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IEA predicts Exxon will secure approval for 7th project by next year Jun 25, 2024 News Kaieteur News – The International Energy Agency (IEA) in a new report has predicted that United States oil major, ExxonMobil, will secure approval from the government of Guyana (GoG) for a seventh deep-water project in the Stabroek Block by 2025. ExxonMobil Guyana Limited President, Alistair Routledge According to the report Oil 2024, the project, Fangtooth could add 220,000 barrels of oil per day (bpd) to the country’s production capacity. The IEA also estimated that first oil from the seventh project could flow as early as 2029. Furthermore, to meet the government’s target of 1.3 million barrels of oil per day by 2027, the report said an eight development could also be sanctioned the following year (2026). The project could add another 220,000 bpd by 2030. Notably, concerns were previously raised by stakeholders regarding the swift approval of oil projects and Field Development Plans (FDPs) by the GoG. The fast tracking of the approval process not only puts the environment at risk but also allows for higher project cost, by failing to properly scrutinize FDPs. Presently, ExxonMobil Guyana Limited (EMGL) has three Floating Production Storage and Offloading (FPSO) vessels in Guyana’s Stabroek Block. The company has received regulatory approvals for six deep-water projects to date. ExxonMobil said it anticipates six FPSOs will be in operation on the Stabroek Block by year-end 2027. Already preparations are ongoing for startup of Yellowtail and Uaru, the fourth and fifth projects, which will each produce approximately 250,000 barrels of oil per day. Yellowtail is posed for startup in 2025 while Uaru is expected to come on stream by 2026. The Stabroek Block is 6.6 million acres, where to date over 38 commercial discoveries have been made. It is estimated to contain more than 11 billion barrels of oil.  ExxonMobil Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest. The PPP/C Government has made it clear that it plans to embark on a number of measures that will keep the oil industry on the fast track for a minimum of 15 years. This was revealed by Vice President, Bharrat Jagdeo. The official said such an approach would include the timely award of production licences as well as encouraging investment in the sector. Given the pace at which discoveries are being made in the Stabroek Block, and the overall speed of development activities, Jagdeo said it is critical that the government adopts a complementary approach to ensure local and foreign businesses are not left with stranded investments. The Vice President said, “All that we are doing is to sustain the level/ (momentum) and we will do so aggressively and unashamedly to sustain high levels of activity for a minimum of 15 years. That means licencing new FPSOs (Floating, Production, Storage and Offloading vessels), consistently encouraging investment, going out, as we have done, to an auction in a manner that could potentially have a minimum of five different investors in the basin.” Jagdeo was also keen to note that government is not unmindful of the debate taking place globally about the need to reduce carbon emissions to save the planet. He said the administration subscribes to that philosophy. He stressed however that the transition from fossil fuels to renewables has to be just and in a sustainable manner. He said, unreservedly, that the government will not succumb to the jaundiced calls of certain detractors to shut down the industry. In closing, he said government will continue to defend the country’s right to develop its resources. The official also called for there to be a deepening of the analytical views that make their way into the media. Related Similar Articles

Jamaicans urged to go after opportunities in oil-rich Guyana Jun 25, 2024 News Jamaica Gleaner – As Guyana scrambles to make the most of its oil wealth, Senator Aubyn Hill, minister of industry, investment and commerce, is again urging local entrepreneurs to invest in the Caribbean Community (CARICOM) nation. Senator Aubyn Hill, minister of industry, investment and commerce On Thursday during the media launch of Smart Mobile Solutions’ (SMS) Smart Tech 360, held at The Jamaica Pegasus hotel in New Kingston, Hill specified why Jamaican entrepreneurs should consider investing in this out-of-country opportunity. Over the past decade, Guyana has found huge amounts of oil and gas under its coastal waters. That country now boasts reserves of about 11 billion barrels, which puts it in the top 20 in terms of its potential, on a par with countries such as Norway, Brazil and Algeria. The small country, which borders Venezuela, Brazil and Suriname in South America’s north-east region, also boasts the fastest-growing economy in the world. A consortium led by ExxonMobil