Even as plans continue for bringing gas to shore, ExxonMobil is working on amending the existing development plan for the offshore Liza-1 production area as it relates to commercial issues and expects to hand the document to government soon, the company says.
The Bank of Guyana (BoG) is awaiting a formal application for a licence and other documentation from First Citizens Bank (FCB) Limited of Trinidad and Tobago with which Canada’s Scotiabank last month announced it had reached an agreement for the sale of its operations here.
Anticipating “significant progress” in the partnership with government in advancing the gas-to-shore project here, ExxonMobil yesterday announced that the associated gas availability from the Liza fields has been changed from 35 million standard cubic feet per day (mmscfd) to 50 mmscfd.
Hoping to tap into the current and future demand for stone, local businessman Nazar ‘Shell’ Mohamed is optimistic that his proposed quarry business will be granted all the necessary permits and he promises to commence operations by January of next year if he gets the green light.
Before any gas-to-shore project is embarked upon, a detailed feasibility study is needed along with an analysis of whether renewable energy might not be a better option, according to former presidential advisor on petroleum Dr Jan Mangal.
To allow small businesses access to 20% of government procurement, the National Procurement and Tender Administration Board (NPTAB) has implemented a 5% margin of preference to those businesses that qualify under law.
With projections for the production of 220,000 barrels of oil per day from 2023 and 500,000 by 2025, ExxonMobil yesterday said that the Houston, East Bank Demerara shore base alone will not suffice and has advertised for firms to show their onshore support services capabilities.
Only days after recommendations by the Caribbean Court of Justice (CCJ) that this country should urgently look at reforming the Deeds Registry Act to protect homeowners and buyers from fraud, Attorney General Anil Nandlall says plans are in motion to formulate the necessary amendments.
The Ministry of Health (MoH) has said contracts worth a total of almost $12 billion, including some $2.1 billion of which was single-sourced, were awarded between September and December last year but the names of the awardees are still to be released, for which it claims the procurement board is responsible.
Engineers working on Exxon’s oil platform compressor which malfunctioned again last month are considering technical recommendations for upgrades, as flaring offshore continues and the company again assured all was being done to swiftly remedy the issue.
Former EPA Head Vincent Adams is insisting that ExxonMobil’s flaring of gas amid a compressor problem on its oil platform is in breach of its production permit and he said that the government has to be better informed so that it could enforce the law.
The Liza-1 Environmental Permit does not include the 14 billion cubic feet flaring allowance that government says ExxonMobil has used to justify its emissions but makes it clear to the company that there should not be routine flaring and that there should be provision for spares and plant-turn down protocols if there are breakdowns on its production platform (FPSO).
With flaring offshore estimated to reach 14 billion cubic feet (cu ft) of gas by the time ExxonMobil expects the problem with its compressor is likely to be resolved – hopefully in April of this year – government yesterday said that it is “hamstrung” in instituting penalties since the company has argued that it is within the limit allowed by the Environmental Protection Agency (EPA).
Over the past four months, billions of dollars in government contracts have been awarded and to date none of the details have been made public, with even some companies that submitted bids being left in the dark about the final decisions, in breach of the procurement laws.
After announcing only last month that it had rectified problems on the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel which saw the company flaring over two billion cubic feet of associated gas in 2020, ExxonMobil yesterday said that it has begun flaring again after experiencing another issue with its compressor seal.
With a production target already surpassing the 120,000 barrels per day forecast, Guyana will this year see heightened oil and gas activity as Stabroek Block partner, Hess, yesterday remained bullish on operations here and announced a number of developmental plans this year for its “growth and cash engine”.
The Organisation of American States (OAS) yesterday condemned the seizure of two fishing vessels with their crew last week by Venezuela from Guyana’s waters and called for their immediate release, even as this country rebuked the Opposition-led Juan Guaidó’s support for the action of the Nicolas Maduro government.
Guyana yesterday called for the release of two fishing boats intercepted by the Venezuelan Navy in this country’s waters on Thursday and said that it will be alerting the international community of the violation, even as it pursues “all diplomatic channels” for the safe return of the 12 persons currently in custody.
Even as government remains silent on the details that led to its selection of Wales on the West Bank of Demerara as the location for the gas-to-shore project, it has announced that bidding for the contract to lay the pipelines, and the construction of the site are to begin this year.
After days of silence, former Minister of Public Infrastructure (MoPI) David Patterson yesterday acknowledged that he had received gifts from government agencies under his purview but he rejected any accusation of wrongdoing and said he assumed the purchases were in compliance with procurement guidelines.
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