Media and Communications Manager for ExxonMobil Guyana, insisted that “Rod Henson, as the former President of ExxonMobil Guyana, never signed any document with Dr. Adams, in his capacity as a prior Executive Director of the EPA, committing to ‘unlimited liability coverage comprising of insurance plus parent company guarantee’, as Dr. Adams claimed.” Ms. Persaud challenged Dr. Adams to “produce the “documents” he claims were signed.”

It would have been more constructive if Professor Haynes and his team of audit experts actually stayed silent: Stabroek News (Letter to the Editor) by GHK Lall

Guyanese have this old saying: ‘mouth open, story jump out.’  This is exactly what happened with a fine Guyanese brother, scholar, and recently created auditor by the name of Professor Floyd Haynes.  There I was knowing my place and going about my business when I passed the caption “Audit of Exxon’s US$9B+ costs underway” (SN August 14).  I actually passed by and then turned back, for I sensed that some Guyanese truths might lurk. I am delighted to share that the professor did not disappoint.

Guyana losing big by failing to implement World Bank US$20M Project: Kaieteur News

In highlighting some of the benefits of the US$20M World Bank loan which was secured by Guyana in 2019, the institution posited that the smallest effort made by the country to improve its oil and gas management capacity under the project supported by this money could translate to huge improvements in the amount of revenue the country gets from its oil resources. The World Bank support document, ‘Guyana Petroleum Resources Governance and Management Project’ is one of the important documents currently available for Guyana to build its ability to oversee and manage its nascent oil sector.

Soaring oil prices lead Saudi Aramco to smash quarterly record with US$48.4B in profits for Q2: OilNOW

Saudi Aramco reaped the most benefits from the global energy crisis, raking in a record breaking US$48.4 billion in profits as the second quarter of 2022 closed. That represents a 90% jump in quarterly profits – up from US$25.5 billion in 2021, Saudi Arabia’s state oil and gas company said in its recent earnings report. Its half year earnings reached nearly US$88 billion.

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