Guyana Oil and Gas News

Introduction, proximate origin Some bizarre motives have been attributed to me for naming the suggested UBI mechanism for eradicating persistent poverty in Guyana the Buxton Proposal.

Leader of the Parliamentary Opposition Aubrey Norton has used his New Year’s message to accuse the PPP/C government of becoming more incompetent and more divisive while thundering that the country’s oil wealth is only benefitting the PPP/C elite, friends and families.

President Irfaan Ali on Friday unveiled plans to facilitate the training of 2,000 Guyanese youths in nearshoring, which he believes holds tremendous potential and has urged ExxonMobil Guyana to make these opportunities available.

Civil society group, the Oil and Gas Guyana Network (OGGN) has raised questions about the depth of an audit of US$7.3b in ExxonMobil expenses for the years 2018 to 2020 but said that even the basic findings warrant a full-scale forensic examination being commissioned by the government.

Introduction This column extends to Mr Trotman compliments and appreciation for his publication.

Chevron has agreed to buy Hess for US$53 billion in stock to gain a bigger US oil footprint and a stake in rival ExxonMobil’s massive Guyana discoveries in a move which will bring another US super-major to the Stabroek Block.

ExxonMobil lumped all of the expenses for the construction of the multibillion dollar Ogle Headquarters, upgrades for its Duke Street office and the Houston Shorebase, under the Stabroek Block’s cost recovery and this should not be, as the company will use the facilities for operations of other blocks, the US$7.2 billion audit of its 2018-2020 expenses has stated.

ExxonMobil included costs for some aspects of works for the gas-to-power pipeline in the US$7.2 billion it claimed for the 2018-2020 period, actions, auditors highlighted, that are not catered for under the Production Sharing Agreement (PSA) the US oil major and partners has with this country.

Introduction In response to the Tricontinental Institute of Social Research’s circular call for assistance for crafting a new development theory and practice that seeks to release the poor from their persistent poverty, I ventured a response based on this long-running series on Guyana as the “newest and fastest rising petrostate in the Americas.”

The RHVE Consortium that undertook the audit of the US$7.3 billion claims by ExxonMobil’s subsidiary for the period 2017 to 2020 said that the company assigns costs using a complex system and while only a small figure, some expenses were above what they should be and included a transfer pricing percentage.

Introduction Today’s column begins the review of Raphael Trotman’s book From Destiny to Prosperity – the names of two of the first three Floating Production, Storage and  Offloading vessels (FPSO) in the petroleum operations conducted by the Contractors in the Stabroek Block, the other being Unity.

ExxonMobil yesterday said that it told the opposition that it believed that it had proved that the US$214 million flagged by IHS Markit was reduced to US$3 million, but did not say that government had agreed to or finalised the process.

Introduction It has been several months since column 108. Yet, when I told a friend that I intended to publish approximately eight columns over the next few weeks, his immediate reaction was the question: what will you say that you have not addressed in the one hundred and eight columns and dozens of letters over the past four years?

AFC executive, Dr Vincent Adams has voiced strong disagreement with the decision of acting Chief Justice (CJ), Roxane George SC who ruled this week in favour of the Environmental Protection Agency (EPA) and against an action which was filed to put a stop to flaring of gas offshore by ExxonMobil.

Senior Petroleum Coordinator in the Ministry of Natural Resources,  Gopnauth ‘Bobby’ Gossai has been blamed for the audit fiasco where US$214m in disputed oil expenses was slashed to US$3m and he is to be disciplined, a statement last night from Minister Vickram Bharrat said.

The United States authorities should investigate ExxonMobil’s unauthorised discussions with Ministry of Natural Resources staff that led to a reduction in a disputed oil audit figure from US$214m to US$3m, former Auditor General Anand Goolsarran says.

The Guyana Revenue Authority (GRA)  has offered a no-objection to the US$214m in questionable claims by ExxonMobil’s subsidiary, EEPGL in a move that will likely raise the question of arbitration on a matter which is pivotal to whether this country is being denied more profits.

HOUSTON, (Reuters) – Oil and natural gas are still projected to meet more than half of the world’s energy needs in 2050, or 54%, Exxon Mobil Corp said on Monday, with the world failing to keep global temperature increases below 2 degrees Celsius.

Despite several unresolved issues relating to the proposed Gas-to-Shore project, the laying of pipelines has begun on the West Bank of Demerara.

Introduction In today’s column I recap the gist of those earlier columns that were directed at taking stock of the prevailing condition of three key parameters facing Guyana’s oil and gas sector, on the eve of the planned switch away from the fiscal metrics of the Stabroek Block PSA, to the new fiscal template scheduled for implementing at intended public auctions.