Skip to main content

SBM Offshore looking for more Guyanese to join its growing team

By OilNOW 0 --- Source --- OilNOW

The second cohort of SBM Offshore's Trainee Technicians received training in Canada this year, as part of a one-year training and capacity building programme.

SBM Offshore is forging ahead with its internship program, offering students the opportunity to harness their potential and be integrated into Guyana’s oil and gas sector.

Applications opened on October 1, the company said in a public notice.

The internship programme is aimed at developing the capacity of students who meet the established requirements to prepare them for an exciting and challenging role within the company’s Guyana operations.

Builder of Guyana FPSOs has kept its promise, says Human Resource Manager

“Successful candidates will be afforded the opportunity to gain on-the-job experience through a multifaceted and multidisciplinary integration into the company,” SBM Offshore said in its notice.

Students would be given a chance to learn under SBM Offshore’s Supply Chain and Finance Departments, its Operations Intelligence Performance Optimisation Centre (OIPOC) and its Health, Safety, Security and Environment (HSSE) Department as well.

SBM Offshore also has its Graduate Engineers Trainee Programme, geared at providing foundational knowledge needed to launch and accelerate careers in the industry.

Interested candidates have until October 14 to submit applications to

SBM Offshore has devoted significant effort to local participation in Guyana’s oil and gas sector. It was the first prime contractor of ExxonMobil Guyana to receive its Letter of Approval for its 2022 Local Content Master Plan.


New Sign at Canso Causeway Welcomes Motorists to Unama’kik

L'nu Affairs

In recognition of Mi’kmaq people, language and the significant geographical location, motorists travelling across the Canso causeway will be welcomed by a new sign in Mi’kmaq, Pjila’si Unama’kik.

“Increasing knowledge and awareness about Mi’kmaq language and culture is important to understanding our shared history," said Premier Iain Rankin, who is also Minister of L’nu Affairs. “This new sign is one way to recognize Mi’kmaq connection to the land and home of many Mi’kmaq communities on the island.”

At a ceremony earlier today, July 9, Premier Rankin, along with Mi’kmaq elders and chiefs, Brenda Chisholm-Beaton, mayor of Port Hawkesbury, and guests unveiled the prototype sign. The actual sign will be installed on the far east entrance to the island next week.

There are other areas of the province with Mi’kmaq signs to help celebrate and teach people about the history, language, and geographical area.


The installation of this sign on the causeway shows how we are working together towards reconciliation. The Mi’kmaw language is vital to our existence. It is the foundation to understanding who we are. Using the original place names gives all Nova Scotians and visitors a better understanding of the landscape here in Mi’kma’ki. Unama’ki is the land of the fog. Chief Leroy Denny, chairperson, Mi’kmaw Kina’matnewey

I am a survivor of the Shubenacadie Indian residential school. As a child of three years old, I was forbidden to speak my Mi’kmaw language. I lost my language and fought hard to relearn it and make sure my children spoke it. Today, to see people welcomed to Unama’ki, in my language, when they cross the causeway is a dream come true. Ketu’ mui’walkik nike’, pitui kukumijinaqi’k, pitui kniskamijinaqi’k, aq msit kikmanaqi’k nikanitapmi’k wa’so’q.Ula eymulti’kw Unama’kik kiskuk, ml’kikleiwanej nekmowok ukamlamuninaq. Our ancestors hear us. Ma’git Poulette, Mi’kmaw Elder, We’koqma’q

Quick Facts:

  • Mi’kmaq is a verb-based language that does not translate directly into English
  • Unama’kik is the word Mi’kmaq use to refer to Cape Breton Island, and loosely translates to Land of Fog
  • Pjila’si loosely means Welcome: Come in and sit down

Guyana exports could replace 4% of all Russian gas that went to Europe in 2021 – Analyst

By OilNOW 0 --- Source --- OilNOW

An oil tanker approaching the Liza Destiny FPSO offshore Guyana.

Guyana could emerge as a major LNG exporter in coming years as massive hydrocarbon discoveries continue to mount off the country’s coast and output from neighbours such as Trinidad and Tobago continue to decline.

In his most recent OilNOW column published on Friday, Arthur Deakin, Director of Americas Market Intelligence’s energy practice, said with Russia’s discounted oil and liquefied natural gas (LNG) being diverted to Asian buyers, and its gas deliveries to Europe falling by 80%, the world’s energy markets have been forced to shift and recalibrate.

This search for alternative sources of energy is creating major opportunities for countries with the ability to help fill the gap, and Guyana, although just a newcomer to the oil and gas arena, is emerging as one of the better positioned players.

Given the complexity and extensive capital needed to export LNG, Deakin said only two countries currently do so in Latin America: Peru and Trinidad & Tobago. Peru LNG, the consortium responsible for the country’s exports, increased its LNG deliveries by 70% in the first half of 2022—shipments to Europe alone, saw a 46-fold increase. To ensure a constant flow of export revenues, he said the Peruvian government appears to have discarded the renegotiation of the consortium’s Camisea contracts and has encouraged them to export at full capacity of 4.4 MTPA (million tons per annum).

“As the government narrows in on supplying natural gas to the local population, there are no planned increases for LNG exports in Peru,” Deakin pointed out.

Meanwhile, Trinidad and Tobago, on the other hand, saw LNG exports decrease 2% in the first five months of 2022.

“Trinidad is struggling with declining gas reserves due to its mature gas fields, unappealing fiscal terms, and overshadowing discoveries in neighbouring countries,” the analyst pointed out.

Deakin said unless sanctions are lifted on Venezuela, or a major gas discovery is made, both of which are rather unlikely, Trinidad will see a continued decline of its oil and gas industry. Trinidad’s LNG exports, he said, have fallen over 50% since 2010.

