The third day of the International Energy Conference and Expo Guyana 2023 began with presentations from the Honourable, Brigadier (Ret’d) Mark Anthony Phillips, Prime Minister of Guyana; the Honourable Dr. Ashni K. Singh, Minister of Finance (Guyana); Professor Harrie Vrendenberg from the University of Calgary (virtual); Dr. Mahender Sharma, CEO of the Guyana Energy Agency; and Isaac Solomon, Vice President of the Caribbean Development Bank.
The Prime Minister of Guyana started with a recap of the week’s discussions before elaborating on the areas of growth that Guyana has seen in a socioeconomic and financial context for the past few years. He stated that the non-oil sector has increased by 11.5%, and that the oil revenue has increased Guyana’s GDP by 6.2%. The Prime Minister stated that the demand for energy on a national and global level will increase and double in forthcoming decades, and as such, Guyana needs to balance that demand through the use of flexible and reliable energy sources. He mentioned that there is a governmental goal to reduce the cost of electricity in Guyana by 50%, and this is being done through the employment of hydropower, solar and wind energy sources throughout the country. The Prime Minister then recapped most of the initiatives that have been taken to work towards a more sustainable Guyana.
Minister Ashni Singh offered a very thorough statistical recap of Guyana’s economic state, with a few comments on factors that would have impacted Guyana’s economic state, such as COVID19 and the Russian war on Ukraine. He stated that there is an overdependence on particular economic sectors, and thus is it of high importance for the country to continue achieving a strong non-oil economic growth. The Minister also proudly stated that over the past three years, the Guyanese economy has tripled in size. Guyana was also said to hold the third largest reserves in Latin America and the Caribbean. Minister Singh explained the function of the Natural Resource Fund (NRF); where all revenue earned from this sector can be deposited and only withdrawn in accordance with a transparent formula that is easy to interpret and free of political discretion or judgement.
Professor Harrie Vredenberg joined the conference virtually and shared his presentation on the topic of energy transition. He discussed areas such as climate change, the perspectives of environmental activists, and steps that a nation making an energy transition should consider. The professor concluded his presentation by discussing a documentary film that he has produced on energy transition in the Caribbean islands of Barbados and Trinidad & Tobago.
Dr. Sharma from the Guyana Energy Agency provided a summary of the completed projects that the agency has worked on and those that are currently in the works, specifically the ones located in Region 9. There is a goal to make that area a renewable energy hub.
Isaac Solomon of the Caribbean Development Bank spoke of sustainability and the “resilience” required to boost the economies of Caribbean countries who produce renewable energy. He mentioned that energy security is currently a top priority, and that the main focus on the CDB’s energy sector strategy is to support the increased scale and pace of the transition across all member countries.
The fourth day of the Conference will be focused on the Youth Engagement Forum.
CGX and Frontera set to spud Wei-1 and construction begins at deepwater port in Berbice
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
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.
Guyana and Suriname World Bank Representative Diletta Doretti To Speak At 2023 Energy Conference
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.
VSH United (Guyana) Inc was established on May 2015 in Georgetown, Guyana. Specialises in safety products, logistic services, real estate. They are also the sole distributors for Ansell and HexAmour.
The Guyana National Bureau of Standards (GNBS), operating under the Ministry of Tourism Industry and Commerce is a semi-autonomous governmental organization responsible for standards and quality in Guyana. There role is to:
