The Prosperity FPSO
Guyana's World-Class Prosperity FPSO Surpasses Rivals Worldwide in Completeness and Quality - PG 7 Gender Diversity in Oil Industry Promoted at Energy Conference - PG 41 Value from Gas-to-Energy Project Set at Over USD500M Per Year - PG 28 As Local Firms Build Capacity, International Expertise is Essential in Guyana's Oil Sector - PG 51 Guyana’s Oil Bonanza Could Galvanize Local and Caribbean Agriculture - PG 56
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pg 06
offshore developments pg 26
gas-to-energy pg 39
women in oil and gas pg 45
local content
Q1 2023 EDITION
7 12 24 -
Guyana's World-Class Prosperity FPSO Surpasses Rivals Worldwide in Completeness and Quality Discovery Updates Guyana’s New Model PSAs Emphasize Tapping Resources to Benefit All
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Value from Gas-to-Energy Project Set at over USD500M Per Year
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Exxon Moves to Expedite Gas-to-Energy Project in Guyana
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GYSBI Commissions New USD25M Berths as part of Massive Expansion Drive
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USD3 Million Dry Dock Project on Track to Boost Maritime Services
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Gender Diversity in Oil Industry Promoted at Energy Conference
43 -
Switching From Engineering to Oil and Gas — And Acing It!
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Local Content Top Gun Maximizes Guyana’s Benefits from Oil
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Local Content Secretariat on a Mission to Ensure Oil and Gas Training for Locals
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As Local Firms Build Capacity, International Expertise is Essential in Guyana's Oil Sector
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Guyana’s OPITO-certified Training Complex Reaches new Heights
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Guyana’s Oil Bonanza Could Galvanize Local and Caribbean Agriculture
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Key Local Water Treatment Plant to be Retrofitted to Run on Solar Energy
Editor’s Note W
Gwen Evelyn, Editor-in-Chief
elcome to a special edition of Energy magazine, signifying the start of our third full year of quarterly publications and an exciting new phase of our operations.
Since we launched Energy in December 2020, Guyana’s energy sector has changed beyond recognition, and the economy is now intricately linked to the thriving offshore oil industry and its spin-offs. Therefore, access to timely, high-quality information on its direction, progress, and influence is crucial. We’re proud of our role in sharing the absorbing news, views, trends, and developments in the local energy sector, particularly oil and gas, every quarter for the last two years—here’s to many more years of service! Guyana’s emergence as a significant player in the global oil industry has sparked a universal quest for knowledge and understanding of the local oil industry. The rapid development of the local industry has forced many out of their comfort zone and stirred a sense of urgency about ensuring that it advances in a way that maximizes benefits while eliminating or minimizing operational risks and environmental impacts. Also, our readers are
interested in how the nation uses oil revenues to push non-conventional energy sources, energize other sectors, and avoid the ‘Dutch disease’. As we cover the advancement of Guyana’s oil industry, we continue to shape the magazine’s content to fit feedback from our readers. We aim for a unique, clear focus on our readers’ special interests. That’s why we put our spotlight on the influence of offshore oil finds on the investment climate, the intense local content drive and oil companies’ response, the industry’s adjustments to a lower-carbon future, the promotion of renewables and clean power—and the job and business opportunities the oil industry generates across sectors. Thank you for your comments and compliments. As always, we appreciate any feedback about the magazine and the topics we cover. Your inputs enable us to add value to Energy’s content by sharing unusual insights about where the action is in Guyana’s energy sector. We appreciate your support. Until next quarter, on behalf of the team behind Energy— stay safe and well.
About Us: This magazine is produced by Energy Guyana Magazine Inc. with 100% Guyanese ownership. Energy is an affiliate company of Sagacity Inc., OilNOW and CinNex Inc.
WWW.NRE.GOV.GY | PETROLEUM.GOV.GY
MINISTRY OF NATURAL RESOURCES
OPERATIONAL UPDATE DATA CENTRE OIL PRODUCTION
OIL PRICES
The Government of Guyana continues to work assiduously to ensure that all of Guyana benefits from the country’s oil and gas sector. To attain this, the government has taken steps to strengthen and modernize the sector’s legislative framework; it has established and strengthened institutional structures required by the aforementioned framework and continues to promote the accelerated exploration and production of the resources in the national interest. This year will continue to be one of remarkable feats for Guyana. The country’s petroleum sector is anticipated to expand by 35.6 percent in 2023 on account of Guyana’s third floating, production, storage and offloading (FPSO) vessel, Prosperity, which will balloon Guyana’s daily oil production to 560,000 by year’s end. The 2022 Guyana Licensing Round – one that offers 14 prime oil blocks up for bidding – is on track for successive awards by the first half of this year. The competitive bid round is open to all local, regional and international energy players. Already, oil majors operating out of Europe, the Middle East and the Americas have indicated their interest in securing oil blocks which range from acreages of 1,000 square kilometres to 3,000 square kilometres. As the guiding terms for the 2022 licensing round, the government has identified, too, a new and enhanced fiscal framework. This structure will form the basis for a draft new model Production Sharing Agreement (PSA). These new terms have increased Guyana’s profit share, plus the newly introduced 10 percent tax.
OIL LIFTS
(Guyana)
Approximately
22 MILLION BARRELS OIL REVENUE
(Guyana)
USD1.346 BILLION as of Q1 2023
Work continues on the strengthening of Guyana’s Local Content Act. With the expansion of the legislation, particularly the areas carved out for Guyanese companies, Guyana stands to earn as much as USD900 million annually through in-country spending. We expect that by the second half of 2023, a strengthened Act will guide local content-related activities in Guyana. With low breakeven costs, below-average emissions intensity and an economy that preserves the sanctity of contracts, Guyana’s prolific Stabroek Block can propel the country from a relatively small producer to a global leader in the coming years, solidifying the country’s position as a competitive and policy-friendly player for offshore production. As the fruit of the foregoing, revenues from oil production possess the potential to accelerate by the end of this decade. The mammoth investments and expansions in Guyana’s oil and gas industry have boosted growth in the non-oil industry. Across every sector and sub-sector, a significant widening of growth levels has manifested. This has translated into more opportunities for training, employment, economic diversification and overall social change. The Ministry of Natural Resources looks forward to working alongside the stakeholders in Guyana’s burgeoning petroleum sector. We remain steadfast in our commitment to addressing the challenges our citizens face as we look to build our One Guyana. Hon. Vickram Bharrat M.P, Minister of Natural Resources
Offshore Developments
Q1 2023 Edition
offshore developments
SBM Offshore provided training for eight Guyanese engineers under the company’s Graduate Engineers’ Programme. Recently graduated, the engineers will now support the operations of the Prosperity FPSO.
Guyana's World-Class Prosperity FPSO Surpasses Rivals Worldwide in Completeness and Quality
T
— For deployment at ExxonMobil’s Payara development
he latest addition to Guyana’s fleet of floating production storage and offloading (FPSO) vessels, the world-class Prosperity FPSO will be utilized for the massive Payara project, to deliver 220,000 barrels of crude per day (bpd) for export to thirsty markets left reeling for new high-quality supplies after the Russian invasion of Ukraine sent them into a tailspin. During the naming ceremony in February, ExxonMobil President, Global Projects, Mr. Jon Gibbs, indicated that Guyana's Prosperity vessel boasts completeness and quality above similar vessels worldwide, including the company’s Liza Unity FPSO operating in the Stabroek Block.
The Unity FPSO—which achieved First Oil in February 2022— was first to be bestowed with the SUSTAIN-1 Notation from the American Bureau of Shipping (ABS), signifying that its sustainable construction model is a trendsetter in the global petroleum sector as energy transition progresses. The Prosperity FPSO has surpassed this. “The Prosperity team] took every learning from Liza Destiny and Liza Unity, openly looked at every one of those, and decided how they could do better—and they did,” Gibbs said. Following the achievement of the SUSTAIN-1 Notation from ABS, ExxonMobil noted that all future Guyana FPSOs would adhere to this sustainable model.
Q1 2023 Edition
7
Offshore developments
The SUSTAIN-1 notation demonstrates the vessel’s alignment with key elements of the Environmental, Social, and Governance (ESG) requirements outlined in the United Nations’ Sustainable Development Goals (SDGs). The sustainability aspects of the vessel—measured by the ABS Guide for Sustainability Notations—include: pollution and waste, coastal and marine ecosystems, energy efficiency and performance monitoring, low-carbon fuels, humancentered design, and asset recycling. Guyana’s First Lady, Arya Ali is the Godmother of the vessel, tasked with offering wishes for good luck and protection over it and all who sail aboard. She said the name Prosperity is apt because of what it will bring to Guyana when it comes online, adding substantially to crude production from the Liza projects. The Payara project will take crude production above 580,000 bpd from a resource base of approximately 600 million oil-equivalent barrels--significantly boosting revenues to Guyana’s oil fund from the ExxonMobil-led consortium managing the Stabroek Block projects. "As we move forward, we’re hopeful and optimistic that the state we find ourselves in echoes the name of this vessel and that the people of Guyana thrive and succeed,” the First Lady said. With Payara online, there will be a 60% hike in crude production offshore Guyana, with a corresponding increase 8
in revenues to the State. The production increase will contribute to the 25% economic growth expected for Guyana in 2023—maintaining the country’s streak as the fastestgrowing economy over several years—with the prospect of even further success by meeting and maintaining capacity in 2024. International excitement over the addition of the Payara project demonstrated itself even before the arrival of Prosperity. India has already indicated its interest in having a long-term sales agreement with Guyana for purchasing Payara crude. While Guyana had not been amenable to such an arrangement for some time, the government has said it is prepared to consider all proposals. Guyana will hear India’s specific proposal to purchase the crude and decide in due course. SBM Offshore, a key FPSO-builder for ExxonMobil, delivered Prosperity ahead of schedule. Even after delays in regulatory approvals brought on by the protracted 2020 elections in Guyana, project managers were able to maximize efficiency in the development process to bring the vessel on in 2023, much earlier than scheduled First Oil in 2024. Chief Financial Officer for ExxonMobil, Kathryn Mikells, credited the early delivery of the Payara project for a spike in its 2023 capital budget amid the unfolding of a plan to spend USD20-25 billion through 2027. The Payara project carries a development cost of USD9 billion.
Guyana Discoveries: Stabroek Block FEET
0
100
Sailfin-1
312 feet (95 meters)
October 2022
Yarrow-1
75 feet (23 meters)
October 2022
Kiru-Kiru-1
98 feet (30 meters)
July 2022
Seabob-1
131 feet (40 meters)
July 2022
39 feet (12 meters)
April 2022
108 feet (33 meters)
April 2022
Lukanani-1
115 feet (35 meters)
April 2022
Barreleye-1
230 feet (70 meters)
January 2022
Lau Lau-1
315 feet (96 meters)
January 2022
Fangtooth-1
164 feet (50 meters)
October 2021
Cataback-1
243 feet (74 meters)
September 2021
Pinktail
220 feet (67 meters)
September 2021
43 feet (13 meters)
July 2021
Whiptail-2
167 feet (51 meters)
July 2021
Whiptail-1
246 feet (75 meters)
June 2021
Longtail-3
230 feet (70 meters)
April 2021
Hassa Patwa-1
Turbot-2
Uaru-2
120 feet (36.7 meters)
Redtail
232 feet (70 meters)
September 2021
Yellowtail-2
69 feet (21 meters)
July 2020
Uaru
94 feet (29 meters)
January 2020
Mako
164 feet (50 meters)
December 2019
Tripletail
108 feet (33 meters)
September 2019
Yellowtail
292 feet (89 meters)
April 2019
Haimara
207 feet (63 meters)
February 2019
Tilapia
305 feet (93 meters)
February 2019
Pluma
121 feet (37 meters)
December 2018
Hammerhead
197 feet (60 meters)
August 2018
Longtail
256 feet (78 meters)
June 2018
Pacora
65 feet (20 meters)
February 2018
Ranger
230 feet (70 meters)
January 2018
Turbot
75 feet (23 meters)
October 2017
Snoek
82 feet (25 meters)
March 2017
(not stated)
January 2017
95 feet (29 meters)
January 2017
295 feet (90 meters)
May 2015
Liza Deep Payara Liza discovery
Prepared by OilNOW www.oilnow.gy
200
300
400
April 2021
11 billion BOE
Young Data Scientist from Berbice Shines in Oil and Gas Sector
offshore developments
Warren Buffett once said, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” Those are words embodied by 22-year-old Maryam Nasir, a proud Berbician, who is now a Data Scientist at SBM Offshore Guyana. The young lady is the latest to complete SBM Offshore Guyana’s Graduate Engineers’ Programme. Growing up, Maryam never imagined that she would be working in the oil and gas sector. In fact, she had dreams of working in the cosmetology field. However, today, young Maryam is integrally involved in the ‘Digital Twin’ for the Prosperity Floating Production Storage and Offloading (FPSO) vessel, which is en-route to Guyana. The ‘Digital Twin’ is a tool that enables information management to keep track of everything on the vessel, and is used to predict and identify challenges onboard. An ecstatic Maryam said, “The first digital twin for SBM Offshore is built for the Prosperity FPSO. This is the first one in the company, the first one I worked on, so it feels accomplishing.” Maryam said she was inspired by her older brother to pursue a career in Computer Science. Her journey began at the University of Guyana’s Tain Campus in Berbice where she completed two years of study. Maryam then completed her Bachelor’s Degree in Georgetown, at the University’s Turkeyen Campus. Shortly after, she was encouraged by the University to apply at SBM Offshore for the company’s Graduate Engineers’ Programme. Without hesitation and with an open mind, she applied. To her surprise, she was called for an interview to be part of the SBM Offshore team. In July 2021, her journey with the company began and Maryam has enjoyed every moment. She said, “My role is challenging, but that’s the best part about it because it’s something you would never get tired of. Every day, it’s something different, it’s new… that’s why I feel proud to be a Data Scientist in Guyana.” The idea of working in a predominantly male field did not faze the ambitious young lady. One of her favourite slogans is ‘just do it’ and for Maryam, there is no limit to what she can achieve. Pursuing a Master’s Degree in Computer Science is (Sponsored Article)
Ms. Maryam Nasir the next goal Maryam has set for herself. ‘Just do it’ is also her advice to other young Guyanese who are hesitant about working in the oil and gas sector. Maryam’s aspiration is “to be someone who inspires others, because the people who inspire me in life, my mentor, my parents, my other brother, they are always there inspiring me, helping to keep me going, so I want to be this person for other people.” Q1 2023 Edition
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Offshore developments
Discovery Updates ExxonMobil, CGX, and Tullow going after black gold in 2023 The year 2023 carries a hefty list of exploration and development plans and programs. ExxonMobil is undertaking the lion’s share of operations offshore Guyana, while Tullow Oil and CGX Energy are pursuing discoveries outside of the Stabroek Block. Uaru Development Plan Minister of Finance, Dr. Ashni Singh revealed during the 2023 National Budget address that ExxonMobil Guyana submitted a field development plan (FDP) to the government for the hotly anticipated Uaru project. In the first quarter, ExxonMobil’s consultant, Acorn International, completed an environmental impact assessment (EIA) and set an estimated development cost of USD12.7 billion. This cost was higher than the USD10 billion estimate for the similar Yellowtail project due to price inflation. However, the oil major still expects to produce industry-leading returns and a low supply cost. The company has selected ‘Errea Wittu’ as the name for the Uaru floating production, storage, and offloading (FPSO) vessel. The name chosen by the Guyana government means ‘abundance’. MODEC will deliver the FPSO. Uaru is expected to achieve First Oil in 2026, pending government approvals, and will produce 250,000 barrels of crude per day (bpd). Whiptail Development Proposal On track to achieve 1.2 million bpd production offshore Guyana by 2027, ExxonMobil applied for environmental authorization for the sixth project, the Whiptail development.
Whiptail SBM Offshore expects to build and deliver the FPSO with a multi-purpose floater hull that ExxonMobil already reserved via a memorandum of understanding (MOU). The developers plan to submit the EIA and FDP to regulators between the third and fourth quarters of 2023. The government has budgeted USD483,000 to review Exxon’s application for the Whiptail project. If approved, Uaru and Whiptail will add more than 500,000 bpd to Guyana’s production growth outlook, solidifying Guyana’s advance to becoming the world’s largest per capita producer of crude oil. 10 wells for the Stabroek Block in 2023 The Stabroek Block co-venturers appear primed to match or even exceed the 2022 drilling results that they deemed the best exploration year.
ExxonMobil spearheaded a series of public meetings along the coast during the first quarter and has hired Environmental Resources Management (ERM) to conduct the environmental impact assessment (EIA).
Chief Executive Officer of Hess Corporation, Mr. John Hess, said 10 exploration and appraisal wells are on the cards for Stabroek in 2023, targeting diverse prospects and play types, including lower-risk wells near existing discoveries and several penetrations that will test deeper intervals.
The project will target 40 to 65 development wells, with production levels expected between 220,000 and 275,000 bpd. It will tap into three reservoirs—Whiptail, Pinktail, and Tilapia.
The Fangtooth discovery made in 2022 was the first well the partners pursued at a deeper interval. The outstanding potential at this reservoir—likely to facilitate a separate development project—was confirmed when Hess announced
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in January that Exxon struck more oil at the Fangtooth-SE well. The other wells being pursued by Exxon this year at Stabroek include Tarpon, Lancetfish, Basher, and Blackfin. The partners continue to see multi-billion barrels of additional exploration potential on the Stabroek Block.
offshore developments
CGX Energy and the Wei-1 well In late January, CGX Energy started four to five months of drilling the Wei-1 well using the Noble Discoverer. The company expects results at the end of the second quarter or into the third. Executive Co-Chair of CGX Energy’s Board of Directors, Professor Suresh Narine, told attendees at the International Energy Conference in February that drilling is “going extremely well”. Dr. Narine explained that Wei-1 is part of a program of appraisal for the Kawa-1 discovery and pointed out that companies do not launch such programs unless the prospects of success are good. While some intervals of the Wei-1 well are there to appraise Kawa-1, other intervals are part of new exploration objectives. CGX and Frontera Energy expect to spend USD160170 million on the Wei-1 well. The results of their exploration in the northern section of the Corentyne Block present an opportunity for the first oil development outside of the Stabroek Block.
Chief Executive Officer of Hess Corporation, Mr. John Hess
Tullow Oil and the Orinduik Block The Orinduik Block partners have commenced a new renewal period in their license with the prospect of at least one exploration well. Eco (Atlantic) said the partners continue to work to identify the optimal light oil Cretaceous drilling target at the Tullow-operated area. Analysts at S&P Global are convinced that the target will be the Amatuk prospect, named in its high-impact drilling outlook for 2023. The most recent public estimate for Amatuk is from a 2020 report by Gustavson Associates, placing it at 267.3 million oil-equivalent barrels and a 28.8% probability of success. However, more exploration success by ExxonMobil in the same vicinity has encouraged the Orinduik partners.
Executive Co-Chair of CGX Energy’s Board of Directors, Professor Suresh Narine Q1 2023 Edition
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Maximum Safety & Performance With a worldwide operational presence, Stena Drilling is one of the world's foremost independent drilling contractors, a wholly owned subsidiary of Stena AB. Stena Drilling manages a global business, consisting of four ultra-deepwater drillships and two semi-submersible rigs and has had an active role in the building and conversion of rigs whilst also pioneering some of the most leading-edge technologies and innovations in the drilling world. This has included the Stena DrillMAX Fleet of UDW Vessels and the Stena IceMAX the world’s first dynamically positioned, dual mast ice-class drillship – all have been meticulously designed for safe and efficient “best in class” operations. Stena Drilling lead the way in offshore innovation and Managed Pressure Drilling operations with all our drillships benefitting from fully integrated MPD capability. Our core business values are focused on care, innovation, and performance. The pursuit of these goals looks to ensure positive client relations, exceptional performance within our industry and strives to improve safety, both to the environment and to all personnel involved.
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www.stena-drilling.com T : 01224 401180 Potential Suppliers please get in touch via email:
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Guyana is a country that has been rapidly developing in recent years, particularly in the energy sector. With significant oil and gas discoveries and the establishment of new renewable energy projects, Guyana has become an increasingly important player in the global energy landscape. Stena Drilling, one of the world’s leading offshore drilling contractors, recently attended and participated in a panel discussion at the International Energy Conference and Expo Guyana 2023. The conference provided a platform for thought leaders, experts, and decision-makers to discuss the latest trends and challenges facing the energy industry. Stena Drilling’s participation in the conference included a panel discussion on Skills Development and the Future of Work. The panel discussion focused on the skills required to meet the challenges facing the energy industry, particularly in the offshore drilling sector. The panel discussed the importance of developing skills that are adaptable and transferable. Stena Drilling’s representative on the panel Paul MacDonald, HSE Manager with extensive industry experience, provided valuable insights into the company’s operations and highlighted the company’s commitment to investing in the development of its workforce and the importance of continuous training and education. The panel also discussed the importance of developing a diverse workforce that reflects the communities in which the industry operates. Paul highlighted the continued success of Stena Drilling’s Competence Assurance Scheme (CAS), highlighting various examples where local crews have progressed in their careers thanks to the scheme operated fleetwide.
By investing in the development of its workforce and working closely with local communities, Stena Drilling is helping to build a sustainable future for the energy industry in Guyana and beyond.
complete the elements and twenty personnel have already successfully done so. A further twenty of the crew have attained 75% or greater completion and the target is for the group to complete by the end of May 2023.
In Guyana, we’re taking on crews that haven’t worked offshore before and our Competence Assurance program allows us to ensure that everyone offshore has the right skills to perform their roles and that they operate and work to our own policies and procedures.”
The CAS unit is very important because it helps you climb the ladder in terms of position. I don’t want to stick to one position – I want to move up the ladder someday.
CHRIS CARBAUGH Chief Operations Officer The Competence Assurance Scheme (CAS) has been established to ensure that personnel are competent to undertake their duties effectively and safely by assessing them in accordance with the Company’s standards. The Scheme has over 330 elements and within each element, there is required Performance, Knowledge, and Scope criteria that must be achieved. Each job category has specific elements, and each individual is assessed at the work site against the performing criteria within the Elements assigned for each job category. Between the Stena Carron and DrillMAX, there are seventy-eight crew members currently enrolled in CAS who are working through elements that are specific to their role. There are Derrickmen, Floormen, Motormen, Roustabouts, Painters, and Radio Operators who are participating in the Scheme. This commenced in September 2022 on the Carron and two months later started on the DrillMAX. There has been a great appetite displayed by the crews to
JOSHUA JEFFREY Roustabout, Stena DrillMAX
Stena Drilling sees a long future working in Guyana and engaging local crews in our Competence Assurance Scheme allows us to ensure that they are up to our high standards and provides local crews with the opportunity to build a basis for promotion in the future. The Competence Assurance Scheme is a structured and developed process that allows Stena Drilling to establish a common goal with the workforce, giving them the opportunity to be deemed competent in their role, against a standard that is implemented fleet-wide. In addition to providing a structure to enhance knowledge and understanding in their current role, this assists in identifying suitability for promotion and greater development in their career. The company’s participation in the conference also provided a platform for sharing best practices and exchanging ideas with other industry stakeholders, which will help to drive innovation and excellence in the offshore drilling sector.
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WORLD LEADER IN MARITIME SOLUTIONS
Guyana Industry Updates
GUYANA INDUSTRY UPDATES
Industry Updates
JANUARY 2023 APA Corporation is considering a cross-border communication protocol with Guyana to deal with any devastating effects if there is an oil spill in this country and Suriname. “Though our operations in the region are entirely located within Suriname, we have also proactively coordinated with local and state agencies in neighboring Guyana, which shares a maritime border with Suriname and could potentially be affected by a spill from our operations,” APA stated in its 2022 Sustainability Report.
On January 18, the Board of Directors of the Natural Resource Fund (NRF) Fund and officials of the Bank of Guyana signed an Operational Agreement for managing the NRF at the Ministry of Finance, Georgetown, in the presence of Finance Minister Dr. Ashni Singh. Chairman of the Board of Directors, Major General (retired) Joseph Singh, and the Governor of the Bank of Guyana, Dr. Gobind Ganga, signed the agreement. This step fulfilled a requirement in the Natural Resource Fund Act, which compels the Board to enter into an Operational Agreement with the Bank for the operation and management of the NRF.
ExxonMobil’s partner, Hess Corporation announced on January 25 that there was a “significant discovery” at the Fangtooth SE-1 well, approximately eight miles southeast of the original Fangtooth-1 discovery. Drilling by the Stena Carron rig at the Fangtooth SE-1 well encountered around 200 feet of oil-bearing sandstone reservoirs. This find will significantly increase the estimated gross discovered recoverable resource at the Stabroek Block, which already stands at more than 11 billion barrels of oil equivalent.
Guyana’s Environmental Protection Agency (EPA) has announced that the 300-megawatt (MW) natural gas power plant is exempt from the requirement to conduct an Environmental Impact Assessment (EIA). The EPA rationalized the waiver by stating that the proposed project would not significantly affect the environment. The regulators explained that the proposed location for the project in Wales, West Bank Demerara, falls within the area of influence of a component of an already-approved project, i.e., the natural gas liquids (NGL) facility, the pipeline, and the materials offloading facility. Regulators in Guyana expect to approve two field development plans (FDPs) for offshore projects in 2023, according to the 2023 National Budget. The pending approvals are for ExxonMobil’s Uaru and Whiptail developments. CGX Energy on January 23 announced spudding of the Wei-1 exploration well in the Corentyne Block, which will take approximately four to five months to reach total depth. CGX said the government of Guyana has also approved an Appraisal Plan for the northern section of the Corentyne Block, which commenced with the Wei-1 well.
The Guyana Government allocated GYD500 million of the country’s GYD781.9 billion budget towards improving institutional capacity for managing the oil and gas sector. The funding comes from a World Bank loan worth USD20 million approved in 2019, and the government will use the funds to enhance the institutional framework for management and oversight of the sector. This includes building capacity for the Ministries of Natural Resources, Public Works, and Finance, and capacity-building for the Geology and Mines Commission and the Environmental Protection Agency.
Caribbean Subsea Specialist Inc. (CSSI) and 3t EnerMech (ODITC) have partnered to make world-class robotics training and project simulation available for the first time in Guyana. The Schilling Heavy Duty remotely operated underwater vehicle (ROV) simulator is now available at the ODITC 3t EnerMech Training Centre of Excellence in Lusignan. According to 3t EnerMech, the system—utilized together with an observation-class ROV at the pool facility—provides trainees with real-world, in-water experience combined with simulation exposure.
Q1 2023 Edition
19
GUYANA INDUSTRY UPDATES
Industry Updates
FEBRUARY 2023
After a successful startup in February 2022 and a gradual production ramp-up in July, the Stabroek Block co-venturers are considering production optimization measures on the Liza Unity FPSO in the fourth quarter of 2023. Hess Corporation (Hess) President and Chief Operating Officer Mr. Greg Hill said the company included downtime in its production guidance for Guyana. He said Hess expects debottlenecking to provide at least a 10-percent upside, but factors unique to the vessel would ultimately determine the extent. The partners are still in the early stages of engineering this optimization activity. The naming ceremony for the FPSO Prosperity was held on February 1 at Keppel Shipyard. Guest of Honour, Guyana’s First Lady Arya Ali, named the vessel. She said the vessel is a physical manifestation of the hard work and collaborative relationship between the people of Guyana and the collection of companies doing business in our oil and gas sector. The Offshore Technology Conference (OTC) presented ExxonMobil with the OTC Distinguished Achievement Award in recognition of its Liza developments in the offshore Stabroek Block. OTC on February 02 said Liza Phase 1 was “one of the fastest projects” of its type in the industry, cycling from discovery to production in less than five years, compared to the historical 10-year timeline for projects of this magnitude. Senior Finance Minister, Dr. Ashni Singh announced on February 09 that the Guyana Government had withdrawn USD200 million from the Natural Resource Fund (NRF). The Minister said that the equivalent of GYD41.6 billion has been transferred from the NRF to the Consolidated Fund, Guyana’s main bank account. Guyana is expected to make four more such withdrawals from the oil fund to utilise the USD1.002 billion the Parliament approved to support the country’s 2023 budget. President of ExxonMobil Guyana, Mr. Alistair Routledge said on February 09 that the company submitted revisions to the Liza field development plan to the Ministry of Natural Resources, to provide for gas export from the gas-to-energy project. The revisions are to incorporate the addition of a natural gas pipeline. The government is also expected to update the Liza production license. Guyana Shore Base Inc. commissioned its USD25 million heavy lift berths and “Commander in Chief” Crane on February 10 at its Houston compound. The four berths form part of 1,400 feet of waterfront development, primarily outfitted to serve the offshore operations of ExxonMobil. (See story on page 33) ExxonMobil Guyana President, Mr. Alistair Routledge said the company is closely examining the potential for gas development offshore Guyana. Routledge said technical work is being done and updates are being provided to the Ministry of Natural Resources. Routledge said more gas was discovered further southeast in the Stabroek Block near the border. Guyana’s oil production is expected to hit 1.2 million barrels per day (bpd) by 2027, making it the second largest producer in South America, after Brazil, based on current output across the region. ExxonMobil’s Upstream President Mr. Liam Mallon said that output may exceed this, as even more projects come online.
Guyana’s Local Content Secretariat (LCS) is targeting the approval of 750 critical Local Content Certificates, according to Head of the Secretariat, Dr. Martin Pertab. He said local content had earned USD700 million for Guyana.
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GUYANA INDUSTRY UPDATES
Industry Updates
FEBRUARY 2023
The second edition of the Guyana International Energy Conference opened on February 14 in Georgetown and concluded on February 17. The opening ceremony was attended by Guyana’s President, Dr. Mohamed Irfaan Ali; Suriname’s President, Mr. Chandrikapersad Santokhi; Prime Minister of Trinidad and Tobago, Dr. Keith Rowley; and Prime Minister of St. Vincent and the Grenadines, Dr. Ralph Gonsalves. The event featured over 200 exhibitors from the global oil industry participating and over 800 delegates and sponsors. The naming ceremony for the FPSO Prosperity was held on February 1 at Keppel Shipyard. Guest of Honour, Guyana’s First Lady Arya Ali, named the vessel. She said the vessel is a physical manifestation of the hard work and collaborative relationship between the people of Guyana and the collection of companies doing business in our oil and gas sector. Guyana’s consideration to possibly establish a national oil company has been shelved, Vice President Dr. Bharrat Jagdeo said at the International Energy Conference. He said Guyana will focus efforts on more direct government-to-government engagements for oil blocks not being offered in the upcoming auction. And according to the VP, Brazil, Qatar and Kuwait are eager to partner with Guyana. India and the United Arab Emirates (UAE) also had their eyes on a similar deal.
Guyana is set to pay ExxonMobil Guyana USD55 million each year in recovery costs for the massive gas pipeline being built by the oil giant for its landmark gas-to-energy project. This update was provided by Mr. Winston Brassington, Head of Guyana’s Gas-to-Energy Taskforce. Brassington said the cost was fixed and will run for 20 years. Vice President Dr. Bharrat Jagdeo said the government plans to commercialize the natural gas liquids (NGLs). Guyana has shelved considerations for a national oil company and will focus its efforts on more direct government-to-government engagements for oil blocks not being offered in the upcoming auction. This is according to Vice President Dr. Bharrat Jagdeo who said that Brazil, Qatar and Kuwait are eager to partner with Guyana. India and the United Arab Emirates (UAE) also had their eyes on a similar deal. Guyana’s Ministry of Foreign Affairs said on February 17 that the development of its resources is lawful, referring to ongoing oil production operations offshore, and urged Venezuela to return to the judicial processes of the Geneva Agreement. The Guyana government commemorated February 17 as the 57th anniversary of the signing of the Geneva Agreement and said Venezuela should, on this anniversary, demonstrate full compliance with the Agreement. The Ministry of Natural Resources (MNR) signed a landmark three-year agreement with Maxar Technologies, a Colorado-based space technology company for the provision of satellite-based environmental monitoring services for both offshore and terrestrial applications. Executive Director, Mr. Kemraj Parsram said it falls under the Agency’s updated mandate to modernise its operations to foster “next-generation compliance” in Guyana’s oil and gas industry. Guyana was suspended from the Extractive Industries Transparency Initiative (EITI) because of its inability to meet the December 31 deadline to submit the report. Following Guyana’s suspension, President Dr. Irfaan Ali said the local EITI multi-stakeholder group (MSG) took four months to finalise the administrator’s terms of reference (TOR). Civil society representatives from the EITI stated that the national coordinator (NC), Dr. Prem Misir had requested their retroactive approval of the TOR which was flawed. They said that Dr. Misir then disappeared from office for four months. Q1 2023 Edition
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GUYANA INDUSTRY UPDATES
Industry Updates
MARCH 2023
As the co-venturers in the Corentyne Block offshore Guyana narrow their focus on the northern section of the block, they completed a farm-in deal on March 1 to increase Frontera Energy’s stake to 68% and decrease CGX Energy’s stake to 32%. This agreement secured funding for the Wei-1 well and cleared CGX’s debts, and CGX is still the operator of the block.
Drilling operations in Guyana waters could peak in 2025 once ExxonMobil receives approval from the Environmental Protection Agency for its 35 multi-well programs in the Stabroek Block. The company’s Cumulative Impact Assessment (CIA) report said the drill campaign would have little to no adverse impacts on the nation’s fishing industry. Guyana’s Ministry of Natural Resources has rehired Bayphase as the consultant for reviewing and evaluating the Uaru field development plan. Bayphase won a USD797,480 contract over Stratoil, the other firm shortlisted for the project review. Bayphase will also conduct a detailed reassessment of an environmental and social impact survey done earlier by Acorn International.
Noble Corporation said its 2022 revenues amounted to USD1.4 billion, with its Guyana operations earning USD469 million. Guyana was Noble's highest revenue earner--accounting for a third of 2022 revenues--followed by the United States at USD266 million and Norway at USD154 million.
Chief Executive Officer (CEO) of Hess Corporation, Mr. John Hess assured the market that the Stabroek Block co-venturers stand ready to comply with the relinquishment provisions in the 2016 Production Sharing Agreement (PSA). Hess told shareholders on March 8 that returning a 20% portion to the state would not affect the exploration or production agenda.
Vice President Dr. Bharrat Jagdeo asserted that certain information related to oil and gas operations is proprietary and exempt from public disclosure, such as cost-recovery statements and expenditure forecasts. He also said he is wary of disclosing information that sections of the media hostile to the industry might misrepresent.
Vice President Dr. Bharrat Jagdeo said a team of experts from India will visit Guyana within months to strengthen the Environmental Protection Agency (EPA) oil spill monitoring and response capacity. This would complement the nation's technological advancements in offshore monitoring.
Guyana’s Private Sector Commission has identified 25 additional categories for inclusion in the Local Content Act. Former president of the Georgetown Chamber of Commerce and Industry, Timothy Tucker said these recommendations could almost double the original 40 areas legislated in December 2021.
The oil supply outlook for non-OPEC producers for 2023 has increased to 66.9 million barrels of oil per day, and Guyana, Brazil, the United States, Norway, and Canada are in the lead. The estimate for global oil demand in 2023 has increased by 100,000 barrels per day as rebounding air traffic and China’s demand push consumption to record highs.
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GUYANA INDUSTRY UPDATES
MARCH 2023
Industry Updates
Guyana’s 14 blocks on auction have all received expressions of interest, the government said in a statement on March 14. The Ministry of Natural Resources published new model contracts to govern the three deepwater and 11 shallow-water blocks available at the auction. The Ministry will also apply these model contracts to existing petroleum agreements, except for the Stabroek Block. The government said the draft agreements embody rigorous research and analysis by internal experts and external consultants.
Tullow Oil is proceeding with plans to farm down interest in assets, including those offshore Guyana. Tullow said in an annual report that it had to pursue the farm-down to manage risk. The company made the farmdown decisions to ensure it can participate at equity consistent with its capital allocation guidance.
ExxonMobil’s fourth floating production, storage, and offloading vessel – One Guyana – has entered drydock at the Keppel Shipyard in Singapore, SBM Offshore announced on March 24. “This marks a key milestone in the project, this phase will include work on the vessel, installation of the mooring structures and riser balcony,” SBM Offshore said.
The helideck license for Guyana’s third production vessel – the Prosperity – was handed over to SBM Offshore at a ceremony on March 28. The facility was certified by the country’s first locally licensed inspector, Mr. Adrian Bassier. The new president of the Georgetown Chamber of Commerce and Industry (GCCI), businessman, Mr. Kester Hutson has said that he will continue with former president, Mr. Timothy Tucker's mission to keep local content in sharp focus. “We will continue to engage the government on reviewing the local content laws [for it] to be updated [along with the] scope of goods and services for local companies to participate actively in the sector and also encourage partnerships for local companies,” Hutson said. The GCCI announced the results of its elections on March 30.
Prosperity Project Manager for SBM Offshore, Mr. Boudewijn Ledderhof receives the Prosperity Helideck license from Minister of Public Works, Mr. Juan Edghill. Q1 2023 Edition
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Industry Updates
Guyana’s New Model PSAs Emphasize Tapping Resources to Benefit All
G
uyana’s Ministry of Natural Resources released two draft model petroleum agreement documents in March for two weeks of consultation with key stakeholders before finalization.
The terms of the model agreements indicate an intense focus on working with oil companies to develop petroleum resources in an environmentally-friendly and timely manner. The documents also reflect a strong sense of urgency to utilize oil resources to maximize benefits for Guyanese while securing a competitive share for international investors. Many terms in the draft agreements are specifically to attract investment. For example, while the model agreements strongly encourage companies to expedite their final investment decisions on oil and gas projects, they also set a framework to review applications by investors effectively. Moreover, the draft documents set timelines for the approval of applications after their receipt by the relevant Minister. The Minister shall notify the contractor of any deficiencies in the application and suggest corrections within 20 business days of receiving the application. Then the contractor would have 40 days to submit additional information and/or correct the deficiency. If there is no deficiency in the first place, or upon receiving an amended project plan, the Minister shall notify the contractor that his Ministry deems the application for a petroleum production license and the accompanying development plan as submitted. At this point, the draft agreements set a timeline for the Guyana government to review the application. The Minister shall notify the contractor that the proposed development is approved or revisions are necessary within 120 days of receiving an application. If the government requires amendments, the contractor will have 40 business days to submit a revised development plan, including the acceptable proposals of the Minister. Additionally, the parties may meet to achieve a consensus on the changes to the submitted development plan. Once the Minister has determined that the application has met all requirements of the law and the governing contract, the Minister shall inform the contractor, within 120 days of submission, that the application has met these requirements. Subsequently, the Minister shall grant a petroleum license within 60 days of this determination. Another notable term inserted in the draft agreements is a retention period. If a contractor is unsure of the potential 24
commercial interest of a find, the contractor may apply to the government to retain a discovery for an extended period. Such applications could ensue if a contractor indicates acceptable reasons to delay resource development, such as a lack of a viable market for the discovered resources at that time, a lack of adequate infrastructure, or other valid grounds. For instance, a contractor might seek a retention period if the volume of an oil and gas discovery is too low for standalone development and requires a merger with additional finds to be commercially feasible. A lack of technology for developing high-pressure, high-temperature reservoirs at the time might also cause a developer to apply for a retention period. Along with an application for retention of a find, the contractor must also submit a work program laying out planned activities to determine the commercial interest in the reservoir. The initial retention period would be three years, with a renewal period of two years; the annual cost is USD2 million. Concerning taxation and royalties, the contractor, affiliated companies, and subcontractors benefit from substantial tax waivers, including Value Added Tax, excise tax, duties, fees, and charges. However, each contractor has to pay a 10 percent royalty on petroleum produced and sold and a 10 percent corporate tax on profits. These two payments are in addition to the central fiscal arrangement of a 65 percent cost-recovery ceiling and a 50-50 split of profit oil. Finally, the draft includes a stabilization clause configured to ensure that the government respects the investments of international companies. The terms of the model agreements shall remain in full force and effect for their duration and may not be amended or modified except via the parties' written agreement. If the laws of Guyana change in a way that negatively impacts the contractor's economic benefits, the parties shall meet to determine how to modify the terms to restore the lost benefits to the contractor. The government has released the draft agreements in two iterations, one for shallow water blocks and the other for deepwater blocks. The two models are almost identical, except for crucial differences in the minimum work program and signing-bonus requirements. The contracts—to be finalized in April—will apply to the 14 offshore blocks Guyana has put up for auction and existing deals outside of the Stabroek Block. Big names already signaling interest in the auction of offshore oil blocks include Chevron, Shell, and Petrobras. With these international energy giants poised to enter the world's hottest new exploration destination, the Guyana government aims to foster a competitive environment for the safe and efficient development of petroleum resources as the world hastens to complete a net-zero transition.
