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
GYSBI is a Gold Sponsor of the International Energy Conference and Expo Guyana 2023
The International Energy Conference and Expo 2023 welcomed Guyana Shore Base Inc. (GYSBI) onboard as a gold sponsor of the event, February 14–17, 2023.
Kurt Baboollal, Chief Executive Officer of the International Energy Conference and Expo Guyana 2023 said, “I’d like to extend a warm welcome to GYSBI as a new gold sponsor of the conference and expo. As a Guyanese company, GYSBI is demonstrating leadership in Guyana’s energy industry and will be displaying its extensive service offerings to the Guyanese public at the expo. They have grown and expanded quite largely over the past years, and we are excited to see all that has been taking place.”
GYSBI was formed in 2017 to provide shore base services to ExxonMobil following the discovery of oil. Throughout the past five years, GYSBI has continuously expanded to cater to the needs of the industry. It now serves as the preferred onshore support hub for oil and gas operators in Guyana, providing services ranging from vessel management, waste management, and warehousing solutions to construction and supply chain management.
With immediate water access and four berths, its main port consists of 30 acres of developed land, while its 140-acre industrial estate has been developed to suit a myriad of needs.
Today, the company boasts more than 710 employees, maintaining a minimum of 95 percent Guyanese workers and is a leading developer of local content here in Guyana.
Gomatie Gangadin, Public Relations Manager of GYSBI said, “We are indeed proud to be associated with the International Energy Conference and Expo as it provides the ideal platform, not only to educate and inform everyone of what’s taking place offshore Guyana and within the Oil and Gas Industry, but also the opportunity for local businesses like ourselves, to let industry leaders know how we are supporting these efforts, what services we offer and what areas are available for cooperation and collaboration.”
The Conference and Expo was hosted under the theme ‘Harnessing Energy for Development’ and is expected to assemble Heads of State and Government, policymakers, academics, industry professionals, government officials and global energy thought leaders.
So far, the International Energy Conference and Expo Guyana 2023 has been able to garner support from the Government of Guyana. The event has been able to attract over 30 sponsors and close to 200 exhibitors.
Guyana GDP growth rate to be highest in the world
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.
MODEC has signed a contract for the “Uaru” development project
MODEC has announced that it has signed a contract to perform Front End Engineering and Design (FEED) for a Floating Production, Storage, and Offloading vessel (FPSO) for the “Uaru” development project. The FEED contract award relates to the initial funding by ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), to begin FEED activities related to the FPSO design and to secure the second M350TM hull for FPSO service.
Following FEED and subject to government approvals in Guyana of the development plan, project sanction including the final investment decision by ExxonMobil and EEPGL’s release of the second phase (EPCI) of work, MODEC is expected to construct the FPSO and install it in Guyana. MODEC is also anticipated to operate the FPSO for an initial duration of 10 years, with potential options for continuation.
MODEC will design and construct the FPSO based on its M350 new-build design. Uaru will be the second M350 hull used for FPSO service. The FPSO will be designed to produce 250,000 barrels of oil per day and will have an associated gas treatment capacity of 540 million cubic feet per day and a water injection capacity of 350,000 barrels per day.
The FPSO will be installed in a water depth of about 2000 meters using a SOFEC Spread Mooring System and will be able to store around 2 million barrels of crude oil.
“We are extremely honored and proud to be selected to provide the FEED services for an FPSO for the UARU project,” commented Takeshi Kanamori, President, and CEO of MODEC. “We are equally proud of our robust track record of successful project deliveries in the South America region, and we look forward to cooperating closely with the client and its partners to make this project a success.”
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.
SBM Offshore has announced that it has completed the project financing of FPSO ONE GUYANA for a total of US$1.75 billion., 
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:
