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All oil companies should be at forefront of making positive impacts in Guyana, says Hess

By OilNOW 0 --- Source -- OilNOW
Chief Executive Officer of Hess Corporation, John Hess

CEO of Hess Corporation, John Hess, says his company is determined to play a lead role in fostering positive social development in Guyana. Speaking at a forum last week, he pointed out that all oil companies operating in the South American country should be working towards this objective.

He recalled that Hess has been able to bring key specialists from Mount Sinai Hospital together with counterparts in Guyana with the aim of revolutionising the country’s health care services.

He said it is a multi-year commitment, the majority of which Hess will underwrite.

“This is a project we are really proud of and Exxon and CNOOC have their own initiatives which they are leading but really, all oil companies should be at the front of the line in helping to make positive impacts on social development,” Hess added.

He was pleased to inform the market that as of June 30, 2022, the company recorded US$2.2 billion of free cash flow.

Intent on shoring up more profits, Hess also disclosed that hedging plans have already been executed.

The CEO said the company has put in place options that hedge approximately 150,000 barrels of oil per day (bpd) of oil production for 2022, with 90,000 barrels placed at US$60 WTI and 60,000 barrels at US$65 Brent.

With two floating production, storage, and offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — Hess reminded that the company was able to strengthen its balance sheet. In this regard, he said in March, the quarterly dividend was increased by 50% and in the second quarter, a US$650M share repurchase programme was started. It is scheduled to be completed by the end of 2022.

The CEO said, “Our priorities remain to have a disciplined capital allocation process where we only invest in high return, low-cost opportunities, to have a strong cash position on the balance sheet to ensure we can fund our world-class investment opportunities in Guyana and maintain our investment grade credit rating. All of our assets are now cash flow positive because of Guyana.”

Looking forward, Hess said his company is well positioned to deliver increasing cash returns to shareholders through both dividend increases, and share repurchases while helping the country to achieve its goal of shared prosperity.

Hess is a 30% partner in the Stabroek Block and a 20% partner in the Kaieteur Block.

Demerara_Guy

Guyana will need robust commercial framework to maximise gas export benefits – Norway firm

By OilNOW 0 --- Source -- OilNOW

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With Guyana’s current estimated recoverable gas totalling over 17 trillion standard cubic feet, the government has already commenced efforts to determine the best use for these resources. The government reminded, in its 2022 mid-year report, that under the Yellowtail Petroleum Production Licence (PPL), ExxonMobil is required to do a Gas Utilisation study.

The study will examine the associated and non-associated gas available from all approved petroleum production licences (i.e., Liza 1, Liza 2, Payara and Yellowtail) and discovered resources in the Stabroek Block.

Norwegian Energy Intelligence firm Rystad Energy said Guyana will need a robust commercial framework to tap into its gas export potential. It said that even when considering local gas consumption expected with the Gas-to-Energy project, there would still be significant excess associated gas to potentially supply future export projects.

A good commercial framework, it said, would support investment into an associated gas transport infrastructure and resultant globally competitive gas prices.

Senior Vice President and Head of Latin America and the Caribbean for Rystad Energy, Schreiner Parker, visited Guyana in August and shared this information during a presentation.

Pursuant to this, the study Exxon is required to do, is to consider over the short, medium, and long term, a forecast of potential gas production for export from the floating production vessels and the expected use that gas would be put to.

The PPL notes that the study shall also consider scenarios for the demand that might be expected for gas sales locally, in South America, regionally (the countries bordering Guyana) and internationally; as well as consider the cost and feasibility of gas export as Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).

The study will examine the feasibility of utilising existing gas production facilities, as well as the feasibility of and need for additional gas production and export equipment.

Exxon is also expected to provide potential gas export rates and profiles.

The government, via the release of its half-year report, said the foregoing would aid in determining the most beneficial use of the country’s gas reserves.

In the meantime, the Liza field will supply 50 million standard cubic feet of gas per day through a 12-inch pipeline that will run for 225 kilometres from the two offshore fields. This gas will be utilised at the Integrated Gas Fired Power Plant and Natural Gas Liquids facilities in the Wales Development Zone.

By 2024, these facilities will provide low-cost, reliable, and cleaner power for Guyana, as well as enable the advancement of heavy manufacturing and industrialisation in the economy.

Demerara_Guy

New solar projects for Guyana as US$83.3M deal signed with IDB

By OilNOW 0 --- Source -- OilNOW

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Guyana’s Senior Finance Minister, Dr. Ashni Singh and IDB officials exchange signed copies of the agreement to fund eight utility-scale photovoltaic solar projects totalling 33 megawatt-peak (MWp).

New oil producer Guyana continues to advance steps towards greener energy sources. Senior Finance Minister, Dr. Ashni Singh on Tuesday signed a US$83.3 million agreement with the Inter-American Development Bank (IDB) to fund eight utility-scale photovoltaic solar projects totalling 33 megawatt-peak (MWp).

The project is expected to bring affordable and clean energy to over 70,000 households once completed. It falls under the Guyana Utility-Scale Solar Photovoltaic Programme (GUYSOL) which paves the way for investments in such initiatives.

The US$83.3 million being used for this programme is part of the US$220.8 million earned by Guyana for forest climate services through its partnership with Norway during the previous People’s Progressive Party/ Civic’s (PPP/C’s) term in office. At that time, then President Dr. Bharrat Jagdeo spearheaded and implemented Guyana’s first Low Carbon Development Strategy (LCDS).

Reaching remote populations, Guyana targets solar power for 30,000 hinterland homes | OilNOW

The earnings from Norway have since been invested in several key adaptation and socio-economic projects identified as part of the updated LCDS 2030 document. Some of the projects include the Micro and Small Enterprise Development project, Amerindian Land Titling, the creation of the Amerindian Development Fund, the Cunha Canal Adaptation, and ICT Access and e-Services for Hinterland, poor and remote communities.

Prime Minister, Brigadier (retired) Mark Phillips who was present at the signing pointed out that the programme once implemented will benefit thousands of persons in the country including women in rural areas. He also reminded that it will assist Guyana Power and Light (GPL) in decreasing fossil fuel use and moving to a greater use of renewable energy.

Solar, hydro power projects progressing at various population centers across Guyana – report | OilNOW

“So it is a transformative project for Guyana. We are thankful that the IDB has been working side by side with Guyana to utilize this money that was lying in an account for over six years and we are thankful for them bringing us to the stage at which we are,” the Prime Minister added.

Signing the agreement on behalf of the IDB was its Resident Representative (ag) Lorena Solorzano-Salazar.

In her brief remarks, the IDB official said this operation is framed within the partnership that Guyana had with Norway and will especially take the country to 19 percent renewables on the grid within about three years.  “So this is an important milestone. This is in line with a kind of transformative change that is fully aligned with the IDB Vision 2025 and positive impacts of renewables ….and augers well for Guyana,” the official concluded.

Demerara_Guy

Russian Oil Giant Rosneft assets seized by Germany

By OilNOW 0 --- OilNOW Source -- https://oilnow.gy/featured/rus...s-seized-by-germany/

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(Bloomberg) Germany seized the local unit of Russian oil major Rosneft PJSC as Berlin moves to take sweeping control of its energy industry, secure supplies and sever decades of deep dependence on Moscow for fuel.

In the latest move, the government said it was taking over Rosneft’s German unit, including stakes in three oil refineries. As Germany prepares to stop buying Russian crude by the end of the year because of sanctions, it needs to find alternative sources and make sure Russian ownership of its key refineries doesn’t become a threat to supplies.

Germany has been particularly hard hit by the economic standoff with the Kremlin because of its reliance on Russian gas and oil. Sanctions and Moscow’s efforts to punish Europe economically for its support for Ukraine risk tipping the region’s largest economy into recession. Its energy sector is reeling from the squeeze on supplies, and government bailouts are quickly being dwarfed by the scale of the crisis.

In parallel to its swoop on Rosneft, Chancellor Olaf Scholz’s government is in advanced talks to take over Uniper SE and two other large gas importers to avoid a collapse of its energy system, Bloomberg reported on Thursday. A decision could come within days. The need for action is urgent with Uniper losing 100 million euros a day as it tries to replace Russian gas with more expensive alternatives.

“Things are complex, we are working it through very carefully,” Economy Minister Robert Habeck said on Thursday.

Seizing the Rosneft unit is an escalation in the economic standoff with Russia as Berlin unwinds decades of tight collaboration. The Schwedt refinery — near the Polish border — has, until now, got its crude via the Druzhba pipeline from Russia. As long as the plant remained significantly in Russian hands, it was hard to see how the facility would keep getting enough fuel to supply Berlin and other parts of eastern Germany.

The government said the move “counteracts the impending threat to the security of energy supply and lays an important foundation for the preservation and future of the Schwedt location,” the Economy Ministry said.

Grid regulator BNetzA will become trustee of RN Refining & Marketing GmbH and Rosneft Deutschland GmbH, which account for around 12% of Germany’s oil processing capacity, through stakes in oil refineries in Schwedt, Karlsruhe and Vohburg. It’s a similar setup to the takeover of Gazprom Germania earlier this year.

Germany has the power to take over the administration of an energy company by issuing an order through the German Energy Safety Act. The order, issued by the Economy Ministry, elapses after six months but can be simply renewed.

Rosneft can challenge the order in German courts.

Scholz and Habeck will present more details on the nationalization plan at a news conference in Berlin later Friday, it added. The government has declined to comment on any plans to nationalize the gas companies.

Demerara_Guy

US, Norway, Brazil, Canada and Guyana will be main drivers of oil growth next year – OPEC

By OilNOW 0 --- Source -- OilNOW

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One of the SBM Offshore built and operated FPSOs on contract with ExxonMobil for its Stabroek Block developments.

With two projects producing, two more approved and a fifth being planned, Guyana’s rapid development of its oil and gas resources is positioning the country as a major non-OPEC player among heavyweights such as Norway, Brazil and Canada.

OPEC said in its most recent monthly market report that oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties.

Non-OPEC liquids supply growth will be 2.1 million b/d this year and 1.73 million b/d in 2023, up from 1.71 million b/d estimated last month.

According to OPEC, the main drivers for growth next year are expected to be the US, Norway, Brazil, Canada and Guyana while oil production declines for 2023 are projected mainly in Russia and Azerbaijan.

“Guyana production through 2025 is set to exceed estimated growth from Mozambique, Iraq and Brazil combined,” said CEO of Hess Corporation, John Hess, during the 50th Annual Scotia Howard Weil Energy Conference held earlier this year.

Guyana’s rise is fuelled by the unparalleled success of ExxonMobil at the prolific Stabroek Block which Norway’s Rystad Energy said has turned the once frontier basin into a hotbed of exploration in just five years.

Guyana set to deliver highest oil production ramp up for deepwater plays

“During this period, explorers have become pickier when choosing exploration prospects with a stronger focus on chance of success, deliverability and costs – factors that all favor the up-and-coming basin as a core area for exploration and development globally,” Rystad Energy said.

The US oil major has made over 30 discoveries offshore Guyana since 2015 and estimates reserves to be around 11 billion barrels of oil equivalent at Stabroek.

The International Monetary Fund has said these reserves could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs.

The IMF pointed out that oil production is expected to increase significantly with the coming on stream of two large oil fields in the Stabroek Block over the next four years. These include the Payara and Yellowtail Projects.

Demerara_Guy

Delivering Guyana’s biggest transformational project could exceed US$2 billion, economist says its worth it

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A representation of the gas fired power station at the Wales project site on the West Bank Demerara.

As the Guyana government and the Stabroek Block co-venturers move forward to develop the Gas-to-Energy project, costs could exceed US$2 billion. This is based on the sum of cost estimates for the onshore plants and the pipeline. ExxonMobil estimates a US$1.3 billion cost for the pipeline, and government recently received bids topping out at US$898 million for the construction of the onshore facility. Costs will also be incurred for firms to provide advisory and supervisory services.

With massive benefits expected from this project, it will be among the largest investments made in Guyana’s history.

Former Chief Economist for the Caribbean Development Bank, Dr. Justin Ram, said this project will be so transformative that even if it costs US$2 billion it will be worth it.

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Dr. Justin Ram

“I would even go bold enough to say that even if this project was to cost US$2 billion, it will be worth it. Because the Guyanese economy, it will be growing so much… When you look back at this in 10 years, you’ll say… ‘Why were we even discussing this…?’” Ram said at a public presentation in Georgetown earlier this year.

Price tag for Guyana’s gas-to-energy project not exorbitant, economist says

The project will consist of a pipeline that will transport gas from the offshore Liza field to the Wales Development Zone (WDZ) on the West Bank of Demerara. The construction of the pipeline and associated facilities is ExxonMobil’s responsibility. The company’s US$1.3 billion cost estimate was indicated in a submission to the Environmental Protection Agency.

The government is responsible for the construction of an integrated 300 megawatts (MW) power plant and natural gas liquids (NGL) facility to process the gas at the WDZ. Government received bids at the National Procurement and Tender Administration Board (NPTAB) on Tuesday from five companies.

The highest bid was made by Lindsayca Inc. & CH4 Guyana Inc. at US$898,764,244, and the lowest by China Energy Int’l Gr. Co. Ltd at US$466,649,772. Other bids were made to the tune of US$549,088,000 by Guycan Consortium, US$696,001,776 by China Machinery Engineering Inc., and US$703,652,256 by Power China Int’l Group Ltd.

Guyana’s Vice President Dr. Bharrat Jagdeo had said the government hoped bids would come in the US$550 million-US$700 million range.

The government also received bids for consulting services for local and commercial advisory services and negotiation support for the integrated facility. Bids were made by Mayer Brown Slanhope, CMS Cameran McKenna Naberoo Olswang LLP, Keen Miller LLP, Callendar Law Firm PLLC, Dentons Europe, and a joint venture between Squire Patton Boggs UK and Bay Phase Oil & Gas Consultants. Last week, nine bidders tossed their hats in the ring to provide supervisory services for the construction of the facility.

Guyana’s Vice President Dr. Bharrat Jagdeo says the Gas-to-Energy power plant must be in place by 2024, but that the Natural Gas Liquids (NGL) facility may not be completed by then. He said it could come until 2025 because it is “a bit more complex”.

Demerara_Guy

Around one-third of Guyana’s offshore acreage could be up for grabs in new bid round

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Map of the Guyana Basin (OilNOW 2022)

Guyana is set to auction off portions of its offshore oil basin – dubbed the world’s hottest offshore play, before the end of 2022.

A map of the Guyana Basin (dated August 17) shows that almost a third of the acreage remains unlicensed; those could be up for grabs at the new bid round. And the possibility exists for the acreage to increase if conditions of relinquishment are added to the new open areas.

ExxonMobil currently holds the most offshore blocks – Stabroek, Kaieteur and Canje. At 6.6 million acres, Stabroek is the largest block in the basin. Exxon has a 45% stake in Stabroek and 35% each in Kaieteur and Canje Blocks.

There is also the Roraima Block, operated by Occidental Petroleum along with the Kanuku and Orinduik Blocks operated by Spanish multi-national Repsol and the Africa-focused Tullow Oil respectively.

There are also the Demerara and Corentyne Blocks operated by CGX Energy and the Berbice Block operated by ON Energy – a CGX subsidiary.

Guyanese should have a chance to participate in oil blocks auction – Vice President | OilNOW

Both the Demerara and Berbice Blocks will be included in the auction, according to Vice President Dr. Bharrat Jagdeo, since they were both relinquished by CGX in principle. This agreement to relinquish the Blocks is yet to be enacted, so they remain unlicensed on the books.

There is also the Oreo Block and Block C; both are unlicensed.

Anticipation has been growing for the auction because of Exxon’s remarkable success in the Stabroek Block; with close to 11 billion barrels of oil equivalent discovered and even more expected as it rolls out its aggressive exploration campaign.

Block C has garnered the most though, a concession which stretches 2.3 million acres (9600 Km2). And it is anticipated that equal interest will be had in the relinquished portions of the Canje and Orinduik blocks.

The government is working swiftly to determine the fiscal terms to ensure balanced benefits to the parties involved. This may delay the oil block auction, Vice President Dr. Bharrat Jagdeo said recently.

He said the issue is “contentious” since the government has faced some criticism for its decision not to renegotiate the Stabroek Production Sharing Agreement (PSA) terms. Some say the contract is not favourable to Guyana, and while the administration agrees with some criticisms, it says contract sanctity is important and that the Stabroek Block partners will keep incentives necessary to facilitate the aggressive development of the discovered resource.

Demerara_Guy

Mitwah .... people all over the world wait for long times for land to build homes.

@Demerara_Guy, perhaps you are out of touch what's happening in Guyana currently under the PPP.



Man forced into squatting after 24 years of trying to obtain house lot


By Tamia Lashley

Kaieteur News – Forty-three-year-old Keven Morrison of the Success Squatter Settlement, East Coast Demerara had been trying for 24 long years to legally obtain a house lot from the Ministry of Housing to no avail, to date.

Keven Morrison

Keven Morrison has since rebuilt a shack to house his family

After being continuously rejected, the man, who recently sat down with this newspaper to share his frustration, said that he was forced to turn to squatting to provide a home for his family. At the age of 19, Morrison, who is a Green Ice Taxi driver, said he first applied for a piece of land. But the man is alleging that this wasn’t the only occasion he applied. He said that he did so on a few other occasions. He said that his attempts to follow-up on the status of each application were met with less than courteous responses from Ministry of Housing officials.

However, it was after becoming a father and coming to the realisation that he was not going to receive a response from the Ministry anytime soon, he was forced into squatting. But the man believes that he is now back at square one. This, he explained, is owing to the fact that persons purporting to be Ministry of Housing officials recently demolished his home, along with the homes of other nearby squatters, in a bid to dismantle the squatters’ settlement at Success.


Keven Morrison’s home that was destroyed

The mere shack that Morrison called home accommodated him, his three children – ages one, three and nine – and their mother, 25-year-old Davieka Persaud. Rendered homeless by the demolition exercise, Morrison said that in order to safeguard his family he was forced to literally “pick up the pieces” and reassemble them as he continues to hope for the miracle of a legitimate house lot. Especially worried about the state of affairs is Persaud, who confessed to this publication that she fears her eldest child could be ostracised or even bullied at school if students get wind of their unfortunate living condition.

Old unoccupied houses that were not destroyed
Rebuild

Both she and Morrison said that no consolation was provided to their family, not even from the Ministry of Housing officials, who they claimed, ‘simply destroyed the place and went on with their day.’ Though representatives of the Ministry did visit them and the other squatters after the demolition exercise, it wasn’t to provide any form of help such as plans to relocate them. Instead, according to Morrison and Persaud, they visited only to count the number of houses and squatters still around. When this publication reached out to the Ministry for a comment, a Public Relations Official stated that the Ministry had consulted the squatters beforehand and had even marked old houses to be destroyed. The official was adamant that no occupied house was slated for destruction, claiming that it had only been old, unused houses that were identified.  But the squatters are disputing this explanation and even shared their frustrations on last Tuesday’s broadcast of HGPTV Nightly News. Added to this, Persaud also shared with this publication several photographs of old and unoccupied houses that were left untouched while several occupied ones were destroyed.

Man forced into squatting after 24 years of trying to obtain house lot – Kaieteur News (kaieteurnewsonline.com)

Mitwah

What can gas reserves do for agribusiness in Guyana?

By OilNOW 0 --- Source -- OilNOW

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By Cristina Caus and Jerry Haar – OilNOW

The Guyanese economy has been known for quite a long time for a traditional economic system, in which most of the population was engaged in agricultural activities. As late as 1991, about 32% of the labour force was employed in agriculture, according to the World Bank. Coupled with extraction activities (mining of gold and diamonds), agriculture has been accounting for about 70%-75% of export earnings and contributing about 17% to the nation’s Gross Domestic Product (GDP). During the mid-60s, sugarcane and sugar production was referred to as “King”, being the primary source of foreign exchange and the second largest employer. However, the challenges in the global trading environment such as the reduction of guaranteed prices of the commodities and higher competition caused Guyanese sugar (and rice) exports to be more expensive and less competitive. The internal turmoil surrounding the sector’s nationalisation, followed by strikes, contributed to the lack of labour and increased the costs of operations, ending up in large public debts. As of today, sugar production is half of what it was in the 70s and 80s.

In the search to achieve a global competitive advantage in agriculture, the primary question becomes: What is needed to resuscitate Guyanese agriculture?

The answer was revealed in 2015 with oil discoveries in Guyana’s waters. The oil export revenue is expected to exceed US$1 billion this year, and a projected 56% GDP growth will position Guyana as the world’s fastest-growing economy for the third year in a row. As oil exports take over, representing 69.1% of total exports in 2021, these reserves can be exactly what the agriculture industry needs.

Modern agriculture heavily relies on fossil fuels; and Guyana’s agricultural competitiveness is directly dependent on access to fossil fuel resources and their price.  The abundance of oil reserves in Guyana can help “kill two birds with one stone”, so to speak. That means fueling its own agricultural production and processing activities directly through efforts like the gas-to-power project—which is set to cut electricity prices in half by 2025—and by injecting oil money directly into the economy’s diversification where agriculture remains a forte, by developing new agri-business sectors.

As for Guyana fueling agriculture with its own oil, the food industry is a perfect example as it consumes about 30% of global available energy. Vast amounts of oil and gas are used for powering heavy equipment, processing food, refrigeration, packaging, and transportation to the manufacturing of chemical inputs such as fertilisers and pesticides. Crop cultivation and animal rearing are the most energy-consuming in the food production chain (about 33%), while industrial processing with logistics and packaging accounts for about 70% of total energy use in food systems.

Cheaper and readily available energy at all stages of food production is crucial to lower the operational costs and help position Guyanese products as price-competitive in the global market, especially with the current energy price crisis and food supply disruptions. Guyana currently suffers from some of the highest electricity costs in the region, largely due to the high cost of imported fuel oil that will now be replaced by domestic natural gas.

In addition, fossil fuels are essential in the construction and repair of equipment and infrastructure needed to facilitate this industry, including farm machinery, processing facilities, storage, ships, trucks, and roads. Guyana is also facing more systemic risk to its agricultural industry. Most of the traditionally productive sugar farming areas are at or below sea level and coastal flooding and storm defenses are desperately in need of repair and expansion as the dangers from climate change increase. Investing oil revenues in this kind of resilience will be critical to preserving a healthy agriculture sector.

In terms of injecting oil revenues into agricultural innovation and diversification, increasing the production of one of Guyana’s most mature agricultural products, sugarcane, can have a boomerang effect, as in the case of Brazil–the number one producer and exporter of sugarcane in the world.  Brazil currently supplies about 20% of global production and more than 40% of world exports, employing about 1.09 million people in the sector and bringing a revenue of about US$43.8 billion every year. Investing in sugarcane production can open the door to a non-traditional agriculture sector for Guyana, which is beginning to show high growth potential, the agro-processing products, such as sugarcane molasses. Following Brazil’s case, sugarcane molasses, which is biomass, can be used for ethanol production. Ethanol is a comparatively sustainable fuel, with direct emissions up to 90% lower than those of gasoline or diesel. Brazil is the world’s largest sugarcane ethanol producer and home to the world’s largest fleet of cars that use ethanol derived from sugarcane as an alternative fuel to fossil fuels. Sugarcane ethanol production can serve as the next level for Guyana to fuel its economy in a cleaner and more sustainable way, lessening the dependence on oil and gas and aligning its activities with the global efforts of reducing its carbon footprint.

Agriculture development in Guyana clearly should be viewed as a priority, due to the multitude of opportunities for expansion and growth that it brings. Thanks to the country’s proximity to the large markets: CARICOM and the United States; its geographical, climacteric, and cultural advantages in the agrarian sector, investment in agriculture becomes an ideal destination for foreign investments as well and can concomitantly spur other industries as a result, such as manufacturing and services.

The oil revenues used as investments in production, facilities, quality assurance, and processing, and non-traditional agriculture such as prepared food (jellies, jams, coconut milk etc.), can become an engine of export growth for Guyana. The seafood and fishery industries, due to the country’s long coastal Atlantic area with an extensive network of rivers, alongside Guyana’s Savannahs with a favourable environment for medium to large–scale cattle raising, can all serve as an agricultural accelerator for positive long-term economic growth, post its oil era.

The agri-business potential of Guyana is enormous. It’s up to the public and private sectors to mobilise, cooperate and collaborate to achieve the success all are striving to achieve.

About the Authors

Jerry Haar is a professor of international business at Florida International University and a global fellow of the Woodrow Wilson International Center for Scholars in Washington, D.C.

Cristina Caus is an international oil and gas business developer and consultant and holds a master’s degree in international business from Florida International University.

Demerara_Guy

Were you to pay attention to issues; you will see yourself in the mirror talking to yourself.

You know shit. That's what is full in your head. I am not the lady poster that you recently abused here. It's obvious that you are not aware of the real issues in Guyana. Those three idiots in the picture don't know what it is to be poor; perhaps you too. I will be up your ass like your soiled diaper.  You are very ignorant about the real issues in Guyana.

Mitwah

Why did  Vidiya not turn on the lights on Jagdeo and Ali when they come begging? What about the beggars around parliament building? Guess they are invisible. Why did Priya close out the Dharamsala nursery schools?

Mitwah

Guyana lab now equipped to run multiple tests on crude being produced offshore

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Vishnu Ramlogan, GNBS Laboratory Technician III, holds up a sample of crude to be tested from the Liza Destiny FPSO.

Guyana’s Crude Testing Lab run by the Guyana National Bureau of Standards (GNBS) is now able to conduct all necessary tests of Liza Crude and Unity Gold being produced offshore.

Crude oil testing helps to ascertain crude characteristics to determine the compatibility of the crude with the target refinery. GNBS is able to determine aspects such as the density and viscosity, basic sediments and water, salt content, hydrogen sulphur content, and water content in the crude oil being extracted.

The lab went into operation back in January but was only able to test for two of the five parameters outlined. Now, the GY$40 million lab can conduct tests for each. Thus far, a total of five tests have been conducted.

And with its own crude testing lab, Guyana would no longer be reliant on data from oil and gas operators as was the case in the past.