New G-Boats Tug Arrives in Guyana The A’RINRA, G-Boats Incorporated’s newbuild 164-ft. (50m) Z-Drive escort tug, recently arrived at its home base in Guyana where it will provide FPSO support for ExxonMobil's oil and gas operations. After winning a competitive bid, the vessel was built at Gulf Ship, which is a U.S. shipyard owned and operated by Edison Chouest Offshore. The A’RINRA was launched in June 2022 and took about nine months to construct. After its launch, the vessel traveled to Port Fourchon to conduct final sea trials prior to sailing to Guyana to commence its charter. “Captain Eric Hemingway and his crew made the transit from Port Fourchon with no issues, and all of them were proud to bring the new vessel into the fleet we have working here,” said Greg Cheramie, G-Boats General Manager. “There was quite a buzz on the docks that night seeing the A’RINRA arrive. Several high-ranking client representatives came over to see the A’RINRA and were impressed with the vessel.” The A’RINRA is equipped with a Z-Drive, two CAT engines, 24 bunks and will provide escort, hold-back, hosehandling and maintenance duties in offshore Guyana.
The unique Guyanese name A’RINRA was chosen by a student from St. Ignatius Secondary School in Lethem, Guyana. G-Boats — with assistance from Guyana’s Ministry of Education — invited 11 secondary schools to participate in a contest to name the A’RINRA and the MADAM KALINA, a sister tug that will soon join the A’RINRA in G-Boats' fleet. Each school was required to submit a unique Guyanese name per vessel with a short description of the origin of the name. A’RINRA is the Macushi word for an electric eel. It is believed this eel can withstand any storm or weather to get to its destination. G-Boats rewarded the winning schools with a donation for their submission. G-Boats, a member of the Edison Chouest Offshore family of companies, is a maritime solutions provider operating in Guyana since 2017. Recognizing its responsibility to maximize local content, G-Boats is bringing career opportunities to Guyanese. Currently, G-Boats employs 381 Guyanese workers. G-Boats also strives to use Guyanese vendors and services whenever possible. (Sponsored Article) Q1 2023 Edition
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Gas-to-energy
Q1 2023 Edition
Gas-to-Energy
Value from Gas-to-Energy Project Set at over USD500M Per Year —Enabling works moving apace for 2024 start-up, Taskforce Head says
G
uyana expects a value proposition worth over USD500 million per annum from its landmark gas-to-energy project, according to Mr. Winston Brassington, Head of the task force responsible for the joint venture between the government and ExxonMobil and co-venturers in the Stabroek Block. “We’re paying USD55 million and getting a value proposition of probably about 10 times that,” Brassington declared
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while giving an update on the project at the Guyana Energy Conference and Expo in February. The project involves pumping gas from offshore oil operations to an onshore power plant and Natural Gas Liquids (NGL) facility and will become operational in 2024. The government expects the facility to produce low-cost power and NGLs—for domestic use and export—and spark off a lucrative mix of benefits and massive economic value.
Gas-to-Energy
Under the deal, the Stabroek Block operator will pay USD1 billion to set up the project and provide free natural gas then Guyana will repay Exxon USD55 million annually over 20 years. “We’re looking to pay Exxon an annual fixed payment of USD50 million for the supply of 50 million cubic feet of gas per day over a 20-year period from the time the project comes online…to allow Exxon to recover the expected USD1 billion investment…so we’re paying for the amortization of the pipeline infrastructure, we’re not paying for the gas…the gas is considered free,” Brassington said. Exxon has completed the pipeline route and is doing enabling works before the Engineering Procurement and Construction (EPC) contractor begins work around mid2023, Brassington disclosed. Such work covers upgrading access roads and bridges, constructing a laydown yard and materials-offloading facility, building a heavy-haul road and preparing the site. “This USD1 billion covers everything that Exxon will spend on the pipeline…enabling works…supervision…a contingency… Electricity sales will pay for the amortization of the construction cost of the gas pipeline, and integrated NGL extraction and the power plant,” he disclosed. Beyond this, the project involves upgrading the transmission network— transformers, transmission lines, and substations— to take power from the project to the national grid, he divulged. Regarding the project structure, the Taskforce Head said, “We’ve created a special-purpose company for this project—Guyana Power and Gas Inc. (GPGI)—this company is 100 percent owned by the government. This company will own and operate the power plant and NGL facilities with funding from the government and third-party lending.” The government has already selected a site and is constructing office buildings for GPGI.
Head of the Gas-to-Energy Task Force, Mr. Winston Brassington flow of gas of 50,000 cubic feet per day, but of course, that pipeline of 12 inches can carry a lot more…that pipeline will have a capacity of at least 120 million cubic feet of gas per day…We started the enabling works…there’s a lot of advance work being done by Exxon.” “Also, to make this project work, we have to upgrade our transmission network. We have to take the power—the 300 megawatts--and we need to send it around the grid,” Brassington pointed out. To this end, he said, the government invited bids by public tender for transformers, transmission lines, and substations, with building and installation set to commence by the end of Q1 2023.
Progress
Benefits
Brassington asserted that the project is on track to begin operations in 2024. “We’ve achieved quite a bit…we selected an EPC firm to build the power plant and an NGL facility…To supervise that firm…we selected EIL [Engineers India Ltd.] … and Exxon received their environmental permit, similarly the interim permit for the power plant,” he noted.
The Taskforce Head asserted that Exxon must supply at least 50 million cubic feet of high-quality natural gas every day to the gas-to-energy project, which will remain stable over the project life. He contended that natural gas resources of such quality and sustainability would generate unprecedented direct and spin-off benefits for Guyana.
He noted that in late 2022, the government signed a contract with the selected EPC firm —American-owned CH4/ LINDSAYCA—to build the natural gas-fired electricity plant and NGL facility at a reduced cost of USD759 million. Later, the government contracted EIL as a project execution supervisor and moved to engage a third-party operator to market and export NGLs internationally.
“Our EPC contractor has guaranteed that we will get at least 63 million barrels of liquids per annum, this is equivalent to about 4,100 barrels per day…right now the country only utilizes about 700 barrels a day, so we will have quite a lot to export. In addition to that— and more importantly—we will receive 311 megawatts using lean gas—that will deliver to us over 26m gigawatt hours per annum….” he said.
Giving the pipeline specs and status, he said, “We fixed the pipeline capacity at 12 inches with a guaranteed minimum
Giving the context for interpreting these figures, he said, “In 2022 GPL [public utility company Guyana Power and Q1 2023 Edition
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Gas-to-Energy Light] spent about 15 US cents per kilowatt hour just for fuel, primarily heavy fuel oil…were we to pay for the price of fuel for that volume of fuel it would cost us close to USD400 million…if we use the average [cost] for 2022. In addition to that, we will also get the NGLs… “The equivalent value based on 2022 prices, the volume of NGLs…volume of power would equate to something in the range of USD500 million…We’re paying USD55 million to Exxon per annum for that gas…this is an extremely good deal… Even if we were to use lower prices from the NGLs and for the fuel we’re still getting multiple returns from this…”
Savings Giving a detailed breakdown of the expected cost of power from the power plant, Brassington declared that it would be substantially lower than the cost at which GPL generated electricity in 2022. “4.20 [US] cents per kilowatt hour for the
generation versus a little under 20 cents for last year… about less than a quarter,” he argued. “In 2022, GPL spent about 15 US cents just for fuel, primarily heavy fuel oil, if we take a look at how much output we will get from this power plant using gas, were we to pay for the price of fuel for that volume of power, it would cost us close to USD400 million…that would be what we would pay if we use the average for 2022. In addition to that, we would also get the NGLs…” Brassington stressed that the government would engage world-class contractors to execute its construction, start-up, and development. “This is a complex engineering project by any reasonable estimate, and we’re delivering it in record time by the end of 2024,” he affirmed. "The transformational impact this can have on Guyana cannot be understated," he stated.
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Gas-to-Energy
Exxon Moves to Expedite Gas-to-Energy Project in Guyana
E
- Prep work underway as company aims for startup in 2024
xxonMobil is putting everything in place to accelerate Guyana's gas-to-energy project, which is expected to be one of the most transformational public-private ventures in the nation's history.
ExxonMobil’s Upstream President, Mr. Liam Mallon said the company sees this project as a continuation of its critical contribution to social and community development in Guyana. “One of the key commitments that we made is we are going to ensure that we develop our business in this country…in a way that provides sustainable benefits to the country and people of Guyana. And a pillar of that is Gas-to-Energy,” Mallon said. This project will deliver natural gas from the Liza field in the Stabroek Block to the onshore Wales Development Zone, generating power for electricity plus natural gas liquids (NGL) for domestic uses and potential export. ExxonMobil Guyana revised the Liza field development plan (FDP) to include natural gas production for commercial use and submitted it to the government for review. The company then started prep work in keeping with project timelines. President of ExxonMobil Guyana, Mr. Alistair Routledge said, "In order to protect the 2024 startup of the gas-toenergy project, we have been progressing early works in Region Three… bridge improvements, roads, laydown areas, bringing a lot of sand in, to begin the preparation of the land…”
Routledge said ExxonMobil is motivated by the substantial expected benefits the project will bring to the country by cutting power costs to consumers by about 50 percent, reducing greenhouse gas emissions, and making the business environment more attractive to investors. There is the sole incentive, Routledge noted, stating that ExxonMobil will not make any financial profit from the project. He explained that the gas supply agreement includes a price for gas paid to the Stabroek Block co-venturers, but this is only for the recovery of USD1 billion they will invest in developing the pipeline and associated infrastructure. The cost-recovery payments will come from a special-purpose company established by the government. Discussing the payment mechanism during the International Energy Conference 2023 in February, the Head of the Gasto-Energy Task Force, Mr. Winston Brassington, said the government expects to pay the co-venturers USD55 million each year, over the 20-year life of the project. He said the payments cater for all onshore and offshore construction costs for the pipeline and enabling works-- a laydown yard, site preparations on lands spanning 100 acres, a materials offloading facility, supervision by Exxon, and contingency works. These payments will come from earnings from commercializing natural gas liquids (NGLs). The government expects to use a small portion of the NGLs for domestic purposes and export the rest. Brassington has pegged the annual earnings from this at over USD100 million, which means the government will be able to repay the co-venturers and make a profit. Meanwhile, Brassington said that Guyana would have to spend USD400 million in heavy fuel oil (HFO) purchases annually to generate the amount of electricity expected from the natural gas power plant. This translates to significant savings for Guyana's treasury. The government will secure USD759 million to build the power plant and NGL plant, in an integrated facility in Wales, on the West Bank of Demerara.
Layout of the Wales Industrial Area on the West Bank of Demerara for Guyana’s Gas-to-Energy project.
The gas-to-energy project is on track for construction to commence on its core elements in 2023 for commissioning and operation by the end of 2024. Q1 2023 Edition
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shorebase developments
Q1 2023 Edition
Guyana Shore Base Inc’s ‘Commander in Chief’ crane was commissioned on February 10
Shorebase developments
GYSBI Commissions New USD25M Berths as part of Massive Expansion Drive — Consolidates status as a central hub for Guyana’s oil and gas sector
T
he Guyana Shore Base Inc. (GYSBI) is a household name and a powerhouse in Guyana’s oil and gas industry. Its ascent tells the story of a calculated risk taken by four companies—Muneshwer’s Limited, TOTALTEC Oilfield Services, Pacific Rim Constructors, and LED Offshore Limited—with a small plan but a big vision.
at a time. Now this number has increased to eight with the addition of Berths Three and Berth Four. American Engineering Consultant Company, PND Engineers Inc. spearheaded the expansion with its patented Open Cell Sheet Pile (OCSP) system—new technology designed in collaboration with SI Global—the first ever used in Guyana.
Now, seven years after start-up, that vision gets bigger and better as GYSBI's evolution keeps abreast with the unprecedented fast-paced development of the oil and gas sector led by ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL).
Along with the added benefit of accommodating more Platform Supply Vessels (PSVs), the new berths provide a combined area of 8,000 square meters of heavy lift capacity--a staple requirement in the oil and gas industry. And thanks to GYSBI, this service is available in Guyana instead of Trinidad and Tobago, the previous first option for operators in Guyana. The four berths now form part of 1,400 feet of waterfront development. GYBSI also commissioned its 'commander-in-chief' heavy-duty crane.
“The story of GYSBI thus is that of a local company, Muneshwers, taking a tremendous entrepreneurial risk years ago in the pre-oil era, teaming up with foreign companies who brought their intellectual and financial resources to create a uniquely Guyanese success story,” said GYSBI’s Executive Director, Robin Muneshwer. GYSBI recently pumped USD25 million into expanding its berths at its Houston, East Bank Demerara base. It started in 2017 with two berths capable of harboring four vessels
Oil and Gas Hub “This facility is absolutely critical to our operations offshore. It is a multi-service one-stop shop,” ExxonMobil Guyana's President, Alistair Routledge said during the commissioning ceremony on February 10. That was the intent of the four Q1 2023 Edition
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Shorebase Developments
companies when they conceptualized GYSBI. ExxonMobil endorsed that vision and granted GYSBI a five-year contract, trusting their ability to deliver quality oil and gas support services. The company started on eight acres of land and one warehouse; now, the site encompasses 170 acres and counting—with eight warehouses.
base. “We are here because GYSBI is here. We saw this as a great opportunity for us to be just next to the shore base and for that, we can deliver a much safer product…fluids to the shore base because of the relative closeness….and everybody wants to be close to the shore base to deliver quicker and safer services to Exxon,” Cuadros explained.
And it will continue to serve ExxonMobil’s offshore activities well into 2033, after securing an 11-year extension on its initial contract. But GYSBI is well-equipped to support other operations—such as Repsol during the drilling of the Beebei-Potaro well in 2022—and now CGX Energy as it drills the Wei-1 well.