“Trinidad’s decline, coupled with Peru’s focus on the domestic market, creates opportunities for new players to enter the LNG export market. Guyana and Suriname, the emerging superstars of the region, could have 13.2 and 10.8 Tcf (trillion cubic feet) of natural gas reserves, respectively, based on AMI’s preliminary estimates,” Deakin said.

Miniscule domestic demand in Guyana and Suriname means that there is plenty of excess gas that can be exported via ships or pipelines, he stated, while pointing out that both countries have direct routes to Western Europe and Northern Brazil.

In Suriname, U.S.-based Phoenix Development Company has partnered with the Port Authority of Suriname to develop a U$1.2 billion LNG liquefaction plant and export terminal with a planned output of 4 MTPA.

“In Guyana, where the total estimated recoverable resources have surpassed 11 billion barrels of oil equivalent, LNG exports could reach nearly 5 MTPA. This volume alone could replace 4% of all Russian gas that went to Europe in 2021,” Deakin said.

As oil and gas deliveries from Russia continue to dwindle, European nations will seek alternative sources of energy. As reported by OilNOW in September, Germany, Europe’s biggest oil consumer, has been scrambling to find new energy sources and this has already seen rare imports in recent months from countries such as Guyana.


Exxon seeking project manager for construction of training institute in Guyana

By OilNOW 0 --- Source --- OilNOW

Oil and gas workers at a shore base facility in Guyana

ExxonMobil Guyana is seeking a project manager for the construction of the national oil and gas training institute it is building, in partnership with the Guyana government.

The institution, styled the ‘Guyana Technical Training Center Inc.’, will be situated at Port Mourant Berbice, Region Six, next to a training centre run by the Guyana Sugar Corporation (GuySuCo).

ExxonMobil outlined robust local content requirements which will be applied to the procurement process.

Several months ago, the oil major had advertised for a firm to construct the institute.

It is expected that this learning institute will be constructed on 50,000 to 60,000 square feet (sq ft) of prime land. It will house dormitories, a dining hall, classrooms, admin rooms, laboratories, a guardhouse, operation, and storage facilities, covered walkways, and a gazebo. An open training area of 15,000 to 20,000 square feet will also be part of this facility.

President Dr. Mohamed Irfaan Ali had said that over US$100 million will be invested into the training facility.

The need to upskill Guyanese workers – and fast – was brought on by Guyana’s Local Content Act. The new law requires companies to, among other things, have Guyanese serve among the overwhelming majority of their workers.

Companies are eager to expand their business to provide services in Guyana’s ever-expanding oil and gas sector. And at this juncture, the labour force, with its current skill levels, is not enough.

SBM Offshore, the company building and operating the floating production storage and offloading vessels operating offshore Guyana, is playing a lead role in the establishment of a key component of the training facility.

“One of the things we are partnering with Exxon with is to have a safe live plant made available for anyone working in the oil and gas sector to be able to practice the skillset that is needed for offshore,” said General Manager of SBM Offshore (Guyana), Martin Cheong, in a recent video.


Almost US$1 billion in oil revenue could be plugged into Guyana’s 2023 budget

The Liza Destiny FPSO is producing oil offshore Guyana at the Liza Phase 1 Development located at the ExxonMobil-operated Stabroek Block.

Guyana’s updated Natural Resource Fund Act outlines a clear and simple formula for the calculation of withdrawals allowable from the Fund each year.

Based on this formula, using US$1.247 billion expected from oil in 2022, approximately US$998.5 million is projected to be available for withdrawal and spending in the new year. This would represent 80% of the Fund’s expected 2022 inflows. Consequently, US$248.5 million (20%) would remain in savings.

The expected earnings are constituted by US$1.1 billion in profit oil sales and US$147 million in royalties. This US$1.247 billion projected, according to the Ministry of Finance’s Half-Year report, is a revision that was produced after the evolution of world market prices due to the Russia-Ukraine war, up from US$957.6 million projected in the 2022 budget.

The withdrawal rule

The first schedule of the Natural Resource Fund Act outlines a formula called the withdrawal rule, which establishes a ceiling for withdrawals in any given year. The rule confines the withdrawal in any year to the Fund’s inflows from the previous year.

It was instituted after the previous rule was criticised for departing from good practice. As it exhibited a great degree of complexity, the Inter-American Development Bank (IDB) had said that the old formula was “among the most complex operational rules for a resource fund in the world… [and] departs from good practices.”

The new rule allows the withdrawal of 100% of the first US$500 million made in the prior year, 75% of the second US$500 million, 50% of the third, 25% of the fourth, 5% of the fifth, and 3% of any amounts in excess of US$2.5 billion. The International Monetary Fund (IMF) has recognised the updated law for promoting transparency and public understanding.

FormulaProjected withdrawal for 2023 budget
100% of first US$500 millionUS$500 million
75% of second US$500 millionUS$375 million
50% of remaining US$247 millionUS$123.5 million
TOTALUS$998.5 million

The Act allows one exception to the withdrawal rule, for the first year of the operation of the Fund, in which the entire balance of the Fund can be withdrawn. Pursuant to this, Guyana’s National Assembly approved the withdrawal of US$607.6 million in February to support the 2022 budget. The government opted to withdraw the funds in three tranches. The first two, amount to approximately US$400 million.

According to Guyana’s 2022 budget, which projects oil earnings and withdrawals from the Fund up to 2025, Guyana intends to spend about 60% of its total earnings.

The government has frowned on proposals to use oil earnings for major subsidies and cash transfers, opting instead for focused spending on capital projects to modernise the country’s physical infrastructure, improve critical social services, and facilitate economic diversification.


Guyana expected to withdraw US$207 million more from oil fund this year

By OilNOW 0 --- Source --- OilNOW

Crew onboard the Liza Destiny FPSO offshore Guyana prepare for an approaching oil tanker.