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Richard Singh

“It helps to make sure everybody’s story lines up,” Richard Singh, Lab Technician III at GNBS, told OilNOW.

Singh and his colleague, Vishnu Ramlogan said that since the lab began testing Guyana’s oil produced offshore, they have not encountered anything other than “light, sweet crude.” They have only conducted tests on crude from ExxonMobil’s Liza 1 and 2 developments in the Stabroek Block, producing the Liza Crude and the Unity Gold.

And according to them, there is virtually no difference between the two, which both fall into the light, sweet crude category.

“The numbers would slightly vary but not significant – it stays within the needed range,” said Singh explained.

Sweet crude is highly sought after, as it contains low amounts of sulfur, which in turn, leads to a higher yield of refined products like gasoline, diesel fuel, and even plastics. It should have no greater than 0.5% sulfur by weight and gravity of not less than 37° API (the standard measurement of crude) nor more than 42° API.

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Part of the GNBS Crude Testing Lab

Meanwhile, GNBS is hoping to expand its testing capabilities to include petrochemicals like gasoline, diesel, and lubricants. The agency is responsible for monitoring measurements on Guyana’s floating, production, storage, and offloading (FPSOs), and this started soon after oil production began back in December 2019.

GNBS monitoring activities in the sector are done in accordance with the American Petroleum Institute (API) Standards, which are recognised globally. These standards relate to the accuracy of flow meters, tank gauging, sampling, and testing of crude.

And to ensure access to these standards and other crucial benefits, in mid-2021 the GNBS fortified its relationship with the API by signing a Memorandum of Understanding (MoU) with that entity.

Guyana began producing oil from the Liza Destiny FPSO in December 2019 and only recently added the Liza Unity in February.

Demerara_Guy

As Russia deliveries dwindle Germany has looked to Guyana, other locations for rare imports

By OilNOW 0 --- Source -- OilNOW

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An oil production vessel offshore Guyana.

As oil and gas deliveries from Russia dwindle in wake of the war in Ukraine, Germany, Europe’s biggest oil consumer, has been scrambling to find new sources of energy which has seen rare imports in recent months from countries such as Guyana.

In addition to boosting seaborne crude imports from existing suppliers Norway and the US, German refiners have turned to crudes from Canada, Algeria, Saudi Arabia, Cameroon and Libya in recent months as supplies of piped medium sour Russian oil dwindle, according to vessel analytics provider Kpler.

In addition to Guyana, S&P Global Platts said in a report this week that the data shows rare crude imports have also been sourced from Italy, Equatorial Guinea and Brazil.

Before the war, Germany was the world’s second-biggest buyer of Russian crude after China, importing 687,000 b/d of crude and 149,000 b/d of oil products from Russia in November 2021, according to the International Energy Agency. Most of the crude was delivered via the northern branch of the Druzhba pipeline system from Russia, with smaller amounts arriving via tanker to Rotterdam and its North Sea ports of Wilhelmshaven and Brunsbuttel.

In the wake of Russia’s invasion of Ukraine on Feb. 24, Germany initially turned to Norwegian crudes, with a particular increase in imports of grades such as Johan Sverdrup, Grane and Statfjord. It has also widened its import basket in recent months, buying more medium sour crudes such as Canada’s Hibernia and White Rose, Saudi Arabia’s Arab Light and light sweet crudes such as Algeria’s Saharan Bend and Libya’s Es Sider.

Guyana oil could help meet global demand for next 20-30 years

Analysts say Guyana’s light sweet crude is well positioned to meet growing global demand and to even fill gaps in places like Europe. US oil major ExxonMobil is operator at the country’s largest block where two developments are producing around 350,000 barrels of oil per day.

‘Unity Gold’ lighter and sweeter than other carbon-intensive blends in Latin America – Platts

“The world needs the oil, and I think more people should accelerate [exploration and production],” says John Hess, Chief Executive Officer of Hess Corporation, a 30% stakeholder in the Stabroek Block offshore Guyana.

Supply is having a hard time keeping up with demand. World demand is now about 98 million b/d, and “we think by year-end it will be 101 million b/d,” Hess said.

Guyana’s output is poised to surpass one million barrels of oil per day by 2027 and will increase further. Exxon said it is targeting 10 oil production vessels operating at the Stabroek Block by the end of the decade.

IMF says oil production ramp up makes Guyana’s prospects more favourable than ever before

Chief Economist at the American Petroleum Institute (API), Dr. Dean Foreman has said Guyana’s ramp up in production is coming at a perfect time where there is a need for these barrels.

“There is a recovering global demand on the economy [and Guyana has] the ability with a medium weight, medium gravity, relatively light sweet crude oil, which will help refiners in Europe, North America and Asia,” he said.

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Guyana local content regulator mulling guidelines to end ‘fronting’ in joint ventures

By OilNOW 0 --- Source -- OilNOW

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The Local Content Secretariat (LCS) is seeking to draft guidelines that will signal clearly, how joint venture partnerships will be deemed genuine. Noting this recently was the President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker.

Director of the Local Content Secretariat, Martin Pertab, confirmed that the agency is examining the issue closely. He indicated that the Secretariat is examining its options and the legal implications.

The issue at hand is a practice observed by Guyana’s LCS, called ‘Fronting’. In the context of local content, this occurs when nationals are listed as shareholders, executives, or management, without real participation in the strategic decision-making process of foreign companies. They may even have lower salaries than their expatriate peers.

During his appearance on local radio programme, Guyana’s Oil and You, Tucker last Thursday said he learned that the Secretariat is seeking to remedy this, after enquiries were made. In light of growing concerns and complaints, he reasoned that it became important to understand what steps the regulator is taking to ensure Guyanese are not being used as mere window dressing for joint-venture partnerships with foreign entities. Tucker said it is critical that provisions are in place to flush out anyone who is insistent on skirting the law.

City Chamber says ‘rent-a-citizen’ tactics run counter to local content law | OilNOW

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Timothy Tucker

The GCCI President said, “I believe a joint venture should always be a relationship that benefits the parties involved equally or based on what their agreement stipulates. If I have 51% of a company, I’m expecting when that company becomes profitable, I will get 51% of the profit… my shares should also reflect my voting rights.”

Tucker said it is disappointing that some actors are devising various schemes to circumvent the legislation. He said the guidelines which are being drafted by the LCS will now set the stage for what is acceptable.

“They will be publishing a draft for public review first and then they will make final changes. But this is a step in the right direction for Guyana…” expressed Tucker.

Local Content Secretariat filtering all applications vigorously for schemers – Bharrat | OilNOW

He also noted that the Private Sector Commission has its own Local Content Advisory Committee, chaired by environmentalist, Mr. Shyam Nokta. It also includes economist and finance specialist, Richard Rambarran; proprietor of National Hardware Guyana Limited, Nicholas Deygoo-Boyer; and financial consultant, Joel Bhagwandin.

He said the committee conducts frequent meetings with LCS officials following consultation with its membership. Essentially, Tucker said GCCI, therefore, acts as an added layer of oversight to ensure the Local Content legislation works for the benefit of all Guyanese.

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Experts explore Guyana’s emergence as an oil producer and implications for the future of the Venezuela-Essequibo controversy

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Terrence Blackman, PhD and Utamu Bell

By Terrence Blackman, PhD and Utamu Bell – OilNOW

The fourth episode of the Guyana Business Journal (GBJ) and the Caribbean Policy Consortium’s (CPC) Webinar Series, “Transforming Guyana,” got underway on Wednesday, September 14, with a discussion centered around “Guyana’s emergence as an oil producer and implications for the future of the Venezuela-Essequibo controversy”; with a focus on local and global imperatives for Guyana.

The GBJ CPC monthly webinars bring together experts and prominent voices from Guyana, the Caribbean, and the diaspora, to discuss the impacts of Guyana’s oil and gas industry and to offer a nuanced look at opportunities, potential pitfalls, and strategies to maximise the positive effects of the country’s oil revenues.

This episode’s panelists included the Tenth Vice-Chancellor and Principal of the University of Guyana, Dr. Ivelaw Griffith; Senior Fellow of the Institute of International Relations at the University of the West Indies, Dr. Anthony Bryan; Guyana’s former Ambassador to the United States of America, Riyad Insanally; former Foreign Secretary, Guyana, Carl B. Greenidge; and Dr. David E. Lewis.

GBJ Founder and Associate Professor Dr. Terrence Blackman explained that the title was suiting since Guyana’s economy heavily depends on the extraction and export of oil or natural gas. He highlighted 2020 data, which shows that crude oil and gold account for about 60% of Guyana’s exports.

Former Foreign Secretary Greenidge, addressing the nature of the Guyana and Venezuela controversy, clarified that contrary to what is often reported, the issue does not concern a dispute over maritime space but rather land boundary, and he emphasized that Venezuela’s claim amounts to three-quarters or 74 % of Guyana’s land surface. “The maritime space is a separate matter. International law says your maritime space is defined by the land boundary and, in particular, by the coast; then, it does have implications, but in the first instance, it is not a judgment as to whether or not a particular piece of maritime space belongs to Guyana. It’s not a question of whether Guyana can continue exploiting the petroleum resources lying offshore”. “The court has indicated that it will restrict itself to whether or not the 1899 agreement was ultra-vires, i.e., meaning beyond its the powers, or not…” he said. Greenidge said the court’s decision is intended to solve at least part of the problem on whether a court decision will settle the border issue for good. “We have problems in terms of investors, bilaterals, multi-lateral agencies, and it does appear that many of them feel this is just a contention by two separate states. We can’t resolve it, and therefore they leave it. Suppose the court looks at the matter, just as the court was able to pronounce definitively that Venezuela agreed that the court could look at the matter; in that case, the question of the 1899 award can be definitively determined by the court. You have judges drawn from elsewhere, including Venezuela and Guyana, who will pronounce on the matter just as they definitively pronounced on the jurisdiction,” Greenidge contended. He said a court decision would have to confirm maritime space, and Guyana and Venezuela would have to sit and resolve the matter.

Prof. Anthony Bryan said Trinidad has always supported Guyana’s integrity, though there’s a strict policy of non-interference. “Although there is full support for Guyana’s position, we must be aware of the real politics. Gas production in Venezuela has been severely constrained due to its abysmal investment climate and the fact that its national oil company has always been interested in oil more than gas. Despite all of that, I expect that Trinidad and Tobago will have to conduct a very skillful game of diplomacy concerning Venezuela and its claim over the Essequibo Region. We are a Caribbean Community (CARICOM) country, and we will support Guyana’s territorial integrity”, Bryan said, noting that he is still concerned by Venezuela’s claim to Essequibo. “In 2020, the Venezuelan government ordered its Navy to redefine the nation’s maritime boundary and its exclusive economic zone. Now that the International Court of Justice has agreed that they can hear Guyana’s objections to Venezuela’s claim because of ‘dubious treaty obligation assigned almost a century ago, the Venezuelans say; it raises the question of whether several independent Caribbean island states may also have to fight legal battles to maintain their maritime sovereignty.

Dr. Insanally, outlining key imperatives for Guyana from a broader perspective in diplomacy as Guyana’s first line of defense, said the country could not rely on the ICJ alone. He noted that considerable diplomatic efforts have to be made to complement the legal process. “We have a robust case. The fact that the Venezuelans are ever reluctant to go to court, that they didn’t want to recognise the jurisdiction of the ICJ and that they are employing delaying tactics point to the fact that they don’t have a case. However, we can’t just sit back and think that we will necessarily win the case because our cause is just because we feel we are right. We have to continue to persevere with efforts to keep the spotlight on the merits of our arguments,” he stressed. Insanally pointed out that politics is still a factor and that Guyana’s government requires a narrative that goes beyond a legal one. He further noted the importance of educating the affected population on the issue and the need to stay active on the diplomatic front. “Now that the case is before the ICJ and the process is on the way, there should be no diminishing of diplomatic efforts to keep our friends apprised and to convince allies and others of the rightness of our position; and, above all, maintain support for the process and eventual acceptance of its outcome. The case is on its way, and we could not afford to lower our diplomatic guard”.

Insanally noted that since he was Ambassador to the US, it has been steadfast in its support of Guyana’s territorial integrity and the position of the 1899 award, in which it also played a critical role. He noted the same stance for Brazil. “Even if Venezuela comes back to the fore with the reports we’re getting about the energy crisis, we must remember that Guyana is no longer a non-entity. On the contrary, we have assumed greater geo-political, geo-economic and geo-strategic importance because of our oil and gas discoveries. So, we are important and relevant, which should stand in our favor”.

Professor Ivelaw Griffith deemed Venezuela’s claim an existential threat to Guyana. He noted that it undermines Guyana’s land, people, resources, and identity – which he highlighted are vital factors of nationhood.