discovered the first major oil deposits in May 2015, more than 100 miles (190 kilometres) off Guyana. However, the quest for petroleum offshore Guyana began in 1958 when California Oil Company conducted seismic surveys before withdrawing in 1960. Hill believes the time is right for Jamaicans to invest in Guyana although the oil discoveries come as the planet is trying to wean itself off fossil fuels to tackle climate change. Under the 2015 Paris Agreement countries have vowed to reduce their greenhouse gas emissions to net zero by 2050, which means trying to cut down on oil use. “I don’t take trade missions. I take business missions. I take business people to do business… We took 61 to Guyana, back again to Guyana three times. Listen mi nuh, I spent 21 years in the Arab Gulf, where oil is. I’ve seen what happen to countries when they become an oil economy. Listen to me carefully, continue to invest in Jamaica, build your company, but we have such a fantastic relationship with Guyana, we paid the respect over the years, they have respected us. We have three million people. They have 780,000 people. Jamaica has a stock market that works. We have government systems that work, whether you believe they’re at the top or not. They’ve worked very well in many cases,” Hill said. “And so Jamaica must form a consistent and symbiotic relationship with Guyana to make sure, as their economy grows on the back of 11 billion barrels of oil declared, and I’m sure there are probably more, as Suriname grows its economy with one billion barrels of oil declared, Jamaica works with these companies,” he said. Hill continued to highlight that Guyana has its Georgetown port and other ports in Suriname and, in five to seven years, he predicts that Guyana will expand its port as did Singapore and Dubai. “But, between now, four to seven years, there’s a lot to be done … I have taken seven [to] eight trade missions around the Caribbean, United States, Canada, Britain and France and when I started in Guyana in October 2022, there were six ICT companies with us. We had 35 business people who paid their fares, paid their hotel, paid their food and were with us,” he said. Pool resources He also encouraged Jamaicans to pool their resources, if they have to, and invest in Guyana as groups. “Go and find partners. We have whole heap of money in this country. For seven [to] eight years, we stayed out of the capital markets as a Government, making sure there’s money in there for the private sector to have. Get the private sector [and] come together in a group … But really and truly, there is money, but come together and form consortiums. One of the best inventions of western capitalism, is something called the limited liability company; when him and him join and make a limited liability company, you can’t go tek weh dem house, unless dem sign a personal guarantee,” Hill said. “It is limited. The limited liability allows you to get money … Put a company together and out of that combination, come something that is stronger than if you do it alone,” he said. In January 2023, Hill led a 60-member delegation from Jamaica to Guyana to strengthen previously established partnerships with Guyanese businesses, as well as increase trade and investment opportunities between the two countries. Guyana, a country with a land area of 214,969 square km or 83,000 square miles, is the third-smallest sovereign state by area in mainland South America after Uruguay and Suriname. In 2022, Guyana ranked 80th in total exports at $18.5 billion but, although it does not have Economic Complexity Index data, in that same year Jamaica ranked 72nd in the Economic Complexity Index (ECI -0.17) and 145th in total exports at $1.95 billion. Highest growth in the world Guyana has emerged as a significant contributor to growth in the global supply of crude oil. Since starting production in 2019, Guyana has increased its crude oil production to 645,000 barrels per day (b/d) as of early 2024, all from the Stabroek block. Guyana increased crude oil production by an annual average of 98,000 b/d from 2020 to 2023, making it the third-fastest growing non-OPEC producing country during this period. Crude oil production has been the largest contributor to Guyana’s economic growth in recent years. In 2022, Guyana’s GDP grew by 62.3 per cent, the highest real GDP growth in the world that year, according to the International Monetary Fund. While Guyana’s most recent estimate of recoverable oil and natural gas resources is more than 11 billion oil-equivalent barrels, developers are still exploring the country’s offshore waters. The country’s discovered oil and natural gas resources are currently located offshore within the Guyana-Suriname Basin of the Atlantic Ocean. Guyana’s oil production comes from three floating production, storage, and offloading (FPSO) vessels: Liza Destiny, Liza Unity, and Prosperity. These vessels produce oil and natural gas from the Liza and Payara projects. All associated natural gas is reinjected into wells to support its production and used as on-site fuel. A proposed project would bring associated natural gas onshore to processing facilities via pipeline. 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. If realised, the increased production would make Guyana the second-largest crude oil producer in Central America and South America behind Brazil. Related Similar Articles

