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Govt. unsure how soon electricity bills will be reduced by 50% after Gas-to-Energy project comes online Sep 27, 2024 News Kaieteur News – The highly touted US$2B Gas-to-Energy (GTE) project is intended to reduce monthly electricity bills by 50% but Vice President Bharrat Jagdeo is unable to say how soon consumers can expect this reduction. An artist’s impression of the Gas-to-Energy project In the absence of a feasibility study for the project, stakeholders have been constantly questioning the project’s capacity to deliver cheaper electricity. On Thursday, the VP during his weekly media conference was asked how soon after the operationalization of the plant, a 50% reduction in the cost of electricity could be expected. To this end, he explained, “I don’t know if one day or a week or so but it will, it should happen almost immediately because if we are getting all this power in the grid immediately that means we can turn off a lot of the high-cost generating equipment that we have now and substitute this with the new power plant so almost immediately. The benefits will be seen almost immediately.” The GTE project is expected to deliver some 300 megawatts (MW) of cleaner and cheaper electricity. Jagdeo noted that the Heavy Fuel Oil (HFO) generating sets, currently in operation, will be turned off and be used as a backup power supply. “If the Gas-to-Energy project can meet the demand, and that is we are generating at 4 cents per kilowatt hour there, then every other generating set will go into reserve,” he said. The Vice President was keen to note that the country is presently operating without any reserve, due to a large increasing demand for electricity. According to him, “Our installed capacity is close to peak demand so there is no reserve so that’s why if a unit goes down you have power outages, so these reserves now would be there so just in case you have local issues or something, they would be maintained and put into reserves.” Be that as it may, Jagdeo said if the demand surpasses the 300 MW generated by the Wales power plant, government “may have to turn on some of these units back again.” Government expects the GTE project to be completed by April, 2025. The contractor, CH4/ Lindsayca has however indicated that the power plant and Natural Gas Liquids (NGL) facility will be handed over at a later date. The extension is likely to cost the contractor some US$11.3M per month according to Jagdeo. Earlier this year, award winning international Lawyer, Melinda Janki in a letter to the United States Export Import (US-EXIM) Bank flagged government’s failure to publish coherent and convincing financial analysis to support the business case for the project. In her April 25, 2024, letter to the President of the US-EXIM Bank, Reta Jo Lewis, Janki indicated that the financial institution might wish to obtain this information before further considering the government’s loan application. It was reported in April 2023 that the GoG applied to the US-EXIM Bank for a US$646M loan to fund a natural gas-fired power plant and natural gas liquids plant to be constructed by contractor CH4-Lindsayca. The plants, to be constructed at Wales, West Bank Demerara are part of the GTE project, which also includes a pipeline being built by ExxonMobil Guyana Limited to transport the gas from offshore to the site. The US-EXIM Bank has not yet approved Guyana’s application for the loan and is said to be in the concluding phase of its independent analysis of the project. Janki said on Saturday that information that should be available publicly on the project indicates that it could cost US$1.9B. She was keen to point out this estimate could increase as big infrastructure projects are notable for exceeding budget. “The cost of this Project will be borne by the Guyanese public because the government will have to take money from the public purse or use public assets such as oil in order to pay ExxonMobil Guyana and the other contractors. Similarly, any loan from Eximbank will have to be paid back from public money,” the lawyer reasoned. To this end, she explained that the people of Guyana are therefore entitled to see that the proposed gas project is financially viable before the government seeks to borrow money to proceed. She argued, “It is not sufficient for the government to make promises. Economic development is not a matter of wishful thinking. Economic development requires robust economic analysis of the global energy market. The proposed project will lock Guyana into gas at a time when the fossil fuel industry is on a decline and is likely to leave Guyana with stranded assets and an adverse impact on Guyana’s economy.” Related Similar Articles

Kaieteur, Canje oil blocks still with Exxon Sep 27, 2024 News – company still to provide info to finalise exit from Kaieteur, to leave Canje by 2026- Jagdeo says Vice President (VP) Bharrat Jagdeo on Thursday said that ExxonMobil is yet to provide all the information government requested before it formally grants approcval for the oil major to exit the Kaieteur Block. Vice President, Bharrat Jagdeo Jagdeo was responding to an article carried by this publication where Exxon had said that they were awaiting the approval from the government to formally exit the block having already transferred their operatorship to Ratio. However, Jagdeo speaking at his news conference said that the government is awaiting the company to provide 16 pieces of information requested to complete the review and allow the company to leave. Jagdeo said prior to his press conference, he reached out to the Ministry of Natural Resources for some clarity on the matter and was sent a copy of the letter written to Exxon’s country Manager for Guyana Alistair Routledge requesting the additional information. Part of the letter to the oil company from the ministry read: “Reference is made to your company’s application received on October 20, 2023 requesting approval for the transfer of interest in the Kaieteur Block Petroleum Exploration License and the subsequent submission of additional documents on the 25th of January 2024. Please be guided that further thorough review of the submitted documents the Ministry of Natural Resources has found that some additional information is needed prior to closing out this process this information is detailed in the attached list for your submission.” Jagdeo said ExxonMobil is yet to submit the additional information. “Instead, it appears that they are trying to let it seems like the government is holding up their exit, “Jagdeo told the news conference. Meghan MacDonald, Media and Communications Supervisor for ExxonMobil had told this publication in an invited comment recently that, “We are still awaiting formal government approval to leave the block; however, we have handed over operatorship to Ratio Guyana Ltd. Our participating interest is going to Ratio and Cataleya with Ratio assuming role of operator.” She further stated that, “We do need government’s approval to formally exit the block not handover. I should also clarify we have been working with GoG and keeping them appraised throughout this process.” On September 30, 2023 this publication reported that the Government of Guyana has clearly stated that the proposed exit by ExxonMobil and Hess Corporation from the Kaieteur Block must be consistent with the country’s legal framework. ExxonMobil, which operates the Kaieteur Block with a 35% stake, and Hess, holding a 20% stake, have recently expressed to the government, their intent to divest their interests in this offshore oil asset. The move would leave Ratio Guyana Limited and Cataleya Energy Limited as the principal stakeholders. But the Government of Guyana has emphasised the importance of due diligence and adherence to the law. The Ministry of Natural Resources, in a statement, underlined that while it acknowledges the decisions by the oil giants, any process concerning a transition in the ownership of the Kaieteur Block must be in alignment with the recently enacted Petroleum Activities Act 2023. This legislation, along with its regulations and the Kaieteur Petroleum Agreement and its associated prospecting license, sets the parameters for such transitions. The recent Petroleum Activities Act has modernised Guyana’s oil and gas regulatory framework. This is the second such transfer of interests under the new framework, after Tullow’s exit from the Orinduik Block. The Ministry noted that once a formal application for the exit is received, it will be critically evaluated in accordance with the relevant legislation and regulatory tools. Notably, Ratio and Cataleya had held the Kaieteur Block before stakes were farmed out to Exxon and Hess. The Kaieteur Block was awarded on April 28, 2015 by then President Donald Ramotar, just two weeks before the general elections that year before it was sold to ExxonMobil. It was done based on the advice of former Minister of Natural Resources, Robert Persaud, Ramotar had said. The award of the oil block to the company was especially concerning since the ultra-deep drilling is required for those blocks, a technique which only a handful of companies in the world have the technology, track record, and capability to execute. The red flags which have manifested in both situations include that the awards were given to unqualified companies, that the initial owners quickly flipped the blocks without doing any work, that they are incorporated in ‘secrecy’ jurisdictions, and that Guyana likely lost revenue due to the avoidance of an open, competitive bidding process. Still with Exxon Meanwhile, Jagdeo also told the news conference that it was brought to his attention by a reporter that he may have not been clear when addressing the issue of the Canje Block and its current status. He clarified that the block has not been repossessed by the government but rather there have been relinquishments. “Well first 20 %, 25% and then they had the force majeure. So soon in fact that should have been done by now and then by 2026, I think the Canje Block that will be back with the government should there be no progress on announcing a development,” he explained. The Canje Block was awarded by the Donald Ramotar administration on March 4, 2015, days before that year’s General and Regional Elections, to a local company, Mid-Atlantic Oil and Gas. The company then sold the block to ExxonMobil. It has been close to five years since the PPP/C Government has failed to honour its promise to release the beneficial owners of the oil blocks offshore which include but are not limited to the Kaieteur, Canje, Orinduik, Kanuku, Demerara, Corentyne, and Berbice concessions. The issue was first raised in November 2020 by Jagdeo, who holds an oversight responsibility for the oil and gas industry. Back then, he said that the government would seek to determine the beneficial owners of Guyana’s resources, with first priority being given to the owners of the nation’s oil blocks. Jagdeo had said that the government intends to have a greater understanding of the ownership structure of the companies with the said licences while adding that this is important for transparency and taxation purposes. Related Similar Articles

FTC bars Hess CEO from Chevron board seat as condition of deal – say sources Sep 27, 2024 News Kaieteur News – (Reuters) U.S. antitrust regulators will bar Hess Corp. CEO John Hess from taking a board seat as a condition of its go-ahead of oil producer Chevron Corp.‘s US$53 billion purchase of Hess, people close to the matter said. The Federal Trade Commission’s (FTC) consent for the deal will not allow Hess to become a board member, the people said, without explaining why the ban was imposed. Chevron’s proposed all-stock acquisition of Hess, first announced in October, was one of a string of multi-billion-dollar U.S. oil and gas industry deals that began with Exxon Mobil‘s purchase of Pioneer. In a crackdown on mega-mergers, the FTC similarly barred Pioneer Natural Resources CEO Scott Sheffield from taking a seat on Exxon board as a condition of its approval earlier this year of their $60 billion merger. It was not immediately clear if Hess would be allowed to take another position at Chevron. He recently joined the board of financial firm Goldman Sachs. Neither Hess nor Chevron immediately replied to requests for comment. The FTC declined to comment. Hess and Chevron shares each fell 1% in midday trading. The expected go-ahead would leave Exxon’s challenge to the Chevron-Hess deal as its final hurdle. Exxon and China’s CNOOC Ltd. have filed an arbitration case that could block the deal, claiming the merger is a ploy to gain Hess’s lucrative Guyana assets. Hess owns 30% of Guyana’s giant Stabroek offshore block, which has been the site of more than 30 oil and gas discoveries since 2015. Exxon, which is the operator of the block owns 45% and CNOOC owns 25%. Bloomberg News earlier reported the FTC would block Hess from taking a board seat on the combined company. In the Exxon merger, the FTC alleged that Sheffield had colluded with other U.S. oil firms and with the Organization of the Petroleum Exporting Countries “to keep production artificially low” and increase oil companies’ profits. The FTC had pointed to meetings that shale and OPEC officials held over several years, including a series of private dinners at a Houston energy conference. Related Similar Articles

Fire destroys male dorms at Chinese gold company Sep 27, 2024 News Kaieteur News – A fire of unknown origin completely destroyed the male dormitory at the Chinese owned Aurora Gold Mines (AGM) located at Buck Hall along the Essequibo River on Thursday. Fire destroys the male dormitory at the Aurora Gold Mines. Videos of the fire surfaced on social media Thursday afternoon. Meanwhile, police in a brief statement said that the fire started at about 16:00h. “Workers, security and policemen there formed a bucket brigade and extinguished the fire around 16:30 hrs,” police said. The building was reportedly unoccupied at the time and did not have any electricity fittings. Investigations are ongoing. Related Similar Articles

