Wednesday 29, june 2022
Guyana’s market reach expands with its first sale of crude to Petrobras, Brazil’s state oil company.
According to Reuters, Petrobras has secured its first cargo of Guyanese crude, with the intention of refining it domestically.
Guyana has been ramping up production, with the start of a second floating production facility in February. It now has the potential to sell two light and sweet oil grades with plans to pump up to 360,000 barrels per day (BPD) this year.
At present, the two operations FPSOs are the Liza Destiny and Liza Unity. The Destiny has a production capacity of 120,000 BPD and the Unity can produce up to 220,000 BPD. Both FPSOs were built by SBM.
According to a Reuters article, the 1-million-barrel cargo of crude loaded last week from the Liza Destiny and departed for Petrobras onboard the Bahamas-flagged tanker Cascade Spirit. The vessel plans to discharge in Brazil at month’s end, according to Refinitiv Eikon data, which did not identify an arrival port.
Natural Resources Minister Vickram Bharrat indicated that there had been two crude lifts from the Liza Unity and Liza Destiny FPSO vessels in the Stabroek block that have been recorded for the month of June, each a million barrels.
He added that the next lifts would be in July and August.
Monday 19, july 2022
Guyana Shore Base Inc. (GYSBI), a pioneering Guyanese company in the local oil and gas sector has announced that it has inked an 11-year extension contract with Esso Exploration and Production Guyana Limited (EEPGL), an ExxonMobil affiliate for the provision of shore base management and operations services.
According to a release from the company, the contract will run until 2033 and builds on the previous contract, which was awarded to the company in 2017 and will expire in August this year. In these five years, GYSBI has directly invested over USD$300M in enabling port infrastructure, real estate development, warehousing and support services; has recruited, trained and certified more than 1000 Guyanese for key operational positions within the industry and beyond through its affiliates; catalysed greater than USD$500M in investment in the Houston / McDoom, East Bank Demerara corridor by providing the enabling infrastructure and establishing the first oil and gas activity hub in Guyana and creating direct and indirect employment for more than 2000 persons.
At a ceremonial event held on Saturday, July 16 to commemorate the milestone, Guyana’s Minister of Natural Resources, Hon. Vickram Bharrat lauded the signing, noting that GYSBI has become a prime example of what is possible for Guyanese businesses in the country’s relatively new oil and gas sector.
“Let me congratulate and commend GYSBI and ExxonMobil Guyana…We are happy to be here to see this signing… and seeing another Guyanese company taking a big stride. This signing is a clear indication that we are building capacity as we move to develop the oil and gas sector. There is so much that is happening offshore Guyana and it is not only in the Stabroek Block. I am positive that we will have other discoveries. This activity shows that we are moving in the right direction in this country,” he said.
Minister Bharrat noted that with a projection of nearly 11 billion barrels of recoverable resources thus far and further drilling activities taking place, the Government of Guyana is optimistic that more discoveries would be recorded and therefore, more Guyanese companies would be called upon to meet the myriad of services that would be required.
“As a Government, we are not afraid to take bold steps. Some people may say that we are moving too fast and indeed we are moving fast. I don’t think we have seen this pace of developing an oil and gas sector in any country, especially a third world country like Guyana. The Local Content Act was enacted to ensure that Guyanese benefit from the oil and gas sector, which they truly deserve. Guyanese must benefit and as a Government we are entrusted to do with, in partnership with our foreign partners. We see you as valuable partners and we are committed to working with you to ensure we develop these resources in a way that benefits both the people of Guyana and the company,” the Minister noted.
Mr. Robin Muneshwer, Executive Director of GYSBI said that the contract extension builds on five years of significant and continuous investment, hard work, training and development of local capacity to create a world-class facility that meets the specialised needs of the oil and gas industry.
“The first five years that we are about to complete in August were quite challenging but ExxonMobil was a true partner in all of this. They worked with us as we developed because we were starting from scratch in a country that had no oil and gas experience or infrastructure. As we developed, ExxonMobil raised the bar on us and this is where we are at right now. We have got an 11-year extension because we earned it. What we have developed at GYSBI is something we are extremely proud of. Our safety record is unparallel, we have just celebrated two years LTI free. Our operational record is excellent, so it wasn’t handed to us. We have earned it. ExxonMobil has shown a lot of trust and faith in us and worked with us,” Mr. Muneshwer said.
GYSBI’s Executive Director highlighted that the company in 2017 signed a contract for eight acres, two berths and one warehouse. Today, it stands at 170 acres, 8 warehouses and four berths, with further expansions planned. While it started with five employees, GYSBI today has a workforce of 616 persons, 95 percent of whom as Guyanese.
“So, we have grown tremendously and we have grown because of the unparallel success that ExxonMobil has had with their discoveries. We have grown in sync with them. We have also been a poster boy for local content. None of this would have been possible without GYSBI, which is just five years old. We know that we are an integral part of what ExxonMobil does and we do not take that for granted,” he noted.
