18. Guyana – How much money will Guyana receive – All Hands On Oil – Concerns ExxonMobil’s Agreement

18. Guyana – How much money will Guyana receive – All hands on Oil – Concerns ExxonMobil’s Agreement – V.150817

From “Rags to Riches”, “ a nation that did not expect to win the lotto”, “ soon to be the richest corner of South America”.

Ahead ?

The prime goal and objective ?

Convert these 5.5+ billion barrel recoverable (@ April 2019), 13 discovery wells, proceeds and income in equal, high prosperity, happiness and excellent qualty of life for all Guyanese.

In 2045 ?

Yeahhh, we have achieved it, we are definitely a high developed, rich country. Comparable with e.g. Singapore. Just come and see with your own eyes. And check. Our high level of infrastructure, modern roads, bridges, housing facilities, education, hospitals, hotels, airport, social welfare etc. etc.

Hopefully !

1. Introduction – by Marcel Chin-A-Lien

2. Petroleum Geology Offshore Guyana – March 2017 – from Newell Dennison.

3. All hands on oil – August 3, 2017 – Reblogged from Verian Mentis-Barker.

4. Guyana: will its oil boom benefit the people ? Al Jazheera, Video, July 30, 2018

1) Introduction by Marcel Chin-A-Lien – For further info, also see my other posts on Guyana, in Chapter Petroleum Exploration

1.1. Guyana. Concerns about arrangement with ExxonMobil.

1.2. How much money would Guyana get from ExxonMobil’s offshore oil production?

1.1 Guyana. Concerns about arrangement with ExxonMobil.

The contents of the arrangement that the Guyana Government in 1999, has signed and apparently recently renegotiated with ExxonMobil, has never been published (P.D.@ december 2017: finally published by Guyana Government; this blog was written august 15, 2017).

(P.D.1, inserted August 15, 2017 – kaieteursnewsonline.com – Abena Rockcliffe-Campbell :“ With all this issue about good deal and so on, you are making an assumption that we renegotiated the contract. That contract was already in place, we inherited that contract,” said Jordan.

P.D. 2, The arrangement was finally released and published in december 2017, after much pressure from the Guyanese society.

My observations in this post of august 2017 are nonetheless still valid. In the course of 2018 I will publish my personal full observations on the published contract).

The first contract was signed on or around June 14th 1999 by Mrs. Janet Jagan.

With the appendage of Her Excellency and President (Re. V. Mentis Barker – All hands on oil, august 3, 2017).

FYI.: Cheddi Berret Jagan (1918 – 1997) was minister-president (1957-1964) and president (1992-1997) of Guyana.

Janet Jagan – Rosenberg (1920-2009) was the wife of Cheddi Jagan, married in 1943. She was president of Guyana from december 1997 – august 1999 and signed the first contract.

MInister Trotman recently declared that his government had decided that ” it was not in national interest to discuss contract details at this time ” (kaieteurnewsonline.com).

Therefore there is presently, 18 years later, a lot of uncertainty and public discussions on the arrangement, on its exact content, on transparency. Amongst all the stakeholders, inhabitants and de facto “owners” of their own natural resources, regarding this important item.

This to know for example how much money Guyana would get from its offshore production.

In 1998, also when Mrs. Janet Jagan was president, Guyana signed an arrangement (PPL) with CGX.
My educated-guess is that the arrangement signed with ExxonMobil in 1999 could resemble the arrangement signed previously with CGX.

The contents of this PPL can be found by researching Internet publications.
The Petroleum Prospecting License (PPL) was signed between CGX Energy,Inc.(Company) and the Government of Guyana (Government) on June 24, 1998.

The main articles/clauses are:

  1. Cost recovery production allocation is as follows.
    Maximum Cost Recovery is 75% during the first 3 years.
  2. Afterwards 65%.
  3. Profit Oil Split (Developer Share):
  4. During the first 5 years, 50% for the first 40,000 b/d.
  5. And 47% for Production above 40,000 b/d.
  6. After 5 years, 45 % for all production.
  7. The Developer does not pay income tax (…what a blessing from Heaven…there are almost no places on this globe where no income tax is paid…).
  8. The PPL provides that the income tax is paid from the Government’s share of the profit oil (…what a piece of cake for contractors, CGX and/or ExxonMobil, how beautiful negotiated).
  9. The Company has an exemption from VAT, exercise taxes, duties, fees, levies and from property tax.
  10. The Company does not pay royalty. ***
  11. This is considered to be included in the Government’s share of profit oil.
  12. (…what a piece of cake for CGX and/or ExxonMobil).
  13. This was apparently re-negotiated with ExxonMobil in 2016.
  14. Was upgraded from 0% formerly to 2% presently.
  15. In my opinion this is still very/far to low.
  16. I would suggest/negotiate if I were to be in the negotiating team, at least 6.5% in post-2017 Licenses. This is almost standard in surrounding areas.

(*** Also see: Petroleum (Exploration and Production) Act 1986 – Act. No. 3 of 1986. And Act No. 4 of 1992:

that is an Amendment of only section 51 in the previous act 1986,  ” Part V – Financial – Royalty on petroleum obtained under license “:

45 (1) Subject to this Act, the holder of a petroleum production license shall, in accordance with his license and this Act, pay to the Government royalty in respect of petroleum obtained by him in the production area to which the licence relates. vs.

50 (1) Royalty payable pursuant to section 45 and any penalty under section 48 is a debt due to the State and recoverable in the same manner as revenues due to the State ***).

Inserted comment: how beautiful is life. You first pay royalty. And immediately recover it back. What is the purpose ? To earn royalty and to give it back immediately? Do not understand this. Cannot believe it.

17. Training expenses of US$ 40,000 per year are required, only during the exploration period. These are qualified as exploration expenses. A very low amount.

17. Annual license rental payments of US$ 40,000 per year are required during the exploration and production period. An extremely low amount.

In my opinion this represents a very good deal (arrangement) for the Company.
And a rather ” inconvenient deal ” for the Government.

Tip that can benefit a country with billions of US$:

Always be so diligent to first design, negotiate and only later sign your own PSC.
Customised with those clauses and articles you wish to have.
Consult e.g. with a clever and seasoned PSC and E&P specialists and advisors with worldwide experience. Once signed it is extremely difficult to change and adapt it substantially. It can yield you really billions US$ extra income, a good contract.

From what I perceive from internet publications the Government did recently renegotiate the original PPL with ExxonMobil and obtained somewhat better conditions.
Including a royalty (2%) and possibly a 50% – 50% overall share.

(P.D. August 15, 2017 – kaieteursnewsonline.com – Abena Rockcliffe-Campbell :“ With all this issue about good deal and so on, you are making an assumption that we renegotiated the contract. That contract was already in place, we inherited that contract,” said Jordan.)

One would assume that the original 1999 PPL was rather favourable for ExxonMobil. Given that it was signed in a period when there was relatively little interest of IOC’s in offshore Guyana.
As is usual in such cases and in high risk, still non-oil-proven basins, it is to be assumed that Guyana has granted rather favourable (“soft”) conditions to ExxonMobil. In order to attract exploration investments with a clear work program, including seismic and drilling.

Present situation.

From “Rags to Riches”, “a nation that did not expect to win the lotto”, “soon to be the richest corner of South America”.

As a blessing from Heaven and the El Dorado, the subsurface of the prolific Guiana-Suriname Basin. In tandem with the splendid assistance of ExxonMobil and their superb team of explorationists and drillers. Already 13 discoveries on a row. Unbelievable. Never seen earlier in a virgin exploration area. Chapeau, top.

Completed with a contract already signed in 1999 Guyana is now beginning to reap the benefits of an unprecedented oil boom.

Much has been debated on the 1999 Petroleum Agreements.

Very good, necessary, lessons learned?

More important now.

The way ahead?

Now that it has become a proven basin, it is a different ball game.

Disclaimer.

This is my personal opinion as an independent global petroleum and mineral resources explorationist. And its intimately related business. commercial, strategy and policy development.

It represents what I would recommend or aim to achieve myself.

If I were part of a Country negotiation or any other team.

(…Sure, if I was sitting on the IOC/Contractor side, as I have so often been.

Then it would negotiate the reverse, most certainly…But that is the game of doing business…

The smartest guy wins.

The innocent, weak and poorly prepared guy looses.

The ” fittest survives “, as Darwin already stated in his famous evolution theory in 1895).

  1. Contracts with new entrants could / should be negotiated with a much better share for Guyana.
  2. Focussing on items as the royalty percentage: least 6.5%.
  3. Mind you:
  4. Sixty one (61) relevant (sub-)articles and clauses are omitted. Not included and not defined in this slender contract.
  5. These all cover items that can/will have an impact. Such as on profit share, environment and fluent, efficient management of the petroleum assets, by the host country.
  6. Ring fencing:
  7. Mind you, does not even appear in the Definitions. Should have been included on page 7. Was omitted, on business as usual purpose, by ExxonMobil ?? Though, financially could/will be impacting positively on cost recovery purposes for the IOC; and negatively for Guyana. For example to prevent costs of dry holes being carried over to that of successful wells.
  8. Article 10 – p.25, Annual License Rental Charge: US $ 1 million. Far to low. A real piece of cake for such an unusual massive area. Could be some US $ 20 million.
  9. Dutch fees (” Dutch treats”) in the Netherlands licenses vary around 500 Euro’s/km2/year (with a sliding, increasing scale).
  10. Possibility for State oil participation, step-in, in production phase: not provided for, as is usual in PSC’s, e.g. up to 25%.
  11. Work obligations for contractors are to low.
  12. Ceiling for cost recovery, can be adapted/lowered.
  13. Above all:
  14. Drastically optimise Guyana’s Profit Share:
  15. From  ‘ Profit Oil “,
  16. With a sliding scale, immediately after the IOC has recouped it’s investments from the ” cost oil ” .
  17. For Guyana Profit Oil Share for example the following sliding R-Factor Slices:
  18. 1) 0-1.25
  19. 2) 1.25- 1.50
  20. 3) 1.50- 1.75
  21. 4) 1.75 – 2.0
  22. 5) 2 – 3
  23. 6) > 3
  24. This would yield a sliding and gradually increasing Guyana Share (%) of respectively 20, 25,30, 40, 50, 70.
  25. Plus the flat, fixed royalty.
  26. The fixed royalty could be sliding scale royalty, increasing as production increases.
  27. Financing: Insurance premiums can be fully recovered. Also interests on loans and financing costs.
  28. Income tax: Government pays the income tax of the IOC. Out of the country profit share.Wow, what a deal, never seen this before. Say a Dutch Treat in the PSC.
  29. Total profits ? Much, much higher, up to some 65%; how many billions US$ does this represent ? Just calculate, run your own cash flow and revenue model.
  30. Much better, higher (really billions US$) than with the actual Agreements.
  31. That have just 2% Royalty.
  32. And a flat 50% from cost oil, for host country share.
  33. Calculate how the revenue through time would be for Guyana in following case:
  34. Given some 5.5 billion barrels reserves (…at April 2019 and more to come…). A production increasing from of 100.00 in 2020 up to 600.000+ barrels in the near future (2025).
  35. As a comparison, with Suriname, next door. Still frontier, not-proven offshore @ august 2018. Most contracts signed before the 2015 Liza discovery.

