Yearly Archives: 2024

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NASSAU, BAHAMAS- Sandals Resorts International’s $100 million investment to transform its Emerald Bay Resort into Beaches Exuma demonstrates the company’s commitment to the destination...

‘Independent oversight body of oil sector not necessary’ – Jagdeo   Aug 01, 2024 News Vice President, Dr. Bharrat Jagdeo – Govt. has enough transparent oversight already Kaieteur News – Months after promising that his government will install a Petroleum Commission when the time is right, Vice President, Bharrat Jagdeo is now changing his tune that independent oversight of Guyana’s oil and gas sector is not really necessary. Speaking at his at his weekly press-conference on Wednesday, Jagdeo said the PPP/C-led administration has done enough already to transparently monitor the oil sector.   “There is no magic with a Petroleum Commission”, Jagdeo told Kaieteur News in response to a question posed to him by the media house on when he will put the independent body in place. “There is no magic, we have given our agencies the tools to manage the sector.” Showing his frustration having been asked about the body, Jagdeo continued: “For Christ’s sake, you know what it would take to get that in place, the hard work that it will take to get that in place,” before adding that the APNU+AFC opposition could have done it in the five years they were in office. “They did nothing, we did in a record time and now we have expanded the scope for a modern law from 1986”, he said. The VP is of the view that a Petroleum Commission might not make any sense because the technical persons that will be nominated to sit on the body will be politicians too.  “They would put a Vincent Adams, he is a great technical man although he is a politician (just) like how they put their executive member on the PPC (Public Procurement Commission) then say oh it acts independently- It’s a sham”, Jagdeo argued. Different tune Back in January this year, the Vice President was singing a different tune. In fact, when the question was raised then at his first press conference for the year, Jagdeo assured that the government will honour its promise to have a Petroleum Commission when the time is right. Such a regulatory body is established by a government to oversee and manage the exploration, development, and production of petroleum resources within its jurisdiction. It ensures compliance with laws and regulations, manages licences and permits, and often plays a role in promoting sustainable and efficient utilization of petroleum resources. At that press conference, Jagdeo assured that this has not been removed from the government’s agenda. He had said, “The petroleum commission, we said we are building capacity in the Ministry (of Natural Resources).” He further explained during this period where the government is focused on creating a fortified framework for managing accountability in the sector, swifter action would be needed for a number of critical matters. He alluded that this is not the type of approach one would normally see from a technically outfitted body like a Petroleum Commission.  Jagdeo said it is as a result of the government’s insistence on a rapid build out of the management framework for the sector that a new Natural Resource Fund Law was passed, a new Petroleum Activities Law was enacted and a revamped model production sharing agreement for deepwater and shallow water concessions came into being. “All of those things had to be driven politically to achieve them. A technical body would not have the same sense of urgency to do that,” he said adding, “…Anybody who is assessing this sector from 2020 to now would have seen the massive changes in the tools available to the country to manage this sector…Only the jaundiced would not see that…” Naysayers aside, Jagdeo assured back in January that the government’s ultimate goal is a Petroleum Commission to complement other advancements in the sector. Importance of oversight Contrary to the Vice President’s statement, the Petroleum Commissions can nonetheless perform various functions as designated by the necessary legislation. After discovering petroleum in 2007, Ghana for example, established its Petroleum Commission four years later with a mandate “to regulate, manage and co-ordinate all activities in the Upstream Petroleum industry…” Its functions entail importantly, to analyze petroleum economic information and submit economic forecasts on petroleum to the Minister; to receive and store petroleum data, manage a national petroleum repository and at the request of the Minister, undertake reconnaissance exploration including data acquisition; assess and approve appraisal programmes; advise the Minister on matters related to petroleum activities such as field development plans, plans for the development of petroleum transportation, processing, and treatment facilities, decommissioning plans for petroleum fields and petroleum infrastructure; monitor petroleum activities and carry out the necessary inspection and audit related activities that include “any other function related to the object of the Commission or assigned to it under any enactment.” In its analysis of the 2011 law, the Offshore Journal described the Ghana Petroleum Commission as having functions that extend beyond that of any other regulatory body in Ghana. “It is a supra-national regulator with diverse powers, which stem from its tripartite role. In addition to being a regulator in the technical sense, the Commission is also the manager of Ghana’s petroleum resources, and as coordinator of policies in relation to them, the Commission acts as the interface between the government and industry.” Government agencies and departments are required to cooperate with the Commission. The Norwegian Petroleum Directorate is a governmental specialist directorate and administrative body. Established in 1972, it reports to the Ministry of Petroleum and Energy. With the same functions as a Petroleum Commission, that body’s duties include being an advisor to the Ministry of Petroleum and Energy. It has a “national responsibility for the data from the Norwegian continental shelf. Our data, overview and analyses constitute a crucial factual basis on which the activities are founded. It said it is the driving force for realising the resource potential by emphasising “long-term solutions, upside opportunities, economies of scale and joint operations, as well as ensuring that at times – critical resources are not lost.” That body said it “sets frameworks, stipulates regulations and makes decisions in areas where it has been delegated authority. Further, we are responsible for conducting metering audits and collecting fees from the petroleum industry.” The body also contributes to “administrative competence, mapping of resources and petroleum data administration.” It has about 70 teams with designated mandates and the teams are delegated authority for products, processes and quality. It was noted in the 2019, US$20M World Bank loan document that Guyana had completed, independently and with donor support, a review of the existing oil and gas sector governance structure and had legal and policy drafts in place including an oil and gas policy (2016), local content policy (2017 & 2018), the “Petroleum Commission Bill” (2017 & 2018). It said in December 2017, the Ministry of Finance had requested the US$20M Credit from the World Bank “aimed at supporting broad governance reforms of its O&G sector with the objective to address economic and social impacts.” Related Similar Articles

‘Independent oversight body of oil sector not necessary’   Aug 01, 2024 News Vice President, Dr. Bharrat Jagdeo – Jagdeo say Govt. has enough transparent oversight already Kaieteur News – Months after promising that his government will install a Petroleum Commission when the time is right, Vice President, Bharrat Jagdeo is now changing his tune that independent oversight of Guyana’s oil and gas sector is not really necessary. Speaking at his at his weekly press-conference on Wednesday, Jagdeo said the PPP/C-led administration has done enough already to transparently monitor the oil sector.   “There is no magic with a Petroleum Commission”, Jagdeo told Kaieteur News in response to a question posed to him by the media house on when he will put the independent body in place. “There is no magic, we have given our agencies the tools to manage the sector.” Showing his frustration having been asked about the body, Jagdeo continued: “For Christ’s sake, you know what it would take to get that in place, the hard work that it will take to get that in place,” before adding that the APNU+AFC opposition could have done it in the five years they were in office. “They did nothing, we did in a record time and now we have expanded the scope for a modern law from 1986”, he said. The VP is of the view that a Petroleum Commission might not make any sense because the technical persons that will be nominated to sit on the body will be politicians too.  “They would put a Vincent Adams, he is a great technical man although he is a politician (just) like how they put their executive member on the PPC (Public Procurement Commission) then say oh it acts independently- It’s a sham”, Jagdeo argued. Different tune Back in January this year, the Vice President was singing a different tune. In fact, when the question was raised then at his first press conference for the year, Jagdeo assured that the government will honour its promise to have a Petroleum Commission when the time is right. Such a regulatory body is established by a government to oversee and manage the exploration, development, and production of petroleum resources within its jurisdiction. It ensures compliance with laws and regulations, manages licences and permits, and often plays a role in promoting sustainable and efficient utilization of petroleum resources. At that press conference, Jagdeo assured that this has not been removed from the government’s agenda. He had said, “The petroleum commission, we said we are building capacity in the Ministry (of Natural Resources).” He further explained during this period where the government is focused on creating a fortified framework for managing accountability in the sector, swifter action would be needed for a number of critical matters. He alluded that this is not the type of approach one would normally see from a technically outfitted body like a Petroleum Commission.  Jagdeo said it is as a result of the government’s insistence on a rapid build out of the management framework for the sector that a new Natural Resource Fund Law was passed, a new Petroleum Activities Law was enacted and a revamped model production sharing agreement for deepwater and shallow water concessions came into being. “All of those things had to be driven politically to achieve them. A technical body would not have the same sense of urgency to do that,” he said adding, “…Anybody who is assessing this sector from 2020 to now would have seen the massive changes in the tools available to the country to manage this sector…Only the jaundiced would not see that…” Naysayers aside, Jagdeo assured back in January that the government’s ultimate goal is a Petroleum Commission to complement other advancements in the sector. Importance of oversight Contrary to the Vice President’s statement, the Petroleum Commissions can nonetheless perform various functions as designated by the necessary legislation. After discovering petroleum in 2007, Ghana for example, established its Petroleum Commission four years later with a mandate “to regulate, manage and co-ordinate all activities in the Upstream Petroleum industry…” Its functions entail importantly, to analyze petroleum