GYSBI has become the home of many other international oil and gas service companies that have established a footing in Guyana, from Total Tec to Jaguar International, Pipe Coating Guyana (PCG) Inc. and Noble Corporation, and Saipem.
Tiger Rentals was one of GYSBI’s first clients during its first five years of existence. The company provides waste management services to ExxonMobil Guyana and saw GYSBI’s growth first-hand over the years. “We were at the front of the yard, right where the laydown yard is and it was pretty much all bush and swamp around us," recalled Shane Singh, General Manager at Tiger Rentals Guyana. "When I started in 2017, we had just moved to the new facility and the shore base was now starting up—maybe 40, 50 staff working two shifts—and we worked very closely with them. From 2017 to now, we have transformed. Over 200 persons are working and there have been great improvements.” But that was a modest number as GYSBI’s staff complement spans over 705 persons, and 95 per cent are Guyanese. The shore base acts as a conduit from onshore to offshore operations. Like Tiger Rentals, GYSBI’s Houston base houses other integral oil and gas clients. One of Exxon’s prime contractors, oil field services company Schlumberger--now called SLB--is a valued client. “Without the shore base, and the level of services that shore base provides to Exxon, I think it is one of the key elements for Exxon to be so successful here in Guyana,” Managing Director of Schlumberger, Ernesto Cuadros said. The company has injected over USD75 million to set up a shop next to GYSBI while utilizing warehouse space at its
SOL Guyana—a leading distributor of Petroleum products in the Caribbean—invested millions of dollars in establishing a direct connection from its base two miles from GYSBI to its fuel farm. “The facility at GYSBI has played a critical part in effectively meeting the needs of the industry,” said Sol Guyana Chief Executive Officer, Earl Carribon. GYSBI is a central hub for a new oil and gas corridor in Houston, East Bank Demerara, Guyana. Subsea giant TechnipFMC’s Guyana Base is just a few blocks from GYSBI. And Baker Hughes Supercentre is on the corridor at Land of Canaan—bringing top-tier oilfield services to Guyana and its Dutch-speaking neighbor Suriname. Expansion Things are about to expand at GYSBI as the company plans a massive expansion in preparation for increased offshore activities in the Stabroek Block. The company has earmarked 170 acres of former cane fields at the Industrial Estate for the development. Currently, its services extend to two floating, production, storage, and offloading (FPSO) vessels—the Liza Unity and Liza Destiny—but with Prosperity ready for production and One Guyana following, the development pace will pick up, and GYSBI will be ready. “We are the shore base that exists, the shining beacon of the industry,” Muneshwer said.
A ribbon-cutting ceremony was held as part of the commissioning event. President of Guyana, Dr. Irfaan Ali was among members of Government and oil industry executives who attended 34
Shorebase developments
The construction phase of the GYSBI facility
QUICK FACTS
The design for Berths Three and Four was developed by PND Engineers in collaboration with SI Global, utilising a state-of-the-art Open Cell Sheet Pile Design, the first of its kind in Guyana. The design encompassed the following: • Initial dredging • Installation of 20 “heart shaped” Open Cells by utilizing specially designed Flat Steel Sheet Piles • Backfilling of a minimum of 24 feet of white sand • Vibro-compaction to the depth of the subgrade layer • Installation of 230,000 feet of wick drains to increase the settlement rate. • Installation of 160, 000 square feet of geofabric • State-of-the-art fender system • Berth Utilities: Bulk, Fuel, Water, Lighting, CCTV The new berths provide a combined area of 8,000 square meters of heavy lift capacity.
Q1 2023 Edition
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Shorebase Developments
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Shorebase developments
USD3 Million Dry Dock Project on Track to Boost Maritime Services —Project up and running after getting EPA clearance
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ncouraged by a surge in maritime activities generated by Guyana's emerging oil and gas sector, Guyanese industrialist Pritipaul Singh Jr. has opened a new floating dry dock facility named Dock Yard (DY) after getting Environmental Protection Agency (EPA) approval in January. Business Development Officer, Mr. Rajendra Singh said the business is already in full-operations mode with a well-rounded staff complement; he affirmed that DY's professional-grade services satisfy the highest international standards for vessels within and outside the oil industry. The company serves both privately-owned and government ships, and one of the first drydock projects undertaken by DY was for the government-owned Motor Barge Sandaka. The project brief DY submitted to the EPA explained that the venture arose from a glaring lack of such facilities despite a sharp rise in maritime activities due to a spate of offshore oil and gas discoveries. The USD3 million investment has yielded an ultramodern riverside shipyard and dry dock in Guyana to serve the offshore oil industry. Located on the bank of the Demerara River at Supply on the East Bank of Demerara, the main office is close to all primary
land and sea transport routes adjacent to Georgetown, the capital city. The first floating dry dock in the nation can service over 60 vessels annually, providing cutting-edge shipbuilding, ship repair, maintenance, and vessel inspection services. The developers conceptualized DY with historical and projected national economic development in mind. “Without supporting infrastructure, much of the business opportunities are carried to other countries when they can be carried out in Guyana," the project summary declared, pointing to substantial economic benefits like employment, taxes, and capacity-building. The summary asserted that the construction and operational phases of the project do not require significant land clearing, earthworks, stockpiling, machine operation, or concrete works—that can affect the environment directly or indirectly—nor would there be any loss of land and habitat, air pollution, or heavy sedimentation of surface water. “Notwithstanding, there is expected to be the generation of some degree of solid waste as well as health and safety related...impacts are expected to be insignificant and shortterm and therefore mitigable," the document stated. Q1 2023 Edition
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Shorebase Developments
The EPA waived the Environmental Impact Assessment (EIA) requirement concluding that the developers can mitigate environmental impacts effectively. The EPA said safeguards and embedded controls adequately addressed possible effects on the environment during construction and operation, and adequate mitigation measures are in place. Employment The developers expect DY to create at least 25 full-time jobs for Guyanese in technical areas and up to 150 parttime positions during cyclical expansions every three to six months, based on the level of operations. The company is committed to investing heavily in continuous high-end training for the local staff— from dock floor workers to those involved in management—in all critical operations. Administrative jobs will also be available in finance, engineering, operations, human resources, and other areas. And DY will offer significant on-demand contract work— for welders, fabricators, skilled laborers, general laborers, overseers, and others—but only for persons with certified skills. Based on market research and industry experience, DY has engaged Kelemarc Sales and Consultancy Services to certify employees and equipment in areas like painting vessels or barges, various abrasive blasting techniques, and changing steel plates. “With these certifications, it will facilitate Dock Yard accessing clients and operating a high standard," the project summary stated. Concerning operational and maintenance issues marine vessel owners and operators might face, DY noted, “It is important to resolve these issues that would create more expenses." By law, vessels operating in any part of the world must be inspected and serviced in a dry dock every five years." This statutory obligation puts Dock Yard at a
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distinct advantage since it has the only floating dock in all of Guyana,” the developers pointed out. DY is a one-stop shop for full-maintenance services like descaling and washing hulls, sandblasting, painting, and steel charging, as well as top-quality hull inspection—vital for mandatory dry dock maintenance—and ancillary services like shore power, fresh water, waste removal, equipment rental, and fully-geared machining shop services. Business Development Officer Mr. Rajendra Singh said the business is already in full-operations mode with a well-rounded staff complement; he affirmed that DY's professional-grade services satisfy the highest international standards for vessels within and outside the oil industry. The company serves both privately-owned and government ships, and one of the first drydock projects undertaken by DY was for the government-owned Motor Barge Sandaka. Singh said ship-owning companies could submit service requests to DY, which then prepares and delivers estimates of the cost and timeframe, depending on the scope of work. Noting that the oil and gas industry prioritizes safety, he said, "For this reason, the staff of the DY needs to be fully up to speed on all of the requirements." Singh said DY has a full complement of materials to complete its start-up projects and has taken steps to ensure continuity and avoid shortages of steel and other essential components. He said the company plans to expand the current 94-meterlong facility to one over 110 meters long in order to accommodate larger vessels. The development Officer pointed out that DY is generating electricity in-house and sourcing fuel directly, which makes its operations more cost-effective and environmentally friendly.
Women in oil and gas
Q1 2023 Edition
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WOmen in oil and gas
Gender Diversity in Oil Industry Promoted at Energy Conference —Panellists discuss the equitable integration of women in the oil and gas workforce
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ow to achieve a fair representation of women in the global oil and gas industry was the focal point of a high-powered panel discussion at the International Energy Conference 2023 held in Guyana last February. Some of the most accomplished and influential women in the oil sector in Guyana and the Caribbean graced the panel. These included Dr. Natasha Gaskin-Peters, Director of the Guyana Centre for Local Business Development (CLDB), and Dr. Priya Marajh, Board Director at Trinidad and Tobago’s Touchstone Exploration Inc. Also sharing their views were Ms. Sharlene Seegoolam, Managing Director for Guyana and the Antilles at Schlumberger SLB; Ms. Chricell Whitney, Crude Lifting Analyst at ExxonMobil Guyana; Ms. Grace Hutson, Account Manager for Haliburton Caribbean Geo Market, and Ms. Shanette Rayside, Human Resources Team Leader at Saipem.
The panellists discussed a core gender equality question: how can women be included and integrated into the traditionally male-dominated oil and gas industry? Dr. Marajh began the discussion by pointing out that although women comprise roughly half of the global population, they constitute less than 30 percent of the workforce of the international energy sector. She said although women have made some strides to close this gap, they must do much more. This issue underpinned the insistence on extensive female participation at the energy conference. Contributions by women—including the views shared by the panelists— added immense value as international industry experts and executives converged at the Guyana Marriott Hotel to share ideas and form partnerships for the benefit of the industry. Seegoolam disclosed that SLB sets diversity targets across operations worldwide to ensure the equitable engagement Q1 2023 Edition
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WOmen in oil and gas of women. “Like it or not...they do work,” she asserted, adding that her company’s mentorship program prepares women for both technical and professional career paths, but locally, things are different.
“To have women in leadership roles... Board Director at Trinidad Guyanese women, first we and Tobago’s Touchstone have to get them ready… Exploration Inc., hiring them can be a bit Dr. Priya Marajh difficult [because] we are all fishing from the same pond,” Seegoolamm explained. Guyana needs more skilled women—especially in technical areas related to oil and gas—so SLB is targeting school-age girls to spark their interest in lifelong careers in the industry, she disclosed. Panelist Ms. Grace Huston supported this approach, noting that her company Haliburton—a prime contractor for ExxonMobil—has activated a similar plan, part of which is the Women Sharing Excellence Group she leads. Hutson explained, “It is a safe space for women in the organisation, who have similar experiences...similar backgrounds, can come and discuss issues and experiences...
Accounts Manager of Haliburton’s Caribbean Geo Market,
"Importantly, within those groups, you can come up with initiatives or ideas and concrete solutions, and that group has access to management at all levels...I have seen the initiatives the women have come up with get to management, got implemented, and it did make a difference,” Huston shared.
But despite these measures Ms. Grace Hutson at her company and others, she argued that women still have a long way to go to achieve gender parity in the workplace. She urged them to strive harder to get employers to value their skills and guarantee fair access to leadership positions in the oil industry and across the professional arena. Inherent Bias Seegoolam agreed and pinpointed the inherent gender bias in society as a barrier to women reaching critical leadership positions. “Throughout history...in government or business...men have held positions of leadership, and this has normalized the view of what a leader looks like, what a leader does, and how a leader behaves," she said. 42
"In general, when people are asked what good leadership looks like... even women...75 percent of them pointed out men as good leaders,” she explained. And for that reason, Seegoolam added, women are asked to prove themselves far more than men before being given leadership roles.
SLB’s Managing Director for Guyana and the Antilles, Ms. Sharlene Seegoolam
Dr. Gaskin-Peters concurred with this view and shared her experiences in the local male-dominated business community, which she hopes would change soon. “Many times I walk into a room and it is all men. So how can we have that transition? ...I am happy to see that many of our businessmen have daughters... daughters who are about to take over their businesses,” she observed. All the panelists agreed that men often tiptoe away from playing an integral role in promoting gender diversity and called for them to step up to the plate. Huston suggested that one way to Director of the Centre for encourage men to be allies Local Business Development, Dr. Natasha Gaskin-Peters to women in dealing with gender-disparity issues is to help them to understand "unconscious bias" against women. She emphasized the importance of helping men to understand that they might unknowingly discriminate against women. "Unconscious bias perpetuates...maintaining the systemic barriers that women face in the industry. [Men] also need to ensure that you hold other men accountable,” she proposed. Given the fast upward trajectory of the oil and gas industry, the panelists advocated that Guyanese women must upgrade their skills and position themselves strategically to maximize opportunities. But they stressed that this is only the first step as women also need to ensure that men play their part in equalizing the workforce for women to claim their merited seats at the oil and gas table.
WOmen in oil and gas
Switching From Engineering to Oil and Gas — And Acing It!
— Former trainee engineer Sabrina Latchman has settled into a key role at TechnipFMC Training In the first few months of working with TechnipFMC back in February 2019, Sabrina—then one of the Technical Service Personnel (TSP)—underwent nine months of training at its base in Brazil. The course covered various aspects of operations. She explains, “It was not just a TSP role…I trained for everything, even the role I am currently employed in.
Field Service Specialist at TechnipFMC, Ms. Sabrina Latchman Liza Phase 1 was Guyana’s first offshore oil production field. Thousands of lucky Guyanese had a chance to participate in a historical milestone when the Liza Destiny vessel produced the first flow of commercial oil from the ExxonMobiloperated Stabroek Block in December 2020. Ms. Sabrina Latchman happens to be one of them. Sabrina works at TechnipFMC—one of ExxonMobil’s tier 1 contractors—as a Field Service Specialist, a position she worked hard to attain. But it was not her first choice; she knew nothing of the career or the company. Sabrina was a third-year student at the Art Williams and Harry Wendt Aeronautical Engineering School when company representatives made a pitch to students to join their team. Acting on a whim, Sabrina decided to apply, yet she did not think, even for one second, that she would get a positive response. But she did, and so her career began.
“When I initially went to Brazil, I was exposed to Health and Safety Training and the Technician role, which entailed physically working on equipment – maintaining them, disassembly, assembly etc., and the equipment ranged from Christmas trees [subsea trees], tubing heads, tubing hangers, simplified lance strings and so much more – there was a wide scope of equipment that I worked on.” Sabrina enjoyed her exposure in Brazil, but things turned up a notch when she embarked on her first rotation to TechnipFMC’s base in Trinidad and Tobago (T&T). At that time, its current Guyana Base did not exist. Work for the Stabroek Block was done in T&T and then transported to Guyanese waters. She was one of only two women on
As a Field Service Specialist, Sabrina is responsible for planning, work distribution, and maintaining and delivering tools and needed equipment for TechnipFMC’s work offshore Guyana. “While this may not sound like much, it is an important job that requires quick thinking and a Plan B in your pocket in case the schedule changes, which in most cases, it does. And that is when the fun begins,” she says. And she is correct about the importance of her company’s role. TechnipFMC is a leading technology service provider to the traditional and new energy industries, delivering fully integrated projects, products, and services. One of its offerings is subsea services, which spans the entire life of an oil and gas field—from planning field developments, through the manufacture and delivery of subsea equipment and controls, to the life of field services. And the company has had a hand to play in every new development that has popped up in the Stabroek Block since Liza Phase 1.
Sabrina at work at a TechnipFMC site
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WOmen in oil and gas
Team support helped Sabrina to effectively deal with challenging times
the eight-member team—a scary experience in what she thought of as essentially a man’s world. She has vivid memories of this experience. “I was scared…the other woman was my friend but she was running between bases so I barely saw her for two days when I got there… and I was so nervous, and scared that I would not get the work done in the right amount of time, or that my physical strength would limit my involvement with certain tools or equipment.” But everything eventually turned out much better than she thought. Sabrina says she received unwavering support and encouragement from her team, which she greatly appreciated since her work in T&T was at a higher level further than anything she had done before. She recalls being more of an assistant in Brazil—but Trinidad was the real deal. “Whatever you worked on, you are signing your name to and it was going offshore for the Liza project. I was lucky to get exposure to almost every tool they had because it was a very small team of technicians,” she says. Her stint in Trinidad should have lasted a few weeks, but it stretched to nine months because of the COVID-19 pandemic, which forced many TechnipFMC employees to travel back to their home countries. But her team decided to stay to ensure the continuity of TechnipFMC’s services and guarantee that Guyana’s first oil project went off without a hitch. “Had we not left [T&T] the rig would not have had anything to work with,” Sabrina asserts.
Pandemic For her, the pandemic opened doors for Guyanese like herself on the team to assume leadership roles at TechnipFMC.
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“It also showed how much Guyanese are dedicated to the company, to each other and what they can do when out under pressure because we were there in the rain and sun, every single day. It was hard; by a miracle, we pulled it off,” Sabrina states. She recalled one particularly intense day that nearly pushed her to the verge of giving up, but she was energized by the support of her team. “The sun was so hot. I was working on an umbilical reel, and I was trying to take a coupler off of a hose and it would not come loose...I got so frustrated and started questioning myself...What am I doing here? Why did I choose this job? “But my teammates were right there to back me up and it was that support that carried us through that nine-month period,” she recounted. “It was like we were on an island, just us, and we became like family because we did not know when we were going to go home. We built strong relationships and we watched each other’s backs.” When the pandemic simmered and things were returning to a sense of normalcy, TechnipFMC decided to move its base over to Guyana from Trinidad, and Sabrina was given the opportunity to move with the team and she jumped at it. "When an opportunity like that presents itself, you have to take it because you do not know when it is going to come again,” she said. Like many others in her field, Sabrina hopes to be a source of inspiration to other Guyanese looking to find their place in Guyana’s oil and gas sector. Her advice is: Jump at opportunities; do not let them go to waste.
local content
Q1 2023 Edition
Three Guyanese companies have been contracted to build fixtures for the 'One Guyana' Floating Production Storage and Offloading vessel which is being constructed by Dutch floater specialist, SBM Offshore. The Guyanese companies are Zeco Group of Services, Guyana Oil and Gas Support Services Inc. and Industrial Fabrications Inc. Photo shows Zeco employee as he participates in the symbolic signing of the One Guyana Steel Strike poster on March 28 at INFAB to mark the start of work.
HOW DOES LOCAL CONTENT BENEFIT GUYANA?
MINISTRY OF NATURAL RESOURCES
Local Content Secretariat Guyanese companies and Guyanese nationals are given preference by oil companies and their subcontractors in the procurement of goods and services for Guyana's oil sector. Similarly, qualified and experienced Guyanese nationals are given first consideration in employment. Natural Resources full page ad Opportunities are created for Guyanese to benefit from capacity development. Where Guyanese may lack the requisite experience, training and coaching opportunities are to be provided. This goes hand-inhand with the government's goal of equipping the nation's people with knowledge and skills for growth. Competitiveness in the local market is promoted. Local content encourages the creation of support industries that will sustain the social and economic development of Guyana. Guyanese companies benefit directly from the nation's rapidly-expanding oil and gas sector. Through local content, billions in revenue can be derived annually. +592 225 8318
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lcregister.petroleum.gov.gy
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Local Content
Local Content Top Gun Maximizes Guyana’s Benefits from Oil —Dr. Martin Pertab aims for prudent Local Content management and massive economic growth
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conomist Dr. Martin Pertab aims for a winning track record as the first Head of Guyana’s Local Content Secretariat (LCS), established about a year ago. If he achieves his goal, it will be yet another high point in his stellar academic and professional career that started from humble beginnings in a quiet indigenous village tucked away amid savannahs and dense jungle. As the leader of the LCS—the body responsible for overseeing and implementing Guyana’s Local Content Act— Pertab has to direct the quest for full compliance with the Act to secure optimal participation of Guyanese in the local oil and gas industry. Leading the charge to maximize local involvement in a cluster of disparate networks that serve the technology-driven sector is grueling. It requires a clear vision, exceptional skills, and a proven ability to overcome challenges—qualities Pertab appears to have in abundance. His commitment is to do whatever it takes to ensure Guyana and Guyanese get the best benefits from their world-class oil resources. “I intend to utilize local content to help build a complex economy capable of generating aggregate scale economies in the form of pecuniary as well as technological externalities between sectors, “ he says. “That will eventually result in virtuous circles of growth and agglomeration of economic activity…stimulating structural transformation and helping to diversify our economy. Implicit in this outcome is also to enhance our local industries' competitiveness.” Acutely aware of the danger of the Dutch disease in the emerging oil-based economy, Pertab is confident that the current leaders' game plan will protect the country. The economist supports strategic efforts to diversify the economy, invest in human resources, and stabilize the Debtto-GDP (Gross Domestic Product) ratio. “By the end of 2022, revenue generated by all public enterprises is expected to increase by more than GYD8 billion—or 7.1 percent—to GYD120 billion, compared to 2021, the largest increase in more than 10 years,” he explains. “In the banking sector, the government has made significant progress in recapitalizing our central bank…From 2020 to 2021, almost GYD4.1 billion was added to our gold reserve; market securities and international reserves moved from GYD94 billion to GYD122 billion… international reserves at
Head of the Local Content Secretariat, Dr. Martin Pertab the Bank of Guyana increased by USD130 million to USD810 million,” Pertab notes. “The government has paid in excess of GYD180 billion, reversing the GYD135 billion overdraft that was recorded at the end of 2020. These major achievements illustrate…unwavering commitment to building a robust economy.” According to Pertab, the government has enacted critical legislation—the Sovereign Wealth Fund (SWF) Bill and the Local Content Act (LCA)—that will guard against mismanagement in the vital oil industry for the long-term benefit of all Guyanese. “So…the nation's risk of the Dutch disease is minimal, given the existing robust macroeconomic framework and the slew of transformational projects in the pipeline specifically geared to enhance economic growth and productivity,” he asserts.
Perseverance Born and raised in St. Cuthbert’s Mission, a small Amerindian Village around 90 miles up the Mahaica River in Guyana, Dr. Pertab is the youngest of three siblings born to his Amerindian mom and East Indian dad. His father, the breadwinner, worked as a woodcutter while his mother was a housewife. "Life was tough growing up," Pertab recalls, especially since he and other young villagers had to walk through difficult terrain to get to and from school. "One day, on my way to Q1 2023 Edition
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Local Content
school, I had to request one of my friends' slippers to walk through the blistering hot sand," he remembers. At 11 years old, young Martin left his home village to stay at the Cove and John Ashram (a Hindu religious institution) and attend the Cove and John Secondary School. During his first year there, where he honed essential life skills like cooking and cleaning. "From a youngster's perspective, life was a bit challenging; however, as I grew older, my perception of the experience changed. These very same skill sets became indispensable for my survival and adaptation in other places." He now believes the hardships in his formative years taught him discipline and perseverance, which have served him well in his career. One year after his enrollment at the institution, Pertab’s mom became concerned about his well-being and began looking for a guardian. "I recall seeing her going from door to door asking strangers if they could keep her son. It was heartwrenching to witness, and more so to live with strangers. At least at the Ashram, I had friends. But I trusted her instincts and complied." This was a turning point at which he resolved to excel in school. In 2003, he became one of his school’s top performers in the Caribbean Secondary Education Certificate exams, which gave him a solid foundation for higher education. After completing his secondary education, he applied for a scholarship to pursue a degree in Economics. "My decision to study economics had to do with my desire to help improve the lives of my fellow countrymen, especially my Amerindian brothers and sisters. In 2004, I was fortunate to be part of a cohort of scholarship awardees to study in Cuba." He studied in Cuba from 2004 to 2010, and after graduating, he became a financial analyst at the Ministry of Housing and Water under then-Minister Irfaan Ali, who is now the President of Guyana. In 2014, he decided to step up his education. "I came across a scholarship offer by the Organisation of American States (OAS). The areas of priority were engineering, statistics, and agriculture; economics was not part of the list. However, I was quite determined…I quickly gathered up the relevant information, filled out the form…” Pertab needed Minister Ali to approve and justify his pursuit of the scholarship, and he was pleasantly surprised when the minister readily agreed. As one of two recipients of the prestigious OAS scholarship, Pertab attended New Mexico State University (NMSU) in the USA and completed a Master’s Degree in Economics. When he returned in late 2015, the government had changed, and Ali was no longer a minister. He resumed his role at the Ministry of Communities and remained in that position until early 2018 when his job title changed to Housing Economist. "The country was still coming to grips with the string of oil discoveries off our coast. The buzz was to look into the direction of oil and gas as a potential career pathway.” A Commonwealth Scholarship became available, and Pertab 48
Martin Pertab earned his doctorate after overcoming many challenges
applied to pursue a doctorate in Energy Economics. "However, things didn’t go as planned. My application was denied…” he recalls, but his mentor ex-Minister Ali advised him to seek scholarship offers elsewhere. “I took his advice… I came across the University of Aberdeen… luckily the prestigious Elphinstone Scholarship was out.” “There were several partially-funded Ph.D. scholarship research areas. The one that stood out to me was the causes of the Dutch disease among oil-rich developing countries… there were growing concerns that Guyana could fall prey…." He decided to apply. Six months later, the university accepted Pertab in its Ph.D. program and later offered him an Elphinstone Scholarship. He made a bold request for study leave with pay, which the Ministry turned down. "I wrote directly to the Minister pleading with him for financial help…my request fell on deaf ears…. I was extremely disappointed and heartbroken.” He again reached out to ex-Minister Ali. "He assured me that I had his support … A few days later, I received a call from him for some funds to help with the purchase of my airline tickets. To help with additional funding, I sold my car, and my dad sold his truck." After raising sufficient funds for a partial scholarship, he left for Aberdeen, Scotland, in October 2018.
Success
Local Content
After spending two years there, COVID-19 lockdowns forced Pertab to return to Guyana and complete his Ph.D. online. By the time he got back in late 2020, his mentor Dr. Irfaan Ali was the elected President, and Pertab accepted a job at the Ministry of Natural Resources as the Senior Petroleum Economist. He worked on crucial policy documents related to Local Content policy and played an active role in stakeholder consultations and the framing of the Local Content Act. In early 2022, Pertab accepted the position of Director of the newly-established Local Content Secretariat. All the while, Pertab was still studying for his Ph.D. online. In November 2022, Pertab graduated with a Ph.D. in Economics-the first person from his home village to achieve this. "Being the first to graduate with a PhD from my village is truly an honor and privilege," he says. He encourages others facing similar or even worse hardships not to give up hope. "I think it matters not how we start in life...once we believe in ourselves, and have the commitment and determination, anything is possible."
Martin Pertab was born at St. Cuthbert’s Mission
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Local Content
Local Content Secretariat on a Mission to Ensure Oil and Gas Training for Locals — Identifies 700-plus training activities in first six months of operations “The Secretariat is coordinating an internship with a particular focus on engineering (electrical, civil and mechanical) and science and HSSE…It is envisaged that this type of interaction with other key stakeholders will continue throughout this year,” Dr. Pertab explained. Additionally, the Secretariat is coordinating ventures between subcontractors and various educational institutions—including the GTI and the University of Guyana (UG)—to provide scholarships and other support for local capacity building.
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ithin the initial six months of its first year of operation, Guyana's Local Content Secretariat recorded over 700 unique training activities offered by 31 contractors, subcontractors, and licensees in the oil and gas sector, according to Director Dr. Martin Pertab. Empowered by the Local Content Act, the Secretariat identifies gaps and shortages in the competencies of the local workforce concerning technical operations and administrative functions in the oil and gas industry. The Act requires contractors, sub-contractors, and licensees to plan and implement training based on these identified gaps, which the Secretariat monitors. This Act requires industry players to submit Annual Local Content Plans detailing their training programs. The Secretariat usually works closely with the respective parties to develop these plans and ensure the availability of ample training activities for Guyanese. Dr. Pertab gave insights into ongoing training programs that upskill the local workforce to meet oil industry requirements. For instance, he revealed that several subcontractors—such as SBM Offshore, Haliburton, and Saipem—are conducting apprenticeship programs approved by the Secretariat. Moreover, the Secretariat is coordinating a paid internship pilot program with the Guyana Technical Institute (GTI) to align students in technical fields with subcontractors along the supply chain, to build experience and skills. So far, the GTI has shortlisted 51 students for the program. 50
While exact numbers for the various training initiatives are not immediately available, Pertab asserted that the information presented to the Secretariat indicates that these activities will continue to be in demand for many years. “Although the local workforce tends to have, for the most part, the requisite technical qualifications, industry experience and exposure to specific industry requirements is still lacking,” he explained. He added, “Given the rapid appreciation in the value of the oil and gas industry, we have witnessed the initiation of a quasi-labour movement kind of effect from the traditional sectors. Of course, to curtail the manifestation of this effect, the oil and gas industry must play its role, in accordance with the Local Content Act, in building local capacity.” In this regard, the Local Content Director said the Secretariat is vetting Local Content Annual Plans submitted for this year, after which it will be able to provide details of the training initiatives on the cards for 2023. Additionally, the Secretariat has systems to monitor the effectiveness of the various training programs. The Secretariat has its internal monitoring systems developed to track all local content activities,” Dr. Pertab assured. He said the Act empowers the Secretariat to undertake site visits, verification checks, and audits. “The Secretariat has already undertaken site visits to undertake various verification activities,” he noted. Meanwhile, Secretariat is undertaking in-house capacity building and plans to hold training sessions for various staff members in compliance, auditing, monitoring and evaluation, local content management, policy development, and other critical areas.
Local Content
As Local Firms Build Capacity, International Expertise is Essential in Guyana's Oil Sector – PSC encourages strategic international involvement in local oil sector development
Reflecting on the work of the Local Content Secretariat last year in facilitating such advancements, Cheong said there were “notable strides” but called for further improvements. “The implementation of the Local Content Registration Portal is one such achievement...it not only allows businesses to be recognized as certified operators in the oil and gas sector, but it brings together expertise and capital.” “We also witnessed significant progress in the approval of Local Content Master Plans for tier-1 contractors with a mandate to reduce payment times,” Cheong affirmed. He further divulged that the PSC was pleased with the willingness of the Secretariat to engage and listen to the concerns of the local private sector through the Commission’s Local Content Advisory Group.
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PSC Chairman, Mr. Paul Cheong
uyana's Private Sector Commission (PSC) has been instrumental in pushing for Local Content within the oil and gas industry in Guyana and is pleased with the many strides achieved since the operationalization of the Local Content Secretariat in January 2022. But as local firms continue to build capacity to fully take on the burgeoning sector, PSC Chairman, Mr. Paul Cheong said there's still a great need for international expertise. The business mogul noted that the PSC continues to encourage foreign investment in the economy, owing to the “embryonic stage” of the oil and gas sector. “We are still to fully develop local capacity to meet the varying needs of the sector. As local companies build capacity, there is still great need for international expertise to develop the industry. We continue to encourage international companies to establish partnerships and joint ventures.” This way, he noted, guarantees skills transfer. “We continue to encourage the training of locals in the technical skills required.”
“We have been able to engage key personnel within the Secretariat to raise a number of concerns affecting businesses,” Cheong explained. “Already, we would have seen efforts made to address the lengthy payment period for contractors, contract bundling, and the illegal formation of businesses (fronting) to access opportunities within the oil and gas sector.” For its part, Cheong said the PSC has continued to advise its members to align themselves strategically to capitalize in the oil and gas sector and in keeping with the local content stipulations. “We have signed an MOU with Coursera Inc, an online training platform, for the development of courses tailored to the needs of the country. ''Additionally, we engaged the Ministry of Labour and shared our views on the labor needs of the business community, with a view to crafting programs through the Board of Industrial Training (BIT) to meet those needs,” the PSC chairman revealed. According to Cheong, reskilling the labor force is a high priority in the private sector. In this regard, he said the PSC is pleased with the significant allocation for the BIT in the National Budget, which will facilitate training 7,000 more persons for jobs relevant to the oil and gas sector. As the nation, as a whole, seeks to address these challenges, Cheong said the PSC will continue to play a vital role in the development of local content – through advocacy at the level of policymakers and its members.
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Local Content
He explained that the PSC continuously urges local businesses to register with the Local Content Secretariat, recognizing that tier-1 contractors see “great value” in working with certified companies. And while it has not surveyed to determine what portion of its membership has complied, Cheong noted that a whopping 500 firms – in just one year – had registered. Cheong said that this year, the PSC will advocate for improvements in several areas under the First Schedule of the Local Content Act 2021. He explained that during the Local Content Forum hosted in November 2022, The PSC garnered feedback from over 75 businesses, compiled a corresponding report, and submitted it to the Secretariat. “We are currently in the process of collecting additional information from the private sector, which we intend to submit to the Local Content Secretariat for consideration. The feedback entails policy recommendations, revised targets for consideration and proposed categories to be added to the schedule,” he shared. Director of the Local Content Secretariat, Dr. Martin Pertab, had previously declared that the entity, this year, will be seeking refinement of the Local Content Act of 2021 to ensure players in the oil and gas industry stick to the spirit and intent of the legislation. Dr. Pertab had acknowledged and supported the private sector’s call for an increase to the 40 services that oil and gas companies and their subcontractors must procure from Guyanese under the Act, noting that work in this area will get underway in 2023. Overall, Dr. Pertab has emphasized that the Local Content Act is a living organ and will evolve as the local oil and gas industry matures.
MATPAL MARINE INSTITUTE INC. ABOUT US
OUR CLIENTS
MatPal Marine Institute Inc has been operating for the past twenty-two(22) years and is the first ISO 9001:2015 certified Maritime Institution in Guyana, offering quality internationally accredited maritime and oil and gas training services to address the needs of seafarers in Guyana. We provide key quality safety training and certification aimed at increasing competences of seafarers through STCW standards. MPMI commenced the Marine Cadet Program in 2016, in direct response to the building of local content capacity and capability within the Oil and Gas Industry.
OUR COURSES Basic Safety Training Ship Security Awareness Advanced Fire Fighting Basic Training for Oil and Chemical Tanker Operations Ratings forming part of an Engineering Watch and Navigational Watch Ill/4,lI1/5, 11/4 & 11/5 Shipboard Deck Cadet Program Proficiency in Survival Craft & Rescue Boats Oil and Gas Training
Representatives from over 75 companies gave feedback and provided recommendations on the First Schedule of the Local Content Act during a Local Content Forum hosted by the Private Sector Commission with support from the Local Content Secretariat on November 17, 2022. (Photo Credit: Private Sector Commission)
CONTACT US +(592) 227-2133/226-5032 +(592) 611-1802
[email protected] www.matpalmarine.com
Est: 1999 MATPAL MARINE INSTITUTE
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EDISON CHOUEST OFFSHORE/ GBOATS INC. SEACOR MARINE TULLOW OIL AMERICAN CARIBBEAN MARITIME FOUNDATION (ACMF) EXXON MOBIL LLOYD’S REGISTRY MARITIME ADMINISTRATION DEPARTMENT OF GUYANA GENEQUIP WESTZYDE MARINE JSL INTERNATIONAL PRITICHARD- GORDON TANKERS PANAMA MARITIME TRAINING SERVICES PRITTIPAUL SINGH INVESTMENTS INC. GUYANA POLICE FORCE GUYANA DEFENCE FORCE AND MANY MORE….
Local Content
Guyana’s OPITO-certified Training Complex Reaches new Heights
T
—Poised to be the oil and gas training hub for the Americas
raveling outside of Guyana to receive critical, essential, industry-standard oil and gas offshore training is now a thing of the past—thanks to 3T EnerMech and its OPITO-certified Training Centre of Excellence (ODITC) at Lusignan in Guyana. OPITO training is the gold standard for those seeking careers in the oil industry and a prerequisite for getting jobs at many oil majors, including ExxonMobil, the operator in Guyana’s prolific Stabroek Block. The TCE opened its doors in September 2022, offering 500-plus courses with a blend of traditional on-the-job training, tuition in digital technologies, and management training. The main courses are Tropical Basic Offshore Safety Induction and Emergency Training (T-BOSIET), Helicopter Underwater Escape Training (HUET), and Further Offshore Emergency Training (FOET) with Compressed Air Emergency Breathing System (CA-EBS). In November, 3T EnerMech received final and official accreditation from OPITO to roll out the courses to all and sundry. The achievement of OPITO accreditation was momentous for 3T EnerMech and all the more for Guyana, according to Alan Sharp, the facility’s General Manager (GM). It ensures international standards for safety are at the forefront of Guyana’s expanding oil and gas sector. Importantly, it also signals to the world that Guyana—a newcomer to the oil and gas arena—is becoming more selfsufficient in equipping the workforce of oil majors operating within its Exclusive Economic Zone (EEZ). Sharp disclosed that within a week of ODITC getting OPITO accreditation, over 30 persons started training, and the number has grown significantly since then. The Center currently has eight elite on-site trainers who mastered a strict auditing process from OPITO. “We have to show that our instructors have the qualifications and occupational competence as per stipulated in the industry standards,” the GM explained.
What to Expect Giving a breakdown of what to expect with the OPITO training, Sharp said that T-BOSIET and FOET are critical elements before one goes offshore.” And this depends on the client’s specifications.
Simulation Exercise using SCBA (Self Contained Breathing Apparatus) and carrying out rescue/escape techniques in a confined space environment. “Apart from that, we have also got the digital T-BOSIET with CA-EBS...blended learning online but also practicalbased. So, the T-BOSIET is three days face-to-face and the digital T-BOSIET with CA-EBS is about two to four hours of online learning. Then you come to the Centre for one day to complete your practical training,” he added. For someone with no offshore experience, training might seem daunting, but according to Sharp, one of 3T EnerMech’s core policies is to ensure that trainees have fun. "People see these helicopter simulators that we operate...once they are here, and they understand the safety and controls that we have, they start to have fun while also learning about the major pillars of offshore safety,” he continued.
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scaffolding, cradles, or an aerial work platform. Rope-access technicians descend, ascend, and traverse ropes for access and work suspended by their harnesses. This training is also applicable in other sectors not necessarily related to the oil and gas sector. “Rope-Access training without a doubt has its role here in Guyana because we have a lot of people hanging off the sides of buildings, both onshore and vessels offshore, to do maintenance and refurb work so it is very imperative to make sure the guys are using the correct equipment safely,” the GM asserted.
Wearing full PPE gear while using a 'cut-off saw' ODITC uses the helicopter simulator (DUNKER) for advanced HUET training—how to survive in the event of a helicopter crash offshore. But the Centre also covers basic firefighting and lifeboat training under the BOSIET training category. “We teach you what to do if you are in an environment that is filled with smoke, water-logged, how to successfully navigate and escape to your nearest exit. We also do sea survival--how to survive at sea individually and within a group and also how to survive using a life raft as well...so it is a broad range of practical scenarios delivered,” the GM noted. These training courses, according to Sharp, can be completed over three days-–some in as little as three hours. ODTIC is growing in tandem with Guyana’s oil sector, and its range of over 500 courses will expand soon. Sharp said that 3T EnerMech aims to add courses centered on specialist emergency response training focused on helideck operations and firefighting, along with emergency management and crisis management training modules. “And all that is OPITOaccredited standards,” he asserted. 3T EnerMech earmarked the first and second quarters of 2023 for two sets of new courses online. While offshore oil operations are top-of-mind for many prospective trainees, Sharp emphasized that OPITO training is also available for onshore operations, which are just as important. “Again, we are training people to respond to these unfortunate but unlikely situations to reduce the impact on the operations, the people, and the environment. This is absolutely imperative.”
Rope Access and HSSE Training Rope-access training, a core element of offshore safety operations, is also on the cards, making ODITC the second facility to provide this training in Guyana. Rope-access or industrial climbing is a form of work positioning, initially developed from techniques used in sport climbing and caving, which applies practical rope-work to allow workers to access difficult-to-reach locations without using
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And with such a heavy emphasis on training, 3T EnerMech is looking to partner with the Guyana government to instil basic oil and gas safety knowledge in its population. Sharp explained that ODITC crafted a course—coined the “Green Hand” training course—to take someone with little to no knowledge of the oil and gas industry and put them through a 15-day program to impart fundamental skills needed. “That includes the BOSIET, banksman, rigging operations, working at heights, base training, dropped objects, basic health and safety. It is a really good conclusive program to give people knowledge and insight into the offshore operation," he said. Sharp sees ODITC becoming the hub for OPITO oil and gas training in the Caribbean within six months, and Guyanese no longer need to travel overseas to complete courses. “That is how positive we are about what we are doing here in Guyana,” he affirmed, as no other OPITO facility in the Americas possesses accreditation for the helideck and firefighting courses. “At the moment, clients have to send their guys to the UK or to Europe to perform that training; so...Guyana will be marked in the entire Americas as unique,” he explained.
