Guyana Oil and Gas News

The international data analytics and consulting company GlobalData has cited oil recovery pursuits in Guyana’s maritime space, going forward as a factor likely to push South America past North America’s by 2024.

ExxonMobil is continuing to  drill its deepest ever well – the Tanager-1- in the controversial  offshore Kaieteur Block and says that it will soon add a 5th drill ship and another next year for exploration in the equally contentious Canje Block.

Introduction Today’s column reviews estimated Government of Guyana (GoG) revenue and related benefits arising from its International Oil Companies (IOCs)-led oil and gas sector. 

The Guyana Human Rights Association (GHRA) has charged that there is discriminatory hiring in the oil and gas industry and that local professionals are being underpaid by as much as 10 to 20 times compared to expatriates.

First Lady Arya Ali on Friday toured Guyana Shore Base Inc.’s

By Troy Thomas Troy Thomas is former president and a current member of Transparency Institute Guyana Inc.

(Reuters) – Exxon Mobil Corp said yesterday it could cut its global workforce by about 15%, including deep white-collar staff reductions in the United States, as the COVID-19 pandemic batters energy demand and prices.

Controversial flaring from the Liza-1 oil well will likely continue until the end of this year as Hess – one of the partners in the offshore operations –  announced that Guyana’s maximum 120,000 barrels per day production output will not be achieved until December.

Announcing the start of work by the recently appointed Gas to Shore Project Advisory Committee, President Irfaan Ali has said he anticipates the project to materialize by 2023 to deliver affordable energy to Guyanese.

Introduction Last week’s column ended with an observation that is so revealing I repeat it as the title for today’s column.

Former Chief Executive Officer of NICIL, Winston Brassington will head government’s Gas-to- Shore Task Force (GSTF); a body that will report on the most viable options for the project, anticipated to start next year, Minister of Natural Resources Vickram Bharrat yesterday said.

An addendum to the Liza-1 Production Licence, which was never made public, was signed last year by former President David Granger and paved the way for environmental upgrades for the Liza-2 project and subsequent major improvements to the recently approved Payara licence.

ExxonMobil has secured approval for its Payara project in the Stabroek Block offshore Guyana and an agreement, which would also cater for stiff fines for flaring violations and a commitment that reservoir water be treated to international standards before dumping, should be signed soon, Minister of Natural Resources Vickram Bharrat has said.

Government’s immediate focus in the oil and gas sector is on the review of ExxonMobil’s Payara project, local content, and a natural gas to shore project, President Irfaan Ali said yesterday.

With Guyana being described as the “sunshine of oil countries” by one investor, a number of oil and gas projects are forging ahead here despite the contraction of the global economy due to the fallout from the COVID-19 pandemic, and Minister of Natural Resources Vickram Bharrat sees this as indicative of confidence in this country, its governance and economy.

The technical and legal teams from the Department of Energy remain in talks with ExxonMobil on the proposed agreement for the Payara Field Development Plan, Minister of Natural Resources Vickram Bharrat told Stabroek News last night.

Introduction Last week’s column continued my examination of the likely impact of the 2020 global general crisis on crude oil prices in world markets this year; and, following that, on the price obtained for Guyana’s Liza crude, as reflected in the price received for Government of Guyana, GoG, petroleum lifts, earned through its Production Sharing Agreement, PSA, with ExxonMobil and its partners.

With an average payment of about US$46 per barrel of oil, Guyana this week received US$46M for its third 1M barrels of oil entitlement and this reflects an increase of more than US$10 dollars per barrel than it received on its last lift.

Underscoring the importance of contract sanctity to investors, ExxonMobil yesterday hinted that it was willing to discuss with government the local content areas it can give more to but drew the line at any renegotiation of the controversial 2016 Production Sharing Agreement (PSA).

The first group of Guya-nese operations and maintenance trainees recently returned home after an extensive 18-month training programme in Canada organised by ExxonMobil Guyana.