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Hess Announces New Oil Discovery in the Stabroek Block

Jan 26, 2023

As previously stated in a Hess report earlier this month, oil discovery and extraction continue to accelerate in the Stabroek Block. The 2nd dedicated Fangtooth production unit, the Fangtooth SE-1 well has struck oil following recent concentrated activity in the area by the Stena Carron rig.

With this finding, Hess stated the Fangtooth SE-1 well (a co-venture with ExxonMobil) “encountered approximately 200 feet of oil-bearing sandstone reservoirs”.

With this latest oil discovery, the Stabroek Block is now responsible for more than 11 billion barrels of oil equivalent (boe).
ExxonMobil (Premier Level Sponsor), Hess Corporation (Diamond Level Sponsor) and Stena Drilling (Silver Level Sponsor), will all be active at the 2nd annual International Energy Conference and Expo Guyana in 20 days.

The Conference and Expo is being hosted under the theme ‘Harnessing Energy for Development’ and will be held from February 14th-17th, 2023 at the Marriott Hotel in Georgetown, Guyana. Assembling key Heads of State, government officials, policymakers, academics, industry professionals, and global energy thought-leaders, this will be the event to stay on top of the rapidly accelerating development in the region.

Oil & Gas

Guyana and Suriname World Bank Representative Diletta Doretti To Speak At 2023 Energy Conference

Jan 11, 2023

The International Energy Conference and Expo Guyana 2023 is pleased to announce the participation of Diletta Doretti, Resident Representative for Guyana and Suriname at World Bank in Guyana, as a speaker at the second edition of the event in February.

Doretti is responsible for maintaining the day-to-day dialogue and solid partnership around the World Bank’s programs in both countries. Since joining the institution in 2002, Doretti has held various positions at the World Bank, the most recent, being Senior Private Sector Development Specialist for the World Bank West Africa region, based in Mali.

Doretti has strong and diversified World Bank experience in leading teams and in corporate assignments, including country engagements and developing the World Bank’s strategies around the private sector, entrepreneurship, and innovation.

Kurt Baboolall, Chief Executive Officer of the International Energy Conference and Expo Guyana 2023, said, “The World Bank representative, Ms Doretti will give all stakeholders present at the conference a glimpse of how the US$44M allocated to Guyana last year will be spent on skills development in the emerging energy sector. We are pleased to welcome Ms Doretti onboard for this year’s conference.

Doretti is among a number of speakers slated to deliver addresses at the Conference and Expo which include World renowned Professor in economics, Jeffrey D. Sachs, CEO of the Hess Corporation, John Hess. There are a number of Heads of Governments expected to deliver remarks; these are; H.E. Dr. Mohamed Irfaan Ali, President of Guyana, H.E. Chandrikapersad Santokhi, President of Suriname and Dr. Keith Rowley, Prime Minister of Trinidad and Tobago.

The Conference and Expo this year is being hosted under the theme ‘Harnessing Energy for Development’ and will be held from February 14th-17th, 2023, at the Marriott Hotel in Georgetown, Guyana. It is expected to assemble Heads of State, government officials, policymakers, academics, industry professionals, and global energy thought-leaders.

Oil & Gas

Hess says production in Guyana could reach 1.2m barrels per day by 2027

Jan 06, 2023

Speaking at the Goldman Sachs, Global Energy and Clean Technology Conference, CEO of Hess Corporation John Hess stated that the official figure for crude oil production from Guyana is estimated to be 1.2 million barrels per day, an upward estimate from the previously reported 850,000 barrels per day. This steady production will be supported by six floating production vessels (FPSOs).

Hess, with partners Exxon and CNOOC, have had 30 major finds offshore Guyana, 9 of which have been in 2022. Presently, Guyana has two FPSOs in operation producing about 360,000 barrels per day.

Mr. Hess noted that based on the recent appraisal of the Fangtooth well, the company may require a dedicated production unit for itself which would be Guyana’s 7th in total.

Emphatically stating that Hess projects in the region will lead to the betterment of all Guyanese, he referred to the recently signed carbon credits deal (click here to read more). and the gas to power project currently underway, which Mr. Hess anticipates will provide stable and low cost electricity for the country(click here to read more).

With such strong indicators of sustainability there remains an undeniable link between the energy sector and the development of Guyana’s infrastructure and services sector.

The International Energy Conference and Expo will take place from February 14 – 17 2023 at the Guyana Marriott Hotel. The theme for the conference in 2023 is Harnessing Energy For Development. Mr. John Hess, CEO of Hess Corporation will be speaking at the conference and delivering a feature address.

