Oil & Gas
US$20m petroleum training facility launched
Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips, said the Government intends to continuously bolster investments in human capital to build local content capacity and foster a sustainable future for all Guyanese.
He made the remarks while attending the official launch of the US$20m 3T EnerMech Guyana Training Centre of Excellence and graduation ceremony at the company’s headquarters in Lusignan, East Coast Demerara.
The launch of the petroleum training facility, the Prime Minister noted, would enhance Guyana’s human resource development.
“A crucial factor to the success of our nation lies in our people. We must ensure that we utilise the benefits of the oil and gas sector to build a bright future for this, the next generation of Guyanese and beyond. To do that, we must undertake a culture of ownership, a culture where our local content – our people – can thrive and that includes within the workforce itself.”
The training facility, Guyana’s premier in-country, state-of-the-art facility is a collaborative venture between 3t EnerMech, Orinduik Development Incorporated and Windsor Technologies.
Persons will be taught through blended learning software and technology, and via fully immersive simulators for high-hazard activity learning.
CUTTING EDGE DEVELOPMENT
Prime Minister Phillips, during his address, lauded the drive and innovation of the facility and those responsible for its establishment.
“As the first entity with approval to deliver OPITO (Offshore Petroleum Industry Training Organisation)-accredited training to the oil and gas sector in Guyana, our human resources are now strengthened at a global standard to actively and competently participate in the building of this new and abundant area of the country. With an industry that requires high skills and knowledge, it is reassuring to know that these capacities can be imparted to our people without having to leave their home soil.”
LOCAL CONTENT AT WORK
The Senior Government Official added that the “benefit of strong partnerships can never be understated, for these are the binds that allow goals that may otherwise seem unattainable to be achieved”.
He said that the Government would collaborate with 3t EnerMech to offer a blended technical and vocational training programme for Guyanese interested in careers in the oil and gas industry through the Guyana Online Academy of Learning (GOAL).
“Our Government has continually engaged in the training of our workforce to be able to occupy positions in the oil and gas sector and contribute to the building of this sector, which extends to the development of Guyana. In the past, much of this training was conducted away from home, but today, and from hereon, our people will be able to access such training right here in Guyana.”
In conjunction with the launch, the graduation ceremony, for the first group of students, was also held.
To this end, the Prime Minister charged the graduates to put their skills to use.
“I congratulate the first cohort of participants who underwent training at this facility. May you take your skills and put them to their fullest use as you proceed in your daily tasks of helping to build a better Guyana.”
He said that as a people, Guyana’s success depends on proper resource management, transparency and accountability.
The training programme provides a level one qualification from the Engineering Construction Industry Training Board (ECITB) and is divided into three phases: pre-learning assessment and safe passport, which are completed online, and the technical pathway, which is the practical journey, which is completed at the 3T EnerMech headquarters.
Oil & Gas
APA Corporation Announces First Discovery in Block 53 Offshore Suriname
APA Corporation has announced an oil discovery offshore Suriname at Baja-1 in Block 53. The company also provided an update on recent drilling operations at Dikkop-1 in Block 58.
Block 53
Baja-1 was drilled to a depth of 5,290 meters (17,356 feet) and encountered 34 meters (112 feet) of net oil pay in a single interval within the Campanian. Preliminary fluid and log analysis indicates light oil with a gas-oil ratio (GOR) of 1,600 to 2,200 standard cubic feet per barrel, in good quality reservoir. The discovery at Baja-1 is a down-dip lobe of the same depositional system as the Krabdagu discovery, 11.5 kilometers to the west in Block 58. Evaluation of open-hole well logs, cores and reservoir fluids is ongoing.
“Our success at Baja marks the 6th oil discovery we have participated in offshore Suriname, and the first on Block 53,” said John J. Christmann, APA CEO and president. “This result confirms our geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of both Blocks 53 and 58.”
APA recently received regulatory approval regarding an amendment to the Block 53 Production Sharing Contract (PSC), which provides options to extend the exploration period of the PSC by up to four years. The company is currently progressing the formalization of the election of the first one-year extension, for which all work commitments are complete.
APA is operator and holds a 45% working interest in Block 53, with Petronas holding a 30% working interest and CEPSA holding a 25% working interest. Baja-1 was drilled using the Noble Gerry de Souza in water depths of approximately 1,140 meters (3,740 feet). The drillship will mobilize to Block 58 following the completion of current operations, where it will drill the Awari exploration prospect, approximately 27 kilometers (north) of the Maka Central discovery.
Block 58
APA also announced that operations have concluded on the Dikkop exploration well in Block 58. The well encountered water-bearing sandstones in the targeted interval and has been plugged and abandoned. TotalEnergies is the operator with a 50% working interest, and APA holds the remaining 50% working interest. The drillship Maersk Valiant will be moving to the Sapakara field to drill a second appraisal well at Sapakara South, where the joint venture conducted a successful flow test late last year.
