A weekly aggregation of some of the more topical business news occcuring in or likely to impact CARICOM / Caribbean
Fitch: Fitch: Barbados assigned B rating with stable outlook
Fitch ratings has assigned a long-term foreign currency issuer default rating (IDR) of ‘B’ with a stable outlook to Barbados. It also assigned a short-term IDR of ‘B’, a country ceiling of ‘B’ and senior unsecured debt level of ‘B’. In its rationale, Fitch Ratings said the country’s latest ratings “balance high GDP per capita and governance scores, a strengthened external liquidity position, and a more favourable debt repayment profile following a comprehensive 2018-2019 restructuring, against its vulnerability to external shocks due to its heavy reliance on tourism, high public debt levels and limited appetite for domestic debt from local commercial banks.” “The rating is supported by the recent International Monetary Fund (IMF) staff-level agreement to access the Resilience and Sustainability Trust (RST) with an accompanying Extended Fund Facility (EFF) programme which would underpin reform momentum and alleviate financing constraints, as well as Fitch’s expectation of a relatively quick reduction in the debt burden from high levels in the forecast period,” it explained. Pointing to the 10.5% economic growth during the first half of this year, the report noted that economic recovery has begun. Fitch said it was forecasting real GDP growth of 9% this year and 3% in 2023, although recessions in key source markets such as the United States and the United Kingdom pose downside risks. Fitch said there were a number of factors that could individually or collectively lead to a negative rating action in the future, including the emergence of financial constraints such as a breakdown in relations with international financial institutions or failure to consolidate fiscal accounts, as well as a sharp reduction in external liquidity such as a deterioration in the current account deficit stemming from an external shock. (BT)
Guyana earns US$493m in oil profits & royalties in 3rd qtr
Guyana earned US$493.1 million which included profit oil of US$442.1 million and royalties amounting to US$51 million from the oil and gas industry July to September, according to the Bank of Guyana (BoG) in its third-quarter report for 2022. The BoG said the increase in revenue was attributed to the additional Floating Production and Storage Offloading (FPSO) vessel, the Liza Unity, being in operation in the Liza Phase Two of the Stabroek Block. Since oil production began in 2019, Guyana has recorded six lifts of profit oil, which have brought in US$1.2 billion in profit oil revenue and US$153.1 million in royalty payments. (CNW)
Foreign Exchange Summary
Applicable rates as at October 21, 2022
SVG records fiscal deficit of EC$90.7m as at September 2022
Government finances in St. Vincent and the Grenadines registered a deficit of EC$90.7 million as of September this year, compared to EC$81.8 million in 2021, despite higher revenue in 2022. According to Minister of Finance Camillo Gonsalves total revenue and grants for the first three quarters of the year stood at EC$516.9 million, compared to EC$522.6 million, year-on-year. He said current revenue for 2022 was EC$486.5 million as opposed to EC$473 million last year. Current revenue is up 2.9% while total revenue and grants is down 1.1%. Current expenditure increased by 1.7% to EC$496.7 million relative to the corresponding period last year. Gonsalves said that capital expenditure was EC$121.5 million, compared to EC$122.8 million in 2021, for a current balance deficit of EC$10.1 million as opposed to an EC$15.6 million deficit last year. Capital expenditure jumped to EC$191 million up from EC$122 million in 2021. (IWNSVG)
Corporate Movements
- Dolla Financial Services Limited has appointed David Henriques as Chief Executive Officer, Ultra Financier Limited;
- Access Financial Services has advised of the resignation of Frederick Williams, Chief Executive Officer, effective December 9, 2022;
- The Scotia Group Jamaica has announced the appointment of Gabrielle O’Connor as VP, Finance and Chief Financial Officer effective October 10 and Maia Wilson as VP, Senior Legal Counsel & Company Secretary effective October 1;
- Berger Paints Limited has advised of the resignation of Carlinton Montgomery, Chief Financial Officer and Company Secretary, effective September 30, 2022;
- EduFocal Limited has advised of the resignation of Chelsea Taylor as Operations Director effective October 5 and the appointment of Tianka Scott-Morrison as Education Director effective October 3.
Supplementary Unemployment Benefit extended
The Supplementary Unemployment Benefit [SUB] has been extended to November 30th, the Government of Bermuda has confirmed. According to the Minister of Economy and Labour (MEL) , Jason Hayward, since its inception in September 2020 to 31 August 2022, payments totalling $2,818,751 have been made to individuals. Furthermore, the total benefit and health insurance payments, coupled with the administrative cost for the SUB, amount to $3,006,899. Minister Hayward said, “As we move beyond the pandemic toward greater economic stability the MEL will continue leveraging policies within its remit that support the reintegration of all Bermudians into the local economy.” (BER)
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Caribbean might not be ready for electric vehicles as US market poised to grow by 386%
There are mounting concerns that some Caribbean countries may not be ready to transition to electric vehicles (EVs). According to Valentine Fagan, Chairman of the Office of Utilities Regulation’s Electric Vehicle Working Group in Jamaica, says a full implementation of EVs without proper planning can pose problems for electricity distribution. He said data from Tax Administration of Jamaica show there are more than 500,000 vehicles in the country, but if just one per cent of those vehicles are EV, this would “bring a significant strain on the electricity grid”. However, he said the issue can be resolved with proper management and the implementation of additional infrastructure. In the meantime, the electric vehicle market in the United States is on track to grow from $28.24 billion in 2021 to $137.43 billion in 2028 or 386.6% by 2028 at a Compound Annual Growth Rate (CAGR) of 25.4%. Major automakers from Ford to GM have launched EV ranges. The U.S. crossed the tipping point for EV mass adoption earlier this year when 5% of all new car sales were fully electric. At the beginning of 2022, the U.S. became the third biggest EV market after Europe and China. Based on this achievement, a quarter of U.S. car sales could be all-electric by as soon as 2025, a year earlier than originally predicted. (RJR) (OP)
Hurricane Ian could dampen investor appetite for cat bonds
Capital unable to get significant returns from insurance-linked securities (ILS) investment could bolt for greener pastures, a Fitch Ratings assessment has determined. The report says the fallout from Hurricane Ian could test the investor appetite for bonds. Reinsurers have used the insurance-linked securities market to manage risks and to pay insured losses, amid rising rates and increasingly volatile catastrophic losses. Of its latest report, Fitch says: “ILS investors not properly compensated for risk or facing elevated losses amid fallout from Hurricane Ian may choose to reinvest capital elsewhere, which would exacerbate the demand/supply imbalance of the reinsurance sector, which is especially acute in the Florida property market.” Fitch says: “ILS include catastrophe bonds, collateral reinsurance, sidecars and industry loss warranties, representing around 20%, or $100 billion, of global reinsurance capacity.“ Cat bonds are approximately 30% of the ILS market. Commentary from the Monte Carlo Rendezvous 2022 indicated a pipeline of ILS deals of $5 billion of additional reinsurance capacity, which would benefit insurers facing a hardening market. “However, the ILS market will assume a fair share of losses from Ian, with Fitch estimating total insured losses of $35 billion to $55 billion, second only to Hurricane Katrina at $65 billion ($90 billion in 2021 dollars). (RG)
Jamaica inches closer to full employment
As Jamaica inches closer to full employment, the unemployment rate as at July 2022 stands at 6.6%, 1.9 percentage points lower than the 8.5% recorded in July 2021. The male unemployment rate decreased by 1.1 percentage points from 6.3% to 5.2%, while the female unemployment rate declined by 2.8 percentage points from 11.1% to 8.2%. The youth unemployment rate (persons aged 14-24 years) was 16.7% in July 2022, 7.2 percentage points lower than in July 2021. In July 2022, there were 1,268,000 employed persons, an increase of 53,000 compared to the similar quarter of 2021. There were 42,000 more employed females, representing 79.2% of the total increase in employment. The occupation groups ‘Clerks’ and ‘Service Workers and Shop and Market Sales Workers’ combined accounted for the majority of the increase in the employed labour force. There were 132,200 persons employed in the occupation group ‘Clerks’ in July 2022, an increase of 25,400 or 23.8 per cent compared to July 2021. In July 2022, there were 739,600 persons classified as Outside the Labour Force, a decrease of 27,900 (3.6%) compared to 767,500 in July 2021. There was a decrease of 1,700 males and 26,200 females. (STATIN)
As food security crisis deepens, 26 countries impose food export bans
Data for May to September 2022 shows high inflation in almost all low-income and middle-income countries; 88.9% of low-income countries, 91.1% of lower-middle-income countries, and 96% of upper-middle-income countries have seen inflation levels above 5%, with many experiencing double-digit inflation. The share of high-income countries with high food price inflation has risen to 85.7%. Compared to two weeks ago, the agricultural price index is 1 percentage point higher. Average wheat, maize, and rice prices in October 2022 are 18%, 27%, and 10% higher, respectively, than in October 2021. Meanwhile, wheat and maize prices are 38% and 4% higher, respectively, and rice prices are 21% lower than in January 2021. According to the World Bank, the war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation. According to an IMF paper, $5 billion to $7 billion in further spending is needed to assist vulnerable households in 48 countries most affected by the higher food and fertilizer import prices. An additional $50 billion is required to end acute food insecurity over the next 12 months. The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices. As of October 10, 2022, 21 countries have implemented 26 food export bans, and eight have implemented 12 export-limiting measures. (WB)
High energy and fertilizer costs, poor weather in key producing countries, and the Ukraine-Russia war risks have led to high domestic food price inflation. Geopolitical risk highlighted as a major driver of price volatility (Update as at October 13, 2022
Credit card use up 57 percent during pandemic
Credit card payment use in The Bahamas shot up 57% during the height of the COVID-19 pandemic and the dollar figure of these kinds of transactions has, over a period of ten years, increased from $400 million to more than $1 billion, according to a report titled “Cash Transformation in the Bahamas”. The report, which was developed in partnership between RBC Royal Bank Bahamas and Oxford Business Group, explains that in 2020 The Bahamas had its highest increase in real-time gross settlement (RTGS) transactions. The report also explains that cheque use had already been on the decline before The Central Bank of The Bahamas announced that they would be phased out. “Although check elimination is set to take place by the end of 2024, in 2019-2020 there was a 40% reduction in the number of cleared checks,” the report said. “This reduction has been more than offset by processing digital payments through the RTGS. Cooperation between commercial banks, financial institutions and the government has been the cornerstone of this progress.” The report gives kudos to the development of central bank digital currency (CBDC) the Sand Dollar, and explains that the total amount in circulation at this time amounts to about one percent of total money in circulation. The report added that only about seven percent of the population utilizes e-wallets, which are used to hold the CBDC. (NG)
![Report: How has public-private collaboration boosted digital and cash transformation in the Bahamas? | [term:name] 2022 | Oxford Business Group](https://s3.amazonaws.com/revue/items/images/018/697/873/thumb/1NlHNbE.png?1666464293)
Public-private collaboration aimed at boosting digital payments and reducing cash usage in the Bahamas has made gains in a relatively short timeframe.
BMA seeks comment on proposed new digital asset business code
The Bermuda Monetary Authority is seeking feedback from stakeholders on the proposed amendments to the Digital Asset Business Act 2018: Code of Practice and Digital Asset Business (Client Disclosure) Amendment Rules 2022. It is in relation to an initiative establishing a conduct of business regulatory framework, which ensures protection for customers using the services of regulated financial institutions. The BMA said: “The code of practice and client disclosure rules amendments seek to ensure that, among other things, a digital-asset business shall: have an obligation to treat clients fairly and equitably; have continuing regard for clients’ interests in the conduct of their business; ensure that communications with clients are fair, clear and not misleading; provide the necessary protection against the loss of clients’ assets due to internal fraud or misuse; handle complaints and errors in a manner that is fair and expedient; and ensure that clients, especially retail clients, are aware of their responsibilities within the business relationship and facilitate access to appropriate resources to help them understand their responsibilities within the business relationship.” (RG)
Trinidad ready to boost LNG, ammonia exports once more gas is online
Trinidad and Tobago, Latin America’s largest producer of liquefied natural gas and among the world’s three top exporters of ammonia, is exploring ways to boost shipments of gas and petrochemical products to help ease global shortages, Energy Minister Stuart Young said on Wednesday. Trinidad has three liquefaction trains in service and 11 ammonia plants with a total production capacity of 5.2 million metric tonnes per year. “Right now, we have a significant capacity in our plants – LNG, methanol, urea and ammonia – all of them can produce more than we need, once we have access to natural gas,” he said. Trinidad relies on costly offshore production to supply gas to its LNG and petrochemical complexes. Private producers are rushing projects to bring new production online in the coming years while the government is in talks with oil and gas producer Venezuela. Young said he is discussing with producers in Trinidad green ammonia projects, a form of ammonia produced from air and water using renewable power, considered more environmentally friendly. The final product can serve as a fertilizer or an energy-dense fuel. (Reuters)
GLOBAL ECONOMIC NEWS IN BRIEF
Turkey slashes interest rates by 150 basis points despite inflation at 83%
Turkey’s central bank on Thursday slashed its key interest rate by 150 basis points for the third consecutive month of cuts, from 12% to 10.5% — despite Turkish inflation at more than 83%. Consumer prices for the country of 84 million people climbed to a new 24-year high of 83.45% in September, though many people living in Turkey say prices for basic goods have in some cases more than tripled in the past year. The country’s monetary policy, directed by Turkish President Recep Tayyip Erdogan, is based on a pursuit of growth and export competition rather than calming inflation. Erdogan vocally espouses the unorthodox belief that raising interest rates increases inflation, rather than the other way around, and has called hiking rates “the mother of all evil.” The policy consistently provokes criticism and bafflement from economists, and plays a major role in the dramatic weakening of Turkey’s currency, the lira, which has lost roughly 28% of its value against the dollar this year.
