Speaking at the Goldman Sachs, Global Energy and Clean Technology Conference, CEO of Hess Corporation John Hess stated that the official figure for crude oil production from Guyana is estimated to be 1.2 million barrels per day, an upward estimate from the previously reported 850,000 barrels per day. This steady production will be supported by six floating production vessels (FPSOs).
Hess, with partners Exxon and CNOOC, have had 30 major finds offshore Guyana, 9 of which have been in 2022. Presently, Guyana has two FPSOs in operation producing about 360,000 barrels per day.
Mr. Hess noted that based on the recent appraisal of the Fangtooth well, the company may require a dedicated production unit for itself which would be Guyana’s 7th in total.
Emphatically stating that Hess projects in the region will lead to the betterment of all Guyanese, he referred to the recently signed carbon credits deal (click here to read more). and the gas to power project currently underway, which Mr. Hess anticipates will provide stable and low cost electricity for the country(click here to read more).
With such strong indicators of sustainability there remains an undeniable link between the energy sector and the development of Guyana’s infrastructure and services sector.
The International Energy Conference and Expo will take place from February 14 – 17 2023 at the Guyana Marriott Hotel. The theme for the conference in 2023 is Harnessing Energy For Development. Mr. John Hess, CEO of Hess Corporation will be speaking at the conference and delivering a feature address.
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.
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.”
Canada/Guyana Chamber of Commerce signs MoU to propel Guyana’s energy sector
The International Energy Conference and Expo 2023 has generated a great deal of worthwhile interactions and partnership prospects, which the government expresses satisfaction with.
Canada/Guyana Chamber of Commerce (CGCC) signed a Memorandum of Understanding with Energy NL, which will serve as a platform to better engage business interests between the energy company and the wider Guyanese business community. The signing took place on the sidelines of the conference. CGCC Chairman, Anand Beharry said the agreement now amplifies other engagements which were already established. “There is extensive business participation in the Guyana market by Newfoundland companies. With this agreement, we hope to accelerate those engagements,” Beharry stated. Energy NL was founded in 1977 to represent the supply and service sector of the energy industry. Today, the energy company represents over 460 member organisations worldwide which are involved in or benefit from, the energy industry of Newfoundland and Labrador.
The CEO emphasized her commitment to sharing Energy NL’s experience and knowledge with Guyana’s stakeholders by comparing this change to that of Guyana.
“I am pleased on behalf of Energy NL to enter into this Memorandum of Understanding with the Canada- Guyana Chamber of Commerce, so that we can both take advantage of our shared experiences, our know-how and the desire to succeed for the mutual benefit of our membership. The opportunity here in Guyana is inspiring, I am thrilled to finally be here to see it and experience it. I look forward to helping Energy NL and our members to play a role in Guyana’s success,” she noted.
Additionally, a number of financial institutions have endorsed the conference and the government’s objectives. Scotia Bank Guyana’s Seugobin Sugrim noted that the bank was excited to have invested in the activity to connect with customers and establish new relationships. Similarly, Vice President of the Caribbean Development Bank, Isaac Solomon noted that the theme “Harnessing Energy for Development” was highly appropriate for the conference given that energy is the driving force of the modern economy.
Chairman of the NewHayven Merchant Bank, Floyd Haynes said the bank was created to bridge the capital gap of where Guyana is and where it needs to be. “If you look at where Guyana is, and where the leaders want to take the country, it is clear that there is a finances gap. Some of those monies will come from traditional institutions like Scotia bank, multilateral lending institutions like CDB, but a lot of it will be capital that will come from banks like The New Hayven Merchant Bank,” he said.
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:
