Guyana Oil and Gas News

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.

Introduction Following up on last week’s column we have set out below a Table summarizing the Profit and Loss Statement of Mid-Atlantic for each of the years 2013 (part-year) to 2018 extracted from the company’s audited financial statements lodged with the Commercial Registry, a statutory obligation under the Companies Act.

The 2016 renegotiation of the Production Sharing Agreement (PSA) between government and ExxonMobil’s subsidiary benefitted both sides, according to the company’s Country Manager Rod Henson, who said that the oil major did not “strong arm” anyone and warned of the impact on investment if changes to the agreement are sought.

Guyana has to ensure its oil and gas local content policy promotes robust oversight of the sector given the potential loopholes for corruption that have been evidenced in other developing countries, according to Canada-based University Professor and Georgetown Chamber of Commerce and Industry (GCCI) Advisor Dr.

State Assets Recovery Agency (SARA) Special Assistant Eric Phillips has stated that accusations of conflict of interest levelled against him have “no substance to the claim.”

Four years after it made its first offshore oil discovery in Guyana, ExxonMobil says that it and its contractors have created almost 1,200 new jobs for locals with over 200 of those being held by women and spent some US$119.5 million (approximately $24.9 billion) on local procurement.

-company forging ahead with two more offshore oil projects Still on target for first oil in the first quarter of next year from its Liza 1 project, offshore Guyana, ExxonMobil is forging ahead with plans for two other offshore developments in the Stabroek Block that are expected to see Guyana receiving additional revenue as there will be increased production.