Exxon’s partner CNOOC looking to lease office, residential complex for next 20 years Jun 25, 2024 News Kaieteur News – China’s, CNOOC Petroleum Guyana Limited (CPGL), a 25% partner in the Stabroek Block has initiated a pre-qualification round for interested bidders to lease a complex to the company for office and residential purposes. According to the Request for Information (RFI) published on Monday, CNOOC is looking to lease the complex for 20 years to support its activities operations in Guyana. ExxonMobil Guyana Limited (EMGL) is the operator the Stabroek Block, which is located approximately 200 kilometers offshore Guyana. Exxon holds 45% and the third block-partner CNOOC holds 30% interest. Oil discovery was made in 2015 and by December 2019, oil production had commenced, with the Liza Phase 1 development. By early 2022, Liza Phase 2 production commenced, followed by Payara in 2024 and Yellowtail to commence in 2025. Guyana’s oil production comes from three floating production storage and offloading platforms (FPSOs) vessels: Liza Destiny, Liza Unity, and Prosperity.  Oil production is now at some 645,000 barrels per day (bpd) up from 98,000 bpd from its first full year of production. CNOOC said in its RFI, “In response to this increased development and production activity, CPGL is significantly increasing its presence in Guyana. Inaugural office and staff presence started in 2017 and has grown over the last six years.” For the pre-qualification round, interested persons are asked to submit a RFI package which shall consist of the minimum requirements of a completed pre-qualification questionnaire (PQQ), PDF attachments as required in PQQ and evidence of work in progress or completed projects. A copy of the pre-qualification questionnaire (PQQ) can be accessed at (https://lcregister.petroleum.gov.gy/wp-content/uploads/2024/06/CPGL-Vendor-Pre-qualification-Questionnaire-PQQmWErJ68.xlsx). Prospective participants should be guided by the following minimum requirements. For the office complex, it must be able to accommodate 100 staff, a conference room, a cafeteria/ lunchroom, a gym, and a parking lot.  For the residential area, the requirements are as follows: 30 executive apartment rooms, contingency apartment rooms for guests, kitchen/dining hall and a swimming pool. Prospective participants can submit their RFI Package to be submitted to: [email protected] no later than Monday, July 15, 2024, 5:00pm. Related Similar Articles

Grove neighbours tussle over noise from vulcanizing shop Jun 25, 2024 News – EPA promises to investigate complaint Kaieteur News – The Environmental Protection Agency (EPA) is set to investigate a complaint made by Annabella Joseph of Section C, Block Y, Golden Grove, East Bank Demerara about a recently established vulcanizing shop that she says is the source of noise nuisance by way of its daily operations. This issue has resulted in disagreements between Joseph and ‘Mr. Ganesh’, the proprietor of the shop, who resides obliquely opposite the woman. Searching for relief, Ms. Joseph has reached out to the police, the Golden Grove/Diamond NDC, and the EPA, and after much back and forth on which agency is actually responsible for investigating the matter, she is hopeful that the EPA’s investigation will be able to resolve the matter. Joseph claims that the vulcanizing shop operates from approximately 06:30 hrs. to 18:00 hrs., but often goes later into the night, and during that time, she endures the whirring and banging noises of vehicle repair ringing through all parts of her house. Additionally, she alleges that, since the vulcanizing shop services many large vehicles that travel to and from the interior/hinterland regions, they create obstruction to the narrow roadway and at times there are multiple vehicles parked on both sides of the street. She says that she has attempted to speak with Ganesh, the owner of the establishment, on several occasions, but he has not been receptive. Recalling an incident where one of the large trucks obstructed the entrance to her property, she said, “I tried to approach him nicely, he told me that I have to go and look for the truck man; but I told him that the truck people coming to you, so he told me that ‘go to who you want to go to because I have contacts at the NDC’, he’s a very difficult person to approach, even though you try to be