Guyana Oil and Gas News

The Ministry of Natural Resources says that the government is “highly disappointed” at ExxonMobil’s failure to resolve a gas compressor problem on its oil platform that has led to flaring of gas and a steep drop in production.

Hoping to further boost local content as all heavy-lifting and storage works will be transferred to Guyana from the current location in Trinidad and Tobago, the Guyana Shore Base Inc (GYSBI) is forging ahead with expansion as it adds two specialty berthing facilities set to cost some US$16 million.

Oil production on Exxon-Mobil’s Liza Destiny oil platform has been reduced to 30,000 barrels per day (bpd) after the discharge silencer began experiencing technical issues during the final testing phase of the reinstalled flash gas compressor and other components of the system.

“Extraordinarily time consuming” is how the Guyana Revenue Authority (GRA) has described interpreting and enforcing the terms of the 10 Production Sharing Agreements (PSA) signed between Guyana and 16 international oil companies.

The Ministry of Education has formally embarked on its ambitious Guyana Online Academy of Learning (GOAL) project which will be presiding over 20,000 scholarships in five years with 4,500 to be awarded this year.

Introduction Last week’s column explained the enigma of, on the one hand, repeated striking downward revisions to Guyana’s expected real GDP growth for 2020 (initially set at 85% by the IMF and Government of Guyana, GoG in Q4, 2019).

Having recently purchased land on the East Bank and East Coast of Demerara, Trinidad and Tobago headquartered Ramps logistics plans to significantly expand its oil and gas support services here and is hoping that an export free zone will be established in the future to catapult Guyana as a hub for exporting equipment and services, especially to the region.

ExxonMobil yesterday said that gas flaring has been reduced to pilot levels after the safe reinstallation of the flash gas compressor on the Liza Des-tiny Floating, Production, Storage and Offloading (FPSO) oil platform and a final phase of testing will take place this week.

Government has advertised for an internationally recognised auditing firm to provide consultancy services for a cost-recovery audit and validation of this country’s profit share from the agreement Guyana shares with ExxonMobil and partners over the last two years.

BOGOTA (Reuters) – Colombia has provisionally approved U.S. oil company ExxonMobil Corp’s plan to develop a pilot project for hydraulic fracturing, known as fracking, in the country’s Valle Medio del Magdalena basin, the oil regulator said on Wednesday.

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.

Introduction My long-standing recommendation to establish a National Oil Company, NOC, intentionally rejects the notion of linking this policy recommendation with the establishment of a state-owned (or joint venture, state-private) downstream “oil refinery”.

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. 

President Irfaan Ali on Wednesday projected that there will be at least seven oil producing platforms in Guyana’s waters by the end of 2027 and said foreign capital was crucial to converting the country’s natural resources into wealth.

Introduction Today’s column addresses the third and final policy choice that I anticipate Guyana will have to make in this decade.

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.

ExxonMobil yesterday announced that the repaired and upgraded flash gas compressor and silencers for the Liza Destiny floating production, storage and offloading (FPSO) platform have arrived offshore Guyana for reinstallation.

Introduction Following last week, today’s column continues to provide recommendations in regard to the  three crucial key policy choices that I identify, which will be confronting the Government of Guyana, GoG, in the coming decade.

As the global price for crude oil continues to rise steadily, Guyana has received the highest rate since petroleum production began offshore in December of 2019, averaging US$61 per barrel on its latest and fifth lift of one million barrels.

Introduction Since Guyana’s first commercial oil discovery in 2015, I have steadfastly urged a “strongly bullish outlook” on its potential petroleum resources.