Guyana Oil and Gas News

Introduction: Top Ten Last week’s column wrapped-up my evaluation of Open Oil’s financial modeling of Guyana’s 2016 Production Sharing Agreement (PSA) with the local ExxonMobil subsidiary and its partners.

As Guyana inches towards a 2020 commencement of the exploitation of what has been determined to be a potentially fortune-changing oil find, some of the major players in the industry were discussing what is widely believed to be significant global movement towards a historic shift in the demand for oil and oil products driven by growth in the world’s major markets.

Introduction We continue and conclude today on what is known as Sovereign Wealth Funds, essentially special purpose state-owned investment funds to achieve financial objectives using investment strategies, tools and instruments.

The World Bank Group today announced approval of a US$35 million Development Policy Credit to support Guyana’s efforts to bolster financial sector development and fiscal management to better prepare the country to tap its newly discovered oil and gas reserves and transform its oil wealth into human capital.

With Guyana an emerging oil and gas country and with several agreements signed with companies, the primary focus now should be on establishing a sound legal and regulatory framework. 

Dear Editor, In his recent attempt to justify his government’s callous refusal to take action to cushion Guyanese businesses and consumers from rising fuel prices, Minister Winston Jordan has made a very important confession. 

Introduction Today’s column concludes the discussion of Open Oil’s modeling exercise of Guyana’s 2016 Production Sharing Agreement (PSA).

VIENNA,  (Reuters) – OPEC meets Russia and other allies on Saturday to clinch a new deal raising oil output, a day after agreeing a production hike within the group itself but confusing the market as to how much more oil it will pump.

VIENNA,  (Reuters) – OPEC agreed yesterday on a modest increase in oil production from next month after its leader Saudi Arabia persuaded arch-rival Iran to cooperate, following calls from major consumers to curb rising fuel costs.

Dear Editor, I am inspired to join the discussion by the cartoon depicting the PPP’s Gail Teixeira holding a placard proclaiming “Haitians Out!”

Saying Guyana’s Second Draft Local Content Policy Framework caters well for its people, expert Michael Warner is urging citizens to act swiftly to equip themselves to be globally competitive in the oil and gas field.

VIENNA, (Reuters) – U.S. sanctions on Venezuela are an attack against the stability of the global oil market, Venezuelan Oil Minister Manuel Quevedo said yesterday.

With an eighth oil find yesterday in the Guyana basin and its largest discovery still to be quantified, ExxonMobil’s estimated total for seven wells in the Stabroek Block stands at some 3.7 billion recoverable oil-equivalent barrels, even as the company accelerates work in the zone by adding a third drillship.

ExxonMobil Corporation said today it made its eighth oil discovery offshore Guyana at the Longtail-1 well, creating the potential for additional resource development in the southeast area of the Stabroek Block.

Opposition Leader Bharrat Jagdeo says he has deliberately stayed away from all oil-related activities due to his discomfort with some of the postures being taken by the government.

Today’s column continues with my critiques of Open Oil’s financial modeling of Guyana’s 2016 Production Sharing Agreement, PSA.

  Introduction Column 40 noted that in practice, any Sovereign Wealth Fund for Guyana has to take a whole host of factors into account, including the country’s recurring deficits which are financed by loans; the deficit in its infrastructure; future revenue gains and losses; commodity prices including that of oil; and citizens’ rising expectations.

Source One Supply Oil and Gas Marine Supplies Chief Executive Officer Terry Singh has said that his company’s proposal for an onshore oil and gas facility has not received any substantial feedback from government since last year.

ExxonMobil remains on target to begin oil production offshore Guyana by March, 2020, following the start of development drilling for its Liza Phase 1 project.

Alert police and prison officials thwarted what appeared to have been a plot to smuggle contraband items, including cannabis and phones, into the Lusignan Prison early yesterday morning.