Hess Announces New Oil Discovery in the Stabroek Block

Jan 26, 2023 by Gy Admin in  Oil & Gas

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.

SBM Offshore completes US$1.75 billion financing of FPSO ONE GUYANA

Jul 21, 2022

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 DestinyLiza 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 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.

IECEG 2023 Day 4, Investing in the future work force

Feb 27, 2023

On February 17, 2023, the International Energy Conference Guyana 2023 came to a close. The morning session featured speeches from various representatives, including those from SBM Offshore, ExxonMobil Guyana, Halliburton Caribbean Geo Market, Spherex Analytics, the University of Guyana, and the Ministry of Natural Resources.

Recurring themes of: economic transformation, recruitment and training, and opportunities for youth were introduced to the audience of young professionals and students in attendance. Highlights from the speeches are summarized below.

Bobby Gossai Jr. from the Ministry of Natural Resources discussed the employment of young people in the growing oil and gas industry. He highlighted the gap between current supply and growing demand for qualified skills at a technical level. Mr. Gossai shared some of the efforts being made by institutions in the country to offer training to young people interested in entering the industry. He further emphasized the importance government has placed on investing in people and infrastructure to drive development and improvements.

Continuing the theme of people and infrastructure investment, Joel Bhagwandin from Spherex Analytics explained the concept of ‘brain drain’ and the need to offer more opportunities for educated people in the country to enable local Guyanese to play an active role in how the energy sector evolves.

ExxonMobil Guyana representative Leonard (Ryan) Hoppie talked about the support his organization is offering young people in the country, particularly those in STEM fields and with persons with disabilities. ExxonMobil has also created programs to provide mentorship and internship for young people, opening doors that were previously inaccessible. Hoppie encouraged young people to take advantage of these opportunities to play an active role in the growth transformation in the region.

Grace Hutson from Halliburton, spoke on the role of students in the conversation on energy and shared details about the United Nations’ Sustainable Development Goals. She offered guidance to young adults with ambitions to enter the oil and gas sector, emphasizing the importance of being proactive to gain exposure and experience through networking.

Finally, Norwell Hinds analyzed the conference theme “Harnessing Energy for Development” and discussed the various ways the University of Guyana has adapted to cater to the needs of the growing oil and gas sector through courses and research. He highlighted the potential need for roughly 200,000 professionals across various industries in this thriving sector.

Overall, the final session of the International Energy Conference Guyana 2023 helped clarify a path for local involvement that engages and maximizes youth potential in a manner that sees the oil and gas boom directly powered by the next generation.

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