Malaysia’s trade turnover posts double-digit growth for 20 consecutive months
Malaysia’s Ministry of International Trade and Industry (MITI) said the nation’s trade continued its upward trajectory in September 2022, up by 31.4% year on year to 256.91 billion RM (54.43 billion USD), marking the 20th consecutive month of double-digit growth. As reported by the country’s news agency Bernama, the ministry said exports increased by 30.1% to 144.31 billion RM, marking the 14th successive month of double-digit growth, while imports expanded by 33% to 112.60 billion RM. As a result, Malaysia’s trade surplus achieved a new record high of 31.71 billion RM. MITI largely attributed the export growth to robust external demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG), crude petroleum, optical and scientific equipment as well as machinery, equipment and parts. Malaysia’s exports to major trading partners, notably ASEAN, the US, the EU, and Japan, recorded double-digit growth, with the figure for Japan registered the highest monthly value ever.
The consumer price index for the United Kingdom rose 10.1% in September, according to estimates published Wednesday by the Office for National Statistics. The CPI monthly rate was 0.5% in September 2022, compared with 0.3% in September 2021. In September 2022, the CPI annual inflation rate returned to the July level, which was the highest annual CPI inflation rate in the National Statistic series, which began in January 1997. Inflation unexpectedly dipped to 9.9% in August, down from 10.1% in July, on the back of a fuel price decline. Increasing food, transport and energy prices were the biggest contributing factors to inflation, the ONS said. Food was up 14.6% year-on-year, transport was up 10.9% compared to last year, while the price of furniture and household goods rose 10.8%. The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 8.8% in the 12 months to September 2022, up from 8.6% in August. The inflation data comes just as the Bank of England plans to sell off some of its government bonds, known as gilts, from November 1.
UK financial outlook downgraded to negative by rating agency Moody’s
Moody’s rating agency has cut its UK’s financial outlook to negative but maintained its sovereign rating at Aa3. On Friday, the agency lowered the UK’s outlook to negative from stable, citing policy uncertainty amid high inflation and weaker growth prospects. Moody’s said the government’s “ability to engender confidence in its commitment to fiscal prudence” will be a consideration for Moody’s in “resolving the negative outlook”. It added that the unchanged Aa3 rating “reflects the UK’s economic resilience supported by its wealthy, competitive and diversified economy”. The report said there was also “risks to the UK’s debt affordability from likely higher borrowing and risk of a sustained weakening in policy credibility”. On 23 September, former chancellor Kwasi Kwarteng announced around £45bn pounds of permanent, unfunded tax cuts alongside an expensive plan to cap energy tariffs for household and businesses. The move sent sterling and bond markets into a tailspin and triggered a political crisis that led to Liz Truss firing Mr Kwarteng and then reversing almost all the planned tax cuts before then announcing her own resignation. New Chancellor Jeremy Hunt has said he will do “whatever it takes” to restore confidence in Britain’s public finances. He is due to announce a plan on 31 October aimed at bringing down public debt as a share of economic output in the medium term.
Eurozone inflation inches towards double digits
The euro area annual inflation rate was 9.9% in September 2022, up from 9.1% in August. A year earlier, the rate was 3.4%. European Union annual inflation was 10.9% in September 2022, up from 10.1% in August. A year earlier, the rate was 3.6%. Eurostat, the statistical office of the European Union, publishes these figures. The lowest annual rates were registered in France (6.2%), Malta (7.4%) and Finland (8.4%). The highest annual rates were recorded in Estonia (24.1%), Lithuania (22.5%) and Latvia (22.0%). Compared with August, annual inflation fell in six Member States, remained stable in one and rose in twenty. In September, the highest contribution to the annual euro area inflation rate came from energy (+4.19 percentage points, pp), followed by food, alcohol & tobacco (+2.47 pp), services (+1.80 pp) and non-energy industrial goods (+1.47 pp).
Japan’s trade deficit balloons for 14th month on energy costs, cheap yen
Japan marked a trade deficit for the 14th month in a row, government data showed on Thursday, with exports and imports ballooning to record highs, as the declining value of the yen added to the soaring costs of imported energy, food and other goods. Imports totalled 10.9 trillion yen (USD 72.7 billion) in September, according to the Finance Ministry, up nearly 46 per cent from the same month a year ago on the back of rising oil and gas costs. Imports have grown for 20 months straight on-year. But import costs were lower than the previous month’s, indicating some commodity prices have begun to stabilise. Exports totalled 8.8 trillion yen (USD 58.7 billion), with the strongest growth in autos and steel. It was the 20th straight month of year on year monthly gains. The Japanese yen has weakened drastically as the Bank of Japan maintains its negative interest rate policy, to keep economic activity going, while the US Federal Reserve tightens monetary policy to combat growing inflation pressures. Experts say that rate difference leads to a weaker yen. But the Bank of Japan has said Japan’s inflation is not as serious as the problem in the US and some other nations. Until recently, Japan has instead been striving to keep deflation, or falling prices, at bay.
U.S. budget deficit cut in half for biggest decrease ever
The U.S. budget deficit was sliced in half for fiscal 2022, the biggest drop in history following two years of huge COVID-related spending. Though still large in historical terms, the budget shortfall declined to $1.375 trillion, compared to the 2021 deficit of $2.776 trillion. The decline would have been steeper had it not been for the Biden administration’s student loan forgiveness program. Education spending totalled $639.4 billion for the fiscal year, $408 billion higher than estimated. The 2022 fiscal year saw $4.896 trillion in revenue against $6.272 trillion in outlays. The outlays number represented about a $550 billion decline in spending but an $850 billion increase in revenue. The revenue total is by far the highest ever for the U.S. government. Deficits in the previous two years soared as Congress shelled out massive sums to combat the pandemic. The shortfall hit a record $3.13 trillion in 2020 due to more than $5 trillion in CARES Act spending and other outlays. In 2019, the deficit was $983.6 billion. Prior to 2020, the highest deficit ever was $1.41 trillion in 2009 as the financial crisis came to a close. The U.S. briefly ran a surplus from 1998 to 2001.
Refrain from measures that erode tax revenues, IMF tells Ukraine
The IMF has “encouraged” the Ukrainian authorities “to refrain from measures that erode tax revenues, as they strive to align expenditure with available financing.” This was the guidance provided by an IMF staff team, which met with the Ukrainian authorities in Vienna, Austria from October 17–20. According to the IMF, the discussions focused on recent macro-financial developments and outlook, the budget for 2023 and associated external financing needs, financial sector issues and the mix of policies to support macroeconomic stability. However, the Fund acknowledges that, “The Russian invasion of Ukraine that started over seven months ago has caused tremendous human suffering and had a severe economic impact. Real gross domestic product (GDP) has contracted significantly, inflation has risen sharply, trade has been substantially disrupted, and the fiscal deficit has risen to unprecedented levels.” /////////////////////////////////////////////////////////
Value of imports up 20 percent in Q1 in the Bahamas
The trade deficit in the Bahamas has widened during the first quarter by $751 million, although exports increased 25% and imports jumped by 20% relative to the corresponding period of 2021. According to the Bahamas National Statistical Institute merchandise imports increased to $839 million, up from the $699.4 million during the first quarter of 2021. “The major groups of merchandise, were ‘food and live animals’ which totalled $157 million, ‘machinery and transport equipment’ at $149 million and ‘mineral fuels lubricants and related materials’ which totaled $137 million. The combined value of these categories represented 53% of total imports,” the BNSI said. “Other categories that contributed to total imports were ‘manufactured goods classified chiefly by materials’ which accounted for $117 million, ‘miscellaneous manufactured articles’, valued at $107 million and ‘chemicals’, at $88 million. These groups together represented 37% of total imports.” On the other hand, the value of merchandise exports during the first quarter was $124 million, compared to $80.9 million in the first quarter of 2021. “The categories that contributed the largest proportion to the exports were ‘mineral fuels, lubricants and related materials’, which totalled $43 million, ‘food and live animals’ at $30 million and ‘manufactured goods classified chiefly by materials’ at $24 million, representing 79 percent of total exports,” the BNSI said. “Commodities that showed significant increases were ‘miscellaneous manufactured articles’, and ‘crude minerals, inedible except fuels’ which increased by 1,249%, and 193% respectively when compared to the same quarter last year. The United States remained the largest trade partner, accounting for $676 million worth of commodities, followed by the Organization of the Petroleum Exporting Countries (OPEC) at $6.9 million, Canada at $6 million, the United Kingdom at $5.78 million and Caribbean nations at $3.9 million. (NG)
Inflation of 9.3% for Jamaica
Jamaica has recorded point-to-point inflation (September 2021 – September 2022) of 9.3% down from 10.2% recorded in August. This is attributable mainly to the point-to-point inflation rate for the divisions: ‘Food and Non-Alcoholic Beverages’ (10.5%), ‘Housing, Water, Electricity, Gas and Other Fuels’ (8.5%) and ‘Restaurants and Accommodations Services’ (19.4%). For the fiscal year- to-date, the inflation rate stands at 4.2%. In the meantime, for the month of September 2022, the All-Jamaica Consumer Price Index (CPI) increased by 1.4 per cent. This upward movement was largely the result of a 4.1 per cent increase in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. The rise in this division’s index was due mainly to a 9.2 per cent increase in the group ‘Electricity, Gas and Other Fuels’. This resulted from the cessation of the Government of Jamaica’s 20.0% subsidy on electricity bills for customers who use 200 kilowatts per hour or less. Meanwhile, the Food and Non-Alcoholic Beverages’ division increased by 1.1%, Education increased by 5.3%. However, the inflation impulses abated somewhat by a reduction in the Transport division which declined by 0.3% due to a decrease in petrol prices for the period. (STATIN)
TCI increases projected expenditure by 4.5% for FY22/23
The TCI government has increased its projected expenditure for the 2022-2023 financial year by an additional $18.4m (4.5%), bringing it to a historic $420.3m. According to Minister of Finance, Investment & Trade Hon Erwin. Jay Saunders, the additional funds will be utilised to address the inflationary and cost of living pressures, aggressively respond to the surge in crime and to make provisions for disaster recovery following Hurricane Fiona. Saunders explained that government revenues have ticked upwards, and it is forecast to come in at $404.2m (including a Caribbean Catastrophe Risk Insurance Facility payout of $670k and grants and contributions of over $790k). The Finance Minister said to fund the additional spending, the government will draw down $16.0m from its cash reserves, which now stand at $240m, up from $189m at the start of the Financial Year (i.e. 1st April 2022). (TCW)
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Guyana to digitize development approvals process
Guyana is seeking to transition to a single-window planning permit system and in this regard will be seeking to enact legislation by year-end to facilitate this process. According to Minister within the Ministry of Housing and Water, Susan Rodrigues “the government has recognised the need to introduce a far more automated process that streamlines workflow both within the CHPA (Central Housing and Planning Authority) and with stakeholder agencies that are part of the overall approval process.” The Minister added that “the goal is to have an integrated electronic permitting system where the agencies will no longer operate as silos but rather within an integrated mix of processes that take place concurrently.” “This is an initiative to bring certainty and predictability to the approval process by clearly identifying the requirements for various types of development, reducing unnecessary steps in the process or redundancy in the process,” the Minister said. Already within the Region, some countries are already incorporating electronic development approvals systems in their planning processes with the application management and data automation (AMANDA) software being an early front-runner. (NG) (CB)
China Plans Mammoth Offshore Windfarm
The Chinese city of Chaozhou in Guangdong has plans to begin construction on its massive 43.3 GW offshore wind farm within the space of a few years, according to the city’s most recent five-year plan. The location of the wind farm is ideal, with winds strong enough to run the turbines between 43% and 49% of the time—a figure that is high for the industry. At 43.3 GW of power generating capacity, the offshore wind farm will be capable of churning out as much power as the entirety of Poland or Argentina. For comparison, China added 16.9 GW of offshore wind capacity in 2021. This one plant, set to be complete in just three years, would dwarf that by a factor of 2.5. China has the largest fleet of offshore wind turbines in the world, according to Bloomberg. (OP)
International Oil Prices
Oil Prices at the close of business on October 21, 2022
Scotiabank introduces new digital payment solution for businesses
With Scotia eCom+™, the latest digital payment solution from Scotiabank, businesses can now accept online payments from their customers within 24 hours. Cristina Abreu – Director, Global Transaction Banking, Caribbean South and East at Scotiabank said the new system enables clients to start accepting credit and debit card online payments from anywhere in the world. “We continue to invest in solutions that drive business value for our clients and support their transition to more secure and convenient digital options,” she said. Scotia eCom+ allows clients to accept customer payments using Scotiabank’s secure payment page. (LOOP)
Regional Stock Market Report
Jamaica Stock Exchange
Overall Market activity resulted from trading in 58 stocks of which 22 advanced, 28 declined and 8 traded firm. Market volume amounted to 6,909,965 units valued at over J$29,190,379.41. Wigton Windfarm Limited Ordinary Shares was volume leader with 1,760,085 units. The JSE Index declined by 669.30 points to close at 353,428.65.
Jamaica Junior Stock Exchange
Overall market activity resulted from trading in 41 stocks of which 17 advanced, 14 declined and 10 traded firm. Market volume amounted to 3,421,711 units valued at over J$9,593,021.99. Index closed at 4,133.53.
Barbados Stock Exchange
One security traded firm as 4,000 shares traded on the Regular Market, with a total value of $12,000.00. Goddard Enterprises Limited was the sole security trading. Index closed at 2,370.39.
Trinidad & Tobago Stock Exchange
Overall Market activity resulted from trading in 19 securities of which 6 advanced, 6 declined and 7 traded firm. Trading activity on the First Tier Market registered a volume of 419,313 shares crossing the floor valued at TT$12,908,382.59. GraceKennedy Limited was volume leader with 190,783 shares changing hands valued at TT$992,094.00. The All T&T Index advanced by 2.91 points to close at 2000.98 and the Composite Index advanced by 0.68 points to close at 1335.79.
Guyana Stock Exchange
1 stock advanced, 3 traded firm and 2 declined as 10,892 units traded. Guyana Bank for Trade and Industry (BTI) was volume leader with 4,000 shares. Index closed at 1,547.70
Eastern Caribbean Securities Exchange (ECSE)
5 stock traded 2,975 units. S. L. Horsford & Company Ltd was volume leader with 1,250 units.
