Guyana Oil and Gas News

ExxonMobil will not be using the Netherlands-headquartered SBM Offshore to build its fifth planned FPSO as it has signed a contract with Japanese floating oil and gas production systems provider, MODEC to build the vessel to support its planned Uaru project.

Introduction In today’s column I report on the results of modeled projections of the Guyana Government Take ratio.

Unsurprisingly, the announcement by the Government of Guyana earlier this week that it had been notified by EXXON Mobil of two new offshore oil discoveries created no discernable ripples here, the details of the release on the new discovery issued by the Ministry of Natural Resources failing to generate anything close to the sense of national excitement that erupted in 2015 when the public disclosure of the first oil find was made.

Over US$493 million was paid into the Natural Resources Fund during the period of July 1 to September 30, 2022, according to the Ministry of Finance.

Introduction In today’s column, the focus of this intended re-visit of my previous evaluations of the Guyana Government Take and Reported Hydrocarbon Reserves shifts its attention to my reporting of published measures of the Take ratio for Guyana.

Former Minister of Public Infrastructure and the Opposition’s shadow Minister of Oil and Gas David Patterson thinks that the government’s much touted gas-to-shore project is ill-conceived and if realized will not deliver what has been promised.

Introduction Today’s column is the fourth in my recently introduced sub-series of columns on the topic of Guyana Government Take and Reported Reserves This is due to the private urgings of several readers who have been pressing me to re-visit my previous columns on this topic.

ExxonMobil has found itself in hot water after improperly dismissing two of its employees in violation of several statutes of the US Department of Labor’s Occupational Safety and Health Administration (OSHA) Act.

(Argus Media)  US President Joe Biden and his deputies are trading barbs with ExxonMobil and other refiners over what the administration sees as inflated gasoline prices caused by insufficient domestic inventories.

President Irfaan Ali has promised to check on the status of Guyana’s first audit of the oil and gas sector which was conducted by the United Kingdom-based HIS Markit on the US$460 million pre-contract costs.

Introduction As readers are aware, I usually indicate well beforehand the topics I intend to address over an extended period, going forward.

Following concerns raised about its shortage of details on the requirements for prospective marketers for its oil, government yesterday released the criteria and also announced that the contracted period would be for one year.

-calls for increased cost of carbon credits While pointing out that the world is currently faced with an energy crisis with no end in the near future, Guyana’s President Irfaan Ali told the 77th session of the United Nations General Assembly that fossil fuels are a necessary means of energy while the world transitions to more sustainable means.

Two environmental activists have filed a suit against the Environmental Protection Agency (EPA) to quash the permit it issued for the ExxonMobil Guyana-led Liza Phase 1 oil project in the Stabroek Block, offshore Guyana.

Government has announced that it is looking for marketers of oil from the Liza 1 and Liza 2 platforms but for a second time has not released to the public information on the requirements or the specific period the contract would cover.

Dear Editor, In a SN article dated 8/15/2022 and captioned, ‘Guyana set to receive 12 lifts of profit oil for 2022 – Ministry’, it is reported ‘…that the expected total production of oil in 2022 is 93.6 million barrels of oil… (from which) …Guyana will get an estimated 12 lifts of one million barrels each, according to the Ministry of Natural Resources.’.

Dear Editor, The VP has made it very clear that his PPP Government will not renegotiate the worst oil contract in the world signed by the PNC.

With the disclosure that the David Granger-led government and the ExxonMobil Guyana and its partners amended the controversial 2016 Production Sharing Agreement (PSA), main opposition spokesman on the oil and gas sector David Patterson has said that while it is proof that the existing contract can be renegotiated, it requires the necessary political will.

Introduction Four weeks ago, I had substituted my scheduled re-visit of the Buxton Proposal and its recommendations, for a more comprehensive appraisal of the premier position, which I have accorded to the goal of poverty reduction in the spending of Guyana’s expected windfall petroleum revenues and earnings.

Introduction Last week’s column used the World Bank’s systematic country diagnostic, SCD, of Guyana, to unravel the embedded obstacles to the country’s lack of inclusive development along with the grim persistence of poverty up to the advent of its windfall oil finds in 2015.