 

 

 

Oil & Gas

Guyana Opens Offshore Bid Round

Dec 09, 2022

Guyana President Dr. Mohamed Irfaan Ali has launched Guyana’s competitive bid round for 14 offshore oil blocks, comprised of eleven shallow water blocks and three ultra-deepwater blocks.

Officially open today, December 9th 2022, the bid round is expected to be open for 4 months and will close on April 14th 2023.

With the massive potential for “25 billion barrels”, President Ali outlined that evaluations of the proposals will take place and following an expedited negotiation period, awards of blocks are expected in Q2 2023.

Minister of Natural Resources Vickram Bharrat is expected to publish a notice in the Official Gazette in keeping with the Petroleum Act.

Guyana has seen extraordinary success with offshore discoveries in the last 5 years. The country continues to grow and expand the opportunities to increase production and the inflow of investment into the energy industry and other sectors. The largest upstream player to date has been Exxon, who produces more than 340,000 barrels of oil per day from two FPSOs. The company has had significant success in Guyana and indicates that additional FPSOs are already in development for future projects.

The government has made it clear in the past that the industry must be to the benefit of all Guyanese citizens. At the launch of the bid round, President Ali, stated, “We are hoping that there will be maximum participation and that Guyana would be part of a partnership that creates greater benefit and greater wins for our country and our people.”

Improved fiscal terms have been outlined that provide greater balance of the share of revenue between the government and contractor, while maintaining Guyana’s competitive edge in the region globally.

The International Energy Conference and Expo will take place from February 14-17 2023 at the Guyana Marriott Hotel. At the conference there will be keynote addresses by the leadership of the country including: His Excellency Dr. Mohamed Irfaan Ali, President of Guyana, Prime Minister Mark Anthony Phillips, Vice President, Dr. Bharrat Jagdeo and Minister of Natural Resources, Vickram Bharrat.

At the conference we will also hear from senior experts in Guyana’s oil and gas sector, including John Hess, Chief Executive Officer, Hess and Alistair Routledge, President, ExxonMobil Guyana.

Oil & Gas

Trinidad and Tobago Prime Minister Dr Keith Rowley to attend second edition of The International Energy Conference and Expo Guyana 2023

Dec 09, 2022

The International Energy Conference and Expo Guyana 2023 today announced that the Prime Minister of Trinidad and Tobago, Dr. the Honourable Keith Rowley has confirmed his attendance and will deliver remarks on the opening day of the second edition of the event. Dr. Rowley is among a number of Heads of State and Government expected to attend the event. 

Chairman of the International Energy Conference and Expo Guyana 2023, Anthony Whyte said, “We are extremely pleased to see that Heads of Government across the region and globally are recognizing that Guyana is leader in this part of the world when it comes to energy talks and are taking the opportunity to be part of the conversations that will shape the approach to energy development over the next few years.” 

Whyte added, “Trinidad and Tobago has been a producer of energy for decades and we believe that their experience could help our sector realise its full potential. We are excited to host Prime Minister Rowley and the other heads of state scheduled to attend the conference and expo.” 

The Conference, which is expected to assemble policymakers, academics, industry professionals and entrepreneurs from around the world, will also again see the participation of global energy thought-leaders, most notably, Professor Jeffrey D. Sachs, world-renowned economics professor, bestselling author, innovative educator, and global leader in sustainable development. 

The Conference and Expo will be held from February 14-17, 2023 at the Guyana Marriott Hotel, Georgetown, under the theme ‘Harnessing Energy for Development’. 

The registration portal for the conference and expo can be found on the conference website, www.guyanaenergy.gy. Pre-registration is now open for sponsors, exhibitors, in-person attendees, virtual attendees, workshop participants, and members of the media, all being done online. 

 

Oil & Gas

Hess Corporation and the Government of Guyana Announce REDD+ Carbon Credits Purchase Agreement

Dec 03, 2022

Hess Corporation and the Government of Guyana announced an agreement for Hess to purchase high quality carbon credits for a minimum of $750 million between 2022 and 2032 directly from the Government of Guyana.  

Carbon credits are mechanisms used to reduce CO2 emissions. Carbon credits are generated by the avoidance of CO2 emissions. Guyana’s extensive natural rainforests provide an avenue to remove substantial quantities of CO2 from the atmosphere. 

This agreement will serve to support Guyana’s efforts to protect the country’s vast forests and provide capital to improve the lives of Guyana’s citizens through investments made by the Government as part of Guyana’s Low Carbon Development Strategy (LCDS) 2030.  

If you would like to learn more about Guyana’s Low Carbon Development Strategy click here:
https://lcds.gov.gy/ 

Guyana’s President, His Excellency Dr. Irfaan Ali stated, “In 2009, Guyana produced the first low carbon development strategy from a developing country. As one of only nine national jurisdictions in the Amazon Basin, we said long ago that national or jurisdiction-scale action on forests, coupled with access to global private finance, could create solutions that benefit the peoples of forest-rich countries while also achieving global climate goals.” 

President Ali was joined by Vice President, Dr. Bharrat Jagdeo and John Hess, CEO of Hess Corporation for a signing ceremony to commemorate this historic agreement. 

The multi-year agreement is for 37.5 million REDD+ jurisdictional carbon credits (current and future issuances). These credits will be on the ART (Architecture for REDD+ Transactions) registry and will be independently verified to represent permanent and additional emissions reductions under ART’s REDD+ Environmental Excellence Standard 2.0 (TREES). 

Avoiding global deforestation is foundational to the Paris Agreement’s aim of limiting the global average temperature rise to well below 2°C and was one of the major commitments made at the COP26 climate summit, where more than 130 countries, including Guyana, pledged to end deforestation by 2030.  

Guyana’s more than 18 million hectares of forests are estimated to store approximately 20 billion tonnes of carbon dioxide equivalent. Through Guyana’s Low Carbon Development Strategy 2030, the country has a roadmap for preserving its forests, while growing its economy and creating a development pathway that is diverse and includes opportunities for all Guyanese citizens. 

The purchase of these carbon credits is an important part of Hess’ commitment to support global efforts to address climate change and for the company to achieve net zero greenhouse gas emissions by 2050. The agreement adds to the company’s ongoing and successful emissions reduction efforts, which are described in Hess’ annual Sustainability Reports. 

If you would like to learn more about Hess’ sustainability reports, you can click here:
https://www.hess.com/sustainability/sustainability-reports 

 

Oil & Gas

CGX and Frontera set to spud Wei-1 and construction begins at deepwater port in Berbice

Nov 30, 2022

Canadian based CGX Energy along with Frontera Energy Corporation have indicated their readiness to spud (begin drilling) the Wei-1 well in the Corentyne block offshore Guyana.

The partners have issued a press release stating their commitment to drill the Wei-1 well and that final preparations are complete in advance of spudding the Wei-1 well.

The well will be spudded no later than January 31, 2023 utilising the NobleCorp Discoverer semi-submersible mobile drilling unit.

The Wei-1 well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana

To go alongside this activity, CGX intends to support the Government’s effort to accommodate increased vessel activity in Guyana. According to a statement from the partners, in-river construction activity has begun for a deepwater port at Berbice.

Work has already begun at the Berbice Deepwater Port (BDWP) on a 50 x 12 metre access trestle from the quayside yard westward into the Berbice river, together with the necessary dredging of the river.

Construction of the wharf, perpendicular to the trestle, will follow.

The cargo terminal aspects of the BDWP are targeted to commence in mid-2023 and operation of oil and gas support base in late-2023, subject to construction schedules and supply chains.

In collaboration with the Government of Guyana, CGX has shifted the immediate focus of the Port to service expected demand for aggregates and building materials to support the Government’s infrastructure development in Berbice which must be imported into the region from elsewhere in the country and offshore.

 

Photo credit: www.noblecorp.com

Oil & Gas

BP International Limited selected to market Guyana’s share of crude

Nov 25, 2022

The Government of Guyana through the Ministry of  Natural  Resources has announced that BP International Limited has been selected to market Guyana’s share of petroleum from the Liza Destiny and Liza Unity floating production storage and offloading (FPSO) vessels.

The award for the contract comes after the completion of a competitive procurement process launched by the Ministry of Natural Resources. The Ministry opened a Request For Bids from September 16, 2022 to October 11, 2022 after the previous marketing contract with Aramco Trading Limited ended.

According to DPI, fourteen (14) bids were received by the National Procurement and Tender Administration Board (NPTAB).

The procurement board appointed an Evaluation Committee to review the bids.  After the evaluation, BP International was recommended by the committee. The recommendation was was cleared by NPTAB and received Cabinet’s ‘no objection’.

The duration of this contract will be for twelve (12) months.

The marketer will provide the following services:

  • Provide support and guidance to the Government of Guyana in all operating and back-office responsibilities of managing the crude sales and each individual lift whilst facilitating timely and cost-effective crude operations;
  • Support the government in the continued introduction of the grade to multiply geographies and refinery systems, and provide benchmark and performance comparisons of prices paid for Guyana’s crude;
  • Work closely with the government to understand the behaviour and yields of the Liza blend and how these can affect pricing differentials.

The Guyana Government has indicated that it will continue to employ transparent and international best practices in the management of the nation’s petroleum resources so as to attain maximum returns and advance the livelihoods of all citizens.