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US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Miami and various Caribbean markets
https://www.trade.gov/caribbean-trade-mission
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
Caribbean Investment Forum launched with focus on building resilience and boosting investment in the region | Caribbean Export
Exxon joins Guyana court case in defense of its Liza Phase 1 permit: OilNOW
ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL), has been granted a court order to join proceedings in a suit brought to the Guyana Supreme Court that challenges the validity of its Liza Phase 1 environmental permit. Danuta Radzik, a local activist and Sinikka Henry, a lecturer at the University of Guyana, who are represented by activist and international lawyer Melinda Janki and Abiola Wong-Inniss, had filed a court case against the Environmental Protection Agency (EPA) seeking to overturn its decision to grant EEPGL a five-year extension on its Liza Phase 1 permit.
Guyana engaging Facebook for removal of false maps, information about its border with Venezuela: OilNOW
Representatives of the government of Guyana on October 19 met with senior personnel from popular social media platform, Facebook, the state information arm said. The parties, on a virtual meeting, discussed the removal of illegal maps and false narratives being peddled on the mentioned social media platform, regarding Guyana’s border with Venezuela. On the government side, the meeting with Facebook was attended by Foreign Secretary Robert Persaud with support from the Head of the Frontier Unit, Donette Streete.
New local catering consortium to get tax waivers for Guyana oil sector market: OilNOW
Guyana’s government is working to see major local caterers tap into the multi-million-dollar catering industry for the nation’s petroleum sector. To achieve this, the Minister of Natural Resources Vickram Bharrat; Director of the Local Content Secretariat Martin Pertab and other key ministerial and government officers met with over 100 Guyanese-owned catering services to discuss how a consortium can be formed to bid and supply food to the two offshore floating, production, storage and offloading (FPSO) vessels.
National Gas Strategy will open new opportunities – Ali: Guyana Times
…as oil blocks set aside for bilateral partnerships
Work is ongoing on a National Gas Strategy that, according to President Dr Irfaan Ali, will help to open up new opportunities for trade and energy security between Guyana and its bilateral partners. On Tuesday, the President, in a joint press conference with British High Commissioner to Guyana, Jane Miller, OBE, spoke about opportunities for trade. Noting the importance of energy security, the President said that the National Gas Strategy being worked on would open up new opportunities for trade.
The intent was always to simplify my analysis of the oil sector: Stabroek News (Letter to the Editor) by Joel Bhangwandin
Reference is made to Deryck Daly’s letter to the Editor of Stabroek News dated October 18, 2022, with the caption, “Bhagwandin’s computing model seriously overestimates oil production OPEX and CAPEX”. Mr. Daly raised some valid points in his letter. There is really no right or wrong answer. Thus, this letter is not meant to engage Mr. Daly in a debate per se, as I have done with Professor Hunte and Ram et.al, but to offer some clarifications on the questions raised on the computation.
Chris Ram projects himself as one who has a monopolistic authority on oil and gas and financial matters: Guyana Chronicle (Letter to the Editor) by Joel Bhangwandin
REFERENCE is made to Christopher Ram’s letter to the Editor of Stabroek News dated October 12, 2022, and part one of my response thereto published in the Stabroek News and the Guyana Chronicle editions of October 15, 2022. As I have demonstrated in my first response which was not carried in its entirety by Stabroek News, Christopher Ram sought to discredit my professional and academic credentials cleverly and mischievously, but failed miserably.
GYSBI, SES receive local content certificates, master plan approved – News Room Guyana
Government forges massive strategic partnership to develop motorsport in Guyana – News Room Guyana
US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Miami and various Caribbean markets
https://www.trade.gov/caribbean-trade-mission
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
Caribbean Investment Forum launched with focus on building resilience and boosting investment in the region | Caribbean Export
Where is the next big boom going to be? | The Global Observer | Opinion | EL PAÍS English Edition
Sam Hinds: Guyana’s GDP to double by 2027 thanks to offshore oil boom | Washington Diplomat
News Room: As Guyana prepares to auction its remaining oil blocks this year, President Dr. Irfaan Ali announced that some of those blocks will be set aside for government-to-government partnerships in the future. At a press conference at the British High Commissioner’s residence in Georgetown on Tuesday, the Head of State revealed that a new policy mix vis-à-vis Guyana’s oil and gas resources is being pursued.
Some Guyana offshore blocks reserved for government-to-government partnerships – Ali: OilNOW
President of Guyana Dr. Mohamed Irfaan Ali said Tuesday that some of the country’s offshore oil blocks have been set aside for state partnerships. “We’re going to move to the auctioning of some blocks, and we have some blocks that are set aside for what is termed government-to-government partnership. And we’re looking at all our strategic partners with these blocks,” Ali said. The President made the comment during a joint press conference with the British High Commissioner to Guyana, Jane Miller.
Ramps Logistics takes Govt. to court over denial of local content certificate: Kaieteur News
Ramps Logistics (Guyana) Inc has filed a lawsuit against the Government of Guyana over its refusal to grant the company a certificate of registration under the Local Content Act. The company, which is originally from Trinidad and Tobago but is registered under Guyana’s Companies Act was earlier this year, denied a local content certificate for purportedly not being “Guyanese enough.” Last June, the contentions surfaced over the manner in which foreign companies are now using Guyanese nationals to fulfill their local content requirement for the company to be 51 percent locally owned.
Ramps Guyana subsidiary talks up achievements ahead of court hearing for Local Content Certificate: OilNOW
El Dorado Offshore (EDO), a subsidiary of Ramps Logistics Guyana Inc, proudly informed industry stakeholders in a press release that it has created more than 400 job opportunities for citizens. The affiliate company sees this as a noteworthy feat considering that it started out with a mere five employees after setting up shop at its Georgetown office in 2017. The announcement by the firm comes just a few days before its parent company goes head-to-head with regulators in a judicial review over the denial of a Local Content Certificate.
Chris Ram projects himself as one who has a monopolistic authority on oil and gas and financial matters: Guyana Chronicle (Letter to the Editor) by Joel Bhangwandin
REFERENCE is made to Christopher Ram’s letter to the Editor of Stabroek News dated October 12, 2022, and part one of my response thereto published in the Stabroek News and the Guyana Chronicle editions of October 15, 2022. As I have demonstrated in my first response which was not carried in its entirety by Stabroek News, Christopher Ram sought to discredit my professional and academic credentials cleverly and mischievously, but failed miserably. Christopher Ram forgot completely that he had already validated my credentials six years ago when he interviewed me for the CEO position of NICIL.
Comprehensive forecast analysis of Stabroek block was done to inform my opinions: Stabroek News (Letter to the Editor) by Joel Bhangwandin
Reference is made to Christopher Ram’s letter to the Editor of Stabroek News dated October 12, 2022, and part one of my response thereto published in the Stabroek News and the Guyana Chronicle editions of October 15, 2022. In my response to Nigel Hinds, Chris Ram confirmed that indeed the information Hinds requested of the Senior Minister with responsibility for Finance, Dr. Ashni Singh, is publicly available. He cited the specific source for questions one and six posed by Nigel Hinds, but he then asked of the undersigned to point him to the source where he can find the others.
Govt. engages 100 caterers to form consortium to service oil ships: Kaieteur News
Following up on President Irfaan Ali’s proposal to form a local consortium to provide meals to offshore vessels servicing the country’s burgeoning oil and gas sector, the Ministry of Natural Resources has already engaged approximately 100 caterers. The ministry announced yesterday that the initial step has been taken toward the formation of the consortium to allow local chefs to maximise on their skills. Minister of Natural Resources, Vickram Bharrat on Tuesday met with the group along with a team of technical officers from his Ministry, the Local Content Secretariat, and the Guyana Office for Investment (Go-Invest).
Coalition banking on renewable energy options to lower power costs: Kaieteur News
…maintains new feasibility study must determine investments for gas project
The A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition is not opposed to the use of gas for power generation but maintains that detailed studies must chart the way forward to determine its viability to lower the cost of power generation. In the meantime, Opposition Leader, Mr. Aubrey Norton has stated that the top considerations for his party at this time remains renewable options, as recent studies prove this option to be cheaper.
US$1B in oil fund: Kaieteur News (Editorial)
Guyanese are rich beyond belief. That, however, is not the lot of ordinary Guyanese who know only the same old poverty. The struggling family that has to do without some basics, and the many expectant citizens of this country, who hear that they are so wealthy on paper, don’t know of that richness. They are yet to touch and feel this great national oil wealth actually moving from the books and paper down to their level. There is no doubt these days that we have oil in abundance, and the monies to prove that it is here.
Two companies contracted to work on One Guyana FPSO: Stabroek News
Qingdao McDermott Wuchuan and Dyna-Mac have been contracted to work on the One Guyana FPSO vessel for ExxonMobil’s Yellowtail development in Guyana. The One Guyana builds on the design experience of the Liza Destiny, Liza Unity and Prosperity FPSOs. It will be designed to produce approximately 250,000 barrels of oil per day and will have associated gas treatment capacity of 450 million cubic feet per day, and water injection capacity of 300,000 barrels per day. It will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.
Opposition says gas to shore project ‘not viable’: Stabroek News
…says APNU+AFC in possession of studies to support its contention
The Opposition APNU+AFC is contending that the gas-to-shore project, slated for Wales, West Bank Demerara is not viable, adding that it is in possession of studies to support its contention. The claim was made yesterday at a press conference by Leader of the Opposition Aubrey Norton and his economic advisor Elson Low. However, Norton declined to share specifics of the study or say what they found to lead them to the conclusion that the project is not viable.
What may the next decade of US-Caribbean energy cooperation bring? – Atlantic Council
T&T, GUYANA & SURINAME PART OF GLOBAL ENERGY | 7pmnews | tv6tnt.com
PSC, GOGEC, other business bodies happy with renewed Guyana/UK trade prospects – News Room Guyana
Beyond local issuing of Schengen visas, Guyana aggressively pursuing visa-free EU travels – News Room Guyana
UK trade with Guyana increased by 17% in past year – Ali – Guyana Times
Guyana to seek financing from the UK for major infrastructural projects – Department of Public Information, Guyana
Delay in Suriname FID shows TotalEnergies hesitant to fully commit to country – AMI analyst: OilNOW
When it comes to answering the question of a final investment decision on the TotalEnergies-operated Block 58, Suriname’s wait has been long. And the country will have to wait at least a few months more, until 2023, for the decision. This evident diffidence, according to Americas Market Intelligence (AMI) analyst, Arthur Deakin, reflects Total’s “hesitancy” to fully commit to the country. His opinion was expressed in a recent OilNOW column.
Touchstone eyes three onshore blocks in T&T’s current bid round: OilNOW
“It’s probably the best package we have ever seen in Trinidad.” Those were the comments from the Chief Executive Officer (CEO) and President of Trinidad’s Touchstone Exploration, Paul Baay as he signalled the company’s interest in grabbing up at least three blocks in the Twin Island Republic’s current onshore and nearshore bid round. According to T&T’s Energy Chamber, Baay shared that Touchstone was “excited” by the onshore prospects up for the taking.
The Institute of Commonwealth Studies and the Commonwealth Foundation are organising two events in the run up to the UN Climate Change Conference (COP27) in Sharm El Sheikh. These events are designed to complement each other, offering multiple perspectives in the energy/development/climate change debate:
19th October 2022
The ICWS is organizing an online discussion ‘Challenges to Commonwealth Green Transitions: the Cases of Guyana, and Trinidad and Tobago’, https://commonwealth.sas.ac.uk/events/challenges-commonwealth-green-transitions .
What may the next decade of US-Caribbean energy cooperation bring?
WED, OCTOBER 19, 2022 • 12:00 PM ET
– A conversation with the Minister of Energy and Energy Industries for the Republic of Trinidad and Tobago on the future of US-Caribbean energy cooperation.
Energy Outlook in the Americas – Florida International University
Wednesday, October 19, 2022 – 12pm – 1:30pmEDT
https://calendar.fiu.edu/event/energy_outlook_in_the_americas#.Y0YgmEzMLIU
US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Miami and various Caribbean markets
https://www.trade.gov/caribbean-trade-mission
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
Caribbean Investment Forum launched with focus on building resilience and boosting investment in the region | Caribbean Export
Britain ends visa requirement for citizens of booming Guyana | AP News
https://apnews.com/article/travel-business-united-kingdom-a48d4664464490219df0f716479675c5
Guyanese nationals can travel to the United Kingdom visa-free | Loop Caribbean News
https://caribbean.loopnews.com/content/guyanese-nationals-can-travel-united-kingdom-visa-free
ExxonMobil Building Plethora of Oil, Natural Gas Prospects in Stabroek Offshore Guyana | TankTerminals
Next phase of construction for CGX’s Berbice Deep Water Port to begin this month: OilNOW
Grand Canal Industrial Estates Inc. (GCIE), a wholly owned subsidiary of Canadian oil explorer CGX Energy Inc., said it has selected GAICO Construction and General Services Inc. to continue critical works on a portion of its Berbice Deep Water Port. GCIE had previously stated that there were some minor setbacks to the project due revisions that were needed to the design of its Wharf and Trestle in the Berbice River. As a result of this, the company had said it is unlikely that the Offshore Supply Base of the port will be fully operational in Q4, 2022 as previously scheduled.
Guyana expected to withdraw US$207 million more from oil fund this year: OilNOW
Guyana’s Central Bank disclosed on Monday that 65% of the US$607 million that was approved by the National Assembly to support the 2022 budget was transferred to the Consolidated Fund. The remainder – some US$207 million – is expected to be withdrawn in the final quarter. The first withdrawal of US$200 million occurred in the second quarter. This amount represents 32.91% of the budgeted GY$126.69 billion (US$607.65 million). For the third quarter of 2022, Central Bank said the second tranche, GY$41.7 billion (US$200 million), was withdrawn – another 32.91%.
Guyana rakes in biggest quarterly windfall from oil production: OilNOW
OilNOW is an online-based Information and Resource Centre
Guyana’s Central Bank – the operational manager for the Natural Resource Fund (NRF) – disclosed on Monday that third-quarter inflows amounted to GY$102.82 billion (US$493.18 million). This comprised of profit oil totalling GY$92.18 billion (US$442.12 million) and royalties totalling GY$10.64 billion (US$51.06 million). The receipts of oil revenues into the fund for the period July to September 2022 represented the highest quarterly inflows.