economic information and submit economic forecasts on petroleum to the Minister; to receive and store petroleum data, manage a national petroleum repository and at the request of the Minister, undertake reconnaissance exploration including data acquisition; assess and approve appraisal programmes; advise the Minister on matters related to petroleum activities such as field development plans, plans for the development of petroleum transportation, processing, and treatment facilities, decommissioning plans for petroleum fields and petroleum infrastructure; monitor petroleum activities and carry out the necessary inspection and audit related activities that include “any other function related to the object of the Commission or assigned to it under any enactment.” In its analysis of the 2011 law, the Offshore Journal described the Ghana Petroleum Commission as having functions that extend beyond that of any other regulatory body in Ghana. “It is a supra-national regulator with diverse powers, which stem from its tripartite role. In addition to being a regulator in the technical sense, the Commission is also the manager of Ghana’s petroleum resources, and as coordinator of policies in relation to them, the Commission acts as the interface between the government and industry.” Government agencies and departments are required to cooperate with the Commission. The Norwegian Petroleum Directorate is a governmental specialist directorate and administrative body. Established in 1972, it reports to the Ministry of Petroleum and Energy. With the same functions as a Petroleum Commission, that body’s duties include being an advisor to the Ministry of Petroleum and Energy. It has a “national responsibility for the data from the Norwegian continental shelf. Our data, overview and analyses constitute a crucial factual basis on which the activities are founded. It said it is the driving force for realising the resource potential by emphasising “long-term solutions, upside opportunities, economies of scale and joint operations, as well as ensuring that at times – critical resources are not lost.” That body said it “sets frameworks, stipulates regulations and makes decisions in areas where it has been delegated authority. Further, we are responsible for conducting metering audits and collecting fees from the petroleum industry.” The body also contributes to “administrative competence, mapping of resources and petroleum data administration.” It has about 70 teams with designated mandates and the teams are delegated authority for products, processes and quality. It was noted in the 2019, US$20M World Bank loan document that Guyana had completed, independently and with donor support, a review of the existing oil and gas sector governance structure and had legal and policy drafts in place including an oil and gas policy (2016), local content policy (2017 & 2018), the “Petroleum Commission Bill” (2017 & 2018). It said in December 2017, the Ministry of Finance had requested the US$20M Credit from the World Bank “aimed at supporting broad governance reforms of its O&G sector with the objective to address economic and social impacts.” Related Similar Articles

Hess 2Q profit beats on strong Guyana output Aug 01, 2024 News Hess logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) – Hess Corp (HES.N), beat estimates for second-quarter profit on Wednesday, helped by sharply higher oil production in Guyana and stronger prices. The South American country and its lucrative oil assets are at the center of a dispute between Hess, Chevron (CVX.N), and Exxon (XOM.N). Last October, Hess agreed to sell itself to Chevron for $53 billion in stock, but the deal has been stalled by a regulatory review and challenged by Exxon, which claims a right to Hess’s Guyana assets. Hess’s production rose 27.6% to 494,000 barrels of oil and gas per day (boepd), on nearly 75% year-over-year increase in Guyana to 192,000 bpd. Its Bakken shale output also rose, the company said. It, however, expects a fall in current-quarter production due to planned downtime in Guyana and Southeast Asia. Third-quarter net production is expected to be in the range of 460,000 boepd to 470,000 boepd. Hess said it expects its Guyana output to fall 10% as a natural gas pipeline is connected this quarter, and expects its North Dakota output to drop 4.5% on planned maintenance. The company’s average realized crude oil selling price also rose nearly 13% to $80.29 per barrel in the second quarter. A three-person arbitration panel is expected to decide on the dispute with Exxon. Exxon believes the process could extend to 2025 while both Chevron and Hess expect a resolution by the end of the year. Hess’ quarterly profit of $2.62 per share beat analysts’ average estimate of $2.48 per share, according to LSEG data. Back in April Hess Corporation had announced that its profits leapt by $626M in the first quarter of 2024 thanks to higher production volumes in the Bakken shale in the US and the Stabroek block offshore Guyana. Back then Hess’ net income, the company said, was US$972M in the three months ended 31 March, compared to $346 million in the first quarter of 2023, according to the company’s latest earnings report. This would mean that Hess’s profits have almost tripled over the previous reporting period. According to Hess, its overall net production of oil and gas was 476,000 barrels of oil equivalent per day, up 27 percent from 374,000 barrels of oil per day (bpd) in 2023. The Bakken production surged by 27,000 (bpd), according to Hess, “while Guyana offered up an additional 78,000 (bpd) this quarter.” The first quarter results “substantially outperformed” expectations, according to a report from analyst firm TD Cowen back then. Overall production beat projections by 9 percent, while Hess’ Guyana output beat consensus by 28 percent, Cowen had noted. Related Similar Articles