Guyana’s Central Bank disclosed on Monday that 65% of the US$607 million that was approved by the National Assembly to support the 2022 budget was transferred to the Consolidated Fund. The remainder – some US$207 million – is expected to be withdrawn in the final quarter.

The first withdrawal of US$200 million occurred in the second quarter. This amount represents 32.91% of the budgeted GY$126.69 billion (US$607.65 million). For the third quarter of 2022, Central Bank said the second tranche, GY$41.7 billion (US$200 million), was withdrawn – another 32.91%.

Hence, a total of GY$83.4 billion (US$400 million) has been transferred from the Fund, thereby amounting to 65.83% of the budgeted outflows for the year.

As regards the market value of the Fund at September 30, 2022, Central Bank said this stood at GY$219.17 billion (US$1.05 billion), an increase of 39.56% (GY$62.12 billion/US$297.96 million) from the previous quarter.

Furthermore, the operational manager said the Fund recorded a profit of GY$995.75 million (US$4.78 million) in the third quarter solely due to interest earned on deposits. This resulted in a return of 0.513% for the quarter compared with 0.177% in the previous quarter. The Fund also earned an annualised return of 0.275% since its inception.

During this quarter as well, Guyana received revenue for four lifts of 1-million-barrel (approximate) oil cargoes as its share of profit oil, taking the number received for 2022 to seven.

It is expected that revenue from an additional six oil cargoes will be obtained this year resulting in an annual total of thirteen.

As of September 30, 2022, Guyana received revenue for sixteen one-million-barrel lifts since the inception of the Fund.

Based on the formula used to calculate the ceiling on annual withdrawals from the Fund, almost US$1 billion could be available for support to the country’s 2023 budget.


Commander of Region Six, Senior Superintendent Shivpersaud Bacchus last evening confirmed that four ranks including a police corporal were placed under close arrest after the carving up of a cow’s carcass, a piece of which was found in one of the GPF’s vehicles.


Ramps Guyana subsidiary talks up achievements ahead of court hearing for Local Content Certificate

By OilNOW 0 --- Source --- OilNOW

El Dorado Offshore (EDO), a subsidiary of Ramps Logistics Guyana Inc, proudly informed industry stakeholders in a press release that it has created more than 400 job opportunities for citizens.

The affiliate company sees this as a noteworthy feat considering that it started out with a mere five employees after setting up shop at its Georgetown office in 2017. The announcement by the firm comes just a few days before its parent company goes head-to-head with regulators in a judicial review over the denial of a Local Content Certificate.

‘TT companies will move to Suriname if Ramps doesn’t get local content certificate’ – Trini business strategist | OilNOW

The certificate was not awarded by the Local Content Secretariat since information submitted by Ramps on the share structure and beneficial ownership did not conform to the letter of the law. Ramps approached the judiciary to pronounce on the matter. A hearing is scheduled for October 20, 2022.

EDO was keen to note that it has cemented its place as one of the biggest recruitment companies in the Caribbean’s energy sector. Because of these investments in the certification of Guyanese, Sherry Ferrell, Head of EDO Guyana said locals hold positions as Health and Safety Officers, General Managers, Senior Engineers, Roustabouts, Floorman, and Head Cooks.

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

Ferrel also noted that applicants have obtained certificates in Helicopter Underwater Escape Training (HUET), Basic Offshore Safety Induction & Emergency Training (BOSIET) with Compressed Air Emergency Breathing Systems (CA EBS) in Trinidad, Houston, and Brazil.

It was also noted that EDO successfully held job camps country-wide which allowed for over 400 skilled jobseekers to be added to its database.

With the foregoing in mind, EDO said it will continue to push its employees to meet the boundaries of excellence while creating opportunities for new talent.

Spokeswoman for Guyana’s Local Content Secretariat, Mikaila Prince, told OilNOW that Ramps’ application for a Local Content Certificate is still under review.


Some Guyana offshore blocks reserved for government-to-government partnerships – Ali

By OilNOW 0 --- Source --- OilNOW

Dr. Mohamed Irfaan Ali, President of Guyana.

President of Guyana Dr. Mohamed Irfaan Ali said Tuesday that some of the country’s offshore oil blocks have been set aside for state partnerships.

“We’re going to move to the auctioning of some blocks, and we have some blocks that are set aside for what is termed government-to-government partnership. And we’re looking at all our strategic partners with these blocks,” Ali said.

The President made the comment during a joint press conference with the British High Commissioner to Guyana, Jane Miller.

Guyana’s first oil block auction: What to expect | OilNOW

He said that bilateral partnerships of similar nature were discussed with former United Kingdom Prime Minister, Boris Johnson when he went to the UK. But the President did not explicitly say whether the United Kingdom is one such government which will engage Guyana in a partnership for an oil block. However, Ali said he told Johnson that Guyana would like the UK to partner with it to promote its energy security.

With this undisclosed number of blocks set aside for state partnerships, the blocks which remain will be subjected to the auction.

Ali did not elaborate on the nature of the government-to-government partnerships, only adding that Barbados embarked on such an initiative. In time, the President said, he will disclose the role of each partner.

Guyana says new offshore model contract being finalised; auction imminent | OilNOW

As for the auction, the government has not disclosed the date of its commencement. Earlier this month, the Ministry of Natural Resources said it is working to finalise the model contract which will apply to the licenses which will be issued.


New local catering consortium to get tax waivers for Guyana oil sector market

By OilNOW 0 --- Source --- OilNOW

Participants at a meeting held on October 18, 2022, in Georgetown, to discuss catering services for the oil and gas sector.

Guyana’s government is working to see major local caterers tap into the multi-million-dollar catering industry for the nation’s petroleum sector.

To achieve this, the Minister of Natural Resources Vickram Bharrat; Director of the Local Content Secretariat Martin Pertab and other key ministerial and government officers met with over 100 Guyanese-owned catering services to discuss how a consortium can be formed to bid and supply food to the two offshore floating, production, storage and offloading (FPSO) vessels.

Both vessels – the Liza Destiny and Liza Unity – are operating in the prolific Stabroek Block.

Mr. Bharrat explained that the government wants more than just a few businesses to benefit from the country’s petroleum sector. He said it is in seeking to ensure that all get “a piece of the pie” that the Ali-led administration has moved to have this consortium set up.

Local content doesn’t mean automatic benefits, Guyanese must become competitive, says economic specialist | OilNOW

“If we pool our resources – finances and expertise – we can tackle this. We have to come together and compete with external companies and not against each other. In numbers, you have the strength and be assured that you have the support of the government,” the Natural Resources Minister told the room of major Guyanese caterers.

He noted that the government, through the Guyana Office for Investment (GO-Invest), will be extending waivers on duties and taxes for machinery and equipment needed to operationalise the work of the consortium. Major hotel investors will also benefit from this tax waiver.

The meeting comes on the heels of a directive from President Dr. Mohamed Irfaan Ali just days ago, in which he called for this consortium to be formed.

Guyana’s Local Content law intelligently crafted for win-win scenarios – Economist | OilNOW

“These are services that are externalised because we have to learn to work together. We cannot operate in a mega economy if we don’t bring together consortiums. We bring ten small people together, we have a medium company, we bring ten medium people together, we get a large size company. So, we are going to use this mechanism, this network to bring this country together, as part of the ‘One Guyana’ umbrella,” the President explained on October 16.

The Ministry of Natural Resources will meet again with the interested caterers to identify the operational model which this consortium will adopt. Participants will also be privy to presentations prepared by the Local Content Secretariat and other key personnel from within the Natural Resources Ministry.

The first schedule of Guyana’s Local Content Act carves out 40 sectors and sub-sectors for Guyanese businesses. Contractors, sub-contractors and licensees operating in Guyana are required to source 90% of their catering services from Guyanese. They are also required to source 75% of their food supply from Guyanese.


Western Logistics to hire 1000 Guyanese as part of new approved five-year Master Plan

By OilNOW 0 --- Source --- OilNOW

Western Logistics Guyana Operations Manager, Pradeep Ramoutar (right) with Guyana’s Minister of Natural Resources, Vickram Bharrat

With its five-year Local Content Master Plan approved by the Ministry of Natural Resources, Western Logistics Guyana aims to expand its human resource capacity by some 1,000 Guyanese.

According to its Operations Director, Pradeep Ramoutar, the locally owned and operated logistics firm is looking to hire at least 200 Guyanese to work offshore every year, for five years.

Western was the first logistics company to receive its approval.

“We wanna hire as much Guyanese as possible to maintain capacity for our clients and we are very close to achieving that target,” he shared with OilNOW. “We did not put too high a target – we put something conservative because we know we can achieve it. With the new floating, production, storage and offloading (FPSOs) vessels coming, there will be in an influx of supply vessels that require more manpower.”

The company has been operating in Guyana since 2017. Western’s service offerings include ground transport, immigration/work permit services, custom brokerage, chandlery services for ships and rigs, warehousing, procurement, and even medical services.

Guyanese logistics company thriving in oil sector, expanding local supply chain | OilNOW

Ramoutar noted that the company received its Local Content Certification back in June but now, with its Master Plan approved, it will be able to build on its stellar record. While Western supports major Tier One and Tier Two Contractors, Ramoutar noted that it also supports close to 200 local enterprises.

“Our five-year plan is indicative of where we are going and [it shows] we are not going alone. We are taking other small and medium scale businesses that span from Region Two to Region Six,” he shared.

The company also works closely with its sister company – Pandora Energy; the approved five-year Master Plan also covers it as well.

Western’s big clients include the Belgian Jan De Nul – a major partner in the massive Vreed-en-Hoop Shore Base being constructed on the West Bank of Demerara. The company currently has eight vessels in the country conducting dredging activities in the Demerara River for the project.


Guyana to add 757 kW of solar energy in hinterland areas by year end

By OilNOW 0 --- OilNOW Source ---

Dr. Mahender Sharma CEO of the Guyana Energy Agency

By the end of this year, the Guyana Energy Agency (GEA) is expected to complete installations, adding up to 757 kilowatts (kW) of solar capacity in hinterland communities.

The project forms part of the government’s aggressive push to expand renewable energy and reliable electricity throughout the length and breadth of Guyana. According to GEA’s Chief Executive Officer (CEO), Dr. Mahender Sharma, the agency has already installed nine mini solar grids in the hinterland since 2020.

75 women to be trained as solar panel technicians for major installation programme – Hamilton | OilNOW

Areas in which these projects have been completed are Yarakita and Hotoquai (Region One), Akawini, Bethany and Kabakaburi (Region Two), Chinoweg and Phillipai (Region Seven), Monkey Mountain (Region Eight) and Achiwab (Region Nine).

This all amounts to 156 kW of installed solar power capacity.

By the end of 2022, 19 additional mini-grids that total 601 kW are expected to be completed in Baramita, Canal Bank, Haimacabra, Kwebana, Karaburi and Sebai (Region One), Wakapoa, St. Monica, Capoey and Tapakuma (Region Two), Waramadong, Jawalla and Paruima (Region Seven).

Other areas that will be serviced include Kurukabaru (Region Eight), Karasabai, Aishalton, Kraudarnau and Annai (Region Nine) and Riversview (Region 10). Once installed, this means that a total of 28 mini solar grid systems would have been completed since 2020.