nice he would start cursing.” On the other side of the coin, however, Ganesh says that he has been faced with opposition from Ms. Joseph since he opened his tyre shop, as she has taken issue with it and has been complaining to several authorities and galvanizing support from neighbours against him. “Six weeks now I open my business and this lady tormenting me,” he said, “me and this lady never had a problem but since this tyre shop move by me, it’s an issue for this lady every day. Whole day she deh at the station, she nah get satisfaction deh?” Additionally, he claimed that, in part because of Ms. Joseph’s complaints, he has operated during very strict and respectful business hours. “Me don’t work Sundays, I don’t work holidays, because of this same problem; and I open from seven in the morning to five-thirty in the afternoon, I don’t work late. One night I work late and I very vex, and I tell me worker them after this night me ain’t working back late. After that, seven in the morning [is when we start, and] five-thirty we close, we ain’t working later than duh.” When asked if he believes that his business produces any noise pollution, Ganesh responded, “No, the only thing that makes noise here is my compressor, and my compressor deh till down at the back of the yard. It does make lil noise but as I tell you, she house deh two house away from me… and me side neighbour ain’t got a problem with it… it’s only this one person making trouble with we.” Ms. Joseph claims that Mr. Ganesh was verbally abusive to her, cursing her out when she attempts to discuss the matter with him, and Mr. Ganesh claims the same about Ms. Joseph’s husband, who he says he has known for some time and reached out to repeatedly with hopes of resolving the matter.  He also denies the claims that he said he has favourable connections at the NDC, saying “If she got me saying that on record, she could bring it and prove it. Me ain’t got nobody nowhere; me ain’t got nobody at NDC, nobody at the police, nothing.” According to Joseph, she reached out to the police, but they informed her that the relevant authorities for the issue were either the EPA or her NDC.  She then called the EPA and made a complaint on June 4th, and was able to speak to an EPA official, who she informed of the incident. However, after a week passed without her receiving a response, she decided to visit the office in person in an attempt to make a formal, written complaint. During her interview with Kaieteur News, she produced a copy of a letter addressed to the EPA that she says she delivered to their Ganges Street office on June 11th, complete with signatures from Joseph and three other neighbours. She was able to meet with the same official she spoke to over the phone the previous week, who told her that the agency would investigate the matter and contact her. He also advised her to visit the NDC. She claims that several of her neighbours have the same complaints and at least one had reached out to the relevant authorities —the Golden Grove/Diamond Neighbourhood Democratic Council and the Environmental Protection Agency­—, before she did. After leaving the EPA, Joseph says she visited the NDC, where she was able to speak with clerks at the front desk, who told her that they were unaware of the issue and had not received any previous complaints, which she says is untrue. Nevertheless, she lodged her complaint and proceeded to show the NDC staff videos of the activity at the vulcanizing shop, after which they informed her they would investigate. Joseph noted that she was not able to speak to the NDC chairman herself, but her husband did at a statutory meeting on another day. When asked for comments on the matter, Golden Grove/Diamond Scheme NDC Chairman Rajendra Paul said that he was aware of the ongoing issue, however, much of it is beyond the jurisdiction of his agency, and instead falls under the responsibility of other agencies, such as the EPA and police force. “I’m aware of it; the gentleman [Annabella Joseph’s husband], I entertained him at our statutory meeting and he would’ve shown us some videos regarding the noise pollution, but then, remember, the NDC, we can only do so much, you have other agencies that are responsible. For example, that is an environmental issue and I advised him to contact the EPA on this matter. Also, [we informed him] that with regards to noise nuisance, he needs to contact the police,” Paul said. “We did our part already, through the sanitary department; we would have spoken to the gentleman [Mr. Ganesh], and we are in the process now of giving him something in writing but like I said, the other agency also has to play their part, which is the EPA and the police,” he continued. With regards to the claims of Ganesh having some kind of sway at the NDC, the chairman said that he was aware of the claims but could not confirm them. He informed the interviewer that one of his councilors alerted him of it, but there has been no substantive confirmation. Based on Mr. Ganesh’s statements, however, it seems that the EPA has indeed begun to investigate the matter, as he says that they contacted him concerning it, but he welcomes the investigation. “You know she went at EPA and call EPA on me; why you doing all these nonsense? EPA say they coming, I tell them ayuh welcome fuh come,” he said. A representative of the EPA also informed this publication that a complaint has indeed been lodged, and that the corresponding document (complaint form) was handed over to field officers who will conduct an investigation “the next time they are on the East Bank of Demerara.” The representative did not put an exact timeframe on the investigation but advised that it could take place “as early as this week.” Related Similar Articles

Govt. to overhaul financial laws in light of U.S. sanctions Jun 25, 2024 News President Irfaan Ali Kaieteur News – Guyana’s financial laws are to be amended in light of recent sanctions imposed on three Guyanese – two businessmen and a government official- who were allegedly involved in tax evasion and corruption, President Irfaan Ali said last week. The Head of state said that following the sanctions imposed on Guyanese billionaire Nazar Mohamed, his son Azruddin Mohamed, and government official Mae Thomas amendments to the Financial Institutions Act will be forthcoming. He highlighted the importance of aligning the law with international standards, stating, “Soon you will see we will be bringing to Parliament a Bill to amend the Financial Institutions Act to ensure further compliance with international banking standards, the basal core principles on banking supervision.” The amendments aim to modernize Guyana’s banking sector by adopting the latest legal frameworks, rules, regulations, and principles. “These amendments will allow us to the top tier, beyond any other jurisdiction in this Region in relation to the banking sector,” President Ali added. A notable change includes allowing foreign financial institutions to establish representative offices in Guyana with prior approval from the central bank. President Ali explained that while representative offices will not be allowed to carry on banking or financial business, they can offer services that can stimulate foreign direct investment by connecting capital investment opportunities. The proposed legislation will also introduce regulatory oversight to ensure accountability in setting fees and charges for services offered by licensed financial institutions. The Head of State, “This is aimed at keeping the market fair and engendering financial inclusion.” Another significant amendment involves removing the requirement for banks to consult with the Minister of Finance before making regulations that define financial business activities. “We are further removing powers from the Minister of Finance and we are empowering the bank, giving the bank more independence,” Ali noted. Additionally, the new framework will eliminate the need for ministerial consultation prior to issuing or refusing licenses under the Act. The amendments will facilitate more effective consolidated supervision and cooperation among supervisory authorities, allowing for the inspection of subsidiaries and representative offices in Guyana. The legislation will also increase administrative penalties to encourage full compliance by financial institutions with statutory requirements and directives from supervisory authorities. “It will increase the sanctions which can be imposed by way of administrative penalties with the aim of encouraging full compliance…” the President said. Moreover, the amendments will create a transfer and vesting mechanism for banking and financial business between licensed financial institutions, subject to approval and a certificate from the governor of the Bank of Guyana. Finally, the legal protection for the governor, officers, and employees of the Central Bank will be strengthened to ensure the lawful execution of their functions. Related Similar Articles

IDB, China and World Bank are Guyana’s largest external creditor Jun 25, 2024 News Source (Budget 2024 speech) Kaieteur News – In 2023, Guyana’s debt increased by 23%, reaching a total of approximately US$4.5 billion. The country’s domestic debt surged to US$2.7 billion by the end of the year, up from US$2 billion at the close of 2022. Meanwhile, external debt grew by 13%, amounting to over US$1.7 billion at the end of 2023 compared to the previous year. The Inter-American Development Bank (IDB), China, and the World Bank (specifically through the International Development Association) are Guyana’s largest external creditors. They hold 19%, 6%, and 4% of the total debt, respectively. This information was highlighted in the IDB’s ‘Partnering for