Minister of Natural Resources, Vickram Bharrat believes Guyana has made significant leaps and bounds since the 2023 Energy Conference.

At a press conference this morning on this year’s conference which will take place from the 19th to 22nd February, the Natural Resources Minister said this year’s event will provide additional opportunities to Guyanese businesses across the various sectors.

“By the time of the conference on the 19th of February, we will be producing comfortably at 600,000 barrel per day average. At the last energy conference, we were about 380,000 to 390,000 barrels per day. So, a lot has happened since the last energy conference to this one. And increase in production definitely spells opportunities – opportunities throughout the value chain, opportunities for the private sector in the provision of goods and services,” Minister Bharrat said.

The Natural Resources Minister said the Guyana Energy Conference and Supply Chain Expo will create an ideal platform for small, medium and large-scale businesses and companies to network and build partnerships.

Minister Bharrat said since the Local Content Act was brought into effect in December 2021, there has been an increasing number of joint venture partnerships involving local and foreign companies seeking to tap into the booming oil and gas Industry, as well as other related industries.

He said “since then, we have seen the smooth implementation of the legislation by Local Content Secretariat, and what we have witnessed is a number of joint ventures, partnerships between international investors and our local private sector, and that was the objective of having a Local Content Legislation”.

According to the Minister, given the growth in the industry; the Government is considering the possibility of increasing the number of services listed in Schedule 1 of the Local Content Act. Currently, the schedule caters for 40 services, and details what percentage of those services must be provided by Guyanese-owned and controlled businesses.

Chief Executive Officer (CEO) of the Guyana Energy Conference and Supply Chain Expo, Kurt Baboolall said in addition to the 30 sponsors currently onboard, the country’s premier energy conference has already attracted 200 exhibitors, and hundreds of delegates from 19 different sectors across 21 countries.

He said the Energy Conference and Supply Chain Expo will cover a range of topics, including “Shaping the Future of Energy; Trends and Challenges; Best Practices; Building Resilience in the Global Supply Chain; and Growth and Collaboration – Strategies for Emerging Economies, among others, and Guyanese, he said should seize the opportunity”.

“The way that we have built out the event is that there is access to participate from every level from small businesses to even entrepreneurs, self-employed persons, SMEs to families because it is a family-oriented event. But you can participate by just purchasing a $1000 for an exhibition ticket, come in with your business cards, come in with your proposals, come in with your CVs. There are 200 exhibitors, who are there to interact with you. So, I do believe there is opportunity for every person at different level. There are opportunities for our sponsors, there are opportunities for our exhibitors, there are opportunities for our delegates, and there are opportunities for the persons coming into the exhibition,” he explained.

The President of Guyana, Irfaan Ali; the Prime Minister of Trinidad and Tobago, Dr Keith Rowley; the Prime Minister of The Bahamas, Philip Davis; the Prime Minister of Qatar, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani and the Minister of Industry, Energy, and Technology of Newfoundland, Canada, Andrew Parsons are among the growing list of dignitaries and world leaders, who are expected to join a long list of industry experts, policymakers and foreign officials at the conference next month.

Director of the Guyana Office for Investment (GO-Invest), Dr Peter Ramsaroop; Chairman of the Private Sector, Komal Singh; and GTT’s Chief Operations Officer, Orson Ferguson were among the other officials present at the press conference, offering their wide-ranging support for the upcoming event.

 

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Gov’t to soon award contract for marketing Guyana’s oil

Nov 03, 2023

Vice President Dr. Bharrat Jagdeo says the government will soon award the contract or contracts for the entity that will be marketing Guyana’s share of the oil produced on the three platforms offshore.

“We received 25 bids, and now they’re having discussions with the top three bidders.

“The key variable here is credibility and price,” the Vice President said.

What the government has been searching for is a service provider who will market its share of the oil from the three floating production storage and offloading (FPSO) vessels offshore Guyana.

Already, the Liza Unity and the Liza Destiny are producing about 380,000 barrels of oil offshore Guyana. Production at the Prosperity FPSO should start soon.

Jagdeo said the government can award the contracts to separate bidders for each vessel or one contractor may get the contract to market oil from all three vessels.

And importantly, he told reporters at a press conference on Thursday that the upcoming award is a good step forward because it shows how the government has been able to secure better benefits for the marketing of the resource.

Previously, Jagdeo said Guyana has to pay a company to market the oil. Eventually, it entered into an arrangement where it did not pay for that service. Now, the government expects to get a premium from the sale of its share of oil.

BP International Limited of the United Kingdom was selected last year to market the oil Guyana is entitled to from the Liza Destiny and Liza Unity FPSOs.

The duration of that contract was for 12 months at a marketing price of US$0.00 per barrel. This procurement process was initiated after the earlier contract with Aramco Trading Limited ended.

The Guyana Energy Conference and Supply Chain Expo will attract participation, at the highest level

Jan 30, 2024

With an expanded focus and already a premier event in the region, the third edition of the Guyana Energy Conference and Supply Chain Expo will attract participation, at the highest level, from more than 21 countries and will see 19 sectors – outside of the energy sector – involved. Kurt Campbell reports…

Oil auction: Company run by Guyanese women among six firms getting oil blocks

Oct 26, 2023

After completing the evaluation of the bids submitted for eight of 14 oil blocks, the government has finally awarded eight of the blocks to six different companies.

This was announced by Vice President Dr. Bharrat Jagdeo on Thursday during a party press conference at the People’s Progressive Party Civic (PPP/C) Headquarters at Freedom House.

The list of the companies and blocks are:

  • S3 has been awarded to Sispro Inc., a company headed by four Guyanese businesswomen
  • S4 to a consortium comprising Total Energies EP Guyana BV; Qatar Energy International E&P LLC; Petronas E&P Overseas Ventures SDN BHD (Malaysia)
  • S5 to International Group Investment Inc, a Nigerian group
  • S7 to Liberty Petroleum Corporation of the US and Ghana-based Cybele Energy Limited
  • S8 to a the ExxonMobil, Hess and CNOOC consortium currently operating in the Stabroek Block offshore
  • S10 was also awarded to the International Group Investment Inc.
  • D1 went to Delcorp Inc Guyana and Watad Energy and Arabian Drillers of Saudi Arabia, two Saudi Arabian companies that are incorporated
  • And D2 also went to Sispro Inc.

‘S’ refers to blocks in shallow water while ‘D’ refers to blocks in deep water; there were 11 shallow water and three deep water blocks up for grabs.

The 14 oil blocks that are up for grabs in shallow and deep water areas offshore Guyana (Map from the Ministry of Natural Resources)

Meanwhile, Jagdeo noted that the government will now enter into negotiations with the companies in keeping with the Petroleum Activities law.

“We’ve been told that everyone has confirmed that they have the resources to pay the signing bonus. US$10 million for each shallow block and US$20 million for each in the deep water.

“For any of this to move forward, at a minimum these companies have to meet this requirement,” Jagdeo said.

He also addressed concerns raised.

“We may have a situation where we may not be able to finalise with everyone,” he cautioned, reflecting on concerns already raised by ExxonMobil about fiscal terms.

Jagdeo said the government will not change those fiscal terms and as such, he said, “If the demands are extreme, then we will simply not proceed with that.”

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