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ExxonMobil not opposed to Guyana installing own meters at pumps Sep 06, 2024 News …says will adhere to any regulations govt puts in place Kaieteur News – ExxonMobil Guyana Limited (EMGL) on Thursday said it is not opposed to Guyana installing its own meters on the Floating Production Storage and Offloading (FPSO) vessels currently producing oil offshore. In a statement to the media, in response to comments made by the Publisher of Kaieteur News, Glenn Lall, EMGL, the subsidiary of Exxon Mobil Corporation noted that representatives of government are present to witness every offshore oil lift. Lall, in an article published on Wednesday reasoned that the operator of Guyana’s oil rich Stabroek Block has been given a free pass to take as much of the country’s oil as it needs for its offshore operations, a move that could pave the way for boatloads of undocumented crude oil to be shipped away. He pointed out that the oil giant, as per the terms of the 2016 Production Sharing Agreement (PSA), is allowed to use a reasonable amount of oil for its daily operations; however, there is no record of how much of this production is being used by the company. Exxon did not address the use of Guyana’s oil for its operations but pointed out “none of the consortium members can lift oil without a government witness present.” It also noted that government has outlined how it exercises its rights and duties to closely monitor its operations.  The Ministry of Natural Resources however in a statement on Thursday said that: “The ‘production’ for use in offshore operations, as referenced in the Agreement, is not crude oil but natural gas. Most of the natural gas extracted offshore is reinjected, while a portion is processed, removing impurities, so that it is useful as fuel.” ExxonMobil Guyana said: “the Government’s oil lifts also aren’t a mystery – they are available for anyone to read on the Ministry of Natural Resources’ website. Furthermore, despite repeated claims to the contrary, our offshore production vessels have meters, and those meters meet or exceed international industry standards. That data is also monitored by the Government,” the company stated. Exxon argued that the FPSOs have transfer meters that meet or exceed international industry standards and are approved by the Government of Guyana. Further, it said the transfer meter operations are witnessed by government representatives, in keeping with industry best practices. As an additional layer of verification, Exxon said representative samples are shared with the government and lifters. To this end, the oil company said, “EMGL is unaware of any regulatory regime that requires local regulators to install separate metering equipment, however we have no objection to the government pursuing an independent monitoring system and will adhere to any regulations the government puts in place.” For his part, Lall raised concerns over the lack of independent meters to verify the company’s daily rate of production in light of Exxon refusing to allow auditors access to its raw production data. It was reported that during the audit of Exxon’s 2018 and 2020 expenses, the company refused to provide a map of the metering points on the Liza Destiny, the country’s first Floating Production Storage and Offloading (FPSO) vessel. The auditors said the schematic would provide a visual representation of the physical flow of production as it is produced onto the FPSO, through the various types of production equipment, and into the storage tanks. ExxonMobil also bluntly refused to provide the raw production data to the audit team. To this end, the businessman reasoned, “Government is getting data that Exxon presents to them as raw data, hence they refused to give the auditors access to check the raw data on the production data at the pumps. To eliminate this issue is simple, put our own meters on each of the FPSOs, this way auditors would not have to beg Exxon to see the raw data, we would have this at our fingertips.” Related Similar Articles

Hess shareholder profits jump by 14% Sep 06, 2024 News – as oil production in Guyana ramps up Kaieteur News – Profits for shareholders of Hess Corporation have jumped by 14% since the second quarter of 2024. CEO of Hess Corporation, John Hess This was announced by the Board of Directors of the American company on Wednesday. The oil company, which has a 30% interest in Guyana’s prolific Stabroek Block said, “The dividend represents an approximate 14% increase compared to the dividend for the second quarter of 2024, which equals a 25 cent increase per share on an annualized basis.” To this end, Hess explained the “regular quarterly dividend of 50 cents per share (is) payable on the Common Stock of the Corporation on September 30, 2024 to holders of record at the close of business on September 16, 2024.”  In July, Hess announced an adjusted net income of US$809 million, or US$2.62 per share, compared with $201 million, or $0.65 per share, in the second quarter of 2023. While Hess continues to boast of increased profits, Guyana’s earnings from the sector continue to pale in comparison. This is in part as a result of the lopsided 2016 oil contract, in addition to the refusal of the incumbent administration to renegotiate the agreement. The increase in quarterly dividends to shareholders of the company, compared to the second half of this year comes on the heels of a revelation by the Government of Guyana (GoG) that the three Floating Production Storage and Offloading (FPSO) vessels that are producing oil in Guyana each underwent optimization works in the first half of this year to increase oil extraction. According to the Mid-Year Report, the oil and gas sector is estimated to have grown by 67.1% in the first half of 2024, with total production reaching 113.5 million barrels during the period. Government reported that daily production in the Stabroek Block averaged 624,000 barrels per day (bpd) in the first half of this year, compared with approximately 380,000 bpd in the first half of last year.” Further it was noted that the “higher-than projected production rates on the Prosperity FPSO” has resulted in a new production target this year of approximately 228 million barrels of crude oil for 2024. As such, the industry is now expected to grow by 56.4% this year, up from 44.7% projected at the time of preparing Budget 2024. Government said, “At the project level, Liza Destiny, Liza Unity, and Prosperity, all underwent optimisation and topside debottlenecking activities in the first half of the year. The FPSOs produced at an average of 157,000 bpd, 245,000 bpd, and 222,000 bpd, respectively, while reaching the highest collective rate of 644,000 bpd in June 2024.” Oil earnings The total earnings from the export of crude oil amounted to US$9.4B in the first six months of 2024, a US$4B increase compared with the same period last year. It should be noted that 75% of that amount was deducted by the Stabroek Block partners to recover their investments. To this end, US$7.5B reflected cost recovery from the oil and gas sector. Meanwhile, Guyana’s Natural Resource Fund (NRF) received a US$1.2B top-up during the first half of 2024, including profits and royalty. Related Similar Articles

Netanyahu’s border proposal threatens Gaza ceasefire talks Sep 06, 2024 News Israeli tanks stand near the Israel-Gaza separation fence as seen from southern Israel Sunday, in July 2024 [Tsafrir Abayov/AP Photo]Hamas calls for pressure on Netanyahu to stick to agreed ceasefire plan, accuses the Israeli leader of using the Philadelphi Corridor to thwart deal. Aljazeera – Israel’s Prime Minister Benjamin Netanyahu said his military must retain open-ended control over Gaza’s southern border area with Egypt – known as the Philadelphi Corridor – digging in on a position that threatens to derail ceasefire efforts. Netanyahu’s stance on the corridor – which was seized by Israeli forces in May – has become the key obstacle to reaching a ceasefire deal in Gaza as pressure mounts on the Israeli leader amid mass protests domestically demanding that a deal be reached that brings captives home and international outrage as the number of Palestinians confirmed killed by Israel’s military in Gaza nears 41,000. “Gaza must be demilitarised, and this can only happen if the Philadelphi Corridor remains under firm control,” Netanyahu told foreign journalists on Wednesday. Netanyahu said Israel must maintain control of the corridor to prevent weapons being smuggled into Gaza and that Israel would only consider withdrawing from the strategic location when presented with an alternative plan to police the area. “Bring me anyone who will actually show us … that they can actually prevent the recurrence” of smuggling, he said. “I don’t see that happening right now. And until that happens, we’re there.” When asked by journalists for a timeline for Israel ending its war on Gaza, Netanyahu refused to give one. “How long can we do this? As long as it takes to achieve this victory. And I think we’re getting a lot closer,” he said. Netanyahu has faced searing criticism from many in Israel for his position on the Philadelphi Corridor, including from within his own military and security establishment who believe Israeli troops do not need to be permanently based in Gaza and could, instead, launch targeted raids if required to stop arms smuggling. Egypt, a mediator in the ceasefire talks along with the US and Qatar, has also demanded a concrete timeline for Israel’s withdrawal from the corridor which runs along its border. The United Arab Emirates, which established formal ties with Israel in the 2020 Abraham Accords – designed to normalise Arab-Israeli relations – has also criticised Israel’s decision to control the corridor on Wednesday. In a statement released on Thursday, Hamas blamed Netanyahu for the ongoing impasse in ceasefire talks and accused the Israeli leader of wanting to prolong the war on Gaza. “Netanyahu’s decision not to withdraw from the Salah al-Din [Philadelphi Corridor] axis aims to thwart reaching an agreement,” Hamas said in the statement. “We warn against falling into Netanyahu’s trap and tricks, as he uses negotiations to prolong the aggression against our people,” Hamas said, adding that Israel must be held to a deal that was agreed earlier this year. “We do not need new proposals. What is required now is to pressure Netanyahu and his government and oblige them to what has been agreed upon,” the statement reads. During his address to reporters on Wednesday, Netanyahu also incorrectly claimed that Israel’s ground invasion of Rafah in southern Gaza in May forced the first release of Israeli captives held by Hamas in Gaza. That negotiated release, in fact, took place months earlier in November under a weeklong ceasefire deal agreed between Israel and Hamas. The Israel-Hamas truce began on November 24 and was renewed twice. Under the agreement, fighting was paused and humanitarian aid was allowed to enter Gaza as Hamas released captives in exchange for Israel releasing Palestinian prisoners. By the end of the six-day truce on November 30, 105 captives had been released by Hamas and 240 Palestinian prisoners had been freed by Israel. Related Similar Articles