Guyana earned over $100B from oil in 3rd quarter of 2022: Guyana Times
– largest quarterly earnings since oil production began
The third quarter of this year – July to September – has turned out to be the most lucrative quarter yet for Guyana’s oil earnings, with inflows of over $100 billion going into the Natural Resource Fund (NRF). According to the Bank of Guyana (BoG) in its third-quarter report for 2022, Guyana earned a total of $102.8 billion (US$493.1 million). This includes profit oil of $92.1 billion (US$442.1 million) and royalties of $10.6 billion (US$51 million).
EPA owes Guyana more than country has been provided with- Patterson: Kaieteur News
The Environmental Protection Agency (EPA) has been failing on its mandate to protect the country as oil and gas production takes off, but in addition to that, the body has also not been transparent with citizens as information relating to the sector is lacking in various regards. This is according to Shadow Natural Resources Minister, David Patterson who explained that the agency must do better. He was at the time fielding questions from the media at a picket exercise on Friday, organized by a group of public-spirited Guyanese, who were demanding that the agency respond to a letter it received since August last, in which 54 persons raised serious environmental safety concerns.
Exxon seeking proposals for Project Management services for Technical Training Centre in Berbice: Kaieteur News
ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL) recently issued a Request for Information (RFI) seeking detailed commercial and technical information from suppliers to manage the construction of the Guyana Technical Training Centre. The scope of this RFI is to identify suppliers who can support the development and definition of project scope of works, requirements, plans, process and procedures for all phases of the work; develop in-house schedule and options for different execution strategies including a risk option analysis for each strategy; and manage day to day project activities and requirements, including participating / leading meetings and issuing minutes of meeting.
Bhagwandin’s computing model seriously overestimates oil production OPEX and CAPEX: Stabroek News (Letter to the Editor) by Deryck Daly
Joel Bhagwandin (JB) concluded the Liza 1, Liza 2, Payara and Yellowtail projects will produce respectively 438 million barrels in 10 years, 600 million barrels in 8 years, 600 million barrels in 8 years and one billion barrels in 11 years. The computed average daily production rate based on JB’s information is exactly equal to the nameplate daily production capacity. This means the projects will start up at or around nameplate production capacity and basically produce oil at nameplate capacity for 10, 8 and 11 years, until all the oil is recovered.
A singular national vision to anchor and sustain Guyana’s transformation: OilNOW (Columnist) by Dr. Carolyn Walcott and Dr. Terrence Blackman
During the 1970s, Guyana’s leadership pursued a socialist economic path. Guyana’s Non-Aligned stance and fundamental governance and foreign policy principles were built upon western non-interference and self-sufficiency. The Non-Aligned Movement’s ideology of anti-colonialism and liberation struggle was embedded in the national psyche as part of the nation’s post-independence ideological ethos.
President challenges FAO to establish special fund for small island and low-lying states – News Source Guyana
NCN: CONSORTIUM TO BE ESTABLISHED FOR LOCAL CHEFS
– To tap into oil & gas industry
A consortium will be established for local chefs to benefit directly from the oil and gas sector.
President Irfaan Ali says the project is another initiative under the “One Guyana” umbrella to economically empower citizens.
Suriname and Guyana: Oil wealth or the environment – France 24
https://www.france24.com/en/video/20221018-suriname-and-guyana-oil-wealth-or-the-environment
The Institute of Commonwealth Studies and the Commonwealth Foundation are organising two events in the run up to the UN Climate Change Conference (COP27) in Sharm El Sheikh. These events are designed to complement each other, offering multiple perspectives in the energy/development/climate change debate:
18th October 2022
The Commonwealth Foundation is hosting Just Transitions, as part of their Critical Conversation series. It will be one of three events the Foundation is holding ahead of the UN Climate Change Conference.
19th October 2022
The ICWS is organising an online discussion ‘Challenges to Commonwealth Green Transitions: the Cases of Guyana, and Trinidad and Tobago’, https://commonwealth.sas.ac.uk/events/challenges-commonwealth-green-transitions .
What may the next decade of US-Caribbean energy cooperation bring?
WED, OCTOBER 19, 2022 • 12:00 PM ET
– A conversation with the Minister of Energy and Energy Industries for the Republic of Trinidad and Tobago on the future of US-Caribbean energy cooperation.
Energy Outlook in the Americas – Florida International University
Wednesday, October 19, 2022 – 12pm – 1:30pmEDT
https://calendar.fiu.edu/event/energy_outlook_in_the_americas#.Y0YgmEzMLIU
US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Miami and various Caribbean markets
https://www.trade.gov/caribbean-trade-mission
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
Caribbean Investment Forum launched with focus on building resilience and boosting investment in the region | Caribbean Export
Guyana opens tender for its first oil refinery | Reuters
https://www.reuters.com/business/energy/guyana-opens-tender-its-first-oil-refinery-2022-10-17/
Almost US$1 billion in oil revenue could be plugged into Guyana’s 2023 budget: OilNOW
Guyana’s updated Natural Resource Fund Act outlines a clear and simple formula for the calculation of withdrawals allowable from the Fund each year. Based on this formula, using US$1.247 billion expected from oil in 2022, approximately US$998.5 million is projected to be available for withdrawal and spending in the new year. This would represent 80% of the Fund’s expected 2022 inflows. Consequently, US$248.5 million (20%) remains in savings.
Guyana rakes in biggest windfall from quarterly oil production | OilNOW
https://oilnow.gy/featured/guyana-rakes-in-biggest-windfall-from-quarterly-oil-production/
Guyana won’t become next Dubai without foreign expertise, development of entrepreneurial talent – Int’l Advisor: OilNOW
By unlocking significant oil resources in the ExxonMobil-operated Stabroek Block, one consultant after another has often said Guyana is poised to become the next Qatar or Dubai of the region. But such a promising future cannot come to pass if Guyana does not devise a strategy to enlist the help of foreign experts while developing its own entrepreneurial talent, says David Lewis, a Fellow of the Caribbean Policy Consortium.
Local educator says rapid development of skills must be high on Guyana’s agenda: OilNOW
For Guyana to succeed with the implementation of its Local Content Legislation, its regulators must keep rapid skills development at the top of mind, says University of Guyana Professor, Dr. Leyland Lucas. The educator made this point during a virtual panel discussion facilitated by the Guyana Business Journal on Wednesday. Hosted by Founder and Associate Professor, Dr. Terrence Richard Blackman, the topic for discussion was Implementing Guyana’s Local Content Policy: Challenges and Opportunities.
Guyana’s first electric vehicle charging stations expected in four months: OilNOW
The first major step to kick-off Guyana’s automotive transition is drawing near. The Guyana Energy Agency (GEA) expects the first electric vehicle (EV) charging stations, part of a pilot project, to arrive in February 2023. The project includes the supply of six charging stations to be placed across the coast. The contract was awarded to Flash Motors Company Limited of Jamaica, Chief Executive Officer of GEA, Dr. Mahender Sharma, told OilNOW.
Unappealing fiscal terms, mature gas fields placing Trinidad at risk: OilNOW
Arthur Deakin, Analyst at Americas Market Intelligence (AMI) believes that Trinidad and Tobago’s oil and gas prospects remain dire and will continue to spiral without new oil and gas discoveries. In an OilNOW column, Deakin noted that T&T has been struggling with declining gas reserves, a result of having mature gas fields, unappealing fiscal terms, and overshadowing discoveries in neighbouring countries like Guyana and Suriname.
Local firms must up their game; ‘I forget it; I gun get it to yuh tomorrow’ can’t work: OilNOW
Guyana’s Local Content legislation is designed to increase citizens’ participation in the oil and gas sector in at least 40 areas of work. These include rental of office space and equipment, catering services, janitorial and laundry services, and public relations. These categories can indeed generate millions of dollars in revenue. But they only account for the fundamentals or basic opportunities in local content, says University of Guyana Professor, Dr. Leyland Lucas.
Law empowers Local Content Secretariat to have unrestricted access to oil companies’ facilities, records, & reports: Kaieteur News
According to Guyana’s Local Content Legislation, officials attached to the Local Content Secretariat or a representative of that body can have unrestricted access to a contractor, subcontractor or licensee’s facilities, records, reports, documents, data, and information. Such access is allowed for the purposes of monitoring, assessing, evaluating, investigating, auditing, and verifying compliance with the Act.
Exxon seeking project manager for construction of training institute in Guyana: OilNOW
ExxonMobil Guyana is seeking a project manager for the construction of the national oil and gas training institute it is building, in partnership with the Guyana government. The institution, styled the ‘Guyana Technical Training Center Inc.’, will be situated at Port Mourant Berbice, Region Six, next to a training centre run by the Guyana Sugar Corporation (GuySuCo). ExxonMobil outlined robust local content requirements which will be applied to the procurement process.
Guyana regulator says no impact study needed for rope access training facility: OilNOW
Guyana’s regulator, the Environmental Protection Agency (EPA) said on Friday that Qualco Guyana Inc. is not required to conduct an Environmental Impact Assessment (EIA) for its Rope Access Training and Workshop Facility located at Supply, East Bank Demerara. “The EPA has determined that this project will not significantly affect the environment and is therefore exempt from the requirement,” the agency said in a notice. Citing reasons for its decision, the EPA said it has sufficient environmental information on the project and that the application and project summary submitted outlined adequate mitigation measures.
Good hands: Guyana Chronicle (Editorial)
GUYANA has been given high marks by the International Monetary Fund (IMF) for its handling of the economy, especially in the context of the country’s emerging status as an oil-and-gas producer. The IMF is a global multinational financial institution which has, over the decades, provided not only financial assistance to member countries but also policy and technical advice. As such, the views and opinions of the IMF cannot be dismissed or brushed aside, since they could influence the decision-making processes of other financial institutions.
Oil money helping to ease impact of inflation, says government: OilNOW
Following the passage of the Natural Resource Fund (NRF) legislation, the Guyana government has been able to authorise a US$607.6 million transfer to support the 2022 budget. The administration has said that the withdrawal would be used to invest heavily in capital expenditure while supporting the critical needs of the vulnerable population. The government was keen to note that the strong oil windfall is therefore allowing the authorities to improve the standard of living of citizens as well as temporarily lower rates or remove taxes on selected items, including gas and diesel fuels, to mitigate the impact of rising inflation.
More Guyana barrels will go to Europe, says Chief Economist: OilNOW
With Europe scrambling for alternative energy sources in wake of the Russia-Ukraine war, Guyana’s light, sweet crude has assumed greater importance to the continent’s consumers. This was discussed by Scott B. MacDonald, Chief Economist for Smith’s Research & Gradings, and Research Fellow with Global Americans, in an OilNOW column. Guyana, he said, exported 116,900 barrels of oil per day (bpd) of crude in 2021, most being sold to Asian countries, including China and India, while shipments to Europe accounted for around 16% of the total.
Catering consortium to be formed to supply food to oil and gas vessels: Guyana Chronicle
A CONSORTIUM comprising catering companies from across Guyana is expected to be formed soon to bid for contracts to provide meals and food supplies to floating production storage and offloading (FPSO) vessels. This was announced by President, Dr Irfaan Ali, on Sunday while he delivered remarks at a Youman Nabi service at the Leguan Masjid. During this address, the Head of State said that he instructed Minister of Natural Resources, Vickram Bharrat, to work on bringing together a consortium of all major caterers in the country.
Guyana is an independent country with full national sovereignty: Guyana Chronicle (Letter to the Editor) by Dr. Randy Persaud
I WRITE in response to Arthur Deakin’s claim “…that Guyana…needs the participation of an independent and international body in the monitoring of these [NRF]funds to ensure appropriate and transparent spending of the revenues.” Mr Deakin is the Director of Energy Practice at American Market Intelligence, a Florida-based outfit. His concern is that the executive branch of the GoG has too many ties to those bodies and individuals responsible for drawing on the funds from the NRF. Mr Deakin does not appear to know that Guyana is an independent country and has full national sovereignty. The suggestion is not only without merit, but it is also disrespectful.
Response to Prof Hunte, et al (Series 2, Part II): Guyana Chronicle (Letter to the Editor) by Joel Bhangwandin
PROFESSOR Hunte appears to be having great challenges defending his magicnomics on the Production Sharing Agreement (PSA), and by extension great difficulty debunking my counter arguments on his nonsensical and flawed analysis. Failing to rise to the challenge on the back of his own academic wherewithal, he brought out an army of professors and self-anointed experts to his rescue, despite their failed attempts to comprehensively rebuff the counterarguments and analyses by the undersigned.
IMF report highlights policies that encourage and protect overall growth: Guyana Chronicle (Columnist) Oil, gas & you
THE International Monetary Fund (IMF), an independent financial agency of the United Nations that includes 190 countries, published their 2022 Article IV Consultation report on Guyana. While these reports offer detailed insights into a country’s economy, as discussed in last week’s column, they also explore the legal and regulatory situation within a country that could shape the economy for better or worse. Beyond the economic transformation happening in Guyana, the additional findings from the report showcase a strong regulatory environment in Guyana.
‘CNOOC Petroleum’ opens local headquarters: Guyana Chronicle
–Prime Minister says investors with Guyana’s best interest at heart essential to development
PRIME Minister, Brigadier (Ret’d) Mark Phillips, has lauded CNOOC Petroleum Guyana Ltd for its commitment to its Guyana operations, noting that it underscores that strong partnerships are essential to the overall success of any operation. According to the Prime Minister, the transformative oil and gas sector requires development partners who could collaborate with Guyana to advance its interests and objectives.
Guyana, Qatar discuss avenues for growth in O&G sector: Guyana Chronicle
THE Government of Guyana continues to forge meaningful relations with countries, as development in the oil and gas sector continues. Guyana’s Foreign Secretary, Robert Persaud, in an interview with the Department of Public Information, said: “With Guyana in pursuit of transforming its economy, while building new sectors, the country continues to deepen its relationship with its international allies. Especially as the country’s rate of growth in the oil and gas sector continues.”