Photo credit: www. bp.com

 

Oil & Gas

ExxonMobil Guyana renews sponsorship of Energy Conference for second edition in 2023

Nov 18, 2022

ExxonMobil Guyana renews sponsorship of Energy Conference for second edition in 2023
– Government welcomes the International Energy Conference and Expo 2023” says Natural Resources Minister

The International Energy Conference and Expo Guyana 2023 (IECEG 2023) today announced ExxonMobil Guyana as the premier sponsor of the second edition of the Conference & Expo.

Commenting on the sponsorship, President of ExxonMobil Guyana, Alistair Routledge said, The event’s theme, ‘Harnessing Energy for Development’, aligns with our commitment to sustainably produce energy and products to meet society’s needs in a manner that protects people, the environment and communities where we operate.”

Routledge added, “Guyana is a thought-leader on low carbon development with an ambitious strategy to secure growth and prosperity for current and future generations. These credentials, I believe, put Guyana in the driver’s seat on energy issues regionally if not globally, and the International Energy Conference is an ideal platform to learn of developments and engage in the debate. ExxonMobil Guyana is proud to be associated with this event and is excited to be part of the transformational journey taking place in Guyana.”

The Conference, which is expected to assemble policymakers, academics, industry professionals and entrepreneurs from around the world, will again see the participation of Heads of State and Government, and global energy thought-leaders, most notably, Professor Jeffrey D. Sachs, world-renowned economics professor, bestselling author, innovative educator, and global leader in sustainable development.

In acknowledging the sponsorship from ExxonMobil Guyana, Kurt Baboolall, Chief Executive Officer of the International Energy Conference and Expo Guyana said, “We are grateful for the sponsors and exhibitors who are committing resources to supporting the conference and driving the energy conversation.”

Baboolall added, “ExxonMobil, as is demonstrated in Guyana, is an unparalleled leader in energy development today and remains committed to meeting current and future needs for development. The rapid development of energy resources being undertaken by ExxonMobil Guyana has positioned Guyana in the middle of the current global discussions.”

At full capacity, this year’s conference will feature 35 sponsors, 300 exhibitors, and 1200 delegates. Over 60% of all places have been taken and the remaining openings have become extremely competitive to secure.

Minister of Natural Resources, Hon. Vickram Bharrat, who attended the announcement, signalled Government’s continued support of the Conference and Expo saying that “The Government welcomes the International Energy Conference and Expo 2023, this is the second energy expo in Guyana showcasing the opportunities and what Guyana has to offer to the world. Guyana of course is one of the newest oil producing countries in the Latin America and Caribbean region, and we have been moving at an unprecedented rate in developing our oil and gas sector and at the same time we have been incentivizing and working towards developing the traditional non-oil sectors.”

Minister Bharrat further explained, “[The IECEG] It’s not just about showcasing Guyana as an oil producing country but showcasing Guyana as an investment destination, a land that  offers many opportunities across all sectors.”

The Conference and Expo is now entering its second year under the theme ‘Harnessing Energy for Development’ and will be held from February 14-17, 2023 at the Guyana Marriott Hotel, Georgetown, Guyana.

The registration portal for the conference and expo can be found on the conference website, www.guyanaenergy.gy. Pre-registration is now open for sponsors, exhibitors, in-person attendees, virtual attendees, workshop participants, and members of the media, all being done online.

Oil & Gas

Guyana GDP growth rate to be highest in the world

Nov 14, 2022

According to estimates by the WorldBank and International Monetary Fund( IMF), Guyana, one of Latin America’s smallest countries is set to post the world’s highest GDP growth.  For several years, since the production of crude oil begun through Exxon’s Liza development, the country has outpaced global growth averages.

It is projected that at the end of 2023 Guyana’s GDP growth rate will be close to 100% compared with 2021 figures. According to IMF estimates, Guyana will grow 57.8% this year and 25.2% next year, resulting in a GDP increase of around 97.6% in two years. Meanwhile, the World Bank forecasts an increase of 47.9% for 2022 and 34.3% for 2023. This equates to a 98.6% GDP jump over the two-year period.

In comparison the IMF reports the Latin America and Caribbean average is approximately 3.5% in 2022 and 1.7 in 2023.

Bloomberg’s radio show featured an episode titled, “Guyana is the most exciting story in the world oil market”. In the episode, hosts shared the story behind Guyana’s meteoric rise in GDP growth and shared that since 2015 one in every  three barrels of oil discovered has been in Guyana. You can listen to the full episode here.

In the energy industry Guyana continues to be one of the most prolific provinces in the world and the Government in Guyana has consistently reiterated that the people of Guyana must benefit from the hydrocarbon sector. The International Energy Conference and Expo will play part in highlighting these issues. The theme for the conference in 2023 is Harnessing Energy for Development.