Oil & Gas
Subsea 7 and Van Oord consortium awarded contract offshore Guyana
Subsea 7 and Van Oord have announced the award of a substantial contract by ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL) for the Gas to Energy project offshore Guyana, in water depths of up to 1,450 metres. Although a contract value has not been announced, Subsea 7 has indicated that the contract is between USD150m and USD300m
The scope covers the project management, engineering, and installation of approximately 190 kilometres of pipeline, with an associated shallow water portion and onshore approach making landfall to the west of the Demerara River, along the coast of Guyana.
Craig Broussard, Vice President for Subsea 7 US, said: “We are honoured to have been selected for Guyana Gas to Energy. This is an important project to support the Guyanese people and we look forward to continuing our relationship with EEPGL in one of the most prolific and exciting development basins in the world.”
Hans van Gaalen, Commercial Director for Van Oord, adds: “Van Oord is honoured to have been selected for the Guyana Gas to Energy project in cooperation with Subsea 7. Developing the coastal infrastructure for the project will allow our Subsea 7 and Van Oord consortium to positively contribute to the development of Guyana’s electricity supply which in turn will reduce Guyana’s dependence on imported fuels.”
Oil & Gas
ExxonMobil makes two more discoveries offshore Guyana
IRVING, Texas – ExxonMobil has made two new discoveries offshore Guyana to the southeast of the Liza and Payara developments in the Stabroek block. The discoveries at Seabob and Kiru-Kiru are the sixth and seventh in Guyana this year, with the total number of discoveries in Guyana at more than 25.
- Seabob and Kiru-Kiru wells in Stabroek block are sixth and seventh discoveries in 2022
- Guyana investment strategy continues to yield positive results; additional exploration wells planned later this year
- Production from two vessels currently operating offshore has exceeded their initial combined target of 340,000 barrels per day
The Seabob-1 well encountered approximately 131 feet (40 meters) of high-quality hydrocarbon-bearing sandstone and was drilled in 4,660 feet (1,421 meters) of water by the Stena Carron drill ship. The Kiru-Kiru-1 well encountered approximately 98 feet (30 meters) of high-quality hydrocarbon-bearing sandstone and was drilled by the Stena DrillMAX in 5,760 feet (1,756 meters) of water. Drilling operations at Kiru-Kiru are ongoing.
“ExxonMobil and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” said Liam Mallon, president of ExxonMobil Upstream Company. “The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come.”
The company’s 2022 investment plans include further exploration drilling and resource development in Guyana, where it is already increasing production at an accelerated, industry-leading pace. Two floating production storage and offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — have exceeded their initial combined production target of 340,000 barrels of oil per day.
A third project, Payara, is expected to produce 220,000 barrels per day. Construction on its production vessel, the Prosperity FPSO, is approximately five months ahead of schedule with start-up likely before year-end 2023. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the ONE GUYANA FPSO comes online in 2025.
Guyana’s Stabroek block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45% interest in the block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
Oil & Gas
SBM Offshore completes US$1.75 billion financing of FPSO ONE GUYANA
SBM Offshore has announced that it has completed the project financing of FPSO ONE GUYANA for a total of US$1.75 billion.,
According to a press release from the company, the project financing was secured by a consortium of 15 international banks. SBM expects to draw the loan in full, phased over the construction period of the FPSO. The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released. The project loan is in line with the duration of the charter hence a two-year tenor post-completion and carries a variable interest rate based on SOFR plus 2.2% margin.
The FPSO ONE GUYANA builds on the experience to date of FPSOs Liza Destiny, Liza Unity and Prosperity.
SBM indicated that the design for FPSO ONE is based on SBM Offshore’s industry leading Fast4Ward® program that incorporates the Company’s new build, multi-purpose hull combined with several standardized topsides modules.
The FPSO will be designed to produce approximately 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.
The project is part of the Yellowtail development which is the fourth development within the Stabroek block, circa 200 kilometers offshore Guyana. Esso Exploration and Production Guyana Limited, an affiliate of Exxon Mobil Corporation, is the operator and holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25 percent interest.
Uncategorized
Guyana Shore Base inks 11-year extension contract with ExxonMobil Guyana
Monday 19, july 2022
Guyana Shore Base Inc. (GYSBI), a pioneering Guyanese company in the local oil and gas sector has announced that it has inked an 11-year extension contract with Esso Exploration and Production Guyana Limited (EEPGL), an ExxonMobil affiliate for the provision of shore base management and operations services.