Petro Dollars and Sense!: Guyana Chronicle (Columnist) Chronicles of a Chronic Guyana Chronicler by Earl Bousquet
Part 3: CARICOM’s PetroCaribe Conundrum
This series examines Guyana’s Oil & Gas options globally on the eve of the Final Quarter of the 21st Year of Century 21, as the world’s richest nations pay higher costs to fight inflation and try to avoid pending recession, while also scurrying to secure adequate alternative energy supplies to replace Russian gas. WHEN Presidents Hugo Chavez and Fidel Castro dreamed up the PetroCaribe agreement in just short of two decades ago, not one barrel of oil had been extracted in Guyana. ExxonMobil’s initial discussions with the PPP/Civic administration, (circa 1996) were originally fruitless, but fructified less than a decade later following deals signed up under the APNU+AFC alliance after 2015.
News Room: CNOCC Petroleum Guyana Limited, which holds a 25% working interest in the giant oilfields of the Stabroek Block with Exxon Mobil and Hess, on Friday afternoon opened its new head office in Georgetown. The company said its vision is to advance as a sustainable energy provider for all, while supporting communities where it works.
Exxon’s 4th Guyana FPSO: Construction of topsides commences in Singapore: OilNOW
SBM Offshore said construction of the topsides modules for the ‘ONE GUYANA’ floating production, storage, and offloading (FPSO) vessel and the accompanying marine structures has commenced in Singapore. Two steel strike ceremonies were held in both Keppel FELS and Dynamac yards in September, marking this key milestone. ONE GUYANA is the fourth and latest sanctioned FPSO under construction by SBM Offshore for its long-standing client, ExxonMobil, the shipbuilder said.
I have waited for the appropriate time to debate Chris Ram on oil and gas matters: Stabroek News (Letter to the Editor) by Joel Bhangwandin
Reference is made to Christopher Ram’s letter to the Editor of Stabroek News dated October 12, 2022, where he referred to me as a ‘self-described adjunct professor’. I have never used that title to describe myself. I first met Chris Ram back in 2016 under the previous government. I was on the verge of completing my first master’s degree in banking and finance when I came across an advert for CEO of NICIL in the newspapers by Ram and McRae. At that time, I was second-in-charge of the GBTI Port Kaituma branch.
Response to Chris Ram (Part I): Guyana Chronicle (Letter to the Editor) by Joel Bhangwandin
REFERENCE is made to Christopher Ram’s letter to the Editor of Stabroek News dated October 12, 2022, where he sardonically referred to me as a self-described adjunct professor. If one were to check my professional profile on LinkedIn and my curriculum vitae (CV) which is also on the Internet, I have never used that title to describe myself. I’ve been writing consistently for the past five years, I presented at many public forums, sat on many panel discussions, including with Chris Ram, appeared on television programmes, etc., and I have never used that title to describe myself.
‘Govt. approving more oil projects to the detriment of Guyana’: Kaieteur News
– Patterson says population can be the most unhealthy in the World next five years
Shadow Minister of Natural Resources, David Patterson is adamant that the Government of Guyana prefers to have an “under-staffed” and “undermined” Environmental Protection Agency (EPA) even if it means putting the country at risk to show off Guyana as the most fast-paced developing country in the World. While focused on this objective, the former Minister of Public Infrastructure said it may end with the citizens of Guyana being the unhealthiest in the world, owing to the inadequate performance of the regulatory body.
Is this an audit, or is it a case of bury it?: Kaieteur News (Editorial)
We had made our position clear from the inception: that audit of ExxonMobil’s US$9B in expenses was not going to go down well. Now here we are almost at the end of October, and of word regarding that same four-month audit, there is deafening silence from the PPP/C Government. The audit that was scheduled to be completed at the conclusion of September, but regarding its state, there is nothing. It looks like it is going to go the way that almost everything that the PPP/C Government and leaders made big and bold promises about sharing with Guyanese.
Keep on… kvetching: Guyana Times (Columnist) Eyewitness
Your Eyewitness looked at the dozen protestors in front of the Environmental Protection Agency (EPA) and its supervisory Environmental Assessment Board (EAB) kvetching about the latter’s permits for companies storing wastes onshore without consulting citizens… But weren’t some such complaints taken to the courts where ‘satisfaction” was given?? Your Eyewitness remembers one in which an EPA permission to Exxon was limited by the Courts to five years. And didn’t the system work when a few months ago, the EAB overruled the EPA’s decision to waive EIA for radioactive storage facility at Coverden on the EBD??
Four years on, whistleblower protection legislation is yet to be brought into effect: Stabroek News (Columnist) Accountability Watch by Anand Goolsarran
A clarification for online users who may not have access to the full article… In 2019, ExxonMobil dismissed two of its scientists after suspecting them of leaking information to the Wall Street Journal. A federal whistleblower investigation, however, found that communication with the newspaper of alleged company violations is protected activity under the Sarbanes-Oxley Act and that the company terminated their services illegally. As a result, the US Department of Labor’s Occupational Safety and Health Administration (OSHA) ordered Exxon to immediately reinstate the two employees and pay them more than $800,000 in back wages, interest and compensatory damages.
Natural Resource Fund can make a real difference to people but will it?: Stabroek News (Letter to the Editor) by Cathy Hughes
I’m sitting on the balcony at the guest house in Paramakatoi looking out on the majestic Kawa mountains, the cool breezes blowing over the rugged and harsh terrain. I have just spent $2,500 for 24 hours of internet access which ended in 17 minutes. The WhatsApp message I’m able to read has me stunned. Our Natural Resource Fund now has one billion US dollars accumulated in it! I want to celebrate.
It is time for Op-Ed: Renegotiation: PPP Govt must also be onboard: Village Voice News by GHK Lall
Everybody is talking about it; all want it to happen now. It is called renegotiation of the 2016 oil contract, with the AFC being the latest to throw its hat on that side of the ring. The PNC has not come full out for or against renegotiation, but there have been sounds coming from the party that could be interpreted as anything that gives Guyana a better deal, more favorable contract conditions, is well-received, and would be strongly supported.
Govt. silent on US$9 billion audit of Exxon’s expenses – Aubrey Norton: Kaieteur News
A four month audit into the bills handed to Guyana by oil giant, ExxonMobil, over the years 2018 to 2020 was scheduled to be completed in September of this year, but although the findings from that review will soon be overdue by one month, the People’s Progressive Party (PPP) Government is yet to give an update into the massive spending of the oil company. Leader of the Opposition, Aubrey Norton has blamed the ‘incompetence’ of the administration for failing to publish the findings of the report, cognizant that there has been no word from the party where the audit is concerned.
We will not sit back and allow greedy foreigners to destroy our country – ‘Red Thread’: Kaieteur News
…ExxonMobil must leave country clean for future generations
As American oil major, ExxonMobil continues to ramp up oil production in the country, the members of a women organisation, ‘Red Thread’, have made it clear that they will not sit back and allow their country to be destroyed by ‘greedy foreigners.’ On Friday last, Wintress White, one of the 40 members of Red Thread participated in a picket exercise outside the Environmental Protection Agency’s (EPA’s) Ganges Street, Georgetown Head Office lobbying the body to perform its mandate of safeguarding the environment.
‘Don’t weep for me, weep for Guyana’: Kaieteur News
– Glenn Lall says theft by Politicians, foreigners trump millions stolen from his company by bandits
Bandits last week stormed the Kaieteur News Saffon Street, Charlestown, Georgetown office and escaped with millions in cash and other items, but Publisher of the newspaper, Glenn Lall said though he is concerned about the daring robbery, he sees billions of this country’s wealth being stolen by Politicians with little resistance from citizens – a situation which he said must not be allowed to continue.
ExxonMobil Guyana pumps $3.6M into New Era Futsal tournament: Kaieteur News
– Tournament kicks off on October 21
New Era Entertainment yesterday announced ExxonMobil Guyana as the title sponsor for their annual Futsal Tournament, following the handing over $3.6M from the global oil and gas corporation. This year’s tournament is set for October 21, 22, 28, and 29, and finals on November 5, at the Retrieve Hard Court in Linden. The New Era/ ExxonMobil futsal tournament will feature 16 teams, with Hard Knocks, Team Unknown, Silver Bullets, Swag and Aroaima already confirming their participation for a chance to cash in on the tournament’s winner’s purse of $400,000.
To renegotiate or not to renegotiate: Kaieteur News (Columnist) The GHK Lall Column by GHK Lall
I am all for renegotiation. From the inception I had made my position clear: the contract is not liked, and that was before the punishing terms and conditions of the 2016 oil contract became a part of the public conversation. Increasingly, the Guyanese public has great anxieties of the some of the more alarming and bizarre items in the contract, such as taxes, environmental exposure, and ring-fencing. More and more it has become apparent that the 2016 contract is a vise around the necks of Guyanese, while all of us have a gag stuffed in our mouths.
“Our welfare is more important than profits from oil and gas” – picketers to EPA: Kaieteur News
A group of public-spirited citizens on Friday joined forces to picket the Environmental Protection Agency (EPA’s), Ganges Street, Georgetown Head Office after the body, which is mandated by law to protect the environment and its inhabitants, failed to respond to a letter which embodied the concerns of over 50 persons. The letter, dated August 29, 2022 was addressed to both the EPA and the Environmental Assessment Board (EAB).
Gas-to-Shore project: Upgrades to GPL grid to be completed by 2024 – Project Manager: Guyana Times
…in time for completion of pipeline, 1st phase of NGL plant
Upgrades to the Guyana Power and Light (GPL) grid that will be necessary for energy from the gas-to-shore project to be integrated into the Demerara Berbice Interconnected System (DBIS), will be completed by 2024. This was according to ExxonMobil’s Gas to Shore Manager Friedrich Krispin, when he delivered remarks during the recently concluded Guyana Basin Summit (GBS) that was held at the Pegasus Hotel.
Gov’t invites proposals for oil refinery at Crab island: Stabroek News
-wants construction to start in first half of 2023
Transforming Guyana Episode V: Implementing Guyana’s Local Content Legislation
Guyana Business Journal Magazine + Caribbean Policy Consortium
Media Advisory – October 13, 2022
The Institute of Commonwealth Studies and the Commonwealth Foundation are organising two events in the run up to the UN Climate Change Conference (COP27) in Sharm El Sheikh. These events are designed to complement each other, offering multiple perspectives in the energy/development/climate change debate:
18th October 2022
The Commonwealth Foundation is hosting Just Transitions, as part of their Critical Conversation series. It will be one of three events the Foundation is holding ahead of the UN Climate Change Conference.
19th October 2022
The ICWS is organising an online discussion ‘Challenges to Commonwealth Green Transitions: the Cases of Guyana, and Trinidad and Tobago’, https://commonwealth.sas.ac.uk/events/challenges-commonwealth-green-transitions .
Energy Outlook in the Americas – Florida International University
Wednesday, October 19, 2022 – 12pm – 1:30pmEDT
https://calendar.fiu.edu/event/energy_outlook_in_the_americas#.Y0YgmEzMLIU
US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Miami and various Caribbean markets
https://www.trade.gov/caribbean-trade-mission
Caribbean Investment Forum
November 8-11, 2022 – Trinidad
Caribbean Investment Forum launched with focus on building resilience and boosting investment in the region | Caribbean Export
Guyana Building Out Competitive Economy For 2030 And Beyond,… | MENAFN.COM
Oil money helping to ease impact of inflation, says government | OilNOW
150,000 Guyanese to become coders through new UAE partnership – News Room Guyana
Govt to solicit proposals to construct 30k barrel oil refinery in Reg 6 – Pres Ali – Guyana Times
Guyana now offering land for 30,000 bpd oil refinery | OilNOW
Guyana seeks interest in establishing oil refinery for national security purposes – Jamaica Observer
Guyana seeks investors for oil refinery | Loop Caribbean News
https://caribbean.loopnews.com/content/guyana-seeks-investors-oil-refinery
Oil refinery to be constructed at Crab Island, Berbice River – Demerara Waves Online News- Guyana
ExxonMobil’s Monumental Guyana Discovery | TankTerminals
More Guyana barrels will go to Europe, says Chief Economist | OilNOW
Guyana exports could replace 4% of all Russian gas that went to Europe in 2021 – Analyst: OilNOW
Guyana could emerge as a major LNG exporter in coming years as massive hydrocarbon discoveries continue to mount off the country’s coast and output from neighbours such as Trinidad and Tobago continue to decline. In his most recent OilNOW column published on Friday, Arthur Deakin, Director of Americas Market Intelligence’s energy practice, said with Russia’s discounted oil and liquefied natural gas (LNG) being diverted to Asian buyers, and its gas deliveries to Europe falling by 80%, the world’s energy markets have been forced to shift and recalibrate.
Solar power leads energy transition pathway amidst Guyana’s oil boom – Stabroek News
Solar farm confirmed for another Guyana town | OilNOW
Liberalisation of telecommunications sector has promoted its expansion – PM – Department of Public Information, Guyana
New telecoms provider Green Gibraltar to begin hinterland demonstrations next month – Stabroek News
Major Palmyra projects to start before year-end – Ali – Stabroek News
Jamaican entrepreneur keen on expanding Home Choice Enterprises brand here – Stabroek News
More investors flocking to Guyana since local content law enacted – Economist: OilNOW
The provisions outlined in Guyana’s Local Content Act – a critical piece of legislation for the country’s booming oil sector took centre stage during Episode V of the Guyana Business Journal’s Transforming Guyana webinar on Wednesday. Since the law’s December 2021 passing, it faced some criticism, chief among which is that it hampers foreign investors from doing business in Guyana. But Economist and Executive Director of local business body, the Georgetown Chamber of Commerce and Industry (GCCI), Richard Rambarran, pointed out that what has been happening is quite the opposite.
Almost 100% compliance with 45-day requirement to pay local suppliers – LCS Head: Guyana Times
Almost all the companies operating in the oil and gas sector have complied with the Government’s new stipulation that they must pay local suppliers for goods and services within a 30- to 45-day period. This is according to the Head of the Local Content Secretariat (LCS), Martin Pertab… At the time, the Ministry had approved the updated Local Content Master Plans of several tier-one contractors, including SBM Offshore and Halliburton, who have complied with this new condition.
