Guyana News Updates, September 27, 2022

OIL DORADO? A DREAM OR NIGHTMARE FOR GUYANA

THURSDAY 29TH SEPTEMBER 18.00 UK

GUYANA HIGH COMMISSION

PALACE COURT BAYSWATER

LONDON W2 

– John Mair – 07785 378156

Overview – OIL DORADO;GUYANA’S BLACK GOLD LAUNCH EVENT SEPTEMBER 29TH (universe.com)

Guyana Basins Summit

October 4-6, 2022

http://guyanabasinsummit.com/en

US Department of Commerce Caribbean Trade Mission & Conference

October 23-28, 2022

https://www.trade.gov/caribbean-trade-mission

Caribbean Investment Forum

November 8-11, 2022

Trinidad

https://www.caribbeaninvestmentforum.com/?utm_source=Caribbean+Export+List&utm_campaign=856bee512b-EMAIL_CAMPAIGN_2022_09_16_main_flyer&utm_medium=email&utm_term=0_9e96a5189f-856bee512b-52236001

CARICOM launches new initiative to facilitate intra-regional trade | News | Jamaica Gleaner

https://jamaica-gleaner.com/article/news/20220926/caricom-launches-new-initiative-facilitate-intra-regional-trade

Caribbean Economic Report, September 2022 – Marla Dukharan

IMF urges caution as oil-rich Guyana’s economic growth nears 60% | Reuters

https://www.reuters.com/world/americas/imf-urges-caution-oil-rich-guyanas-economic-growth-nears-60-2022-09-27/

IMF predicts near 60 per cent economic growth for Guyana | Loop Caribbean News

https://caribbean.loopnews.com/content/imf-predicts-near-60-cent-economic-growth-guyana

Guyana: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guyana

https://www.imf.org/en/Publications/CR/Issues/2022/09/27/Guyana-2022-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-523930

Govt aiming to build major tourism product from sporting events – Ali – Guyana Times

Gov’t eyes Linden as ‘ideal tourist destination’ − President Ali – News Room Guyana

Science Summit of UN General Assembly: Overhauling of regional agricultural system needed – Pres Ali – Guyana Times

Exxon’s biggest discoveries in Guyana to date: OilNOW

ExxonMobil had been on the hunt for black gold in Guyana’s offshore Stabroek Block since 2008 before it hit pay in 2015 after making its first discovery at Liza 1. It is now 2022 and the company has made 33 discoveries amounting to approximately 11 billion barrels of oil equivalent resources. The Liza Phase 1 discovery encountered more than 295 feet (90 meters) of high-quality oil-bearing sandstone reservoirs. It was safely drilled to 17,825 feet (5,433 meters) in 5,719 feet (1,743 meters) of water. Currently, the Liza Destiny floating production storage and offloading (FPSO) vessel is developing approximately 450 million barrels of oil from it.

Should Guyana apply a Windfall Tax like the UK did? (Part II): Guyana Chronicle  

— If not, why not?

HISTORY OF THE UK OIL AND GAS FISCAL REGIME

IT is worthwhile to highlight that the UK’s fiscal regime is designed with a number of built-in incentives. For example, the 25 per cent tax levy or windfall tax includes an additional investment allowance of 80 per cent that can be claimed at the point of investment. Overall, the tax relief companies receive from qualifying expenditure in the UK has nearly doubled from 46p for every £1 to 91p for every £1. Put differently, for every US$1 billion invested in the UK oil and gas industry, the oil companies receive US$912.5 million in tax relief under the new (current) scheme.

What can Guyana’s gas reserves do for agribusiness?: Village Voice News (Columnist) Cristina Caus and Jerry Haar

The Guyanese economy has been known for quite a long time for a traditional economic system, in which most of the population was engaged in agricultural activities. As late as 1991 about 32 percent of the labor force was employed in agriculture, according to the World Bank. Coupled with extraction activities (mining of gold and diamonds), agriculture has been accounting for about 70-75 percent of export earnings and contributing about 17 percent to the nation’s GDP. 

‘Cash grant won’t solve woes of fishing industry’ – Patterson: Kaieteur News

– says initiative will breed corruption, will not address low catch

Government’s $150,000 one-off cash grant to fisherfolk is a band-aid approach to solving the problems plaguing the fishing industry, Shadow Oil and Gas Minister, David Patterson has said. He told Kaieteur News in an invited comment yesterday that a comprehensive plan is what is required to offer relief to the ailing fisheries sector. He said while government attempted to cover up the low catch being experienced by the fishers by explaining that it was the off season for fishing, the cash grant confirms the suffering of fisherfolk in Guyana.

Government to compensate property owners who will be displaced by Gas-to-Energy project – Attorney General | OilNOW

Dredging of Guyana’s main river port for creation of two-way channel to begin soon, official says | OilNOW

MARAD working with Chile to improve security at ports: News Room

In addressing port security in Guyana, Minister of Public Works Juan Edghill has said regulations, training and enhanced inspections of vessels must be balanced to avoid wasted investment. The Minister was speaking at the opening of a port security workshop on Monday, when he expounded on illegalities at the country’s entry ports and said this is an issue that the government is continuously trying to tackle. The workshop focuses on Port Security and was facilitated after discussions between the Public Works Minister and the Chile Ambassador to Guyana Juan Manuel Pino Vasquez.

Lack of taxes, ring-fencing shorten Guyana’s profits from oil sector – former Ambassador: Kaieteur News

As the Government of Guyana (GoG) maintains its position of non-renegotiation of the 2016 Production Sharing Agreement (PSA) with US oil major ExxonMobil, former Guyana Ambassador, Dr. Kenrick Hunte said the country would be worse off when the resource is exhausted. In one of his recent writings, Dr. Hunte, a Professor of Economics at Howard University, Washington, D.C., and former Adjunct Professor at Johns Hopkins University, Bowie State University who holds a PhD in Economics from the Ohio State University, USA pointed to a number of gaps in the contract which he believes currently leaves none but “a hole in the ground and crumbs in the bank”.

Guyana could renegotiate for 15% royalty – Nigel Hinds: Kaieteur News

– unwillingness of politicians will lead country into crisis

International experts and other oil and gas stakeholders have warned particularly, Third World nations entering the lucrative crude industry against the unequal distribution of wealth emanating from this sector. They have warned against the Dutch disease where countries become heavily dependent on oil revenues, and virtually ignore their traditional sectors, but continue to speak also, on the importance of equal wealth distribution as a means of economic and social stability.

World Bank blacklisted all three Chinese companies that bid for Wales gas plant project: Kaieteur News

– accused of bribing officials, falsifying documents and fraudulent practices

Three Chinese firms competing to build Guyana’s Natural Gas Fired Power Plant at Wales, West Bank Demerara (WBD) have a well documented history of fraudulent activities. The companies which are bidding against two other entities are: China Energy Int’l Gr. Co Ltd., China Machinery Engineering Inc., and Power China Int’l Group Ltd. In the case of China Energy Engineering Group (a company that is 62.58%-owned by China Energy Engineering Group Co., Ltd.) was blacklisted by the World Bank on September 11, 2019.

Release the tax particulars… Will President Ali?: Kaieteur News (Editorial)

The hope is that President Mohamed Irfaan Ali would respond in a timely and appropriate manner.  The President is being pressed to share the details on the tax payments made by his government on behalf of the foreign oil companies (“Civil society body asks Pres. Ali to make public particulars of tax payments made for oil companies” – KN September 24).  As Guyanese watch and wait, the first question is how the President will react. 

Oil hypocrisy meets election hypocrisy: Kaieteur News (Columnist) Freddie Kissoon

In its editorial yesterday, the Stabroek News wrote the following words: “While more voices are needed, the yeoman’s work being done by members of civil society in relation to the travesties in the oil and gas sector must be strongly applauded.” With the exception of Mr. Glenn Lall and Mr. Christopher Ram, those voices are hypocritical, obnoxious and unpatriotic… I don’t have a problem with persons who condemn the EXXON oil contract. My problem is that Guyana does not deserve to have hypocrites lambasting the oil contract because EXXON and the Government are not going to listen to such people who they feel have nothing redeemable about them.

Sanctity of contract: Guyana Times (Letter to the Editor) by D. Sookdeo

As I understand it, for a contract to be legally enforceable it must satisfy the six elements of (a) offer (b) acceptance (c) consideration (d) intentions (e) legality and (f) capacity. As a layman, I would not delve into the implication of each element except to say that once the contract fulfils these requirements, even if it is lopsided in favour of one party, it cannot be changed without the consent of the other. In other words, a unilateral change will make the contact void.

Leaked Study Shows Exxon, Partners Overspent by $138 Billion: Village Voice News

By Kevin Crowley- An internal analysis performed by Exxon in 2020 suggested mismanagement by operators and poor planning were behind cost overruns. Oil and natural gas projects that Exxon Mobil Corp. invested in between 1998 and 2017 ended up costing $138 billion more than early-stage estimates, potentially due to mismanagement by operators and poor planning, according to an internal analysis seen by Bloomberg.

A fistful of protests, as Guyana continues to rubber-stamp ExxonMobil drilling permits | IEEFA

https://ieefa.org/resources/fistful-protests-guyana-continues-rubber-stamp-exxonmobil-drilling-permits

T&T announces plans to review fiscal regime, make investments more favourable to oil companies: OilNOW

Trinidad and Tobago’s National Budget, which was presented on Monday by Minister of Finance, Colm Imbert, contained new measures to help revive the country’s oil and gas sector. An impending major development is a review of T&T’s fiscal regime to garner more oil investment. Calls had mounted – especially from T&T’s Energy Chamber – for the government to review the energy taxation regime so that the country can remain competitive, especially with growing competition from Guyana and Suriname.

BpTT gets green light for massive Cypre gas development project: OilNOW

Bp Trinidad and Tobago (bpTT) disclosed on Friday that it has received the blessings of the Trinidadian government to proceed with the development of its Cypre offshore gas project. This decision, it said, followed recent meetings between Trinidad and Tobago’s Prime Minister, Dr Keith Rowley; bp Chief Executive Officer (CEO) Bernard Looney; and incoming President for bpTT, David Campbell. Those talks focused on accelerating the project’s sanction.

Guyana Venezuela Discusses Integration Of Immigrants | MENAFN.COM

https://menafn.com/1104935745/Guyana-Venezuela-Discusses-Integration-Of-Immigrants

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