Last week, during a contract signing for the construction of a GY$362.4 million, 686 kW solar farm in Mahdia, Region Eight, Sharma had noted the impact these projects have, not only on providing reliable energy, but also saving money that would otherwise have gone to purchasing heavy fuel oil (HFO).

The project at Mahdia follows a 0.4 MW mini solar project at Mabaruma and a 1 MW project at Lethem. The latter was commissioned in August of 2022 and has so far displaced 70,000 litres of fuel (close to 450 drums of diesel).

Sharma noted that this is all part of the plan to expand the use of renewable energy.

The solar farm project in Mahdia is being funded by the Inter-American Development Bank (IDB), through its Energy Matrix Diversification and Strengthening of the Department of Energy (EMISDE) programme and was awarded to contractor Standby Power Engineering Company (SPECOM).


Builder of Guyana oil production vessels meets with local suppliers on catering needs

By OilNOW 0 --- Source --- OilNOW

Participants at a meeting in Georgetown, Guyana, held on October 20, 2022, to discuss catering services.

SBM Offshore recently met with several local catering companies on its procurement process, current contract opportunities and related requirements. According to a post on its Facebook page, the company said this session, at the invitation of the Local Content Secretariat, followed the recent publication of a Request for Information (RFI) for catering services in Guyana.

Following the publication of the RFI, the government had decided to work towards bringing together a consortium of Guyanese caterers that can potentially bid for the opportunity to provide these services.

During the meeting, SBM Offshore’s Procurement Lead, Recardo Bovell, outlined the company’s procurement process and provided an overview of the standards and benchmarks to be met by local suppliers. These included certification and accreditation requirements, quality control measures, requirements needed for food preparation, Health, Safety, Security and Environment (HSSE) standards to be upheld, logistics, and the relevant personnel needed to function in various positions to provide efficient services.

SBM Offshore’s Procurement Lead, Recardo Bovell and Supply Chain Support Manager, Flavia Werneck, during the meeting with caterers.

“Throughout the lifecycle of SBM Offshore’s operations in the country, we always embrace engagements with local suppliers and various initiatives in order to build capacity, knowing that the industry is very new to Guyana, and share information which will benefit our suppliers,” Bovell told participants at the meeting.

General Manager of SBM Offshore, Martin Cheong, said this meeting is one of several that the company has recently participated in with local suppliers. These include the annual Vendor Day, participation in the Centre for Local Business Development’s Supplier Forum, as well as Community Business Talks with local companies that were also facilitated by the Centre.

Martin Cheong

“SBM Offshore remains committed to supporting the development of local capacity. We will continue to engage local companies on opportunities and look forward to working with all stakeholders,” Cheong said. He reminded that SBM Offshore will also be participating in the upcoming Supplier Forum on November 8-9 where it will engage with local suppliers on future procurement opportunities.

SBM Offshore was the first major contractor to receive approval for its Local Content Master Plan, following the establishment of Local Content legislation in December.


With nine Guyana discoveries so far, 2022 marks best exploration year for Stabroek co-venturers

An oil rig worker onboard the Noble Bob Douglas drill ship at the ExxonMobil-operated Stabroek Block offshore Guyana. (Photo credits - The Guardian)

With two new discoveries announced on Wednesday, 2022 is being referred to as the best exploration year in Guyana for the ExxonMobil-led co-venturers. Exxon has a 45% stake in the 6.6 million acres Stabroek Block, with Hess Corporation holding 30% and CNOOC 25%.

Timothy Chisholm

Timothy Chisholm, Hess’ Vice President – Exploration and Production for Guyana – Suriname, alluded to this on Wednesday during the company’s third quarter earnings report.

“…In total nine discoveries this year alone marking this the best exploration year we have had in Guyana. What a great year for the people of Guyana,” he said.

The latest discoveries were at the Sailfin-1 and Yarrow-1 wells, bring the total discoveries made so far to 35.

Guyana’s resource estimate remains at approximately 11 billion oil-equivalent barrels but with an aggressive drill campaign planned by Exxon, this number could quickly increase.

The Stabroek Block co-venturers kicked off the year with the Lau Lau-1 discovery in January and kept going from there with successful hits.

The partners made a total of two discoveries in January: another three in April, two in July and the latest ones this month.

Now, Exxon is focused on more drilling operations at the Fangtooth reservoir utilizing the Stena Carron rig.

The well site is situated approximately 100.8 nautical miles (186.6 kilometers) off the Guyana coast and covers an area of 0.29 square nautical miles (1 square kilometer).


The oil belongs to the people; we’re committed to ensuring they benefit from it – Routledge

By OilNOW 0 --- Source --- OilNOW

(L-R) Minister of Natural Resources, Vickram Bharrat, hands over ExxonMobil Guyana’s approved Local Content Master Plan to President of the company, Alistair Routledge.

ExxonMobil is the latest in over 20 oil and gas companies operating in Guyana to have their five-year Local Content master plans approved by the regulator.

Exxon, Saipem Guyana Inc., and Gulf Engineering Services Guyana Limited got their approvals this week.

The plans detail how the companies will execute procurement and hiring in keeping with the government’s new Local Content Act.

Speaking on behalf of ExxonMobil Guyana, President Alistair Routledge commented, “The resource we are producing belongs to the people of Guyana and we are committed to ensuring that they benefit from it. Today’s event was another step in that direction since we believe that growing local content across the oil and gas sector can increase social and economic benefits for Guyanese in the short and long term.”

Just before the signing, ExxonMobil announced two more discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek Block offshore Guyana, adding to its extensive portfolio of development opportunities.

Meanwhile, the Director of Gulf, Jodel Gopeesingh, stated that his company remains eager to foster and grow the capacity of Guyanese nationals for the oil and gas sector.

“We believe that optimising local content in our activities is one of the key elements to the success of the business and the operational goals of Gulf Engineering Services (Guyana) Inc. Our interest, at all times, has been to satisfy the needs and values of the Guyanese market, where we are able to add and create in the Guyanese economy by utilising the local human, natural resources and suppliers in the services we render to industry,” Gopeesingh explained.

11 companies had their plans approved last week. Prior to this, the first set of master plans were approved in September. Leading the pack was SBM Offshore.


Exxon conducting baseline survey at Guyana’s largest oil block

By OilNOW 0 --- Source --- OilNOW

Offshore supply ship HOS Brass Ring is one of several vessels supporting an Environmental Baseline and Geotechnical Survey operation at the ExxonMobil-operated Stabroek Block offshore Guyana. The vessel departed from Carenage, Trinidad and Tobago, last Wednesday and arrived in Guyana at the weekend.

The survey area is situated approximately 82.70 nautical miles (153.1 kilometers) offshore and covers an area of 1427.74 square nautical miles (4897.01 square kilometers).

Exxon awards multi-million-dollar contract to DOF Subsea for work in Stabroek Block

Exxon has made over 30 discoveries at the Stabroek Block since 2015, amounting to more than 11 billion barrels of oil equivalent resources.

The 6.6 million acres block has been hailed as one of the most unprecedented exploration blocks of all time by Norway-based Rystad Energy.


Guyana’s oil gives it competitive edge over Trinidad and Tobago, Suriname – AMI analyst

By OilNOW 0 --- Source --- OilNOW

The Liza Unity FPSO, the second oil production vessel to be built by SBM Offshore for ExxonMobil's operations in Guyana.

Stacked against each other, international investors will tell you that they favour Guyana’s oil prospects over Suriname’s, and even those of legacy producer, Trinidad and Tobago, says energy analyst, Arthur Deakin.

The Director for Americas Market Intelligence (AMI) Energy Practice made this statement as part of a comprehensive case he presented during a virtual seminar recently hosted by the Institute of Commonwealth Studies.

The event considered, among other key subjects, the comparative cases of Trinidad and Tobago, Suriname and Guyana, and the choices and limitations confronting these nations in fulfilling their public commitment to green transitions.

Deakin was specifically asked to address the outlook of the international private sector when considering the Caribbean Community (CARICOM) trio. The analyst categorically stated that Guyana is the top choice for investors for several reasons.

Looking at Trinidad and Tobago, he said the primary concerns for international actors are rooted in the nation’s declining production, sufficiency of replacement reserves to boost the petrochemical and manufacturing industries and the overall mortality of its productive cycle.

Arthur Deakin

“All the signs indicate that Trinidad’s decline is going to continue because new exploration activities are focused on smaller pools of gas and using existing infrastructure that’s already developed offshore Trinidad. The fields are quite mature. So, it doesn’t look like there’s going to be any major findings in the near future,” Deakin pointed out.

He said most of Trinidad’s expectations for sustainability rests with the Calypso field, a conventional gas development slated to start commercial production in 2028. It is operated by BHP and partners.

He added that Trinidad is also hedging its bets on partnerships with Venezuela. The downside here, he noted, is that such a move is dependent on the U.S lifting sanctions on the Spanish-speaking nation in exchange for free and fair elections there. In his eyes, it does not seem as though it will happen.

Even with commitments to renewables, he said Trinidad and Tobago is seeing lacklustre interest since the cost of electricity is heavily subsidised by the government. In light of this, Deakin made the case that there is no economic pull factor for switching, save and except for the climate goals companies would have to meet by 2050.

In the meantime, he said the more than 30 significant discoveries in Guyana’s Stabroek Block continue to take more of the attention away from its CARICOM sister. Deakin commended the Guyana government for putting strategies in place to ensure unprecedented growth in the years to come, as well as setting a conducive environment that attracts further investment in other sectors.

For Suriname, he said the Dutch speaking nation is about five years behind Guyana and one third of the scale, if that much. He said the concerns for investors really stem from the lack of a final investment decision (FID) on Block 58, the nation’s most advanced offshore concession.

He said the FID keeps getting postponed by TotalEnergies, the Block operator.

“First, the decision was going to come out in 2021, then it was postponed to 2022 and now it is 2023. The operator says it is waiting on more data and wants to do more seismic surveys to know what is actually in those blocks,” explained Deakin.

He said however that AMI’s sources on the ground related that TotalEnergies is not entirely sure how this block even fits into their long-term vision for its energy transition strategy. Without this FID, Deakin said all other investments would be delayed and therefore cast a worrying shadow on the exploratory future and interest therein for Suriname.

In the meantime, he said Guyana continues to climb the global totem pole with its high-quality, low-cost oil. He said there is no argument that Guyana is the preferred choice among the three.


Over GY$32 billion deposited into Guyana oil fund for October

The Liza Unity FPSO is pictured at the Stabroek Block where it is producing oil for ExxonMobil’s second development offshore Guyana.

For October 2022, Guyana’s Natural Resource Fund (NRF) account received almost GY$33 billion (US$155.943 million) in deposits. This was noted by the Central Bank in its monthly summary of the Fund’s financial position and performance.

Central Bank said royalties received for that period totalled GY$13,958,467,000 while profit oil was GY$18,555,781,000.

Coupled with the opening balance of GY$219,178,291, as well as GY$621,043,000 in interest income, the balance of the fund was GY$252,313,582,000 (US$1.2 billion) at October 31, 2022.

There were no withdrawals recorded for that month.

Almost US$1 billion in oil revenue could be plugged into Guyana’s 2023 budget | OilNOW

The purpose of Guyana’s NRF is to ensure there is prudent management of the nation’s oil earnings. The Fund is also intended to ensure Guyana’s natural resource wealth is used to finance national development priorities including any initiative aimed at realising an inclusive green economy.

