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Exxon will still make money even if oil prices drop by half – Bloomberg Aug 12, 2024 News …Cost to produce in Guyana among the cheapest in the world Kaieteur News – With the cost to produce oil in Guyana being among the cheapest in the world, ExxonMobil Guyana Limited (EMGL) and its Stabroek Block partners are guaranteed to make a profit even if oil prices drop by half. The Stabroek Block ExxonMobil Guyana is the operator of the Stabroek Block with a 45% interest, while Hess Guyana Exploration Ltd. holds 30% interest and China National Offshore Oil Corporation (CNOOC) Petroleum Guyana Limited holds 25% interest. Guyana has emerged as one of the fastest growing economies in the world owed to the oil production offshore. Bloomberg’s Kevin Crowley in a recent article stated that Guyana has become the bedrock of Exxon’s post-Covid corporate revival. It was stated too, “… (The Stabroek Block) costs less than US$35 a barrel to produce, making it one of the most profitable outside of OPEC. With crude currently trading at US$85 a barrel, the oil field would make money even if the transition from fossil fuels caused demand to collapse and prices dropped by half. Kaieteur News had reported that the cost to produce a barrel of oil in Guyana is among the lowest, said the International Energy Forum (IEF) and S&P Commodity Insights in a June 2024 report. The report titled, “Upstream Oil and Gas Investment Outlook” sheds light on the changing dynamics of global oil production costs, with particular emphasis on Guyana’s position as a cost-effective producer in the industry. According to the findings of the report, the cost of oil production worldwide has experienced an increase. The report highlights that the majority of new oil supplies can be extracted at an average cost of US$60 per barrel Brent or less. Among the regions identified for their competitive production costs are Guyana, the Middle East, and West Africa. The report reveals that the Middle East boasts the lowest average breakeven price at approximately US$30 per barrel Brent, followed closely by Guyana with a breakeven price of US$36 per barrel Brent. Last month, this publication reported that according to Phillip Rietema, Vice President and Business Service Manager at EMGL, the company’s Guyana projects compete internationally and are some of the bests in the world. During an episode of the local Energy Perspectives podcast, Rietema addressed price fluctuations in the industry, and pointed out that these projects are designed to withstand market volatility. He said, “So these projects, they all have costs of supply under US$40 a barrel…” According to an August 2024 SEC filing by Hess, the average selling price for the Guyana crude is around US$82. Exxon is currently producing over 600,000 barrels per day (bpd) from just three projects in the Stabroek Block (Liza Phase 1, Liza Phase 2 and Payara). Currently, the block’s partners plan for the combined production capacity to reach approximately 1.3 million b/d by the end of 2027, with plans to develop three additional projects: Yellowtail, Uaru, and Whiptail. The first significant oil discovery in offshore Guyana was made by in 2015 at what is now the Liza project in the Stabroek block. Since then, ExxonMobil and its partners, have made more than 30 additional offshore oil and natural gas discoveries within the Stabroek block. In addition to Exxon’s low breakeven price for its Guyana operations, the company secured a ‘sweetheart’ deal back in 2016 for the oil block. The Production Sharing Agreement (PSA) for the Stabroek Block gives Guyana an industry-low 2% royalty.  Also, Guyana shares revenue with ExxonMobil after the company deducts 75 percent towards the costs incurred to develop the resources in the Stabroek Block. After the 75 percent is deducted to pay back the oil company, Guyana then shares 50/50 of the 25 percent remaining with Exxon as profits. This amounts to 12.5 percent of profits from the operations. Moreover, ExxonMobil Corporation and fellow U.S. oil giant Chevron Corporation are currently embroiled in a legal battle over Guyana’s lucrative Stabroek Block. Chevron has agreed to acquire Hess Corporation in a deal valued at US$53 billion. This acquisition would grant Chevron access to Hess’s 30% stake in the Stabroek Block, a prospect that has sparked tension with ExxonMobil. Exxon asserts that it holds the right of first refusal on Hess’s share in the Guyana oil block, a claim that has led to the ongoing court dispute. The case is scheduled to continue next year. Related Similar Articles

Norton slams Exxon deal in interview with UK media Aug 12, 2024 News – but afraid to commit to renegotiating lopsided contract   Kaieteur News – Opposition Leader, Aubrey Norton while still afraid to commit to renegotiating the lopsided 2016 Production Sharing Agreement, signed by the Coalition government with Exxon, recently criticised the deal in an interview with The Guardian, a UK-based media house. Opposition Leader, Aubrey Norton In its article published last month under the headline ‘Guyana banks on future as a ‘new Qatar’ in high-stakes gamble over oil production’ The Guardian said the Leader of the Opposition criticised the low royalties being paid to Guyana as per the terms of the agreement the country signed with American oil giant, Exxon Mobil and partners, Hess Guyana Exploration Ltd. and CNOOC Petroleum Guyana Limited. That contract, often described as the worst oil deal in the world, positions Guyana to receive a meagre 2% royalty and 12.5% of profits generated. Each month, Exxon and its Co-Venturers take 75% of the oil to repay its investments across the oil rich Stabroek Block. The remaining portion, 25% is split with Guyana as profits. According to the report by The Guardian, the leader of the opposition, criticises the royalties and terms of the contract signed with ExxonMobil and the policy of distributing the benefits of oil, but does not question the exploitation. He said, “Oil allows us the resources to develop the country. The downside is that you have a government that isn’t focused on the development of the people of Guyana.” Norton, who leads the largest Opposition party in the Guyana, the People’s National Congress Reform (PNC/R) has been afraid to commit to renegotiating the lopsided Exxon deal should he be elected to govern the country. In April 2022 Norton issued a statement following an article published by Kaieteur News under the headline “Norton backs calls for renegotiation of oil contract”. He said, “Nowhere in the interview did I say that. What I did say was, that the law provides for action to be taken to ensure that the people of Guyana benefit from our resources, and that the contract provides for changes to be made in keeping with Article 31.2 of the Agreement and that the PNCR will do everything within the confines of the law to ensure our people get increased benefits from the oil and gas sector.” The Leader of the Opposition in the initial article spoke at length about Guyana’s changed circumstances, compared to when the deal was first signed, in justifying the need for changes to the contract. He explained that when Guyana drew up its first oil related contract, there were a lot of high risks associated with the initial projects. He said that as he understands it, the tendency of negotiations at the time, was to cater for those high risks because of the uncertainty that surrounded the presence and value of the resource.“Now that the evidence is there, that we have the oil resources, I believe it is a new context and we must engage Exxon (Mobil) noting the new context,” Norton highlighted at the time.  More recently, the PNCR has committed to engaging Exxon during its first 50 days in office for better terms should it be elected, though the Opposition Leader is still afraid to use the word “renegotiation”. A renegotiation simply means entering into discussions to effect changes to an initial agreement. Stakeholders have called on Guyana to re-engage Exxon and its partners to secure a better deal for its people, while the leaders continue to refuse. Only in February this year, Trinidad and Tobago’s Minister of Energy and Energy Industries, Stuart Young told the Guyana Energy Conference that he stands ready to help Guyana renegotiate the lopsided ExxonMobil contract to ensure all Guyanese benefit. The conference hall was in silence as Young’s remarks echoed through the Guyana Marriott Conference room. Young explained, “We in Trinidad and Tobago have spent the last seven years, after dealing with decades of contracts, renegotiating almost all of our contracts in the gas industry.” He also pointed out that the twin island in December last year achieved another significant milestone by becoming the first country in the world to restructure its Liquefied Natural Gas (LNG) facilities, following five years of discussions across the table with BP and Shell. To this end, Young said, “It can be done, so our ability to sit down right across the aisle and to share with those who are now entering into the negotiations of their PSCs (Production Sharing Contracts), their E&P (Exploration and Production) Licenses etcetera should not be underestimated because we have done the same thing in our gas supply contracts for the upstream.” The minister was keen to note that investors have not left the country because of T&T’s effort to secure better terms for its people. Related Similar Articles

Govt.’s Dubai sugar revival hopes fall flat – Jagdeo admits no deal was made   Aug 12, 2024 News The eight-member delegation from Dubai meeting President Irfaan Ali and other senior government officials back in 2020 Kaieteur News – On December 17, 2020 the headline screamed from the government-controlled Guyana Chronicle ‘Dubai sees sweetness in Guyana’s sugar”. The article was based on a visit by an eight-member delegation from the United Arab Emirates (UAE) late 2020. The sugar industry in Guyana has been struggling for years The team which was led by his Highness, Sheikh Ahmed Dalmook Al Maktoum of Dubai, met with President Irfaan Ali, Agriculture Minister, Zulfikar Mustapha and other senior Government officials. Mustapha later told the Guyana Chronicle that he highlighted the opportunities in agriculture to the investors, placing specific emphasis on sugar. “They indicated their willingness to invest, so another team came back recently to look at sugar, a team from GuySuCo (The Guyana Sugar Corporation) accompanied the visiting team on a tour of all the estates. So they went and examined all the estates already,” Minister Mustapha had said during an interview with the state paper. The Guyana Chronicle reported back then that the visiting team comprised mainly experts, who had a specific task of analysing the operations and viability of Guyana’s sugar estates. “I had a chat with them after their visit to the estates and they seemed very interested, remember they are technical people and not policy makers, so whatever they observe they have to take back to the policy makers, but they were impressed with the sugar industry in Guyana, in terms of investing and so on,” said the agriculture minister. Dubai is no stranger to sugar, as this State is home to the world’s largest port-based sugar refinery, Al Khaleej Sugar Co. Fast forward to August 2024 almost four years later Vice President Bharrat Jagdeo was asked by this newspaper: “In 2020 President, Ali would have met with a team from Dubai as there was a company that was looking to invest in the sugar industry. Can you say what happened with this venture?” In response Jagdeo said that, “The President has met with a lot of people who might be interested in sugar, and we still have…that’s an option that is actively being explored now about getting private equity into the sugar industry. So that is still under active consideration but if it didn’t happen by now since you’ve asked now it meant that the terms of the engagement may not have been favourable to Guyana and that is why a descision wasn’t made.”He added, “Since you’re asking now I can’t give you a specific answer to that question because I don’t remember. You are talking about 2020 somebody approached us in 2020, but if it didn’t move forward that may have been the major factor we always look out for what is best for our country.”The sugar industry has been failing for a number of years and yet the government continues to pump billions into it. Only last week the National Assembly approved $40B in supplementary spending for the government out of this amount the Guyana Sugar Corporation (GUYSUCO) received a whopping $9.5 B. The former APNUAFC administration had downsized the industry, but on retaking government the PPPC Government reopened the shuttered estates. However, GuySUCo has been limping along. Just last week also the privately-owned Stabroek News reported that GuySuCo recorded losses of $7.8b in 2021 and $10.2b in 2022. However, Jagdeo continues to argue that sugar production is the primary source of job opportunities and income for families in Berbice- a stronghold of PPP/C at elections. He said removing disposable income from people would affect the entire region, as the source of income from sugar employment is essential for the local economy. “The source of the disposable income is the source for other people, who are selling other types of services,” Jagdeo said. He said the industry not only provides employment opportunities, but also supports the drainage and irrigation network for households in the area. Related Similar Articles

New medical centre in pipeline for ExxonMobil’s employees Aug 12, 2024 News Kaieteur News – ODITC, a joint venture (JV) between Guyana’s Orinduik Development Incorporated, Windsor Technologies, and 3t EnerMech is expanding its oil and gas training center in Lusignan, East Coast Demerara to offer medical services to employees of ExxonMobil Guyana. In the organisation’s Project Summary, published by the Environmental Protection Agency (EPA), it was explained that the facility will offer a range of testing and assessments, “critical to ensure all persons traveling offshore have received the necessary testing/assessments as per Exxon and the Guyana government’s requirements.” Services to be offered include TB skin testing; audiometry testing; OEUK (Offshore Energy UK) medical protocols (for the 0&G sector); fitness testing via Chester Step Test; pre- employment and work visa medical testing as well as drug and alcohol testing (via urinalysis and breathalyzer). The institution said it plans to add these services to its existing business so will not require additional construction activities. Further, it outlined, “As the services are related to medical it must be noted we will not be handling any human samples and laboratory work associated with such a business offering. Our services are largely physical and non-evasive testing.” Meanwhile, with regard to safety of the operations, the Project Summary states that all persons performing testing and medical assessments are qualified nurses and doctors, with all doctors registered and in date under the Medical Council of Guyana. Additionally, all equipment is controlled by the Quality Manager and medical personnel are provided with appropriate Personal Protective Equipment (PPE) to perform necessary testing and assessments. All biohazard materials will be picked up by Midway Specialty Care Center from the facility. On Sunday, there was no notice to the public published by the EPA, regarding the facility. It also did not say whether the project will require environmental studies. In 2022, ODITC became the first accredited centre for training and certification from the Offshore Petroleum Industry Training Organization (OPITO). Founded in 1977, OPITO is the not-for-profit organisation that defines the standards in the offshore oil and gas industry. It was established to support the region’s growing need to increase its oil and gas talent. The new facility, according to the developers, obtained the OPITO approval to train personnel across a range of rigger, banksman and slinger skills and competencies after meeting the strict criteria set out by the global skills organisation for the energy sector. The more than US$20M facility features its own skills hall, welding and fabrication shop, rigging and lifting areas, technology suite and a 14ft deep sea survival pool. Related Similar Articles

GBTI rolls out HomeStart Advantage Savings Account Aug 12, 2024 News Minister within the Ministry of Housing and Water Susan Rodrigues during the launching ceremony …Aims to promote savings for home ownership Kaieteur News – The Guyana Bank for Trade and Industry Ltd [GBTI] in its efforts to encourage persons to save to acquire a home has rolled out the HomeStart Advantage savings account on Friday. This was revealed by officials of GBTI during the opening of International Building Exposition, being held at the National Providence Stadium, East Bank Demerara (EBD).  Those present at the launching ceremony were Chief Commercial Officer of GBTI, Rawattie Mohandeo, and other staffers of the bank. While acknowledging the struggles persons who desire home ownership face, Mohandeo said that GBTI intends to play a part in ensuring that potential home owners have an efficient amount of money to finance the building and maintenance of a house. As such, the HomeStart Advantage savings account is the latest development made by GBTI, which aims to allow customers to systematically save towards there housing loans from the earliest stage, from the moment that an application is made for a house lot. Mohandeo said, “We have designed this account with a deposit only feature to encourage consistent saving, ensuring that our customers are well prepared for when the time comes for payment.” While expressing that that Building Exposition does not only symbolizes progress but also embodies the shared dreams of many persons who desire home ownership, Mohandeo continued, “At GBTI, we understand that home ownership is more than just the financial goal, it represents stability security and the foundation of building a future filled with memories.” Chief Commercial Officer of GBTI, Rawattie Mohandeo The Chief Commercial Officer highlighted that one of the features of this account is predetermine monthly deposit. This feature will be calculated in consultation with loan officers. “…This personalized approach ensures that saving accumulates steadily overtime so that when the Central Housing and Planning Authority (CH&PA) is ready to allocate your house lot, you will have your equity saved and ready to make the necessary payments.” Mohandeo said during the launching ceremony. On the basis of benefits, Mohandeo explained that the HomeStart Advantage savings account is substantial. The bank will be offering a 100 waiver and application fees, a 25 percent discount on negotiation fees and up to $100,000 cash back, once customers’ loan is approved and dispersed. This account is also build with convenience; security and deposit transaction are restricted as to ensure that the account is focused strictly on saving. Additionally, the Go banking platform will provide customers with access to monitor and add to the savings account. This innovation compliments the low interest rate that GBTI offers and also the Dream Big housing campaign. Meanwhile in her remarks, Minister within Ministry of Housing and Water, Susan Rodrigues congratulated GBTI for their dedication to customers and working together with the Ministry to promote house ownership. “I am even more pleased that GBTI is one of the few private institutions, or one of the few members of the private sector who keeps evolving as our economy keeps growing,” Minister Rodrigues said. To this end, the Minister added, “This is a fantastic opportunity for people to start saving for their house lot and building a relationship with this bank. So, they can move on to home ownership once they receive their land and are ready to construct their homes.” Related Similar Articles

A day at de races Aug 12, 2024 Dem Boys Seh, Features / Columnists Kaieteur News – Horse racing is a mirror of class relations in society. Dem boys seh, if yuh want fuh see who running things, go to the races. Is not the horses who run things, but the big ones sitting in the VIP stands. Dem with the fat wallets and the flashy clothes. The ones who get free pass to watch de horses run and get de best view in de house. But wha happen to de small man? De die-hard fans who keep de sport alive? De same small man who love de Sport of Kings, who bet he last dollar hoping fuh catch a break. He got to fork out $6,000 just fuh stand up in the sun or squeeze in like sardines in de stands, sweating like if he running the race heself. And if he tek he family, well, he better be prepared fuh eat dry bread fuh the rest of the week cause is $6,000 per head. Dem boys seh, the big ones don’t worry ’bout de cost of living. They don’t have to. While de small man watching de race, he thinking ’bout how he gon pay de bills. De irony is thick. The horses running at full speed, but is de small man who really running. Running fuh make ends meet, running fuh pay dem bills, running fuh survive, running just fuh afford to go to de races. And at de end of de day, he $6,000 short. Dem horses getting whipped to run faster. But at the end of the day, dem getting three square meals. Some of dem in de stands wah cheering dem on, might only manage two. Dem horses living better than some of we. Dem boys seh, is not just a race track. Is a mirror. It show yuh the gap between the haves and the have-nots in this country. It show yuh how de rich live in a different world, while de small man struggling to even stand up in the sun and watch the show. So next time yuh at the races, remember who really winning. It ain’t the horse. It ain’t the jockey. It’s the man sitting comfortable in de VIP box, watching the rest of we sweat and struggle. But like dem boys always seh, is just another day at the races. Talk half. Leff half Related Similar Articles

Has Jagdeo changed his position on the position of Foreign Secretary? Aug 12, 2024 Peeping Tom Kaieteur News – The Stabroek News of May 17th 2019 reported that then Opposition Leader, Bharrat Jagdeo, as questioning the decision of the Granger administration to create the post of Foreign Secretary. While he did not oppose the return of the former Minister of Foreign Affairs, Carl Greenidge, to the ministry to deal with border matters, Jagdeo questioned the range of Greenidge’s portfolio. He was quoted by the Stabroek News as asking, “He has become the Foreign Secretary within the Ministry of Foreign Affairs with responsibility for the Department of Frontiers and Territorial Integrity and the Department of Trade and Economic Cooperation. So what is the portfolio of the minister?” Jagdeo was reported as even querying the title of the post of ‘Foreign Secretary’, pointing out that in the United Kingdom, the Foreign Secretary is the minister. He asked, “What happens to the minister…and what happens to the Director General?” he added. He also latched on to the issue of dual citizenship expressing concerns as of if the then Prime Minister Moses Nagamootoo would have an issue with Greenidge in the position given Greenidge’s dual citizenship. Readers will recall that this issue of dual citizenship was one of the grounds upon which Ministers of the APNU+AFC government had to demit office following the legal challenges to the no-confidence motion. The court had ruled that it was unconstitutional for a member of the National Assembly to have dual citizenship Fast forward to 2020, and the PPPC comes into office. And one of its appointments was that of a Foreign Secretary in the Ministry of Foreign Affairs, a position given to a former Minister of a previous PPPC government. One must ask whether Jagdeo does not have a problem any longer with the title of ‘Foreign Secretary’ and whether it overlaps or intrudes on the responsibilities of the substantive Minister of Foreign Affairs and International Co-operation. The public needs to be advised as to the division of responsibilities between the Minister and the Foreign Affairs and the Foreign Secretary. I wonder if he is asked about this at his next press conference whether he will say he has changed his position as regards the post and whether, if questioned about any possible overlap in responsibilities between the Foreign Secretary and the Minister, whether he refers the reporter to the President or the Minister. It is not clear also whether he holds the same objection, as he did in the past, to any dual citizen working within the Foreign Ministry as a high level. During his tenure as President, Guyana did have Honorary Counsels who were nationals of other countries or Guyanese with foreign citizenship who were appointed to such posts. Do we have any dual citizens working at Takuba Lodge? In that same Stabroek News report of 2019, Jagdeo was also critical of what he deemed as sinecure appointments. A similar criticism has been made about such appointments in the present government in which Jagdeo is a Vice President. I wonder whether he does not see the irony. We have a situation where Guyana has a Foreign Minister and a Foreign Secretary. The public should be told of what are the responsibilities of the latter. The website of the Foreign Ministry states that the present holder is also Guyana’s High Representative for the United Nations Security Council Affairs and Co-chair of U.S.-Caribbean High Level Action Committee on Food Security. In relation to the former, this column had long suggested that the holder of the post of High Representative for the United Nations Security Council should be permanently based in the United States. This is especially because meetings of the Security Council can be called on an emergency basis, including late at nights. The public also needs to be advised as to what has become of the position of Director General of the Ministry of Foreign Affairs. This was a post that was usually reserved for the Head of all the diplomatic services.  This post seems to have been abolished. Has it? On the issue of “Director General” did you, the readers, know that the Ministry of Agriculture has a Director General? Is this a public service post? Related Similar Articles