Govt. to write off $5B student loan debt by year-end Sep 27, 2024 News – Jagdeo urges eligible persons to apply Kaieteur News – During his press conference on Thursday, Vice President (VP) Bharrat Jagdeo announced that the government is expected to write off approximately $5 billion in student loan debt owed to the University of Guyana (UG) by the end of 2024. Vice President Bharrat Jagdeo It was recently reported that the government, through the Ministry of Finance, has written off approximately $203.7 million in student debt owed.  This was highlighted by the Ministry of Finance’s 2024 mid-year report, which revealed that this latest development has benefitted around 346 persons to date. “So if you divide the $203 million by 346 you will get about $588,000, on average per each person,” Jagdeo said. Within the second half of the year, an additional 2,900 persons is expected to benefit from this initiative.  The Vice President said, “If we use the same average that will be about $5 billion alone this year and if more people come in we will write all of it off in a single year, the full $18 billion once they are eligible. So I want to urge the students, who have outstanding debt to just apply for the write off so that we can proceed with doing so.” The Department of Public Information (DPI) recently reported that free tertiary education by 2025 is an essential element of the PPP/C 2020-2025 manifesto plans. To achieve this, President, Dr. Mohamed Irfaan Ali said the government will implement a phased approach, first targeting individuals who hold university loans. In 2024, during the reading of the national 2024 budget, the Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh announced phase one of the initiative, benefitting some 13,000 Guyanese. Related Similar Articles

Tek back de cricket from dem hustlers Sep 27, 2024 Dem Boys Seh, Features / Columnists Kaieteur News – Dem boys seh dem Guyanese love cricket bad, bad, bad. Everybody want fuh see de Guyana Amazon Warriors beat up pon de other teams in de CPL. But guess wah? Plenty people can’t get a ticket. Dem trying. Dem begging. Dem pleading. But no luck. No ticket. Yet some people walking ‘round like dem own de stadium. Dem got nuff, nuff tickets. Some even selling tickets like is mangoes at de market. And de price? Twenty-five thousand dollars fuh one game. Twenty-five thousand! You could buy groceries fuh one week with dat. Dem boys seh dis ting tun extortion. People who really love de cricket, who just want to support de Warriors, can’t afford to pay dat kinda money. But dem scalpers, dem ticket touts, dem black market hustlers, smiling all de way to de bank. It look like de CPL tun big business fuh dem! But hear wha. If nobody ain’t buy dem tickets from dem, dem gon lose big time. Let dem sweat lil. If de tickets dem sit down in dem hand, all de twenty-five-thousand-dollar dreams gon collapse. Dem boys seh we need fuh starve out de touts. Let dem tek a lil loss. If we stop buying de overpriced tickets, dem gon stop selling dem at dat ridiculous price. So here de deal: Don’t encourage de scamps. If you can’t get a ticket at de regular price, sit down home and watch it pon de TV. Let dem scalpers cry instead ah you. Dis way, next CPL, dem gon tink twice before trying fuh rob cricket fans blind. Dem boys seh we got fuh tek back de cricket from de hustlers. Talk half. Leff half. Related Similar Articles

Ex-cop among four arrested for beating man unconscious at CPL game Sep 27, 2024 News Kaieteur News – A former policeman, Sereste Brittlebank is among four men arrested on Wednesday night after they were caught on camera beating a man unconscious at the Guyana National Stadium, Providence, East Bank Demerara (EBD). Former policeman, Sereste Brittlebank Arrested: Trevon Williams Arrested: Kevin Williams The quartet is also alleged to have assaulted a policeman during their arrest. The other three suspects have been identified as: Trevon Williams, 31, of Annandale, East Coast Demerara (ECD), Germaine Ragubir, 30, from Non Pareil, ECD and Kevin Williams, 29, of Annandale, ECD. According to police, the men were arrested around 23:40hrs for assaulting a peace officer and resisting arrest. They were reportedly seen beating a man in the grass mound of the stadium during a CPL match between the Guyana Amazon Warriors and the Barbados Royals. Eyewitnesses alleged that the victim was under the influence and was reportedly walking up to patrons and challenging them to a fight. When he walked up to Brittlebank and his group, the men unleashed a brutal assault on him. That individual is reportedly hospitalised. Meanwhile, friends and family of the victim denied that he had started the fight. They said that he was indeed drinking like everyone else there and enjoying game with his family but was attacked over a flag. Kaieteur News understands that his assailants were arrested while leaving the stadium.  The former cop is no stranger to the law. He was previously accused of brutally beating his common-law wife while he was still a police officer. He was later charged and placed before the court but his common-law wife opted to drop all charges against him during the trial. Related Similar Articles