    Operators in Suriname are obliged to pay a royalty equivalent to 6.25% of gross production value and corporate tax at a rate of 36%.

  36. Financial Engineering:
  37. Valuation and cash flow modelling
  38. In tandem with the expected/prognosed production profiles from the prospects & leads in the-to-be-licenced-areas and in existing fields.
  39. The Fiscal Regime/clauses in the PSC has/have to be flexible, not static.
  40. Why? Adapted to the prognosed prospectively of each block and license. These (can) rank very different in prospectivity.
  41. This includes using exploration and production geology, geophysics, reservoir engineering, that are fundamental.
  42. ???
  43. The best results that I myself could obtain was in the following setting:
  44. An efficient negotiation & fiscal regime team has to consist of merely technical capable persons (…no politicians, unless they have this following knowledge), thus:
  45. An integrated multi-disciplinary team.
  46. Including and where All individuals have extensive grounded knowledge of following 7 (seven) items:
  47. Petroleum exploration and production geology (1)
  48. Reservoir production engineering (2)
  49. Geophysics (3)
  50. Petroleum Sharing Contracts and Fiscal modelling (4)
  51. Contract negotiations (5)
  52. Petroleum laws (6)
  53. (7) Environmental clauses in the present PSC do not cover all possible casualties and clear responsibilitues for the Operator/Contractor:
  54. Social Responsibility and the protection of the Environment.
  55. Article 28. Sub-Articles 28.1 to 28.6, page 63 and 64:
  56. Just 40 sentences. 
  57. In case of a major oil spill ? That could reach neighbouring countries as Venezuela, Trinidad, Barbados etc. in some 48 hours with the westward flowing Gulf stream.
  58. What if ?
  59. Such as in the 2010, with Macondo, 3.2m barrels  oil spill.
  60. Cost BP 13.8 bn US$ in damages @ January 2015 New Orleans courts
  61. Additionally the Clean Water Act penalties would come on top of the more than US$ 42 bn that BP set aside or spent for clean-up, compensation and fines.
  62. By the time you are not Friends but rather big Enemies, and in Court?
  63. Because of all the claims from neighbouring countries due to environmental damages caused by a/your major oil spill.
  64. Do the meager 40 sentences of Article 28 cover and safeguard and cover All your country interests ? Sure about that ?
  65. Will you win a possible (many, many billions US$) lawsuit with just these 40 sentences and 1.2 pages of text in your trembling hands ???
  66. Personally I have my most, most serious doubts.
  67. My own Article on Environment would cover all these casualties. Such as also in the past negotiated for Clients that I served. 
  68. Faites vos jeux, international and petroleum law specialists.
  69. You would by then be in the driver’s seat. In Court.
  70. In case of an oil spill
  71. (…But, sure…you would be in Gold Rush Business. Making lots, millions and millions of money… for legal advise and corresponding fees…from your Clients…during many, many years…).

The main objective of Guyana should be to maximise its petroleum wealth by encouraging appropriate levels of offshore activities.
To this end Guyana must design a robust fiscal system with for example the following characteristics.

It should provide a fair return for both the state and the international companies. It has to be clear and avoid undue speculation, just as is now frequently surfacing in the press. Administration has to be efficient without undue rules, permits and burdens. At the same time it should provide enough flexibility and create a healthy, competitive competition and market efficiency.

Guyana Oil Boom - Sovereign Wealth Fund - - from www.kaieteurnewsonline.com - MCAL
Guyana Oil Boom – Sovereign Wealth Fund – – from www.kaieteurnewsonline.com – MCAL

A much different Petroleum Sharing Contract (Petroleum License Agreement) is certainly highly recommended in my opinion.

Designed and ” financially & subsurface potential engineered ” to produce a contemporary, ” larger and higher fair share distribution and fractionation ” for Guyana and IOC’s.

Compare with 130 PSC’s on www.resourcecontracts.org.                                                 A directory of Petroleum & Mineral Contracts; https://www.resourcecontracts.org/search?q=&country%5B%5D=GY (8 Guyana contracts)

(Inserted note @ May 2018:

I published this blog in august 2017. On my site and on Linkedin.

During 2017 IMF elaborated a confidential report for the Guyana Government (Nov. 2017). Unfortunately it is not published on internet. Apparently it includes the main and same observations that I made before in my blog.

Morale:

Most important PSC items for offshore exploration and production one can figure out on its own. Or with just a small seasoned technical team.

One does not need a whole (…super expensive…) IMF team to ” unveil ”  the most important items.

But just a few seasoned global explorers.

One way to do this is to first develop a clear view of the leads, prospects and play types that Guyana’s offshore acreage has and can offer to IOC’s. This is geology, geophysics, reservoir and production engineering.

Especially on what their expected rewards potential is (subsurface areal OIP – GIP and financial – NPV, cash flow).

Align and link the potential of the different licensing areas with specific corresponding PSC clauses. Customised PSC profit share scales. Not a static fiscal profit share scheme, for all the differing/different leads, prospects, licences.. 

This is usually and frequently done.

Myself I had the opportunity to contribute, with this licensing strategy and philosophy, in other areas, such as nearby Guyana. Where PSC’s have been signed optimal for the home country.

Otherwise you give away for free billions of €€€ and $$$ that you want & need to have in your very own pocket.

Cartoon Kaieteurnewsonline - August 15, 2017 - MCAL
Cartoon Kaieteurnewsonline – August 15, 2017 – MCAL

 

1.2 How much money would Guyana get from ExxonMobil’s offshore oil production, Liza Phase 1?

Guyana - Revenues - Liza Phase 1 Development
Guyana – Revenues – Liza Phase 1 Development – ExxonMobil figure.

How much money would Guyana get from ExxonMobil’s offshore oil production. From coming Liza Phase 1 development.

See on figure the Government Revenue from Profit Oil, in green color. Figure published by ExxonMobil.

This gives a fair idea of what everyone wants to know.

Guyana Government Revenue from Profit Oil is some 7 billion US$.

This amount would be received in the period 2020 – 2033.
Payout is successful in about 4 years.

The economics of the Liza – Payara – Snoek giant fields development is thus highly profitable, with an IRR exceeding 100%.

Eco Atlantic O&G - Liza 1 - Sept. 2018
Eco Atlantic O&G – Liza 1 – Sept. 2018

Guyana earnings, according to its Business Minister Mr. Gaskin ?

” Minimum of US$300 million annually from 100 barrels of oil per day at today’s estimated US$60 per day.”

From march 6, 2018, Demerara Waves – https://guyaneseonline.wordpress.com/2018/03/11/exxonmobils-contract-will-yield-more-royalties-than-gold-business-minister-dominic-gaskin/#more-65372

” Addressing the opening of a Private Sector Commission- organised seminar under the theme “Oil and Gas in Guyana: Perspectives in Guyana”, Gaskin said he had no problem with criticisms of the contract but contended that comparisons with Ghana and Uganda amounted to “incomplete and misleading” information.

Noting that ExxonMobil was not compelled to renegotiate the valid 1999 agreement with Guyana, the Business Minister said the 2016 “revised” Production Sharing Agreement which provides for a two percent royalty and 50 percent of profit oil would earn the country a minimum of US$300 million annually from 100 barrels of oil per day at today’s estimated US$60 per day.”

Marcel Chin-A-Lien – Advisor Petroleum Exploration & Production, Business-Commercial-Policy Development, PSC’s.

” FYI:

All-in-1, Available-to-Serve-You.

For grounded, vintage stewardship to successfully find lots of oil, develop your business and get sustained value for money ?

Contact & Contract Me at marcelchinalien@gmail.com ”

2) Petroleum Geology Offshore Guyana – March 2017 – from Newell Dennison.

Question:

What kind of exploration concepts, playtypes, leads, prospects and subsurface elephants exist in offshore Guyana ?

Taken from and published on internet:

Petroleum Geology Offshore Guyana by Newell Dennison – GGMC –

Guyana Oil and Gas Association Inc. – Oil and Gas Conference – Marriott Hotel Georgetown, Guyana – March 26-28, 2017 –

A brief account of features typical of the offshore Guyana & Takutu bains.

Guyana - Petroleum Geology - N. Dennison - MCAL
Guyana – Petroleum Geology – N. Dennison – MCAL – Fig. 1

 

Guyana - Offshore Concession Status - MCAL
Guyana – Offshore Concession Status – MCAL – Fig. 2

 

Guyana - Petroleum System - MCAL
Guyana – Petroleum System – MCAL – Fig. 3

 

Guyana Basin - Exploration history - MCAL
Guyana Basin – Exploration history – MCAL – Fig. 4

 

 

Guyana - Play Types 1 - N. Dennison - MCAL
Guyana – Play Types 1 – N. Dennison – MCAL – Fig. 5

 

 

Guyana - Play Types 2 - N. Dennison - MCAL
Guyana – Play Types 2 – N. Dennison – MCAL – Fig. 6.

 

3) Guyana, oil, Exxon, Hess, CNOOC China, Lisa, Stabroek

Reblogged from : Verian Mentis – Barker – August 3, 2017

Reference, read more: http://xpressblogg.com/all-hands-on-oil/

Guyana - Hands on Oil - V. Mentis-Barker - MCAL
Guyana – Hands on Oil – V. Mentis-Barker – MCAL

When the International Financial News Organs mention the Liza 1 and 2 and the Stabroek oil wells found in the waters of its off-shore, it’s always with Guyana as the subtext.

Just look at the swagger in these headlines of Forbes Financial Magazine, June 30th 2016, in article by Christopher Helman “With Second Big Oil Discovery, Exxon Puts Guyana On The Map”…yeah, putting Guyana on the map…as Economist Magazine ‘Gusher in Guyana’, article of June 29th 2017 tops it off with sub heading ‘It will take better politicians to resist the corrosive power of petrodollars’

Just for the record….if there is any noble propensity here, it is certainly tempered by a reputation of avarice and narcissism and this is what makes these magnates mount their horses of hubris and ride in to town…not because they are overtaken by any zealous munificence and definitely not because they want to make Guyana its benefactor… only because they are driven to multiply their riches by oil.

First off, their mental image of the leader of Guyana -of any third world country for that matter- comes pre-packaged. For them he’s a meretricious caricature of leadership, achieves spectacularly little, an unrepentant dictator who constantly revises the laws to ensure longevity of rule – as he sips quality champagne from a diamond glass on the tax payer’s dollar…maybe on a private 747 – just to add to the visual.

There’s a famous recount of what happened when Esso Chad, a consortium led by Exxon Mobil, brought business to the little African country and paid USD 4 million to farmers whose lands were spoiled for farming and $1,000 USD for every mango tree cut down to facilitate oil extraction. The choices made by the farmers on spending their new found wealth grew into a common joke and became the prevailing anecdote for the oil magnates when discussing contract compensation.

Reportedly, in their unworldly joy, they spent their money only as they knew how. One took a bath in beer, another left his mud hut and checked in to a four star hotel in Ndjamena for several weeks, others took several more wives. Some did invest in wind mills and more cattle but the focus was on those who did the less enterprising things.