US$400 million has been withdrawn so far, and just over US$200 million more is expected to be withdrawn before the year ends to support the government’s budget.

The revised Natural Resource Fund Act assigns the responsibility for the preparation of the investment mandate to the Board of Directors. To date, there has been no investment mandate for the Fund.

However, all necessary committees have been appointed.


Guyana tax regulator on hunt for 36 specialists to boost oil audits, data analysis, monitoring

By OilNOW 0 --- Source --- OilNOW

The Guyana Revenue Authority (GRA) Camp Street, Georgetown Head Office

The Guyana Revenue Authority (GRA) is on the hunt for at least 36 specialists for its Petroleum Revenue Department. These experts would add to the 31 already on staff and boost the agency’s capability to conduct petroleum tax audits, data analysis, and effective monitoring aboard the nation’s floating production, storage and offloading (FPSO) vessels.

For the time being, the tax regulator is conducting rigorous training of staff for various audit functions throughout the authority to build a repository of necessary skill sets and competencies.

Exxon’s costs subject to scrutiny by partners, Guyana government and third parties | OilNOW

This is noted in the Guyana Auditor General’s report, a document prepared by office of Guyana’s chief auditor annually, of all public accounts.

According to Auditor General, Deodat Sharma’s 2021 report, GRA explained that multiple training sessions were held by the International Monetary Fund (IMF) to build capacity to administer domestic taxes within the oil and gas sector. The authority said this included training in statutory interpretations, taxation of subsidiaries and external companies in Guyana, identifying the taxpayer and taxable sources of income, risks to an understatement of chargeable income, and taxation of resident and non-resident companies.

Local consortium, foreign auditors team up to audit Exxon’s 2018-2020 costs | OilNOW

GRA is one of the key entities monitoring the nation’s crude production to ensure the fiscal integrity of the operations is not compromised.

In 2021, the country’s crude oil production increased by 56.9% to 42.7 million barrels, when compared with 27.2 million barrels in 2020, averaging production of approximately 117,000 barrels per day. GRA was central to monitoring this production onboard the Liza Destiny FPSO.

As a result of the increased output, real oil GDP grew by 19.9% in 2021.


Oil sector exceeds 2022 targets for training, hiring Guyanese – Dr. Pertab

By OilNOW 0 --- Source -- OilNOW

Head of Guyana’s Local Content Secretariat, Dr. Martin Pertab shared during the opening ceremony of the Guyana Supplier Forum 2022, that the oil and gas sector has exceeded targets set for the training and hiring of Guyanese nationals to take up opportunities.

At June, contractors and sub-contractors operating in Guyana’s oil and gas industry expended US$3.3 million on training locals by June; well surpassing the US$1.8 million initially pledged.

Dr. Pertab explained that the Secretariat, since coming into being, has placed emphasis on bridging the knowledge gap by working closely with contractors, sub-contractors and licensees to ensure Guyanese are given priority in the recruitment process.

Local Content Secretariat inviting stakeholders to report grievances | OilNOW

As a commitment had been made to expend around US$1.8 million on training, the amount surpassed is some 80%.

On the hiring side, he said based on initial estimates, over 800 new local hires were anticipated for Guyana’s oil industry.

However, as of June, preliminary estimation by the Secretariat shows a total of 1,125 new job opportunities were created so far. Of that number, Dr. Pertab said 858 were filled by Guyanese. This now means that a total of 3,689 Guyanese nationals have found gainful employment in the oil and gas sector.

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

He pointed out as well that almost 80% of the new hires were in technical roles.

All in all, Guyana not only achieved its annual target for new hires in just six months but exceeded it by 34.5%.

The Guyana Supplier Forum 2022 will be used by ExxonMobil and its Prime Contractors to tell more Guyanese nationals and companies about opportunities available to them, with a view of expanding local participation.

Day 2 of the Forum continues Wednesday at the Leonora Stadium (National Track and Field Facility).


Guyana issues third notification to Parliament of all revenues paid into oil account

By OilNOW 0 --- Source --- OilNOW

The Liza Destiny FPSO - Guyana's first oil production vessel.

The Guyana government on Monday issued its third notification to the National Assembly of all revenues deposited into the Natural Resource Fund (NRF).

This notification was presented by Senior Finance Minister, Dr. Ashni Singh for the period July 1, 2022, to September 30, 2022, pursuant to Section 33 (2) of the NRF Act 2021. This notification was also published in the Official Gazette on October 17, 2022.

The statement tabled in the House noted that for July 20, 2022, Guyana received profit oil from the Liza Unity floating production, storage, and offloading (FPSO) vessel, totalling US$122.97 million or GY$25.64 billion.

For the period July 27, 2022, profit oil from the Liza Destiny stood at US$117.45 million or GY$24.49 billion.

In July as well, royalty payment for the second quarter production was US$51.06 billion or GY$10.65 billion.

In August 2022, Guyana only received profit oil for the Liza Unity which totalled US$102.54 million or GY$21.38 billion.

In terms of payments in September, profit oil from the Liza Destiny was US$99.16 million or GY$20.68 billion.

It therefore means that for the third quarter of 2022, oil earnings stood at approximately US$493.18 million or GY$102.83 billion. This represented the highest earnings for the fund in any quarter.

As of the end of September 2022, Dr. Singh said the Natural Resource Fund balance amounted to US$1 billion.

The Central Bank later reported that deposits into the Fund for October totalled US$155.94 million (GY$33 billion), resulting in a total balance of US$1.2 billion (GY$252.31 billion) at October 31, 2022.

One of the key amendments in the NRF Act 2021 was the strengthening of the governance architecture of the Fund. The Board of Directors and Public Accountability and Oversight Committee (PAOC) members were appointed in August 2022.


SBM Offshore signs MOU with Exxon for future Guyana FPSO

By OilNOW 0 --- Source --- OilNOW

An SBM Offshore multi-purpose floater hull

Dutch floater specialist SBM Offshore has signed an MoU with ExxonMobil Guyana for construction of a multi-purpose floater hull for use on a future floating production storage and offloading (FPSO) project. SBM made the announcement today via its LinkedIn page.

“ExxonMobil and SBM Offshore have a long history of working together, with multiple FPSO projects underway,” the Netherlands-based company said.

SBM Offshore looking for more Guyanese to join its growing team

This long history of working together has seen SBM Offshore securing multiple contracts over the years for Exxon’s Guyana operations, which includes all FPSOs for approved projects to date – Liza Destiny, Liza Unity, Prosperity, and One Guyana.

SBM Offshore aiming for ‘near-zero emissions FPSO’ by 2025 – CEO

Just recently it was announced that MODEC had secured a contract for Exxon’s fifth Guyana project at Uaru, which is pending government approvals and final investment decision by the US oil major.

The MoU announced today by SBM Offshore is therefore likely targeting Exxon’s sixth project offshore the South American country.  Exxon has said it envisions around 10 FPSOs operating at the Stabroek Block where it has made over 30 discoveries since 2015, amounting to more than 11 billion barrels of oil equivalent resources.


Guyana is founding member of major forest and climate leaders’ partnership at COP27

By OilNOW 0 --- Source --- OilNOW

To increase recognition for the invaluable service of world forests, Guyana has seized a golden opportunity to be one of the founding members of the Forest Climate and Leaders’ Partnership (FCLP) which was launched at COP27 in Sharm el Sheikh, Egypt on November 7, 2022.

Including Guyana and the United Kingdom, the FCLP now has 26 countries and the European Union – which together account for over 33% of the world’s forests and nearly 60% of Gross Domestic Product (GDP).

British Prime Minister, Rishi Sunak, led the launch while noting that for too long, the world’s forests have been undervalued and underestimated.

Sunak said, “They are one of the great wonders of our world… that is why the UK put nature at the heart of COP26 [in Glasgow in late 2021], and countries home to 90% of the world’s forests committed not just to halting but reversing forest loss and land degradation by 2030.”

Guyana’s Minister of Natural Resources, Vickram Bharrat, noted that the new oil-producing state is proud to be a founding member of the partnership.

In a subsequent bilateral meeting, Mr. Bharrat also discussed the FCLP with British Minister, Lord Zac Goldsmith, who spoke of how Guyana’s Low Carbon Development Strategy (LCDS) 2030 and Guyana’s experience on forest management provided models that could be invaluable for other countries. The ministers agreed to further discussions between the UK and Guyana, including on expanding trade for sustainable forest products. This is a matter that Minister Bharrat also emphasised in discussions with the President of the European Commission, Ursula von der Leyen.

President Irfaan Ali who was present virtually for the event stated that ambition to protect the world’s forests has never been in short supply in forest communities and countries. What has been missing is the means to realise that ambition, the Head of State asserted. He said the Forest and Climate Leaders’ Partnership can rapidly change this situation by bringing Heads of Government together to focus on practical solutions.

Mr. Ali said Guyana will play its part in highlighting leadership from forest communities and countries. He said too that Guyana will also put forward solutions that can work. The President said, “The world’s people do not need more talk, they need action that converts ambition into results, and I hope the FCLP will be a platform to do this.”

The FCLP is also complementary to the vision set out in Guyana’s Low Carbon Development Strategy (LCDS) 2030. That document outlines Guyana’s pathway for sustainable development of its oil resources while preserving its expansive and pristine forests.

Guyana’s deforestation rate is among the lowest in the world with over 99% of the country’s 18 million hectares of forest intact. This provides vital carbon and biodiversity services for the world. It also allows Guyana the legroom needed for the full development of its oil resources which total over 11 billion barrels of oil equivalent.

Guyana is also aiming to continue to evolve its model for payment for forest climate services by accessing financing from voluntary carbon markets.


Construction of Guyana’s 3rd and 4th FPSOs progressing well

By OilNOW 0  --- Source --- OilNOW

A Guyana-bound FPSO while under construction by SBM Offshore, in Singapore.

Construction of the 3rd and 4th floating production storage and offloading (FPSO) vessels for ExxonMobil’s operations in Guyana – Prosperity and ONE GUYANA – is progressing well, according to SBM Offshore, the company building the vessels.

For ONE GUYANA, SBM Offshore said topsides construction started in the yards in China and Singapore and is on schedule as planned. ONE GUYANA builds on the experience to date of the Liza Destiny, Liza Unity and Prosperity vessels. Liza Destiny and Liza Unity are the first two FPSOs to be built and operated by SBM Offshore for Exxon’s Guyana operations. The floaters are currently producing oil offshore the South American country.

SBM Offshore said the ONE GUYANA design is based on its Fast4Ward programme that incorporates the company’s new build, multi-purpose hull combined with several standardised topsides modules.

The FPSO will be designed to produce about 250,000 barrels of oil per day (bopd), will have associated gas treatment capacity of 450 million cubic feet per day (MMcf/d) and water-injection capacity of 300,000 bpd. First oil is expected in 2025.

US$10 billion Yellowtail development will be largest investment in Guyana’s history | OilNOW

As for Prosperity, SBM Offshore said integration and commissioning activities are underway. The vessel will be designed to produce 220,000 bopd and will have an associated gas treatment capacity of 400 million cubic feet per day and a water injection capacity of 250,000 bpd. The FPSO will also be spread moored in water depth of about 1,900 metres and will be able to store around 2 million barrels of crude oil. First oil is targeted for 2023.

Modec was recently awarded a contract to perform front-end engineering and design (FEED) for Uaru, the fifth project.