Resilience’ report, published earlier this year. Recently, Kaieteur News reported that over the past 47 years, the IDB approved over US$2 billion in loans to support Guyana’s development. The IDB said that Guyana is experiencing a significant increase in its debt repayment and interest obligations. The figures highlight a substantial rise in both principal and interest payments over the past few years, reflecting the country’s evolving economic landscape and financial commitments. The IDB report states that Guyana’s principal repayments have surged from an average of US$8.3 million per year between 2010 and 2020 to US$18.3 million annually over the period from 2021 to 2023. This increase underscores the growing financial demands on the nation’s budget as it manages its debt obligations. Similarly, interest payments have seen a notable increase. From an average of US$8 million per year over the 2010–2020 decade, the figure has climbed to US$15.2 million per year on average during 2021–2023. This escalation in interest costs reflects both the increase in overall debt and potentially higher interest rates on new or refinanced debt. Related Similar Articles

$717M A-Line pump station contract terminated Jun 25, 2024 News Minister of Agriculture, Zulfikar Mustapha and Opposition Member of Parliament and Shadow Minister for Local Government and Regional Development, Ganesh Mahipaul Kaieteur News – The $717 million contract for the construction of the A-Line pump station, Region Three has been terminated, Minister of Agriculture, Zulfikar Mustapha has disclosed. The Agriculture Minister told Kaieteur News that the contract has been terminated and the project halted due to non-performance by the contractor. The Minister explained that due to this set back, his ministry will re-start the tender process in search of another contractor to complete the project. Over the weekend, Minister Mustapha visited Region Six where he said that there are several pump station projects ongoing across the country that are near completion. “There are a number of contractors who are delinquent, I think the President (Irfaan Ali) at his press conference spoke about it, we have already started to charge liquidated damages on those contracts and I am hoping those contracts are completed shortly so we can commission them,” he said in a statement published by his Ministry on Facebook. It was reported previously that following a national bidding process, the National Procurement and Tender Administration Board (NPTAB) in April 2022 awarded a $717,095,940 contract to contractor Civcon Engineering Contractors for the A-Line pump station project. The project was expected to be completed in June 2023. With the delay in completion of the project, Opposition Member of Parliament (MP) Ganesh Mahipaul publicly highlighted the slothfulness of that project, among others. The construction site for the A-line pump station back in April this year. (Photo courtesy, Opposition Member of Parliament Ganesh Mahipaul) “While he (Minister of Agriculture Zulfikar Mustapha) made a show of visiting the Canal No. 1 pump station, conveniently ignoring its neighbouring A-Line station and Pouderyoen Pump Stations, the truth is clear: projects across the region languish in a state of abandonment and disrepair,” Mahipaul said in a statement back in April. Responding to the Opposition MP, the National Drainage and Irrigation Authority (NDIA) in a statement at the time stated that over the years, the Ministry and the NDIA crafted programmes aimed at delivering quality drainage and irrigation infrastructure across the country, especially in vulnerable areas. These efforts, however, have been met with challenges as, oftentimes, the NDIA encountered contractors who have underperformed. The Authority had further disclosed that these instances have been and are being addressed on a case by case basis. In some instances, the NDIA applied liquidated damages to contractors who have not been able to complete projects according to the contractual time period, the statement disclosed. “In the case of the A-Line Pump station, the contractor has not been able to complete the project on time. As a result, liquidated damages are now being applied. The NDIA has noted that the contractor demobilized several pieces of equipment from the site. As such, the NDIA has notified the insurance company providing bonds on this project, and a file on the current situation has been sent to the Office of the Attorney General for advice on the way forward,”  NDIA said back in April. Kaieteur News had reported that the ministry through NDIA had also terminated a pump station contract ($978.7 million) for Black Bush Polder front-lands in Region Six due to poor quality and performance. That project has since been retendered and is now being executed by Quality Deliverer for $799 million. Related Similar Articles