Evening News – 3:54: LOCAL CONTENT SECRETARIAT SEES ALMOST 100% COMPLIANCE WITH 45-DAY REQUIREMENT TO PAY LOCAL SUPPLIERS
Over 400 Guyanese secured jobs through El Dorado Offshore in oil & gas sector – Guyana Times
Local joint venture opens fire and Safety Company: Kaieteur News
– Inks deal with SBM to certify fire extinguishers on FPSOs
Guyana passed its Local Content Legislation in December 2021, and while there might be some loopholes that need to be filled, local Businessman, Hemant Singh, the owner of Industrial Supplies Limited, is using it to his advantage to reap some of the benefits this country’s lucrative oil and gas sector has to offer. Singh has teamed up with a Canadian firm, K&D Pratt, to form a local joint venture called, ‘Meridian 60 Fire and Safety’.
Local firms must up their game; ‘I forget it; I gun get it to yuh tomorrow’ can’t work | OilNOW
CNOOC Petroleum Guyana opens head office in Georgetown – News Room Guyana
Guyana signs air services agreement with China – Department of Public Information, Guyana
There are too many misconceptions surrounding the PSA and oil revenues: Stabroek News (Letter to the Editor) by Joel Bhangwandin
Reference is made to Professor Andre Brandli’s letter to the Editor of Stabroek News dated October 11, 2022, with the caption “Mr. Bhagwandin is operating completely in the dark with his calculations.” Professor Brandli argued that “in essence, Mr. Bhagwandin is trying to mislead the readership of Stabroek News by presenting a fictitious scenario of the development of Guyana’s future oil revenues using assumptions”. Brandli went on to state that there is no reliable data in the public domain on the capital expenditures (CAPEX) and operating expenditures (OPEX) for each of the two floating, production and storage & offloading vessels (FPSOs).
‘Natural Resource Curse’ could befall Guyana with excessive spending of oil dollars- IMF warns: Kaieteur News
The International Monetary Fund (IMF) has projected that between 2023 and 2025 Guyana will see a massive ramp up in its oil production in the ExxonMobil-operated Stabroek Block. But with the Government already fixated on rapid spending of the imminent revenues to fuel its development agenda, the financial institution said there can be economic consequences that could befall the nation such as ‘natural resource curse.’
Transparency under attack, already endangered: Kaieteur News (Editorial)
Transparency in Guyana has always been a problem for Governments, leaders, ministers, and the public servants that they select to support them… It is over a month after the reportedly (and supposedly) small offshore oil spill involving one barrel of oil, and Guyana’s Environmental Protection Agency (EPA) has lost its powers of speech, more likely, control of its institutional mind. If it is taking over a month for a single-barrel (supposedly) oil spill, and the EPA is wordless and all but worthless, relative to the welfare of the Guyanese environment and the Guyanese people, then the conclusion has to be that the monstrously worse is what is to be expected from this guardian agency, should a big oil spill occur.
Gas-to-Shore project: Upgrades to GPL grid to be completed by 2024 – Project Manager – Guyana Times
Gas-to-shore project ‘ill conceived’ without plan to improve electricity infrastructure – Patterson – Stabroek News
The gas-to-shore pipeline project has taken off, with current estimates triple the original cost: Stabroek News (Letter to the Editor) by GHK Lall
An economically sound Wales gas-to-energy (WGTE) would be a most satisfying development for Guyanese. It is one that holds the potential to give some material and psychic relief to citizens and commerce, and nothing could be more welcomed. But, as much as I am trying to squeeze some of the underpinnings of the WGTE to match present day reality, and reasonable future projections, significant doubts continue to surface. This is based on an analysis done by the same engineer, Guyanese-born, now Jamaican-based, Mr. Fitzroy Fletcher. I focus mostly on the pipeline segment of the WGTE.
Will OPEC’s biggest production cut since 2020 fuel a global recession?: OilNOW
OPEC+ announced the biggest cut to its target production level since 2020 last week – some two million barrels per day (bpd). And the International Energy Agency (IEA) believes that the decision increases energy security risks worldwide and could lead to even higher oil prices. It could just be the turning point for a global recession. Thursday, in its Oil Market October report, the IEA described OPEC’s production cut as one of the multiplying “disruptive market forces.”
‘Black gold’ for Guyana and Suriname, a blessing or curse?
Brazil assisting Guyana with large scale wheat production – Demerara Waves Online News- Guyana
Suriname at a crossroads in much-hyped exploration quest | Upstream Online
Iran starts refining its crude oil in Venezuela: Oil minister
https://www.presstv.ir/Detail/2022/10/16/691059/Iran-oil-refinery-Venezuela-launch-Owji
El Palito, first Iranian-built overseas refinery opened in Venezuela | Al Mayadeen English
Latin America’s role in a potential LNG boom: OilNOW (Columnist) by Arthur Deakin
There is no denying that the world’s inflationary pressures and future economic prospects are directly tied to energy-related geopolitics. In early October, OPEC+ signalled support for a higher oil price by cutting production by 2 million barrels per day (bpd), a clear disregard of America’s requests to keep production stable. OPEC+ claims they are seeking to avoid a supply glut if a recession comes, while the U.S. accused them of siding with Russia. Tensions are frothing.
Unappealing fiscal terms, mature gas fields placing Trinidad at risk | OilNOW
10 African countries that surprisingly have the cheapest gas prices in the world | Business Insider Africa
IMF Urges Africa Oil Producers to Ready for Shock-Prone World | Rigzone
DOD Exercise Points to Ways Western Hemisphere Can Combat Climate Change > U.S. Department of Defense > Defense Department News
Middle Eastern countries are sitting on an ocean of natural gas
But they cannot ship much to Europe, where demand is ravenous
Oct 13th 2022 | DUBAI
It is rare for the Israeli government to agree with Hizbullah, the Lebanese Shia militia and political party. But in effect it did on October 11th, after months of American-led talks. As The Economist was published, a deal with Lebanon was awaiting review in Israel’s parliament.
This is not peace in our time: although the deal demarcates Israel’s maritime border with Lebanon it will not end the long state of war between them. But it is striking, and timely for the West, because it may unlock new gas resources that Europe desperately needs to replace supplies from Russia that have been disrupted since its invasion of Ukraine.
Nine of the 20 countries with the largest proven gas reserves are in the wider region. Qatar, the world’s biggest exporter of liquefied natural gas (LNG), plans to increase its production by 43% by 2026. Israel and Lebanon hope their maritime deal will mean new discoveries in the once-disputed waters. Hours after it was clinched, bigwigs from TotalEnergies, a French giant, met Lebanese officials. Earlier this month Energean, a British firm, started running tests at Israel’s Karish field near the border.
Yet a mix of geopolitics and poor governance makes it hard to exploit those resources. Simply getting the stuff to market can be tricky. There is little capacity to transport it from the eastern Mediterranean to Europe. A pipeline has been mooted for years. It could take a short route north to Turkey and link up with existing conduits to the European Union. But to do so it would have to cross Cypriot territory, which is politically fraught. Or it could stretch all the way to Greece, and perhaps onwards to Italy. But that would require the world’s longest undersea pipeline and take the better part of a decade to finish.
For now, that leaves liquefaction. Egypt has two LNG plants on its Mediterranean coast. Israel and Lebanon have none; Egypt has been importing gas from Israel in order to re-export it. Even running at full tilt its LNG plants can supply only 2% of Europe’s total demand (and 6% of what it used to import from Russia). Expanding capacity will take years.
Other countries are struggling to boost production. Algeria, Europe’s third-largest gas supplier, will enjoy record revenue this year. Sonatrach, the state-owned oil-and-gas giant, expects to earn $50bn from energy exports, up from $35bn last year. The windfall comes from higher prices, not higher production. Sonatrach has signed some big deals with Eni, an Italian oil major, to boost capacity. But many of its big projects will not come online before 2024.
Iraqi oil wells produce lots of natural gas but lack the infrastructure to process it. Around half is flared. In 2020 the country burned almost 18bn cubic metres of natural gas, equivalent to about 5% of Europe’s annual consumption. Researchers at Columbia University estimate that flared gas in north Africa alone could replace 15% of Europe’s imports from Russia—if it can be captured.
Perhaps the biggest challenge to exports, though, is soaring domestic demand for gas (see chart). In Egypt, for example, it has risen by 35% since 2015. A fast-growing population—which hit 104m in September and adds 1m people every seven months—needs ever more electricity from gas-fired plants. The government has also urged motorists to switch fuels: many of Cairo’s ubiquitous white taxis now run on compressed natural gas rather than petrol.
Here, too, governments are belatedly taking action. Algeria is installing new combined-cycle gas-power stations, which can produce about 50% more electricity from the same amount of fuel. The national regulator reckons they will account for 55% of installed capacity by 2028, up from 23% in 2018.
Egypt, meanwhile, is urging businesses to cut consumption to free up gas for export. Such measures have rankled some Egyptians, who grumble about being told to turn off their lights so that Europeans can turn up the heat.
Production of the Guyana Business Journal & Caribbean Policy Consortium.
October 13, 2022
MEDIA ADVISORY:
Transforming Guyana, Episode IV: Implementing Guyana’s Local Content Legislation: Challenges and Opportunities
Recording Available Here:
Key Quotes
Speakers:
- Andrew Schnitzer da Silva: CCO, Ascending Ltd.
- Leyland Lucas: Dean, School of Entrepreneurship & Business Innovation, University of Guyana
- Richard Rambarran: Executive Director, Georgetown Chamber of Commerce and Industry
- Terrence Blackman: Founder, Guyana Business Journal
- David Lewis: VP, Manchester Trade Ltd. Inc. & Fellow, Caribbean Policy Consortium
Relevant Quotations:
- Richard Rambarran:
- “There are a number of issues as it relates to the environment for doing business in Guyana and the way that the environment creates the conditions for competitiveness when juxtaposed alongside more mature economies that have had time to correct some of these market inefficiencies that exist. Take for example, most common is the cost, reliability, and quality of electricity we face here in Guyana. Secondly, of course, is access to finance and rate of interest, and the depth and breadth of the financial sector we have and how competitive we can be in that regard as a private sector…”
- “How do we then take what we currently have in place and improve, in a variety of ways, the environment for doing business in Guyana and increasing the competitiveness of the Guyanese firms?…What we really ought to be probing on how can we eventually build an internationally competitive private sector…When we begin to move in that direction, we will really see a lot of benefits that accrue to local content…We will never be irresponsible and advocate for the implementation of local content on something which we clearly don’t have the capacity to do.”
- “Since the implementation of local content, I’ve actually seen more persons coming and investing…there is a degree of certainty that exists.”
- “I don’t think we need a modern immigration policy in place of the local content act. What I think we need is a modern immigration policy alongside the local content act.”
- Professor Leyland Lucas:
- “There is no perfect piece of legislation…What has been created as our legislation, will go through several iterations over the years; there will be a number of changes, amendments to this legislations simply because we have to deal with the realities of our environment.”
- “One of the critical things for the effective local content policy to really take shape is skills development and how quickly we can ramp up those skills in order to take advantage of the advanced components of local content. It is important for us to recognize that that skills vacuum is not going to be fixed overnight.”
- “You have Guyanese experts who are in the Diaspora who have ability to help us in our development…If we are going to engage the Diaspora and allow them to take advantage of local content opportunities, then how do we create a structure that allows them to take advantage of those opportunities without necessarily being present in Guyana.”
- “In the Caribbean we talk about ‘free movement of human capital’ but yet we do not see free movement of human capital. So as we expand and deal with this local content issue, we also have to ask ourselves how do we embrace our Caribbean brothers and sisters, no matter where they are coming from and at what levels can they contribute to the overall development of this country…We are at a unique stage where the end is certainly not in sight and so as we deal with those economic migrants, we do need to take a look at our migration policy and maybe make some changes.”
- Andrew Schnitzer da Silva:
- “There is a big eagerness in wanting to implement these policies or laws and there has to be a transition, an understanding from where the country is and where the country wants to be and what that entails. Lots of times, it doesn’t happen overnight…It has to be an evolving law that understands the needs of the country at any given moment in time.”
- “If we stop having international companies that are used to international standards through which we can learn and be permeated by them in order to create a different way of going about business, then it will be very difficult to input that type of rigor or that type of excellence in the way we do business…When skills aren’t present or if skills are lacking, it is very difficult for companies to be committed to these [local content] numbers.”
- “Going back to the 51% shareholding structure and the 75% managerial presence in these structures…If companies in-country do not have the expertise and companies have to come from abroad, nobody is going to give away 51% of their knowledge and of their gained experience unless they trust a local partner. In order to gain trust, I believe the best way is through time…it needs to be nurtured and needs to have a conduit in order for it to be successful…”
Terrence Blackman, Ph.D., Founder & CEO Guyana Business Journal terrence.blackman@guyanabusinessjournal.com
Dr. David E. Lewis, Fellow and Co-Chair, Caribbean Policy Consortium DavidLewis@ManchesterTrade.com
Guyana Basins Summit
October 4-6, 2022
http://guyanabasinsummit.com/en
“Innovative Research on Sustainable Development in a Resource Abundant Economy”
University of Guyana School of Graduate Studies and Research (UGSGSR)
October 5 – 7, 2022
Webinar Registration Link: https://zoom.us/webinar/register/WN_WuT_HF-yQO6T8_vuFFX05g
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
The Chinese in Guyana: the making of a Creole community
Laura Hall research materials on the Chinese in Guyana – 1995 PhD dissertation
Materials 1867-2010
https://oac.cdlib.org/findaid/ark:/13030/c87d32pr/
World Bank Economist calls on Bank of Guyana to put measures in place to address rising inflation – News Source Guyana
Calls for Guyana to share its wealth with Caricom – Trinidad Guardian
https://guardian.co.tt/news/calls-for-guyana-to-share-its-wealth-with-caricom-6.2.1554413.ce34860017
Elizabeth Morgan | CARICOM’s bilateral memoranda of understanding trend | Commentary | Jamaica Gleaner
Tucker backs robust investment drive to help Guyana ‘catch up’ on development curve: News Room
President of the Georgetown Chamber of Commerce and Industry (GCCI) Timothy Tucker has backed the robust investment drive in Guyana, stating that it is needed to help the country ‘catch up’ on its development pathway. Tucker, who spoke at the opening of the Guyana Basins Summit at the Pegasus Corporate Suites on Tuesday said that Guyana is an attractive place for investment. The GCCI President welcomed these developments because he believes the local economy has to rapidly develop on account of the nascent but sophisticated oil industry.
Guyana aims to be top tier investment destination for oil, other industries – GCCI President: OilNOW
With Guyana’s oil and gas sector poised to usher in a new area of unprecedented Foreign Direct Investments (FDI), it is critical that the country has a well-crafted plan to improve the business environment so that maximum benefits and widespread prosperity are achieved. This was the crux of the Keynote Address delivered by the 57th President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker before hundreds of delegates and exhibitors at the opening of the Guyana Basins Summit on Tuesday.
Guyana considers entering downstream business with 30,000 bpd refinery: OilNOW
An Expression of Interest (EOI) is expected to be issued by the Guyana government for the establishment of a 30,000-barrel refinery, President Dr. Mohamed Irfaan Ali relayed on Tuesday. Talk of building a refinery in Guyana had ramped up over the past few months due to inflated petrochemical prices, but this is the first time that a concrete decision has been announced to pursue one. The government had been exploring options, having received proposals from eager investors.
Guyana expected to deliver 810,000 bpd of light sweet crude by 2025 — MercoPress
Guyana Basins Summit 2022… Guyana at critical juncture in oil history; must channel revenues into health, education, renewables – Industry Leaders: Kaieteur News
Industry experts and potential investment partners participating in the three-day Guyana Basins Summit (GBS) which opened at the Pegasus Suites and Corporate Centre on Tuesday all agree that the country’s success with its petro-dollars lies in the strengthening of its health, education, and infrastructure industries as well as its human capital. There was also unanimous agreement that Guyana must invest in renewables such as solar power so that its efforts towards diversification can be achieved.
Govt single windows helping to improve ease of doing business – GCCI President: Guyana Times
…hails collaboration between Govt, private sector
While more remains to be done with Government’s aim of improving the ease of doing business in Guyana, the Georgetown Chamber of Commerce and Industry (GCCI) President, Timothy Tucker, on Tuesday acknowledged and lauded the steps that have already been taken in the single window system. The GCCI President was the first speaker in the line-up for the Guyana Basin Summit, which started at the Pegasus hotel on Tuesday. He spoke about the business climate in Guyana and some of the challenges businesses face, such as lack of inter-agency cooperation.
Service delivery to improve as GO-Invest attains ISO certification – Department of Public Information, Guyana
Guyana needs to attract, retain critical skills – IOGP Director: Guyana Times
…says this will be key to country’s development trajectory
The importance of Guyana retaining and attracting skills, while halting the brain drain, was on Tuesday underscored at the Guyana Basin Summit (GBS) as an important strategy to ensure the country develops its full potential during its oil and gas boom. According to Executive Director for the International Association of Oil and Gas Producers (IOGP), Iman Hill, Guyana is in a good position to leverage its growing oil and gas industry to attract the best minds from its own people.
Evening News – 1:02: GUYANA SEEKING INVESTORS TO SET UP 30,000-BARREL OIL REFINERY
News Room: President of the Georgetown Chamber of Commerce and Industry (GCCI) Timothy Tucker has backed the robust investment drive in Guyana, stating that it is needed to help the country ‘catch up’ on its development pathway. Tucker, who spoke at the opening of the Guyana Basins Summit at the Pegasus Corporate Suites on Tuesday underscored that Guyana is an attractive place for investment.
Gov’t moving for modular oil refinery: Stabroek News
-would have 30,000 barrels per day capacity
After more than two years of persistent lobbying by the private sector, in the wake of oil production, government yesterday announced that it would be seeking expressions of interest (EoIs) to build a 30,000 barrels-per-day oil refinery here. “You will see new expressions of interest coming out soon. And we are asking investors across the world to participate fully…We are looking at the launch of an expression of interest for a 30,000 barrel refinery.
Exxon signals strong Q3 earnings on natural gas pricing: Stabroek News
HOUSTON, (Reuters) – Exxon Mobil Corp XOM.N yesterday signaled strong third quarter operating profits on the heels of the prior quarter’s all-time high as earnings from natural gas offset weaker refining and chemicals, according to a securities filing. The largest U.S. oil producer issued a snapshot of factors affecting its third quarter that showed results could land near the company’s $17.9 billion second quarter profit.
Exploitation of resources must be done safely: Kaieteur News
…Guyana must protect itself, Region
Recent events have highlighted the high risk involved in oil and gas production, but to ensure a sustainable world for generations to come, petroleum companies have been urged to step up their game when it comes to safeguarding the environment. Delivering this charge was Executive Director of the International Association of Oil and Gas Producers (IOGP), Iman Hill – the keynote speaker at the Guyana Basins Summit (GBS) that opened on Tuesday at the Pegasus Suites and Corporate Centre, in Georgetown.
Govt. a no-show at Guyana Basins Summit: Kaieteur News
– over 80 exhibitors showcase their services
The second edition of the Guyana Basins Summit (GBS-2022) on Tuesday kicked off at the Pegasus Suites and Corporate Centre in Georgetown. The event, which is being hosted under the theme: ‘Responsibly Developing the Region’s Resources for a Prosperous and Sustainable Future’, is set to have 80 plus exhibitors on display. Noticeably, no official from the government attended the opening of the three-day event which winds down Thursday. GBS was organised by the Georgetown Chamber of Commerce and Industry (GCCI) to allow international and local firms to showcase their products and services to foster business partnerships in the emerging oil and gas sector.
Govt. boycotts oil summit held locally: Guyana Standard
Not a single person from the 25-member Irfaan Ali-led Cabinet showed their face at the Guyana Basin Summit (GBS) hosted today at the New Pegasus Suites and Corporate Centre. In fact, even the Guyana Office for Investment (GO-Invest) was noticeably absent from the event. The three-day summit is being held under the theme “Responsibly Developing the Region’s Resources for a Prosperous and Sustainable Future.” It was marketed as a platform of choice for oil and gas executives, government stakeholders and industry experts in Guyana.
APNU+AFC calls on Govt. to subsidize electricity for low-income households: Kaieteur News
While Senior Minister Responsible for Finance Dr. Ashni Singh has announced a reduction of gasoline and diesel prices at the state-run Guyana Oil Company Ltd (GUYOIL), the opposition, A Partnership for National Unity+ Alliance For Change (APNU+AFC), is calling on government to urgently introduce an electricity subsidy for low-income households. The call comes days after ordinary citizens raised concerns about the fact that the relief route taken by the government will not reach them.
March 6th possible local gov’t polls date: Stabroek News
The Guyana Elections Commission (GECOM) may soon advise the Minister of Local Government and Regional Development that the earliest possible date it could host the overdue Local Government Elections (LGE) is March 6, 2023. While GECOM administrates elections in Guyana, the responsibility to name a date for local government polls is within the remit of the Minister of Local Government and Regional Development. In this case, GECOM Chair retired Justice Claudette Singh would have to write Minister Nigel Dharamlall informing him of the state of readiness of the commission to execute its mandate.
Telepathology programme being developed for Guyana with Mount Sinai Medical – News Room Guyana
Tourism Guyana unveils second magazine – Guyana Chronicle
https://guyanachronicle.com/2022/10/05/tourism-guyana-unveils-second-magazine/
Concrete drains for entire G/Town part of long term flood relief plan – News Room Guyana
Sixth Guyana lawsuit filed over failure to protect public from spill risks | IEEFA
Ramps Logistics slapped with 10 charges from GRA for false declarations | OilNOW
NCB gets closer to Guyanese goals – Jamaica Observer
It cannot be said that Venezuela is not participating in the ICJ process – Stabroek News
President Ali shares map of land boundary between Guyana and Venezuela | Loop Caribbean News
Guyana marks 123rd anniversary of tribunal award defining border with Venezuela – CNW Network
123 years after settlement of boundary, Venezuela’s land grab aspirations now being driven by oil | OilNOW
US State Department says Guyana/Venezuela land boundary should be respected | OilNOW
US govt restates recognition of Guyana-Venezuela boundary – Demerara Waves Online News- Guyana
US reaffirms support for peaceful resolution to Guyana/Venezuela border controversy
Suriname to open auction for Demerara acreage in Q4: OilNOW
Suriname’s state-oil entity Staatsolie plans to open an auction for nation’s Demerara acreage, during the fourth quarter of 2022. Staatsolie representatives revealed this at the Guyana Basins Summit (GBS) 2022 currently being held at the Pegasus Suites in Guyana. The three-day Summit explores oil and gas and energy developments and opportunities in Guyana, Suriname and French Guiana. Suriname’s Demerara Play spans some 43,000 square kilometres (km2) with water depths between 500 to 3,000 metres.
Fate of Petrobras hangs in the balance as Lula, Bolsonaro go head-to-head | OilNOW
Guyana Basins Summit
October 4-6, 2022
http://guyanabasinsummit.com/en
“Innovative Research on Sustainable Development in a Resource Abundant Economy”
University of Guyana School of Graduate Studies and Research (UGSGSR)
October 5 – 7, 2022
Webinar Registration Link: https://zoom.us/webinar/register/WN_WuT_HF-yQO6T8_vuFFX05g
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
IMF issues favourable Economic Report Card for Guyana: Kaieteur News
Following the conclusion of its 2022 ‘Article IV’ Mission with Guyana, the International Monetary Fund (IMF) released a detailed report last week which captures its findings on the economic health of the nation as well as the Government’s response to key matters… It noted that oil production increased by 57 percent in 2021 to 110,000 barrels of oil per day (bpd). With the coming on stream of three additional fields—Liza-2 (February 2022), Payara (end-2023) and Yellowtail (2025)—it said oil production is projected to reach at the very least, 720,000 bpd by 2026.
IMF applauds govt’s transformative infrastructural projects
IMF lauds Guyana’s progress in climate change mitigation – Guyana Times
The 2022 IMF Article IV Consultation Report on Guyana (Part II): Stabroek News (Columnist) Accountability Watch by Anand Goolsarran
According to media reports, subsidiaries and/or affiliates of Chinese companies competing to build Guyana’s natural gas power plant at Wales, West Bank Demerara, have been blacklisted for fraudulent practices in relation to the award of contracts funded by World Bank… The Board stated that it welcomed the restraint in using oil revenues before the passage of the recent amendments of the Natural Resource Fund Act and encouraged continued prudent management of oil revenues. It called for measured increase in spending on public investment to ensure that the annual non-oil overall fiscal balance does not exceed the expected oil transfers.
Guyana outranks Saudi Arabia, Norway, Qatar as country with world’s second highest oil reserves per capita: OilNOW
New oil producer Guyana now ranks second only to Kuwait on the list of countries with the highest oil reserves per capita, placing it ahead of producers like Saudi Arabia, Norway, and Qatar, according to the International Monetary Fund (IMF). Guyana only had its first commercial oil discovery in 2015 but its reserves have reached an accumulated 11 billion oil-equivalent barrels as a result of ExxonMobil’s continued exploration success in the offshore Stabroek Block.
Guyana’s 2022 crude output valued at US$9.3 billion: OilNOW
The International Monetary Fund (IMF) has projected the total value of crude produced in the Stabroek Block this year at US$9.33 billion. This accounts for 93.4 million barrels of expected production, at an average price of US$99.90 per barrel. Guyana’s profit oil take will roughly align with that of the combined Stabroek Block group, as per the 50/50 split stipulated by the Production Sharing Agreement (PSA). The IMF recognised Guyana’s commitment to transparency and accountability in the management of its oil funds, as evidenced by the new Natural Resource Fund (NRF) legislation.
Guyana must perform delicate balancing act between present and future needs, says energy expert: OilNOW
From the diverse landscape of Ghana to the ultramodern architecture of Qatar, one can find a plethora of lessons on what to do with oil revenues. But the one thing Guyana, an oil explorer’s paradise must not do, is find herself a blind imitator of others. This advice was recently imparted by Dr. Lorraine Sobers, a Fulbright Scholar currently lecturing at the University of the West Indies, St. Augustine.
Guyana’s non-oil economy also performing well, IMF report shows: OilNOW
The International Monetary Fund (IMF) projects that Guyana, for the next five years, will see growth in its non-oil economy. The Washington-based institution projected that the country would see a growth of 7.2% Gross Domestic Product (GDP) for 2022. It said this can be attributed to the recovery of sugar and rice production from the floods as well as positive spill overs from the oil sector. It also projects non-oil GDP will hover around 5% and 5.2% per year up to 2027.
GTUC hosts seminar on Guyana’s oil and gas contract: Village Voice News
Guyana’s oil and gas contract with ExxonMobil was the topic of discussion at a seminar hosted by the Guyana Trades Union Congress (GTUC). The September 28 seminar was conducted in collaboration with the United States based International Republican Institute (IRI). The IRI was represented at the daylong event by Local Program Manager Sara Bharrat. The session comprised an analysis of the oil and gas contract by economist Rawle Lucas followed by a discussion of the topic among some 30 attendees.
Guyana’s Environmental Protection Agency builds capacity: Guyana Chronicle (Columnist) Oil, gas & you
GUYANA’S rapidly developing offshore oil and gas sector presents a once-in-a-generation opportunity to secure wealth for a country that has historically suffered from low growth and underinvestment. This new wealth also presents a challenge to managing the natural wealth of Guyana – the land, air and sea that underpins our green identity. Tasked with maintaining Guyana’s global leadership on sustainability and environmental protection is the Environmental Protection Agency (EPA).
The Production Sharing Agreement, Renegotiation, and the Stability Clause (Part 2): Guyana Chronicle by Joel Bhagwandin
THE argument by the proponents for renegotiation that the oil companies are not paying any taxes in Guyana is a misconceived notion. The clause in the Production Sharing Agreement (PSA) that speaks to the government paying the oil companies’ corporate taxes from the government’s share of profit– following which the Guyana Revenue Authority issues a tax certificate to the oil companies is essentially a nominal tax. In other words, the normal corporate tax rate is not applied to the oil companies, but the oil companies benefit from this in the form of a tax credit in the case of ExxonMobil in the United States (U.S).