According to a release from the company, the contract will run until 2033 and builds on the previous contract, which was awarded to the company in 2017 and will expire in August this year. In these five years, GYSBI has directly invested over USD$300M in enabling port infrastructure, real estate development, warehousing and support services; has recruited, trained and certified more than 1000 Guyanese for key operational positions within the industry and beyond through its affiliates; catalysed greater than USD$500M in investment in the Houston / McDoom, East Bank Demerara corridor by providing the enabling infrastructure and establishing the first oil and gas activity hub in Guyana and creating direct and indirect employment for more than 2000 persons.
At a ceremonial event held on Saturday, July 16 to commemorate the milestone, Guyana’s Minister of Natural Resources, Hon. Vickram Bharrat lauded the signing, noting that GYSBI has become a prime example of what is possible for Guyanese businesses in the country’s relatively new oil and gas sector.
“Let me congratulate and commend GYSBI and ExxonMobil Guyana…We are happy to be here to see this signing… and seeing another Guyanese company taking a big stride. This signing is a clear indication that we are building capacity as we move to develop the oil and gas sector. There is so much that is happening offshore Guyana and it is not only in the Stabroek Block. I am positive that we will have other discoveries. This activity shows that we are moving in the right direction in this country,” he said.
Minister Bharrat noted that with a projection of nearly 11 billion barrels of recoverable resources thus far and further drilling activities taking place, the Government of Guyana is optimistic that more discoveries would be recorded and therefore, more Guyanese companies would be called upon to meet the myriad of services that would be required.
“As a Government, we are not afraid to take bold steps. Some people may say that we are moving too fast and indeed we are moving fast. I don’t think we have seen this pace of developing an oil and gas sector in any country, especially a third world country like Guyana. The Local Content Act was enacted to ensure that Guyanese benefit from the oil and gas sector, which they truly deserve. Guyanese must benefit and as a Government we are entrusted to do with, in partnership with our foreign partners. We see you as valuable partners and we are committed to working with you to ensure we develop these resources in a way that benefits both the people of Guyana and the company,” the Minister noted.
Mr. Robin Muneshwer, Executive Director of GYSBI said that the contract extension builds on five years of significant and continuous investment, hard work, training and development of local capacity to create a world-class facility that meets the specialised needs of the oil and gas industry.
“The first five years that we are about to complete in August were quite challenging but ExxonMobil was a true partner in all of this. They worked with us as we developed because we were starting from scratch in a country that had no oil and gas experience or infrastructure. As we developed, ExxonMobil raised the bar on us and this is where we are at right now. We have got an 11-year extension because we earned it. What we have developed at GYSBI is something we are extremely proud of. Our safety record is unparallel, we have just celebrated two years LTI free. Our operational record is excellent, so it wasn’t handed to us. We have earned it. ExxonMobil has shown a lot of trust and faith in us and worked with us,” Mr. Muneshwer said.
GYSBI’s Executive Director highlighted that the company in 2017 signed a contract for eight acres, two berths and one warehouse. Today, it stands at 170 acres, 8 warehouses and four berths, with further expansions planned. While it started with five employees, GYSBI today has a workforce of 616 persons, 95 percent of whom as Guyanese.
“So, we have grown tremendously and we have grown because of the unparallel success that ExxonMobil has had with their discoveries. We have grown in sync with them. We have also been a poster boy for local content. None of this would have been possible without GYSBI, which is just five years old. We know that we are an integral part of what ExxonMobil does and we do not take that for granted,” he noted.
Ms. Hayley Gilbert, ExxonMobil Guyana’s Logistics Manager said that GYSBI continues to offer comprehensive services that are crucial to the company’s day-to-day operations and has progressively matched its growth and need for additional space with a move over to its 70plus acres Industrial Estate and the commissioning of two heavy lift berths later this year.
“I have personally been able to see the transformation across GYBSI and I can only imagine what we can accomplish together over the eleven years. When you are part of such a significant development on the onset as GYSBI has been with ExxonMobil in Guyana, having continuity and sustainable business has been critical to be able to deliver the achievements that we have seen. ExxonMobil Guyana is proud to be associated with a company that continues to maintain a high standard of health, safety and operational efficiency,” she shared.
Ms. Gilbert highlighted that GYSBI remains critical as ExxonMobil Guyana advances its plans to responsibly develop Guyana’s oil and gas resources.
“The signing of a decade plus agreement shows the long-term commitment between these two business partners. Our relationship has grown over the years as GYSBI has been our conduit from the onshore to the offshore operations, a logistics hub, providing us with world class services including drilling and production operations support, waste management and storage. As the demand for support services has grown, it was clear that the expansion was necessary and GYSBI has responded to grow the multi- user facility that we see today, supporting the specialised needs of the oil and gas sector here in Guyana,” Gilbert said.