And, in this presumed unsophistication of the third world leader, capitalist buccaneers like Exxon find justification in exploiting their simplicity – a charge copiously documented in Exxon’s multiple Court Cases, legal defenses and its numerous charges and settlements with third world countries.

These modern day marauders never really stumble upon oil, you know.

When they show up, they’ve already done their home work…analyzed the politics of the country, identified the venal politicians, the philistine business men and developed the right kind of palm oil – for those whose palms would be greased.

The Integrity Forum calls it the ‘Voracity Effect’ but it’s really just public officials at their dishonest best.

Thing is, there was a thriving culture of local corruption, when Exxon first sought its exploration in Guyana’s waters. That first contract, covering the Stabroek Block, was signed on or around June 14th 1999 by Janet Jagan with the appendage of Her Excellency and President –titles that will not be validated in this forum, since their legitimacy remain under question.

Nevertheless, Janet signed that exploration contract during the tenure of a dictatorship that did business with foreign governments and conglomerates through murky agreements, creative accounting; much of which landed the country on world Corruption Indices and remain the subjects of internal forensic audits- audits we hope to see completed before the next national elections. She was a pliable subject, undoubtedly and fit the profile of many that resource extractors do business with.

It may be coincidence that resource rich third world countries have this type of politics but it’s incontrovertible that big oil finds a great deal of its holdings in these countries and remains the number one culprit cited when there are discussions involving the paradox of plenty, in these poverty stricken zones.

We were motivated, primarily, by the need to keep an eye on the nation’s patrimony; much of which has been pawned for returns that cannot be shown, by clear accounting, to have benefited Guyanese other than those who served under the PPP dictatorship… recalling the generous $115 million paid by Norway as disincentive to preserve the rain forest which was then sold by the Jagdeo Government to Bai Shan Lin, Vaitarna, Barama in a cross-selling, bid-rigging, price-gouging racket, then covered up in a crafty accounting scheme by, then, Finance Minister, Ashni Singh and signed off by Gitanjali Singh the Director of the Audit Office (Auditor General) who was none other than his wife.

But we were propelled by the involvement of Exxon, this business magnate, steeped in a series of investigations, an unscrupulous chaser of natural resources and market share through investment in resource extraction from small underdeveloped nations.

These are some of Exxon’s not so illustrious deeds:

In 2000, the construction of the USD 4.2 billion Chad-Cameroon pipe line with the promise of 35,000 local jobs …only that it was grossly inflated and deliberately exaggerated …many of the jobs were for bush cutters which lasted no more than 2 days at $6.50 per day and for those with a few more skills, jobs lasted just about three weeks…while Exxon flooded the job site with its imported western laborers.
The promise to the Chadians and Cameroonians to bypass wild life and fishing the mainstay of locals; of improved education and the installation of electricity – leaving instead, half constructed homes, non functional parks, and abandoned fish ponds and electricity projects.
In 2003, its $ 500 million bribe paid directly into the private account of Teodoro Obiang Nguema Mbasogo, the President of Equatorial Guinea, for concessions to the nation’s oil.
Hess is no better. We read the exposé of Hess oil and its link to the Russian mob through Rosnef, -Russia’s oil- and its culture of bribery, more notably to Latin American countries and to African countries through trading name, Amerada Hess.

The Chinese Government’s CNOOC has had its share of bribe, scandals and litigation as far away as Iraq and as close to home as the Caribbean.

And Halliburton, the latest natural resource pariah to join this school of sharks, comes with decades of investment misbehavior, creative accounting that overstates its investment in collusion with corrupt leaders and uses that overstated amount to grease the palms of sleazy government officials.

So, when we learnt of the Coalition’s reticence to declare the details of the oil extraction contract, with Minister Trotman declaring that his government had decided that “it wasn’t in national interest to discuss contract details at this time”, that “they didn’t want to expose all their business to the world”, we thought of the salt-goods shop mentality of the previous government and remembered how these same officials, these upper echelon Coalition members, lambasted the PPP Government from the podium of the Opposition for withholding information on contracts with the Chinese de-foresters – information that would have served the nation better, were it known before they were scammed by them.

And don’t get us wrong.

We see Jagdeo’s demand for ‘full disclosure’ as political impiety, as the hallmark of hypocrisy, as barefaced duplicity and dismiss it as lamentation, distraction, by an insidious loser who is dying to know if contract negotiations are as nefarious as his were – overflowing with personal perks, coordinated with corruption, governed by grifting and grand larceny – and as a pitiful Pavlovian response at the thought of missed undue enrichment that is coming out as cries of foul.

What Trotman said may have sound basis but it was delivered in unprofessional political parlance. The grand take away is that this Coalition is engaging in the same covert behavior that it decried when it was in the Opposition…a takeaway that could have been avoided at the Communications/Public Relations level.

The fact is, Guyana’s natural resources and government –owned service delivery systems are the property of the people; even if there was massive misappropriation of millions of dollars for the failed Amalia Falls project, quiet gifting of land along the country’s defunct train lines, the siphoning of funds and unconscionable compensation for the unqualified engineers in the fiber optic debacle.

Guyanese have a right to know what is being done with their property, as well as, the prerogative to reject the advancement of any argument that suggests a waiting period, before they are told what is being negotiated on their behalf.

There’s a growing disquiet amongst the electorate.

They are now beyond jaded.

Many went to the polls as swing voters, identifying political matters with a transcendent moralism, casting their votes more for moral order than the traditional political ideology and ethnicity. They were tired of being marginalized by a government that flagrantly stole from them, that offered no hope to the generations after them.

The swing vote mattered.

This is political capital that cannot be squandered.

Behind the strategic and tactical problems- not to emphasize the frequent humiliations – things are not coming out right from the Coalition. It’s time for it to sense the limits of its actions, as voter reaction confirms a constantly diminishing yardage of these limits.

People are aware of the discovery of the humongous reserves; know that the harvesting of oil will bring in billions of dollars. Why not give them a sense of how this thing works, an idea of how the contracts are being negotiated?

It is the petroleum contracts that detail the flow of money; that will tell them if Exxon, an investor renowned for rapacious behavior, is not going to hog the revenue from the two blocks…Stabroek and Lisa. There is growing trepidation that Exxon owns 45% of the stake, Hess owns 30% and the Chinese via CNOOC owns 25%. To them that’s 100% of ‘outside’ ownership.

So, tell the people how this thing works, what ownership really means, in this case.

Explain the general parts of the agreement. Let them know, first of all, that the contract will be between the government on behalf of the people of Guyana and oil companies.

Explain that the typical petroleum contract may have hundreds of subsidiaries to it.

Assure them that the contract conforms to the dictates of the Constitution and that the land still belongs to Guyana.

Reassure them that there is built- in environmental protection, biodiversity protection and land conservation – violations of which comprise parts of Exxon’s rap sheet.

Let them know that it is a Production Sharing Contract, that it includes the finding of diesel, butane and petrol as well…that they will all be represented as petroleum in their contract with extractors, that the oil companies will bear the upfront financial burden, pay off their investment expenses, then split the remainder, giving Guyana 50% of those proceeds.

We get that these contracts can be complex, providing for the politics of both government and corporate practices but there is an abundance of empirical evidence that attests to a greater frequency than not of kick backs and payoffs, when transactions are executed in virtual secrecy.

So, answering questions along the way can’t hurt. Moreover, it offers an opportunity for government to let citizens know that it has enlisted the help of proven professionals and the elements of the contract are being discussed on equal footing with these oil magnates …who have designed these contracts… and mostly for their advantage.

The fact is, people are suspicious of outsourcing, engaging foreign countries and conglomerates, offering Guyana’s resources for development because they did not see any benefits or feel the effects of any inflow of revenue, when this happened during the past Administration.

In acceding to power, along with the reins of government, the Coalition inherited a presumption of lawlessness; the image of a government with a Potemkin feel, driven by propaganda and bogus activity, where under qualified and even less suitable staff showed up for work and executed a partisan ideology – much of which steered national gains into individual pockets.

The general sentiment is that elected officials are all corrupt, compromised by the culture of bribe.

And, who can blame them.

Power remains too heavily concentrated in the executive, and, without a robust Judiciary created through long awaited Constitution Reform, the electorate will remain leery of political actions, feeling that there is no real oversight.

This is an opportunity for the Coalition to show that they have chosen the competent ahead of the compromised and that it will go for the upstanding, even if inexperienced.

So stop hemming and hawing…

A refusal to issue contract details, updating upon dramatically changing events, will only cause the Coalition Government to suffer from the twin afflictions of opaque dealings and pernicious intent…not unlike its most recent predecessor.

This new charge for Guyana’s natural resources by these oil titans could become another story of corporate entitlement and government misdeeds or an unprecedented opportunity for economic development.

Oil escalates to a poor country’s most powerful industry – when bad economic planning allows it to subvert other industries …whole other conversation– and is too often allowed to become a parallel government…employing kick back mechanisms and gift envelopes to local officials, to get its way.

We’re not saying that this will happen in Guyana but Exxon, Hess, Halliburton and China’s CNOOC are quite dexterous in these activities and have stood across from various Prosecutors in defense of these activities enough times to be considered pros.

What we are saying is that President Granger, in his eloquent and impressive address to the The Committee on Economic, Social and Cultural Rights (CESCR) at the United Nations on September 28th 2015, spoke of the prodigious potential of the oil find and said that his government’s plans were to ensure that oil revenues reached future generations of Guyana…that efforts to establish a Sovereign Wealth Fund – a state-owned fund established for the benefit of the people, now and future – are well underway.

This lines up with the Coalition’s Manifesto under Natural Resources and the Environment #3: The Fair and Equitable Sharing of benefits arising from commercial utilization of natural resources….

We like the idea of there not being an extractor elite…like there was when logs were being felled by foreigners in our forests.

The promise now is for democratic accountability….

We’re hanging on to that, during this current scramble for the country’s resources…..because the foreign companies that come to the country to make profits never generate wealth for Guyanese….

So far, we’ve only been ripped off.

Reblogged from: http://xpressblogg.com/all-hands-on-oil/

4) Guyana: will its oil boom benefit the people? Al Jhazeera, July 30th, 2018, Video.

https://youtu.be/Akd4RogA-gI

16. Guyana’s oil find $2.7B barrels

16. Guyana’s oil find $2.7B barrels – V.010817

Contents:

0. Arrangement Guyana Government with ExxonMobil.

How much money would Guyana get from ExxonMobil offshore oil production ? – Note Marcel Chin-A-Lien

1.Guyana’s oil find estimated at $2.7B barrels – July 29, 2017 – www.kaieteurnewsonline.com

2.ExxonMobil secures environmental permit ExxonMobil secures environmental permit – Eighth well to be drilled – Jun 13, 2017 News 0 Comments – www.kaieteurnewsonline.com

3. Several questions unanswered about nation’s oil find – July 31, 2017 – www.kaieteurnewsonline.com

0) Arrangement (PPL) Guyana Government with ExxonMobil

How much money would Guyana get from ExxonMobil’s offshore oil production ?

The contents of the arrangement that the Guyana Government in 1999, has signed and apparently recently renegotiated with ExxonMobil, has never been published.

Therefore there is a lot of uncertainty and public discussions on transparency going on regarding this important item.

This to know how much money Guyana would get from its offshore production.

In 1998 Guyana signed an arrangement (PPL) with CGX.

My educated-guess is that the arrangement (PPL) signed with ExxonMobil in 1999 could resemble the arrangement signed previously with CGX.

The contents of this PPL can be found by researching Internet publications.

The Petroleum Prospecting License (PPL) was signed between CGX Energy,Inc.(Company) and the Government of Guyana (Government) on June 24, 1998.

The main articles are:

Cost recovery production allocation is as follows.

Maximum Cost Recovery is 75% during the first 3 years, afterwards 65%.

Profit Oil Split (Developer Share): During the first 5 years, 50% for the first 40,000 b/d. And 47% for Production above 40,000 b/d. After 5 years, 45 % for all production.

The Developer does not pay income tax. The PPL provides that the income tax is paid from the Government’s share of the profit oil.

The Company has an exemption from VAT, exercise taxes, duties, fees, levies and from property tax.

The Company does not pay royalty. This is considered to be included in the Government’s share of profit oil.

Training expenses of US$ 40,000 per year are required, only during the exploration period. These are qualified as exploration expenses.

Annual license rental payments of US$ 40,000 per year are required during the exploration and production period.

In my opinion this represents a very good deal (arrangement) for the Company.

And a rather ” inconvenient deal ” for the Government.

Tip that can benefit a country with billions of US$:

Always be so diligent to first design, negotiate and only later sign your own PSC.

Customised with those clauses and articles you wish to have.

Consult with clever and seasoned PSC and E&P specialists and advisors with worldwide experience. Once signed it is extremely difficult to change and adapt it substantially to your benefit.

From what I perceive from publications the Government did recently renegotiate the original PPL with ExxonMobil and obtained somewhat better conditions.

Including a royalty and a better overall share.

One would assume that the original 1999 PPL was rather favourable for ExxonMobil. Given that it was signed in a period when there was relatively little interest of IOC’s in offshore Guyana.

As is usual in such cases and in high risk, still non-oil-proven basins, it is to be assumed that Guyana has granted rather favourable (“soft”) conditions to ExxonMobil. In order to attract exploration investments with a clear work program, including seismic and drilling.

Now that it has become a proven basin, it is a different ball game.

Contracts with new entrants could be negotiated with a much better share for Guyana.

By focussing on items such as the royalty percentage, ring fencing, the ceiling for cost recovery. By drastically optimising its profit share, from the profit oil. Immediately after the IOC has recouped its investments from the ” cost oil ” .

Financial engineering, valuation and cash flow modelling, in tandem with the expected production profiles from the fields are fundamental in this respect.

The main objective of Guyana should be to maximise its petroleum wealth by encouraging appropriate levels of offshore activities.

To this end Guyana must design a robust fiscal system with for example the following characteristics. It should provide a fair return for both the state and the international companies. It has to be clear and avoid undue speculation, just as is now frequently surfacing in the press. Administration has to be efficient without undue rules, permits and burdens. At the same time it should provide enough flexibility and create a healthy, competitive competition and market efficiency.

A much different Petroleum Sharing Contract is certainly highly recommended in my opinion.

How much money would Guyana get from ExxonMobil’s offshore oil production ?

The following estimate represents merely my own and personal opinion.

Assuming that the ExxonMobil PPL contains the same articles as the PPL with CGX.

A ballpark estimate of the monies involved is as follows.

Precise data must be obtained by making a full DCF economic analysis.

Assumptions are:

Gross oil production volume of 1.5 billion barrels, 160 thousand /bbls /day /during 13 years, oil price US$ 50 / barrel, Capex-Opex 11 billion US$, initial production starting 2020:

Total oil revenue is some 75 billion US$.

Total profit oil is 68 billion US$.

Guyana Government Profit Share is some 35 billion US$.

This amount will be received in the period 2020 – 2033.

Almost 3 billion US$ per year.

Payout (end of negative cash flow) is reached in about 4 years, in 2024.

The economics of the Liza – Payara – Snoek giant fields development is highly profitable, with an IRR exceeding 100%.

Marcel Chin-A-Lien – Advisor Petroleum Exploration & Production, Business-Commercial-Policy Development.

1) Guyana’s oil find estimated at  $2.7B barrels

Jul 29, 2017 News 0 Comments –  www.kaieteurnewsonline.com –  V.30717

-Says govt. will receive revenue from day one

ExxonMobil’s Operations Manager, Doug Mc Gehee, on Thursday updated a room full of entrepreneurs about the oil giant’s activities in Guyana. This was at the launch of the eighth edition of the Georgetown Chamber of Commerce and Industry’s (GCCI) Business Guyana Magazine.

Mc Gehee painted a bright picture about what Guyana can expect when oil production begins. So detailed was Mc Gehee’s presentation that GCCI’s Nicholas Boyer, said that he learnt a lot and was reminded of many details surrounding ExxonMobil’s activities in Guyana.

However, much of what was said focused on the drilling and exploration activities itself as opposed to the agreements that it has with the government on oil production. Mc Gehee spoke extensively about the drilling activities and went into some technicalities about the drilling activity.

He noted that the overall estimation of oil already discovered in Guyana is now between 2.25 billion and 2.75 billion oil equivalent barrels. This, according to Mc Gehee, represents oil bearing rocks found in Liza one, two, three and four wells, Liza deep, Payara and Snoek. He reminded that oil was not found in commercial quantities at the SkipJack well.
Mc Gehee even joked that when Skipjack was found empty, they decided that the luck was with Liza so they named the others Liza three, Liza four and Liza deep.