Prioritizing Guyana’s Oil Revenue Spending: A Common Sense Approach September 29, 2022: Village Voice News (Columnist) by Dr. Lorraine Sobers
What can Guyana learn from Botswana, Ghana, Suriname, Qatar, Trinidad and Tobago, the United Arab Emirates, and Venezuela? There is great interest in this type of analysis- gleaning lessons and best practices from the oil and gas development of other countries. Case studies help us to identify best practices but they are not intended to be imitated blindly. Instead the focus ought to be on identifying proven principles that lead to right thinking and right action. Changing conditions, shifting strategies and new paradigms call for discretion and common sense in applying history lessons to today’s challenges.
We can build around existing Exxon contract instead of talking about how bad it is: Stabroek News (Letter to the Editor) by Everton D. Morris
Every day on reading the highlights in our Guyanese media I become sick of the incessant call to renegotiate the oil contract with Exxon. These cries come from very qualified minds at home and abroad and from some “talking” heads. In contract law the two most compelling reasons for contract renegotiation are “Fraud” or “Misrepresentation of facts.” That is a tall ladder for Guyana to climb – Exxon knows that.
New terms and conditions being finalised to maximise gains in upcoming oil blocks auction – Natural Resources Ministry: Kaieteur News
The Government of Guyana (GoG) said on Friday that it is preparing to launch its first bidding round for offshore exploration and production of hydrocarbon blocks. It said Cabinet is finalising the new fiscal terms and conditions which will allow for the country to gain the maximum economic benefits as it advances the exploration and development of the Guyana offshore blocks. The 2022 bidding round, which is expected to be officially launched soon, and will be open for several months, is expected to give interested companies sufficient time to prepare their competitive packages and bid to win the available acreages offshore; which will be done in an open and transparent manner.
Gov’t retains right to accept or reject bids for Wales gas plant without liability: Stabroek News
Government has informed the five pre-qualified companies in the running to build the 300MW natural gas-fired power plant at Wales that it has the right to accept or reject any proposal or terminate the selection process without incurring any liability. “Acting in its sole discretion, the Employer reserves the right to accept or reject any Proposal or to reject all Proposals, without thereby incurring any liability to the affected Applicants.
Government Take & Reported Reserves – Part 2: Stabroek News (Columnist) Guyana And The Wider World by Dr. Clive Thomas
In an effort to provide clarity and boost comprehension of the listed column title in this series, last week’s column introduced my re-visit of Government Take under Production Sharing Agreements, PSAs, with a summary re-statement of the intellectual origins of PSAs in legal theory, behavioral economics, and institutional theory. Based on these fields of research and analysis, PSAs have been, from the time of their earliest introduction to the oil and gas sector, subjected to generic critical dissections, from economic, legal, and institutional perspectives.
Renegotiation: Stabroek News (Columnist) In The Diaspora by Melinda Janki
In 2016, Raphael Trotman, the Minister responsible for petroleum signed a Petroleum Agreement with three oil companies – Esso Exploration and Production Guyana Ltd.(Esso), Hess Guyana Exploration Ltd. (Hess) and CNOOC Petroleum Guyana Ltd CNOOC). These are not the big international companies but their offshore subsidiaries, which have fewer assets. Esso is a subsidiary of ExxonMobil Corporation. Public pressure forced the government to release that Petroleum Agreement in December 2017. Everybody in Guyana knows that it is a horrible deal.
‘Exxon contract not cast in stone’: Kaieteur News
– Int’l lawyers says ‘sanctity of contract’ doctrine does not mean an agreement cannot be changed
“There is a willingness not to treat contracts as cast in stone (so) that while contracts bind us to terms and conditions, if the conditions have changed so dramatically and so detrimentally, then the reopening and renegotiation of contracts is a reasonable demand of the people of Trinidad and Tobago and we anticipate that our partners in this business will see our claim as a fair and just one and we anticipate that there will be some reopening of contracts so that at the end of the day, we can all sustainably benefit from the God-given riches of Trinidad and Tobago.”
Govt. must consider how pipeline will cut farmers’ income when valuing lands along route – Patterson: Kaieteur News
As farmers complain about being handed an inconsiderate proposal from government to take over a fraction of their land to facilitate a natural gas pipeline that will run from Nouvelle Flanders to Wales on the West Bank of Demerara, Shadow Oil and Gas Minister, David Patterson is arguing that the government’s valuation approach is incorrect as it did not factor in the losses farmers would face from not being able to use their lands.
International watchdog groups believe Exxon calling the shots on Guyana’s oil: Kaieteur News
…Article 13 says PPP/C Govt dancing to companies’ tune to stay in power
Based on interactions with international watchdog agencies, local transparency group Article 13, says it is becoming increasingly obvious to anti-corruption advocates and other stakeholders that US oil major, ExxonMobil is calling the shots when it comes to Guyana’s lucrative oil find in the offshore Stabroek Block. Given the government’s continued resistance toward renegotiating the lopsided 2016 Production Sharing Agreement (PSA) it has with Exxon’s subsidiary Esso Exploration and Production Guyana Ltd (EEPGL), the body says stakeholders are also beginning to think that the government is deliberately supporting this unfavourable agreement in return for the oil companies’ support in maintaining political power.
We are all watching and waiting: Kaieteur News (Letter to the Editor) by GHK Lall
Guyana is watching, waiting. They are watching and waiting to absorb what happens next in this shadowy, slightly messy, matter of the NRF and tax payments made by the Government of Guyana on behalf of Exxon. It would enlighten all on how well this national oil fund is overseen. As matters stand currently, the starting gun is in the President’s hands. The Audit Office issued its opinion that all is well, while the Auditor General made clear where he stood. His position, through a nifty handoff, was check with the GRA since it is the entity that has responsibility for issuing the related tax receipts.
The gas pipeline project is a very expensive and risky undertaking: Stabroek News (Letter to the Editor) by Jamil Changlee
The land purchase offer by the current administration is competitive and shows a significant improvement from the past if the land being purchased is land used for farming. Given the prevailing local market prices and pricing in other markets, the government’s offer should not be easily dismissed. However, the recent concerns expressed in the news is with some merit. The value of the land should also be based on the net present value of the cash flows.
From Exxon’s perspective there are those backdoor and sideways profits: Stabroek News (Letter to the Editor) by GHK Lall
The ordinary citizen does know, maybe doesn’t even care to know, how interest rates operate. All they know is that its charge is included in payments for mortgages, car loans, hire purchase plans, and such. They need to know more, and I share a simple primer so that the unknowing may understand the game. Further, I present an idea of how businesses and the real world operate when interest charges are involved, and how they are hurt. I do this within the context of oil.
Solar power ensures better energy security: Stabroek News (Letter to the Editor) by Darshanand Khusial
The main purpose given for building this gas pipeline is to supply the majority of electricity to Guyanese homes and businesses. Energy security is like oxygen, you realize the magnitude of its importance when you don’t have it. Gas pipelines running in the ocean to Europe are now being sabotaged by rogue states. These punctured gas pipelines are releasing methane, at least 80 times more potent than carbon dioxide, into the atmosphere.
Both Governments misused ‘sanctity of contract’ doctrine to avoid acting in nation’s best interest – NY Lawyer: Kaieteur News
Though the 2016 Stabroek Block Production Sharing Agreement (PSA) has been heavily criticized for having a gross number of fiscal weaknesses, the PPP/C administration has maintained that no renegotiation will take place. The party’s top officials such as Vice President, Dr. Bharrat Jagdeo have categorically stated that they abide by the sanctity of contract doctrine. This principle states that the companies involved as well as the State will uphold their obligations under the deal.
Pres. Ali mum on request for tax particulars for oil companies to be made public: Kaieteur News
…civil society body tells Auditor General “immediate steps” needed to address misstatements
President Irfaan Ali is yet to respond to a letter addressed to him by the Civil Society body ‘Article 13’ that requested particulars of the tax payments made by Guyana on behalf of the oil companies, be made available to the public. That letter was sent to the Head of State on September 19, last – almost two weeks ago – but, to date, there has been no acknowledgement of the correspondence. A member of the group explained that while the President is yet to state his position on the release of the tax payment particulars, ‘Article 13’ will not allow the matter to be swept under the proverbial rug.
Exxon wanted PSA signed before Govt. fully understood its Stabroek oil wealth: Kaieteur News
…‘Article 13’ cites Clyde & Co report findings
“The fact that since 2016 the volume of oil being borne out of the same agreement that envisaged a fraction of what is expected production is itself a call for renegotiation. If only the Government cared more about Guyana than its retention of power,” ‘Article 13’ believes that it would have made earnest efforts to seek more economical benefits for its citizens through its oil wealth. The civil society body has been unrelenting in its support for the renegotiation of the lopsided 2016 Stabroek Block Production Sharing Agreement (PSA).
Still no public consensus or release of new PSA as oil block auction approaches: Kaieteur News
– Opposition says it will use all avenues to access new document
Given the raging debates regarding the lopsided Production Sharing Agreement (PSA) that Guyana currently has with ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) and partners, it was thought that the Government would have by now commenced consultations, or made public, information on the new agreement to ensure stakeholders’ input for a more satisfactory share of the oil resources.
Govt. yet to grasp extent of potential danger associated with gas plant project – Patterson: Kaieteur News
…says more needed than two fire trucks and new fire station
Even as the Government continues with its preparations for the construction of the Gas-to-Energy (GTE) project, it seems to be underestimating the dangers that can be associated with the US$2 billion venture. This is evident as response plans known at the moment only include two new fire trucks and a new fire station at Wales, West Bank Demerara where the Natural Gas Liquids (NGL) facility and power plant are expected to be constructed.
Don’t do business with crooked companies: Kaieteur News (Editorial)
What nonsense is this? What is stirring in the heads of those controlling Chinese companies that they could harbour the idea that they could come up with any cock-and-bull cover (‘Chinese firms bidding for gas-to-energy project seek to distance themselves from shady past of affiliated companies’ -KN September 30) to get another fast one over Guyanese and their leaders? The Guyana Government should not give any such defenses (‘seeking to distance’) a hearing, and be rid of these people.
An injunction should be sought to stop the auction of the oil blocks: Kaieteur News (Columnist) Peeping Tom
There should be a meeting of all the groups and individuals opposed to the oil deal. An alliance should be formed with two objectives, one long-term and one short-term. The short-term objective should be to prevent the impending auctions of oil blocks. Legal advice should be sought and legal action taken to prevent the government from moving forward with the auction. The Government should not be moving forward with any auction. It has not made public the model Production Sharing Agreement (PSA) which it says it was working on to guide future deals with oil companies.
NY-based lawyer says… Refusal to renegotiate ExxonMobil 2016 deal an economic mistake: Kaieteur News
The Guyana Government has remained resolute in its position to not renegotiate the 2016 Stabroek Block Production Sharing Agreement (PSA). It has argued that it respects the sanctity of contract. Vice President, Dr. Bharrat Jagdeo has, in recent times, said while the government agrees that there are clear weaknesses within the agreement, it would remain untouched. The official who has responsibility for policies within the oil sector said government would instead seek to claw back value through the improvement of provisions within permits and production licences, and ensure enforcement of other mechanisms such as the Local Content Legislation.
Politicians should not negotiate contracts on Guyanese behalf – Int’l Lawyer: Kaieteur News
…says leaders look after their own interests
…questions giveaway of bauxite, diamond, gold and oil wealth
International Lawyer, Melinda Janki does not believe that politicians should negotiate contracts on behalf of Guyanese but should stick to instituting the correct legislative framework to manage the country’s respective sectors… In the case of the oil contract, this deal with ExxonMobil was released by former President David Granger. It was only after it was made public that Guyana understood the magnitude of losses and giveaways the oil companies are benefitting from.
Oil companies required to detail how Guyanese businesses will have first consideration at each phase of operation: Kaieteur News
– must also facilitate alliances with appropriate partners
Guyana’s Local Content Secretariat has laid out strict requirements which oil companies must now follow when procuring goods and services for their operations. According to the Secretariat’s guidelines, companies are required to produce among other documents, an Annual Local Content Plan which outlines their procurement plan with the following details: How local content is to be included for each phase of petroleum operations;
Why there are no mass protests over the oil deal?: Kaieteur News (Columnist) Peeping Tom
No one likes to be robbed. A person would rather drop accidentally or lose a $1000 bill than be mugged and deprived of $500. There is something humiliating about being robbed. No one wants to experience being mugged and robbed of their possessions. There is outrage when this happens. But this appears to apply only to personal and business transactions. If you buy something from a store and you are shortchanged you would naturally be upset.
The President is in a pickle: Kaieteur News (Letter to the Editor) by GHK Lall
Guyana is watching, waiting. They are watching and waiting to absorb what happens next in this shadowy, slightly messy, matter of the NRF and tax payments made by the Government of Guyana on behalf of Exxon. It would enlighten all on how well this national oil fund is overseen. As matters stand currently, the starting gun is in the President’s hands. The Audit Office issued its opinion that all is well, while the Auditor General made clear where he stood.
Govt to meet with CGX on Berbice Deep-Water Port: Guyana Times
The Guyana Government is slated to meet with representatives from the Canadian company, CGX Energy Inc, next week to intensify discussions on the deep-water port facility that is being constructed in Berbice, Region Six (East Berbice-Corentyne). This is according to Natural Resources Minister Vickram Bharrat, when contacted for an update on CGX’s Berbice Deep-Water Port (BDWP) project. Previously, the Government had expressed concerns over the slow pace of the project and had given the company up to September month-end to submit a plan on how it intends to move forward with the port facility.
Cabinet finalizing terms for ‘fairer share’ ahead of oil blocks auction – ministry: Stabroek News
As it prepares to launch its first auction of oil blocks, government yesterday said that it was finalizing the fiscal terms and conditions to guide those agreements it will enter into and will ensure the nation gets a “fairer share” from its oils and gas resources. And as it wants maximum global interest and competitive bidding, it said that it will be embarking on “an intensive promoting campaign” that will ensure this. “Cabinet is finalizing the new fiscal terms and conditions which will allow for the country to gain the maximum economic benefits as we advance the exploration and development of the Guyana offshore blocks,” a press release from the Ministry of Natural Resources said yesterday.
Guyana gets US$12M for skills development, employability project – Department of Public Information, Guyana
Israelis to push hydroponics in Guyana, help slash food bill – News Room Guyana