Ms. Hayley Gilbert, ExxonMobil Guyana’s Logistics Manager said that GYSBI continues to offer comprehensive services that are crucial to the company’s day-to-day operations and has progressively matched its growth and need for additional space with a move over to its 70plus acres Industrial Estate and the commissioning of two heavy lift berths later this year.
“I have personally been able to see the transformation across GYBSI and I can only imagine what we can accomplish together over the eleven years. When you are part of such a significant development on the onset as GYSBI has been with ExxonMobil in Guyana, having continuity and sustainable business has been critical to be able to deliver the achievements that we have seen. ExxonMobil Guyana is proud to be associated with a company that continues to maintain a high standard of health, safety and operational efficiency,” she shared.
Ms. Gilbert highlighted that GYSBI remains critical as ExxonMobil Guyana advances its plans to responsibly develop Guyana’s oil and gas resources.
“The signing of a decade plus agreement shows the long-term commitment between these two business partners. Our relationship has grown over the years as GYSBI has been our conduit from the onshore to the offshore operations, a logistics hub, providing us with world class services including drilling and production operations support, waste management and storage. As the demand for support services has grown, it was clear that the expansion was necessary and GYSBI has responded to grow the multi- user facility that we see today, supporting the specialised needs of the oil and gas sector here in Guyana,” Gilbert said.
The ceremony also saw the attendance of the Attorney General and Minister of Legal Affairs, Hon. Anil Nandlall, Minister of Public Works, Bishop Juan Edghill, Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh, Minister within the Ministry of Public Works, Hon. Deodat Indar, Members of the Private Sector Commission, the Banking Sector, and other specially invited guests.
Wednesday 06, july 2022
The Barbados Ministry of Foreign Affairs and Foreign Trade has announced that Barbados has signed new agreements with two CARICOM neighbors. According to the Ministry, the new agreement provides for enhanced cooperation between the governments and the exploitation of opportunities in several areas of economic activity for their people.
The Agreement for a Strategic Dialogue and Cooperation Platform between Barbados and Suriname was signed by Prime Minister Mia Amor Mottley and President of Suriname Chandrikapersad Santokhi at the Presidential Palace in Paramaribo on Monday night, while the Barbados/Guyana agreement was signed during a break from talks at the 43rd Regular Meeting CARICOM Heads of Government this morning.
This new agreement adds to the agreements previously signed by Barbados, Guyana and Suriname earlier in 2022.
The agreements cover a wide array of cooperation among the three nations.
Responding to the assurance from the Surinamese president that he would hold his ministers and officers to a standard that would ensure the people of the two countries receive maximum benefit from the agreement, Prime Minister Mottley said, “The truth is that we have seen already, substantive engagement between our private sectors. We’ve seen substantive engagement with ordinary people in sports and in other areas. And we are also seeing a very strong and continuous relationship with the government and people of Suriname, because we believe that we have an obligation to work with people in our neighborhood. And you are one of those who, for every reason, it is only language and history that have separated us thus far. And we have come to this point over the last few years to say that that should no longer be a barrier.”
She added, “Suriname is a major player in fisheries. Suriname is the location of CAHFSA, which is responsible for the regulation of sanitary and phytosanitary measures within our community. And if we want to expand our trade in food, if we want to have food security, CAHFSA is going to play a critical role in allowing us to be able to do so.”
Monday 11, july 2022
Non energy sectors also expected to grow
Guyana has been producing crude since 2019 and since then the country has been one of the top performing economies in Latin America.
When production began, Exxon had one floating production (FPSO) unit in place, Liza Destiny. This had production capacity of 120,000 barrels of oil per day. Since then, Exxon has added on a second FPSO, the Liza Unity which has the capacity of 220,000 barrels per day. The Finance Minister Dr Ashni Singh, has indicated that production is now above 300,000 barrels per day.
Dr Singh estimated that the growth rate of the economy is now expected to be 57.8%. This is a revised estimate up from 47.5% which was made at the beginning of 2022.
Guyana’s production will continue to increase as additional FPSOs are brought into production. SBM is currently constructing the third vessel, Liza Prosperity which will also have a production capacity of 220,000 barrels per day when it comes into service in 2024.
The Minister made these remarks while addressing a visiting delegation from Saudi Arabia. The 65-member Saudi delegation of the private and public sector was led by Deputy Minister for Investors Outreach, Badr Al Badr.
Dr. Singh also indicated that there was positive growth in non-energy sectors and expected that growth in those areas would be 7.7% up from last year’s 4.6%.
He added, “Our government, even in our earliest days of oil production, we have placed the highest level of importance on a strong non-oil economy. Our policies are focused on developing the traditional pillars of our economy and catalysing a rapidly growing, and highly competitive non-oil economy.”