admin

.tdi_3.td-a-rec{text-align:center}.tdi_3.td-a-rec:not(.td-a-rec-no-translate){transform:translateZ(0)}.tdi_3 .td-element-style{z-index:-1}.tdi_3.td-a-rec-img{text-align:left}.tdi_3.td-a-rec-img img{margin:0 auto 0 0}@media (max-width:767px){.tdi_3.td-a-rec-img{text-align:center}} The first-ever Antigua and Barbuda Black Pineapple Awards – an initiative that honours and celebrates the achievements of travel advisors from...

Exxon recovering more money from Guyana’s oil yearly than investments Sep 11, 2024 News Vice President, Dr. Bharrat Jagdeo Kaieteur News – ExxonMobil and the Stabroek Block Co-Venturers are currently recovering more money from Guyana’s oil than they are investing in the operations. With the increase in oil production activities, the 75% cost recovery figure has ballooned to an eye-popping US$7.5B in the first half of 2024 alone. Meanwhile, Exxon has committed to spend just about US$500M in the block this year, according to its 2023 Annual Report. ExxonMobil affiliate ExxonMobil Guyana Limited is the operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest. CNOOC and Hess also committed to invest in the Stabroek Block this year, taking total equity contributions between the partners to just over US$1B. This concerning trend of cost recovery outweighing investments by the Stabroek Block partners is likely to continue as Guyanese politicians refuse to ring-fence the projects in the Stabroek Block. A ring-fencing provision would require each offshore development to pay its own cost and after the investment is repaid, would allow the country to enjoy a greater share of profits from the sector. President, ExxonMobil Guyana, Alistair Routledge As at the end of December 2023, ExxonMobil reported that a total of US$30B was invested into the Stabroek Block operations. President of ExxonMobil Guyana, Alistair Routledge also told reporters at a media conference earlier this year that US$19B of those expenses has so far been cleared through the cost recovery mechanism. It should be noted that the three oil projects currently producing oil, the Liza One, Liza Two, and Payara projects collectively carry a price tag of about US$19B. This means that the country could have been receiving higher profits this year from the three projects; however, in the absence of ring-fencing, Exxon will use the revenue to invest in other developments and even fund its exploration programme. Vice President Bharrat Jagdeo was asked to comment on this state of affairs during his weekly press conference last week. He was specifically asked to say whether it would be fair to conclude that Exxon’s cost recovery was exceeding its investments. To this end, the Vice President explained, “Everything is determined by the formula, which is 75% for cost recovery (and) what is in the cost bank, so these are (the) two things. So every year, every new project that has been approved gets added to the cost bank and the 75% applies to it.” Jagdeo therefore pointed out that the sum deducted for cost recovery is impacted by the price of the oil and the rate of production.  “If the price of oil goes up slightly, you can then recover faster…if it comes down slightly it slows down the pace of amortization of the cost bank. Secondly, if you increase production it could speed up the amortization of the cost bank so it keeps moving all the time because prices move all the time and sometimes by shipment,” he said. Further to that, the VP noted that the approval of new projects by the government also delays the full amortization of the cost recovery. He made it clear however that this does not alter the fact that Guyana’s revenue stream in the future will grow significantly as a result of the accelerated rate of cost recovery. Related Similar Articles

Canadian firm to produce 353,000 ounces of gold annually from Reg. 7 project over 13 years – PEA reveals Sep 11, 2024 News An aerial view of the Oko West project By Renay Sambach Kaieteur News – On Monday, the new owner of the Oko West project located in Region Seven (Cuyuni-Mazaruni) G Mining Ventures (GMIN), a Canadian firm, announced the results of the Preliminary Economic Assessment (PEA) for the project. The assessment projects an average annual gold production of 353,000 ounces of gold over a 12.7-year mine life, with a total gold output pegged at 4.5 million ounces. The report also highlights an average gold grade of 2.00 grams per tonne (g/t) and a high metallurgical recovery rate of 92.8%. The company stated that the PEA confirms strong economics for a low-cost, large-scale mining operation using both conventional open pit (OP) and underground (UG) methods. According to GMIN, with operating costs well below industry averages and a high rate of return, the project is ideally positioned to benefit from favourable macro-economic conditions, including strong gold prices, low inflation, and Guyana’s rapidly developing economy. The open pit mine is projected to have a life of 15 years, which includes 2 years of pre-stripping and involves four pit phases. In contrast, the underground mine is expected to operate for 13 years, including 2 years of development, across three zones. The milling operation is planned to run for 13 years. It was explained that during the first three years of commercial production, the processing feed will be provided entirely by the open pit. From the fourth year onward, underground mining will begin supplying a significant portion of the mineralized material. Notably, the Oko West project payback period is estimated at 3.8 years, based on a gold price of US$1,950 per ounce. The Oko West Gold Production Profile Louis-Pierre Gignac, President & Chief Executive Officer (CEO) of GMIN, commented on the PEA results stating, “The Oko PEA, based on the long-term consensus gold price of US$1,950 per ounce, outlines a high-production, long-life, high-margin operation with an after-tax NPV5% (net present value) of US$1.4 billion and IRR (internal rate of return) of 21%.” Gignac stated that the Oko West project is ideally positioned to leverage GMIN’s regional footprint, development expertise, and anticipated free cash flow from their in-production Tocantinzinho Gold Mine in Brazil, along with historically high gold prices. He noted that GMIN had recently announced the start of commercial production at Tocantinzinho, which was delivered on time and budget. He noted that the company aims to replicate this success with the Oko project, using essentially the same team. “I am excited that this exceptionally positive PEA only captures a snapshot of the potential value of Oko, as we continue to explore the prospective land package and evaluate value-enhancement opportunities for improved economics in a feasibility study planned for the first quarter of 2025. I look forward to the tremendous shared-value creation for our stakeholders, including the country of Guyana,” Gignac added. Moreover, a few months ago, GMIN acquired Reunion Gold Corporation, taking over the Oko West project, as a result of an all-share deal valued at C$875 million (US$638 million). According to the PEA document, on September 23, 2022, a Prospecting Licence (PL) was granted to Reunion Gold, a 100%-owned subsidiary of GMIN. This license, which covers approximately 10,890 acres (4,407 hectares), is valid for three years and can be renewed for an additional two years. “In March 2024, an option agreement was entered into for the Northwest extension mining permits, consisting of three medium-scale mining permits (MPMS) adjacent to the PL. That agreement is valid for five years with a possible two-year extension. In August 2024, another agreement was concluded to purchase additional MPMS from a private group of individuals for the Eastern and Southern extensions to the PL,” it was disclosed. Back in April 2024, the Government of Guyana (GoG) through the Guyana Geology and Mines Commission (GGMC) inked a mineral agreement with Reunion Gold. The intention of the agreement is to establish stable fiscal and operating conditions for the Oko West gold project. While Guyana’s gold declaration has been on the decline since 2016. Currently, there is only one large-scale mining company, China’s Aurora Gold Mine (AGM). GMIN is one of several Canadian mining companies that are expected to start gold production in the coming years. Related Similar Articles

Swan $45M health centre Sep 11, 2024 News The new Swan health centre along the Soesdyke-Linden Highway Kaieteur News – A spanking new health centre was officially opened in the community of Swan, along the Soesdyke-Linden Highway on Monday. The massive investment by the government will eliminate the need for villagers to travel to neighbouring villages to access basic health services. The facility was commissioned by Minister of Health, Dr. Frank Anthony, who noted that approximately $40 million was invested to ensure the medical outpost is equipped to provide adequate medical care. Services being offered include prenatal care, diabetes and blood pressure testing, among others. Additionally, HPV testing for women and dental services will be available, with a medical team scheduled to visit shortly. Swan Residents and Minister of Health Dr. Frank Anthony gathered to cut the ceremonial ribbon to the new Swan Health Centre During his address at the simple ceremony, Minister Anthony said additional services will be introduced subsequently.   He emphasised the government’s commitment to enhancing Guyana’s healthcare system by constructing new health facilities nationwide. “With where you are located and the population that you have, you deserve to have your own health facility here,” Dr. Anthony stated. He highlighted the ministry’s ongoing collaboration with nearly all communities, including hinterland and riverain areas, to ensure access to adequate healthcare services. By early 2025, six new hospitals will be opened across the country, in areas like Diamond, Skeldon, Enmore, Bath, De Kinderen, and Anna Regina. The investments will further improve the quality of healthcare in those regions. In the first half of 2024 alone, the government exhausted some $44.4 billion to ensure the nation’s health system is intact to provide substantial care that is second to none. (DPI) Related Similar Articles

E-bike rider dies after falling into pothole Sep 11, 2024 News Kaieteur News – A 58-year-old man on Tuesday lost his life after falling into a pothole while riding his electrical-bike along the Railway Embankment in the vicinity of the University of Guyana (UG) Access Road. The dead man has been identified as Dexter Jacobs of Lot 193 South Better Hope, East Coast Demerara (ECD). Police reports revealed that the accident occurred around 08:55 hrs. During that time, Jacobs was riding his E-bike west along the Railway Embankment at a fast rate.  Whilst travelling, Jacob rode his bike into a pothole, causing him to lose control and fall onto the road. As a result, he received severe injuries about his body. Police and public-spirited citizens, transported the injured man to the Georgetown Public Hospital Corporation (GPHC) where he was pronounced dead on arrival by a doctor. Jacob’s body has been moved to the hospital’s mortuary, where it awaits a post-mortem examination. Investigations continue into the incident. Related Similar Articles

Chinese nationals injure labourer during drive-by shooting Sep 11, 2024 News Kaieteur News – A 54-year-old man, identified as Kameshwar Tiwari, was on Monday injured in a drive-by shooting involving Chinese nationals at the intersection of Lousia Row and Hadfield Street, Georgetown. According to police, the incident occurred around 01:30 hrs. At that time, Tiwari was lying on a parapet when he observed three Chinese nationals in a black wagon. As the car passed by, one of the occupants fired a gunshot, hitting Tiwari in his right thigh. The suspects then fled the scene, making good their escape. Tiwari was transported to the Georgetown Public Hospital Corporation (GPHC), where he is currently in stable condition. Police are currently reviewing CCTV footage from the area as part of their ongoing investigation. Related Similar Articles