Guyana Oil and Gas News

Against the backdrop of this week’s announcement of Tullow Oil’s potentially huge discovery in its Orinduik block, upbeat international reporting on the country’s longer-term oil prospects seem set to equal, if not exceed, the boisterous celebratory soundings, which less than five years ago, had followed ExxonMobil’s May 2015 disclosure of Guyana’s first major oil find.

The prevailing political climate arising from the outcome of last December’s no-confidence vote in the National Assembly could result in further downward revision of the originally envisaged 4.6% growth projection for 2019, according to the Mid-Year report released on Wednesday by the Ministry of Finance.

UK petroleum company, Tullow, yesterday announced the discovery of oil in commercial quantities in the Orinduik Block, underlining the vast resources in the Guyana Basin and increased projected wealth for the country.

Director, Department of Energy, Dr. Mark Bynoe, this morning, announced that UK-based Tullow Oil Plc’s wholly owned subsidiary Tullow Guyana B.V. 

Introduction It has been a week of headlines in the petroleum sector.

Essequibians on July 26th 2019 participated in discussions over the ways in which Guyana’s oil and gas sector would impact society.

The Production Sharing Agreement (PSA) between Guyana and ExxonMobil’s local subsidiary and its partners was informed by the national circumstances at the time and critics need to acknowledge the context, according to Minister of Finance Winston Jordan.

With oil production scheduled to commence from March next year, Minister of Finance Winston Jordan says that just above US$100 million will likely be available for Budget spending in 2020.

President David Granger has declared the next ten years – 2020-2029 –a decade of development during which oil revenues will be used to fund free education from Nursery to Tertiary levels for all Guyanese.

Introduction Column 71 published last week included a summary table of the Statements of Financial Position (the Balance Sheet) of the three oil companies which will lead Guyana to First Oil projected to take place during the first quarter of 2020.

With evidence of soaring real estate prices and the buyout of most riverfront lands along the Demerara River in Region 4 for the oil industry, Minister of Finance Winston Jordan says that it cannot be dismissed that the feared Dutch Disease is already here in Guyana.

Introduction Column 71 published last week included a summary table of the Statements of Financial Position (the Balance Sheet) of the three oil companies which will lead Guyana to First Oil projected to take place during the first quarter of 2020.

ExxonMobil Guyana has provided some $15 million to SSYDR Inc. a not for profit organisation, to present a job readiness programme in several communities across the country.

ExxonMobil has relinquished 20% of the Canje Block, offshore Guyana, and Director of the Department of Energy Dr Mark Bynoe says some things will have to be put in place before reallocation.

In a further sign of the global interest in Guyana’s offshore oil, Qatar Petroleum said yesterday it had agreed a deal with Total (TOTF.PA)

Government will go to tender either during the current quarter or the next for “a fee-based marketing service” to market its share of crude oil from expected oil production, according to Department of Energy Director Dr Mark Bynoe.

Guyana’s contract with oil major ExxonMobil is a good one but some of the provisions are “shady” and the signing bonus and royalty were too low, says Dr Tulsi Dyal Singh, a Midland, Texas-based small oil and gas investor who has been involved in various aspects of the industry.

IntroductionToday’s column summarises some of the principal information extracted from the auditedfinancial statements of the three Contractors to the Petroleum Agreement signed on June 27, 2016.

ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), and partners have secured the necessary local insurance for its operations here even as the oil major’s Country Manager Rod Henson assured that it won’t have to be used since there will be no oil spillage or accidents.

Liza Destiny, which will be  the  first oil production vessel to be located  in Guyana’s waters has left  Singapore, according to a release yesterday from ExxonMobil.