The ceremony also saw the attendance of the Attorney General and Minister of Legal Affairs, Hon. Anil Nandlall, Minister of Public Works, Bishop Juan Edghill, Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh, Minister within the Ministry of Public Works, Hon. Deodat Indar, Members of the Private Sector Commission, the Banking Sector, and other specially invited guests.
Uncategorized
Crude ramp-up to reflect 57.8% economic growth in Guyana
Monday 11, july 2022
Non energy sectors also expected to grow
Guyana has been producing crude since 2019 and since then the country has been one of the top performing economies in Latin America.
When production began, Exxon had one floating production (FPSO) unit in place, Liza Destiny. This had production capacity of 120,000 barrels of oil per day. Since then, Exxon has added on a second FPSO, the Liza Unity which has the capacity of 220,000 barrels per day. The Finance Minister Dr Ashni Singh, has indicated that production is now above 300,000 barrels per day.
Dr Singh estimated that the growth rate of the economy is now expected to be 57.8%. This is a revised estimate up from 47.5% which was made at the beginning of 2022.
Guyana’s production will continue to increase as additional FPSOs are brought into production. SBM is currently constructing the third vessel, Liza Prosperity which will also have a production capacity of 220,000 barrels per day when it comes into service in 2024.
The Minister made these remarks while addressing a visiting delegation from Saudi Arabia. The 65-member Saudi delegation of the private and public sector was led by Deputy Minister for Investors Outreach, Badr Al Badr.
Dr. Singh also indicated that there was positive growth in non-energy sectors and expected that growth in those areas would be 7.7% up from last year’s 4.6%.
He added, “Our government, even in our earliest days of oil production, we have placed the highest level of importance on a strong non-oil economy. Our policies are focused on developing the traditional pillars of our economy and catalysing a rapidly growing, and highly competitive non-oil economy.”
Uncategorized
Barbados Signs Cooperation Agreements With Guyana and Suriname
Wednesday 06, july 2022
The Barbados Ministry of Foreign Affairs and Foreign Trade has announced that Barbados has signed new agreements with two CARICOM neighbors. According to the Ministry, the new agreement provides for enhanced cooperation between the governments and the exploitation of opportunities in several areas of economic activity for their people.
The Agreement for a Strategic Dialogue and Cooperation Platform between Barbados and Suriname was signed by Prime Minister Mia Amor Mottley and President of Suriname Chandrikapersad Santokhi at the Presidential Palace in Paramaribo on Monday night, while the Barbados/Guyana agreement was signed during a break from talks at the 43rd Regular Meeting CARICOM Heads of Government this morning.
This new agreement adds to the agreements previously signed by Barbados, Guyana and Suriname earlier in 2022.
The agreements cover a wide array of cooperation among the three nations.
Responding to the assurance from the Surinamese president that he would hold his ministers and officers to a standard that would ensure the people of the two countries receive maximum benefit from the agreement, Prime Minister Mottley said, “The truth is that we have seen already, substantive engagement between our private sectors. We’ve seen substantive engagement with ordinary people in sports and in other areas. And we are also seeing a very strong and continuous relationship with the government and people of Suriname, because we believe that we have an obligation to work with people in our neighborhood. And you are one of those who, for every reason, it is only language and history that have separated us thus far. And we have come to this point over the last few years to say that that should no longer be a barrier.”
She added, “Suriname is a major player in fisheries. Suriname is the location of CAHFSA, which is responsible for the regulation of sanitary and phytosanitary measures within our community. And if we want to expand our trade in food, if we want to have food security, CAHFSA is going to play a critical role in allowing us to be able to do so.”
Uncategorized
Petrobras buys Guyana crude for refining
Wednesday 29, june 2022
Guyana’s market reach expands with its first sale of crude to Petrobras, Brazil’s state oil company.
According to Reuters, Petrobras has secured its first cargo of Guyanese crude, with the intention of refining it domestically.
Guyana has been ramping up production, with the start of a second floating production facility in February. It now has the potential to sell two light and sweet oil grades with plans to pump up to 360,000 barrels per day (BPD) this year.
At present, the two operations FPSOs are the Liza Destiny and Liza Unity. The Destiny has a production capacity of 120,000 BPD and the Unity can produce up to 220,000 BPD. Both FPSOs were built by SBM.
According to a Reuters article, the 1-million-barrel cargo of crude loaded last week from the Liza Destiny and departed for Petrobras onboard the Bahamas-flagged tanker Cascade Spirit. The vessel plans to discharge in Brazil at month’s end, according to Refinitiv Eikon data, which did not identify an arrival port.
Natural Resources Minister Vickram Bharrat indicated that there had been two crude lifts from the Liza Unity and Liza Destiny FPSO vessels in the Stabroek block that have been recorded for the month of June, each a million barrels.
He added that the next lifts would be in July and August.
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