Fire destroys storage bond in Sophia Sep 06, 2024 News Firefighters making their way to scene of the aftermath. Kaieteur News – Fire of an unknown origin destroyed a storage bond located in ‘A’ Field, Sophia on Thursday afternoon. The fire which started at approximately 14:30h quickly spread throughout the bond despite the prompt response from the Guyana Fire Service (GFS). However, the fire fighters’ valiant efforts were unsuccessful as the bond was completely destroyed. Residents in the community gathered as word of the fire spread, and thick black smoke billowed into the sky. The aftermath of Thursday’s fire. At the time of the fire, the owner (s) whose name is unknown was not at the premises. Kaieteur News understands that the bond stores wood, spare parts and other materials. A damaged motorcycle. Bahiyyah Fraser, a neighbour told Kaieteur News that the fire spread quickly. “I saw the fire start from the neighbor’s side, and the wind just carried it. It all happened so fast,” Fraser who recently moved to the area said. The woman told this publication that because of how fast the fire spread, a motorcycle belonging to a relative was burnt. She disclosed that no one lived at the bond and there were no signs of vagrants there. “No, nobody lights fires around here,” she assured. The GFS is investigating the cause of the fire. Up to press time, no statement has been issued on the fire. (Wayne Lyttle) Related Similar Articles

‘Exxon not using Guyana’s oil for its operations’ Sep 06, 2024 News – says provision in PSA is not for crude oil but natural gas Kaieteur News – The Government of Guyana has insisted that operator of the lucrative Stabroek Block ExxonMobil is not using this country’s oil for its operations. Vice President Bharrat Jagdeo Questions have been raised as to whether ExxonMobil has been utilising this country’s crude as provided for in the lopsided Production Sharing Agreement to fuel its offshore operations.  Vice President Bharrat Jagdeo on Thursday at his weekly press conference told the media while responding to a question posed by this newspaper that he had previously addressed the issue and it remains the same. “I think it still stands that they are not using any of the production for that purpose, for generating power or power in the FPSO’s, they are not using any of the crude produced for that purpose. So it would be zero,” Jagdeo said. The Ministry of Natural Resources also provided clarification on the issue in a statement responding to an article published by the Kaieteur News. The ministry said that, “Article 11.9 of the Petroleum Agreement states “The Contractor shall have the right to use in any Petroleum Operations as much of the production as may reasonably be required by it therefore and the quantities so used or lost shall be excluded from any calculations of Cost Oil and/or Cost Gas and Profit Oil and/or Profit Gas entitlement.” The statement further clarified that this was in keeping with international best practices and transparency standards. Furthermore, the ministry said that it is common knowledge that the crude oil which is what Exxon extracts offshore Guyana has to be refined into a number of products as it cannot be used in its natural unrefined state. As there are currently no refinery operations in Guyana to refine the crude, it has to be exported to international markets where it can be refined into the petroleum products. “The ‘production’ for use in offshore operations, as referenced in the Agreement, is not crude oil but natural gas. Most of the natural gas extracted offshore is reinjected, while a portion is processed, removing impurities, so that it is useful as fuel,” the ministry added. The issues of Exxon using oil from production for its operations was flagged by International Award-winning Lawyer, Melinda Janki during a webinar on Sunday. The virtual discussion titled ‘Guyana’s oil- boom or blowout?’ was widely attended by close to 100 participants from different countries. In her presentation, the Lawyer pointed out, “The Petroleum Agreement says that Exxon, Hess and CNOOC can take as much oil as they need for the operations. So, when they produce the oil, they can take, each one of them, Exxon, Hess and CNOOC, each one of them can take as much oil as they say they need for their operations.” In 2021, Janki said she wrote to President Irfaan Ali requesting information on how much oil was being deducted by the companies; however, she never received a response. She said, “Either he doesn’t know or he doesn’t want to say, but this oil does not get counted, it’s just gone and the rest of the oil is divided into cost oil and profit oil, so if you think of the oil, you have got three things- one, the free oil that’s taken off the top, we don’t know how much that is and it doesn’t count and then the rest of the oil which is divided into something called cost oil and profit oil.” It should be noted that ExxonMobil Guyana Limited (EMGL), as the operator of the Stabroek Block is required to submit a quarterly production statement to the government of Guyana, outlining among other things the gross quantity of crude oil or natural gas produced as well as the “quantities used for the purpose of carrying on petroleum operations, including drilling and production operations and pumping to field storage.” Data on the Ministry of Natural Resources Petroleum Management Programme does not indicate how much oil is taken out by Exxon for its operations. The website however publishes information on the amount of oil produced daily by the company and provides an overview of gas injected, flared and used for fuel. This therefore raises questions about the publishing of selective information by the government. Related Similar Articles