“If you were to remove the Essequibo from Guyana, you’d be left with 21,400 square miles, about half the size of Cuba. So we’re talking about a significant set of implications regarding the land dimension,” he said. However, he also noted that the implications go beyond the land to Guyana’s people. Griffith pointed out that as of this year, Guyana has little over 800,000 people, with over 300,000 living in Essequibo. Griffith further pointed to four key imperatives, some of which he noted Guyana has already implemented. These include judicial engagement, defense diplomacy, public education, and security investment. He said diplomacy was the first line of defense and an essential vehicle for promoting cooperation. He said this has been working in Guyana’s favour concerning claims by Venezuela and Suriname. “We’ve got to manage international engagement and affairs on the regional and international landscapes to enable people to understand the nature of the claim, the nature of the controversy, and the importance to Guyana in maintaining the arbitral award of 1899. It is valid, and it’s binding”, Griffith opined. He expressed that Guyana is no match and does not need to match Venezuela’s security establishment, which can serve as a first-level deterrent. Griffith noted, however, that the security investment imperative must be part of managing the existing threat.

Guyana requires a narrative that goes beyond the legal one, and it must be continuously repeated at every possible opportunity. The Venezuela-Essequibo controversy is an overriding Guyanese foreign policy imperative. Guyana cannot afford to lower its diplomatic guard while they wait for Venezuela’s next move. As Prof. Bryan noted, “In this age of social media, we need all Guyanese, not just government officials and diplomats, but also journalists, members of civil society, and members of our diaspora to be advocates of our united national narrative.”

About the Authors

Utamu Belle is an award-winning Guyanese journalist with a career spanning over a decade. Her experience includes writing for print, television, and online media. She has worked as a Radio and Television host. She is the Founder of A-to-Z Media (Guyana), a News and Digital Editor with Upscale Magazine, and a Digital Coordinator/News Editor with The Guyana Business Journal and Magazine.

Dr. Terrence Richard Blackman is a member of the Guyanese diaspora. He is an associate professor of mathematics and a founding member of the Undergraduate Program in Mathematics at Medgar Evers College. He is a former Dr. Martin Luther King Jr. Visiting Professor at MIT and a member of The School of Mathematics at The Institute for Advanced Study. He previously served as Chair of the Mathematics Department and Dean of the School of Science Health and Technology at Medgar Evers College, where he has worked for more than twenty-five years. He graduated from Queen’s College, Guyana, Brooklyn College, CUNY, and the City University of New York Graduate School.

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Guyana’s next crude marketer to take over in last quarter of this year

By OilNOW 0 --- Source -- OilNOW

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A tanker lifting crude from the Liza Destiny FPSO offshore Guyana.

Guyana’s Ministry of Natural Resources said Thursday that the next contractor to market its entitlement of crude from the ExxonMobil-operated Stabroek Block will be taking over in the fourth quarter of 2022 for a period of one year.

The marketers’ responsibilities will include making appropriate transportation arrangements and providing support to Guyana in all operating and back-office responsibilities related to managing crude sales while facilitating timely and cost-efficient crude oil operations.

The Ministry said the marketer must support the continued introduction of the crude grade to multiple geographies and refinery systems and provide benchmark performance comparisons of prices paid for the crude. The marketer must support the continued introduction of the crude grade to multiple geographies and refinery systems. This will include providing benchmark performance comparisons of prices paid for the crude.

Guyana is determined to buttress its own understanding of the processes related to crude marketing. In this regard, it requires the marketer to work closely with its officials in understanding the behaviour and yields of the Liza blend and how these affect pricing differentials. It also requires support with marketing information related to the demand, supply, pricing and trade in the oil market and crude oil trading capacity, and in understanding for any operational considerations that may affect the price of crude.

Interested parties are expected to be highly qualified. The Ministry’s established criteria includes at least 10 years of experience in crude marketing and trading.

The marketer will be responsible for the marketing of lifts from the Liza Phase 1 and 2 projects, taking over from Aramco Trading Limited.

Liza Phase 1 has the capacity to produce around 140,000 barrels of oil per day; it would offload crude every 7-9 days at this rate. Phase 2 can produce approximately 220,000 barrels per day, and typically offloads every 4-6 days.

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Multi-billion-dollar oil earnings seen as key to revolutionising Guyana’s agriculture

By OilNOW 0 --- Source -- OilNOW

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With Guyana set to rake in billions of dollars in oil revenues from the Liza Phase 1 and 2, Payara, and Yellowtail Projects, two scholars of business assert that the country has a golden opportunity to revolutionise its agriculture sector.

Professor of international business at Florida International University, Jerry Haar and International Petroleum Consultant, Cristina Caus, recently noted their shared view on this matter; that significant opportunities await Guyana so that it can be a leading example of agricultural diversification.

In a column, Caus and Haar articulated that modern agriculture relies heavily on fossil fuel which is already in bountiful supply in Guyana’s backyard.

They reasoned that the abundance of oil reserves in Guyana can help “kill two birds with one stone.” On one hand, they said Guyana can use its hydrocarbons to fortify agriculture and on the other, make progress with its energy transition goals through the Gas-to-Energy project.

Oil and gas revenues and their role in developing climate resilient agriculture in Guyana | OilNOW

As for Guyana fueling agriculture with its own oil, Haar and Caus wrote that the food industry is a perfect example as it consumes about 30% of global available energy. They explained that vast amounts of oil and gas are used for powering heavy equipment, processing food, refrigeration, packaging, and transportation to the manufacturing of chemical inputs such as fertilisers and pesticides. They added that crop cultivation and animal rearing are the most energy-consuming in the food production chain (about 33%), while industrial processing with logistics and packaging accounts for about 70% of total energy use in food systems.

The columnists noted too that fossil fuels are essential in the construction and repair of equipment and infrastructure needed to facilitate this industry, including farm machinery, processing facilities, storage, ships, trucks, and roads.

“Cheaper and readily available energy at all stages of food production is crucial to lowering the operational costs,” they said, “and therefore help position Guyanese products as price-competitive in the global market, especially with the current energy price crisis and food supply disruptions.”

Oil-rich Guyana to keep agriculture, fisheries on frontline of diversification drive | OilNOW

They acknowledged that Guyana currently suffers from some of the highest electricity costs in the region, largely due to the high cost of imported fuel oil that will now be replaced by domestic natural gas.

The scholars noted further that Guyana is facing more systemic risk to its agricultural industry. In this regard, it was posited that most of the traditionally productive sugar farming areas are at or below sea level and coastal flooding. They said storm defences are desperately in need of repair and expansion as the dangers from climate change increase.

Taking the foregoing into consideration, Caus and Haar stated unequivocally, that the country has a golden opportunity to correct some of the deficiencies within the industry while successfully pursuing modernisation and resilience. They contend the oil revenues would surely give Guyana a competitive advantage regionally and further afield.

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Business scholars say oil can fuel sugarcane ethanol production in new hotspot

By OilNOW 0 --- Source -- OilNOW

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It is well known that Guyana, South America’s newest oil and gas hotspot, has had a most turbulent ride with the sugar industry in recent decades. Climate change, high production costs, and a range of other factors have had a destabilising impact.

Nevertheless, the country should not turn its back on the sector which has been an economic lifeline for thousands of citizens. This is according to Mr. Jerry Haar, a Professor of International Business at Florida International University and Cristina Caus, an international oil and gas consultant.

In an OilNOW column, Haar and Caus contended that with the right amount of fiscal injection, oil revenues can bring an era of agricultural innovation and diversification.

They cited the case of Brazil as the main basis of their appeal. The columnists highlighted that Brazil is the number one producer and exporter of sugarcane in the world. The South American nation also supplies about 20% of global production and more than 40% of world exports.

Oil and gas revenues and their role in developing climate resilient agriculture in Guyana | OilNOW

They also noted that in Brazil, sugarcane molasses, which is biomass, is used for ethanol production. They pointed out that ethanol is a comparatively sustainable fuel, with direct emissions up to 90% lower than those of gasoline or diesel.

OilNOW understands that Brazil is the world’s largest sugarcane ethanol producer and home to the world’s largest fleet of cars that use ethanol derived from sugarcane as an alternative fuel to fossil fuels.

With the foregoing in mind, Haar and Caus made the case that sugarcane ethanol production can serve as the next level for Guyana to fuel its economy in a cleaner and more sustainable way, thereby lessening the dependence on oil and gas and aligning its activities with the effort to reduce its carbon footprint.

Further, Caus and Haar said agriculture development in Guyana clearly should be viewed as a priority, due to the multitude of opportunities for expansion and growth that it brings.

Guyana oil revenue projections soar to US$157 billion by 2040, Rystad Energy analysis shows | OilNOW

“Thanks to the country’s proximity to the large markets: CARICOM and the United States; its geographical, climacteric, and cultural advantages in the agrarian sector, investment in agriculture becomes an ideal destination for foreign investments as well and can also spur other industries as a result, such as manufacturing and services,” the columnists stated.

In addition to revitalising the sugar industry, they underscored that the nation’s oil revenues can be used as investments in production, facilities, quality assurance, and processing, and non-traditional agriculture such as prepared food (jellies, jams, coconut milk etc.). They posited that these could become an engine of export growth for Guyana. Additionally, the scholars stated that even the seafood and fishery industries can all serve as an agricultural accelerator for positive long-term economic growth, post-oil.

Caus and Haar firmly believe that in light of the aforementioned factors, the agri-business potential of Guyana is enormous. They concluded that it is now up to the public and private sectors to mobilise, cooperate and collaborate to achieve the success all are striving for with the use of the oil revenues.

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Government to compensate property owners who will be displaced by Gas-to-Energy project – Attorney General

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Guyana’s Attorney General, Mohabir Anil Nandlall (standing) speaking to residents on the West Coast Demerara about the landmark Gas-to-Energy project.

A government delegation led by Guyana’s Attorney General, Mohabir Anil Nandlall, on Friday met with residents of several Region Three communities through which the upcoming Gas-to-Energy infrastructure will be built. These communities include Nouvelle Flanders and Wales, the legal affairs Minister said on Facebook.

The meeting, which was held at the West Demerara Secondary School, explored the matter of compensation for those proprietors who will be displaced by the project. In updating the residents, he said government has already commenced clearing a path for the pipeline from the Atlantic Ocean to Wales.

The AG noted that this engagement comes on the heels of an amendment to Guyana’s Petroleum (Exploration and Production) Act in 2021, which updated the law as it regards use of private lands for large projects.

He said the rationale of this amendment was that “the Government will ensure that all transactions regarding private properties with their owners would be conducted fairly and with due recognition of the Constitutional and proprietary interests of those affected.”

On this basis, he assured proprietors that the government will be guided by the principles of fairness, transparency, fair market value and compliance with the Constitution. He said as far as possible, consensus resolutions will be vigorously pursued.

Nandlall said a team of lawyers has been retained to negotiate with each property owner or their legal representative(s) until agreements are reached. The government is looking at providing monetary compensation and/or allocation of lands elsewhere.

Other high-profile officials present at the meeting were Minister of Natural Resources, Vickram Bharrat; Minister of Public Works, Bishop Juan Edghill; Head of the Gas-to-Energy task force, Winston Brassington; and Senior Petroleum Coordinator, Bobby Gossai Jr.

The government plans to utilise the gas from the offshore Liza field as a transition fuel. It intends to cut the cost of power for consumers by 50% when the pipeline and power plant are completed in 2024. Then, soon after, a natural gas liquids facility (NGL) will allow for use of other natural gas by-products, with massive commercialization potential.

Gas-to-Energy, a collaborative effort between the Guyana government and the Stabroek Block partners, is expected to be one of the most transformational projects in the country’s history.

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Guyana will produce over 93 million barrels of oil this year as growth in sector surpasses 100% – IMF

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The Liza Unity FPSO

Guyana’s oil sector has been on an upward trajectory since production began in 2019 from ExxonMobil’s Liza Phase 1 development. And now, the International Monetary Fund (IMF) sees the country’s oil sector gross domestic product (GPD) growing over 100% this year, and by around 30% on average per year from 2023 through 2026.

While Guyana’s oil sector grew by 56.9% in 2021, the IMF projects this percentage growth to double to 116.1% this year. In 2023, the growth rate is expected to be 36.8%, then 28.3% in 2024. In 2025, Guyana’s oil sector is expected to expand by 36.5%, then a further 31.1% in 2026.

According to the IMF, Guyana is projected to produce 93.4 million barrels of oil by the end of 2022, hitting 124.5 million barrels by the end of 2023. Oil production will continue its steep increase from there onward.

By 2024, the IMF said Guyana’s production will be at 155.5 million barrels then 207.0 million in 2025. Production will total a whopping 264.6 million barrels in both 2026 and 2027.

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Guyana’s Ministry of Finance in its 2022 mid-year report said oil production is expected to surpass one million barrels per day by 2029 but based on the pace of project approvals, this is likely to come even sooner. Estimates from government and the IMF appear conservative, when compared to the Stabroek Block group’s plans. Exxon expects production to hit 1.2 million barrels per day (bpd) by 2027 and may even debottleneck vessels to increase oil production capacity.

ExxonMobil has two developments running – Liza 1 and Liza 2 – producing 140,000 bpd and 220,000 bpd respectively. And the IMF has set an average price of US$99.9 per barrel produced in 2022.

When its third development – Payara – comes on stream by 2023, IMF projects an average of US$83.5 per barrel will be gained from barrels across the three developments. By 2024, IMF projects oil prices to fall, reaching US$77.8 per barrel and then down again to US$74.1 per barrel in 2025.

By then, Exxon would have added the Payara and Yellowtail developments bringing the country’s production capacity to 830,000 barrels per day.

The <