Digital Technology 3T EnerMech will also be introducing more digital technology—developed to fit the needs of its clients—into its course mix, which will include both augmented reality (AR) and virtual reality (VR). “We are in discussions with a few companies to bring in a crane simulator an actual seat with a wrap-around screen where you sit and go through different scenarios for crane operator training and competency assessments,” Sharp said. He explained that all training innovations stem from computer software and hardware developed by the company, including well-control and drilling simulators. ODITC aims to expand in line with Guyana’s rapidly growing oil and gas sector with significant resource development planned for six months in 2023. The complex already features a skills hall, welding and fabrication shop, rigging and lifting areas, a technology suite, and a 14-foot deepsea survival pool, and many phased developments are on the cards.
Local Content
spinoff benefits
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Photo Credit: Maggie's Snackette
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SPINOFF BENEFITS
Guyana’s Oil Bonanza Could Galvanize Local and Caribbean Agriculture —Experts say Guyana can lead Regional agriculture boom by tapping oil industry markets
F
rom cheaper energy costs to creating new and lucrative markets, Guyana’s oil bonanza presents bountiful opportunities for transforming the country’s agricultural landscape. And as Guyana leads the Caribbean’s efforts to reduce its food import bill by 25% by 2025, this raises game-changing possibilities in the thrust toward regional food security. At a panel discussion organized by the Guyana Business Journal in February, experts explored how oil revenues create exciting new agricultural opportunities for Guyana and the Caribbean. The Panelists were Executive Director at the Caribbean Agricultural Research and Development Institute, Dr. Arlington Chesney, and economist Mr. Joel Bhagwandin. Dr. Terrence Blackman and Dr. David Lewis moderated the discussion. Dr. Blackman—Professor of Mathematics at Medgar Evers College of The City University of New York—pointed out that although agriculture and energy are completely different industries, agriculture relies heavily on affordable energy for irrigation, tillage, transportation, and the production of fertilizers and pesticides. Dr. Chesney agreed, explaining that through Guyana’s proposed oil refinery and the gas-to-energy project, players in the agricultural industry would benefit from input cost reductions -– which would enhance their processing capacity and lead to the expansion of subsectors like manufacturing. “With the proposed refinery and the gas-to-energy project, we have the ability to reduce inputs...fertilizers, pesticides, et cetera…and better processing capacity because of the cheaper electricity that could be provided,” he suggested. 56
He also contended that oil and gas vessels provide lucrative markets for agriculture products catering to their foodsupply requirements. “We expect to have at least eight rigs, and 12 floating production storage and offloading vessels (FPSOs)… these are…markets for Guyanese agricultural products,” Dr. Chesney posited. And this projection only refers to ExxonMobil operations; with the Guyana Government engaged in auctioning off 14 offshore oil blocks, even more, markets will emerge.
National Perception But Dr. Chesney believes the national perception of agriculture must change before Guyana can capitalize on these ventures strategically and successfully. “From the school level…we have to ensure that people recognize that agriculture is a business…and it’s not only labor intensive, it’s also technologically intensive,” he asserted.
Bhagwandin concurred, lamenting that the private sector is not as innovative in agriculture as it should be. He noted that the Guyana Government is making necessary investments in the agriculture industry, but the private sector needs to step up and take full advantage. “We have to evolve and I would say the biggest problem here is on the part of the business sector…,” Bhagwandin argued. He noted that the government has provided meaningful incentives—such as removing taxes on agricultural equipment and investing in new and improved infrastructure—but these are underutilized. “It comes back to the business sector having to take the initiative...take the risks...make the investments. For the past two decades the business sector—yes, there are challenges with energy and so on—but the business sector, they’ve not been very innovative...The business sector in itself has to change its culture.”
Visionary Approach Meanwhile, Dr. Lewis of the Caribbean Policy Consortium and Manchester Trade Incorporated noted that the oil boom had caused Guyana’s tourist arrivals to increase considerably. He asserted that the increase in visitors is an excellent incentive for local players to boost local agricultural production. “Visitors eat, drink, and consume…a growing demand,'' he said. Dr. Lewis called for a visionary approach to supplying that demand—catering to visitors' tastes while promoting local products and emphasizing local production rather than getting ‘’tins from Miami.'' He said, ''There’s an entire visitor industry economy that’s now growing…what we call agrotourism.'' He also spoke of the need for strategic partnerships, pointing to what obtains in other Central and Latin American nations. “Today, in the United States, you go and you buy dairy products, grain products, beans...from Central America... packaged in El Salvador... Everybody knows El Salvador, of course, is a small economy, but it’s extremely industrialized… ''This level of agriculture is not taking place in El Salvador... commercial firms, at the regional level, invest and purchase the raw material production from countries that do have that advantage—like Honduras and Nicaragua—purchase it in mass…invest with producers there for quality controls, the levels of regulations and standards…then do the packaging and distribution and commercialization separately,” he explained. “So one of the key things is going to be how the Guyana opportunity is benefitted from both the regional…and hemispheric market in agricultural trade and, particularly, the primary and agri-processing components,” Dr. Lewis said.
SPINOFF BENEFITS
“We need to look to see how we can take advantage of what Guyana offers that for the rest of the region is not there...the land, the production capacity, and the extension capacity, and see how we can leverage that and not need to reinvent the wheel where we have examples and support systems in the rest of the region and the hemisphere,” he recommended.
Caribbean Impact Dr. Chesney expects Guyana’s advances in agriculture to impact the Caribbean region positively. “Politically, this is the first time in decades that we have all CARICOM [Caribbean Community] heads stating particularly...that agriculture is very important in the sustainable development of the region and individual member countries. “It would not be appropriate--for security and other social reasons—for Guyana to think of itself alone for doing the best thing for agriculture and utilizing their oil to do the best thing for agriculture. Guyana—because of its large size and small population--cannot consider its market to be only its own… it must deal with the regional market…and then it could allow it to hone its resources…to go the wider world,” he argued. As such, he stressed the need for regional leaders to work to address impediments to trade. “At the moment, trade within the region is almost at a standstill because of inadequate transport facilities, be it by air or be it by shipment. I have a friend who was trying to move products from Guyana to Dominica and it took him six weeks to get his samples…” He noted that the issues surrounding nontariff barriers also need to be addressed. “We have to have a common agreement that will allow movement between Member States and this is important for Guyana…with its large volumes, large size and small population, to have a vibrant agriculture sector, it must have access to these (regional) markets.” During the discussion, Bhagwandin disclosed that in 2013, the Guyana agriculture sector grew by 4%, followed by 8% in 2014; but there was a negative growth of 11% in 2016. In 2019, there was zero growth, and in 2021 there was again a negative growth of 9%. But 2022 had a 12% growth rate, the highest in the last decade. Bhagwandin noted that agricultural exports for 2022 were above USD300 billion, accounting for 20% of non-oil exports. Its contribution to non-oil GDP was 25%, he said.
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WOmen in oil and gas
renewable energy
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Renewable Energy
Key Local Water Treatment Plant to be Retrofitted to Run on Solar Energy
—Project aims to reduce Guyana’s carbon footprint; approved by EPA
I
n response to the national thrust towards renewable energy and to reduce its carbon footprint and energy bill, Guyana Water Inc. (GWI) is retrofitting the Port Mourant Water Treatment Plant (PMWTP) to run on solar energy.
GWI noted that the project—titled “Improving the Carbon Footprint of Water Supply Through the use of Renewable Energy Sources”—is in keeping with the drive to increase renewable energy to meet future energy demands. The company is committed to utilizing more renewable energy to reduce dependence on imported fossil fuels, cut oilimport bills, and increase energy security. “Water treatment plants are ideal end-users for integrating solar PV power plants under a grid-tie net metering scheme. Port Mourant is a water treatment plant that is energyintensive, where grid-tie-based solar PV system integration is a potential option,” GWI said in its project summary. The PMWTP--established in 2000--is a water/sand-filtration treatment plant on the coast of Guyana about two kilometers (km) from the Atlantic Ocean on a plot covering about 30,330 square meters. According to the project summary, the start-up capacity of the PMWTP is 6.9 MLD [Minimal Liquid Discharge]. It noted that the plant incorporates a manganese filter system and uses 0.3 mg/l [milligrams per liter] of chlorine for disinfection. The original distribution area spanned 18 villages in the county of Berbice—from Miss Phoebe in the east to Nigg in the west—approximately 3.2km on either side of the Port Mourant facility. The plant serves all villages in this project area and has a customer base of over 4,500 households or approximately 16,000 persons. In the project rationale, the summary said GWI's financial performance was inadequate over the years—the company incurred a net annual operational loss of over USD20 million—and about 60 percent of the operating costs came from energy. Furthermore, its operations consumed about five percent of the power supplied by the public utility company Guyana Power and Light (GPL).
“The essential item of the overall cost structure is energy. The present yearly energy consumption across GWI facilities is 46.6 million kWh [kilowatt hours]. Electricity accounts for more than 60 percent of GWI's operating costs. In 2020, GWI spent more than USD13.7 million on electricity...electricity consumption was over five percent of the total electricity generated by GPL,” the project summary said. The summary maintained that reducing energy costs from ever-increasing electricity tariffs is paramount for improving the quality of service to the population of Guyana “as well as for the achievement of GWI's economic sustainability.” It noted that the government encourages solar PV projects as a part of a Low Carbon Development Strategy (LCDS). “The GPL customers who wish to set up a grid-tied renewable energy plant shall be reviewed from the GPL side to ensure the safety and reliability of the grid,” the summary stated, adding that it is required to restrict the solar PV system capacity to 80 percent of the transformer rating of the facility. The company proposes to install a solar PV power plant of 400 kWp [kilowatt peak] based on the current GPL transformer rating 500 kVA [kilowatt volt amps]. “The proposed system can generate a maximum peak power of 320 kWp range. The estimated annual energy output from a 400 kWp solar PV system is 0.59 million kWh. The solar PV power-generation share can substitute close to 45 percent of the present energy consumption level,” said the summary. The company estimated the energy-cost reduction from the solar PV power plant at above 40 percent. "The project can also lead to other social and economic benefits in terms of direct jobs creation and reduction in the monthly electricity expenditure for the water utility,” GWI added.
EIA waived The Environmental Protection Agency (EPA) reviewed the project document and waived the requirement for an Environmental Impact Assessment (EIA). In the
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Renewable Energy
Environmental Impacts Screening Decision, the EPA said there were “no significant impacts nor is the project deemed environmentally sensitive." The agency deemed impacts arising from the construction and operational phases as “minor, localized, and acceptable.” The agency noted that the PMWTP currently provides a pertinent service to the community, and the proposed solar energy field highlighted GWI’s contribution to climate change by "promoting and utilising renewable energy sources.” Sharing the reasons for waiving the EIA, the EPA noted that the existing Port Mourant Water Treatment Plant (PMWTP) caters to thousands of households, and does not significantly affect the environment. It also stated that impacts from noise would be low-tomoderate primarily during the operational phase of the
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PMWTP and the construction of the solar energy field, which would be short-term and localized. Additionally, the EPA said the solar energy field would eliminate the need for a backup generator, and impacts from dust pollution would be moderate, primarily during the construction phase, and would be short-term and localized. The agency found that the solar energy field would enable the PMWTP to get 40 percent of its annual energy consumption from a renewable source and is not close to any sensitive ecosystem. Moreover, project activities will have low to minor effects on the existing biodiversity and ecosystems in the project area; and the developer will ensure that waste will be recycled and reused—as well as utilize appropriate disposal techniques in keeping with the EPA's Hazardous Waste Guidelines.
Renewable Energy
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NATIONAL HOLIDAYS IN GUYANA (2023) JAN 01
FEB 23
MAR 07
New Year’s Day
Republic Day
Phagwah
APR 07
APR 10
MAY 01
Good Friday
Easter Monday
Labour Day
MAY 05
MAY 26
JUN 28*
Indian Arrival Day
Independence Day
Eid-Al-Adha
JUL 03
AUG 01
SEPT 27*
CARICOM Day
Emancipation Day
Youman-Nabi
NOV 12
DEC 25
DEC 26
Deepavali/Diwali
Christmas Day
Boxing Day
*Tentative Dates
DIRECTORY Guyana Office for Investment 190 Camp & Church Streets, Georgetown, Guyana E-mail:
[email protected] Tel: 592-225-0653 Private Sector Commission 157 Waterloo Street, Georgetown, Guyana E-mail:
[email protected] Office: +592-223 0875 Georgetown Chamber of Commerce and Industry 156 Waterloo Street North Cummingsburg, Georgetown, Guyana
The Guyana Manufacturing & Services Association Limited 157 Waterloo St., North Cummingsburg, Georgetown, Guyana Email:
[email protected] Tel: 592-223-7405/6 American Chamber of Commerce of Guyana Block Alpha, Battery Road, Kingston, Georgetown E-mail:
[email protected] Tel: 592-231-2524 Office of the President Shiv Chanderpaul Drive, Georgetown, Guyana E-mail:
[email protected] Tel: 592-225-1330
E-mail:
[email protected] Tel: 592-226-3519/592-225-5846
Office of the Prime Minister E-mail:
[email protected]
Berbice Chamber of Commerce
Tel: 592-225-2705
12 Chapel Street O7765 New Amsterdam, Guyana E-mail:
[email protected]
Ministry of Natural Resources
Tel: 592-333-3324
96 Duke Street, Kingston, Georgetown, Guyana E-mail:
[email protected]
Essequibo Chamber of Commerce Anna Regina Town Council Building, Anna Regina. Essequibo Coast E-mail:
[email protected] Tel: 592-649 0642 Centre for Local Business Development 253-254 South Road, Bourda, Georgetown, Guyana E-mail:
[email protected] Tel: 592-223-7781
Telephone Numbers: 592-231-2503/231-2506/2312507 Ministry of Foreign Affairs and International Cooperation 254 South Road & Shiv Chanderpaul Drive, Georgetown, Guyana E-mail:
[email protected] Tel: 592-226-1606/8, 225-6467