The Operations Manager said that ExxonMobil is committed to exploiting the full potential of the Stabroek Block and “so we will keep drilling.”
He said that about 120 barrels of oil will be produced a day for the first 20 years in Guyana.
During his speech, President of GCCI Deodat Indar charged Mc Gehee to shed light on a few issues. Indar was keen to note that the GCCI is pleased that a world class company such as ExxonMobil has invested heavily in Guyana.

He said, “We are committed to working with you. It is with a degree of excitement that I say, I am pleased to see the announcement that over 140 Guyanese companies now supply either goods or services to ExxonMobil offshore operations.
“Also that you have created a Local Content Center aimed at developing Guyanese businesses to become oil industry compliant suppliers.”
Indar said that it takes a supply boat approximately 10 hours travelling at 9.5 nautical miles per hour to reach the offshore operations compared to 24hours from Chaguaramas, Trinidad to reach Exxon Offshore Operations.

He said that this speaks to time and costs, obviously Guyana being cheaper in this case. He added, “So I am also pleased to see the contract for the onshore base being awarded right here in Guyana, which I understand, Muneshwers’ are hiring Guyanese like crazy.”
The Chamber President noted that ExxonMobil has license to explore 6.6 million acres of land offshore Guyana. “To put that in perspective means that the Island of Trinidad can fit 5.2 times in the blocks now controlled by ExxonMobil.

“The world class finds in the Liza field and Payara Field say clearly that the oil reservoirs are huge. In some corners of the oil industry this is termed, ‘basin masters’. So with this large resource at your control comes a huge responsibility to the Guyanese people.”
He then charged Mc Gehee to inform this gathering “how you see the role of Exxon in the development of Guyana.” But Mc Gehee did not say too much on this.
“Let us understand where you intend to direct resources to build internal capacity in the areas of labour, providing goods and services to you as a major operator. Over the past three years you have conducted exploration and drilling activities in Guyana.

“We would like to see more Guyanese involvement in the workforce for low end jobs such as cooks, chippers and painters, ablebodied riggers, ablebodied Unlimited riggers, Banksmen on the supply boats and Stena Carron if that’s possible at this time.”
In this regard, Mc Gehee said that already, 60 to 70 percent of the crew on the supply vessel is Guyanese. He said that more are to be employed by ExxonMobil. However, he did not speak to how a Guyanese business can bid to provide service to Stena Carron.

Guyana - Payara 2 Giant discovery - ExxonMobil - MCAL
Guyana – Payara 2 Giant discovery – ExxonMobil – MCAL

“At the end of the day it is Guyanese taxpayers who will be footing the bill as a deduction from its future earning; therefore it is only fair that we be given first priority as they say in Canada, for all things soap, rope and dope. “

2) ExxonMobil secures environmental permit ExxonMobil secures environmental permit –   Eighth well to be drilled – Jun 13, 2017 News 0 Comments — www.kaieteurnewsonline.com

While politicians and anti-corruption advocates alike continue to call for more transparency in the activities of ExxonMobil and its negotiations with the Government of Guyana, the oil giant continues to move closer to

(Photo: The Stena Carron will be part of the drilling programme at the Payara-2 well.)

getting its production licence. Kaieteur News understands that within the last week, the Environmental Protection Agency (EPA) granted ExxonMobil its Environmental Permit. ExxonMobil’s Senior Director of Public and Government Affairs, Kimberly Brassington confirmed this yesterday.

Brassington said that the Environmental Permit is for the Liza phase 1 development project.She said, “Before a development project goes forward there are two key projects that Exxon, as an operator, looks for—the first is to have the Environmental Permit and then Production Licence.”

Brassington continued, “It is significant that we have the Environmental Permit to go forward with the project and now we are waiting on the Production License which will come on the government.” Brassington said that the final investment decision will follow the receipt of the production licence.

Back in May 2015, ExxonMobil made its first announcement of a huge oil find in the Liza-1 well and encountered more than 295 feet (90 metres) of high-quality oil-bearing sandstone.

A second well was drilled – Liza-2 – and the company confirmed the finding as “significant,” with a potential recoverable resource of 800 million to 1.4 billion barrels of oil equivalent.

Drilling operations on ExxonMobil’s Skipjack prospect, the company’s third well in the Stabroek Block offshore Guyana, yielded disappointing results. It was reported that the company did not find commercial quantities of hydrocarbons within that well.

The Liza-3 appraisal well was subsequently drilled to a total depth of 18,100 feet in 6,000 feet of water on a location about 2.7 miles from the Liza-1 discovery.

The well hit around 200 feet of net pay “in the same high-quality reservoirs” as the first two Liza wells, according to ExxonMobil partner Hess, which further solidified the potential recoverable oil in the reservoir.
EIGHTH WELLMeanwhile, the company through its affiliate Esso Exploration and Production Guyana Limited (EEPGL), is gearing up to drill its eighth well in the Stabroek Block offshore Guyana.

In an advertisement published in last Monday’s edition of the Kaieteur News, the Maritime Administration Department (MARAD) stated that the EEPGL will commence the drilling programme at the Payara-2 well next Tuesday, June 20.

This programme is scheduled to last for a three-month period.The drill site is approximately 108 nautical miles from the coast of Guyana and covers an area of one square kilometre.A previous well was drilled at Payara – Payara-1 – and is ExxonMobil’s second oil discovery on the Stabroek Block. It encountered more than 95 feet of high quality, oil bearing sandstone reservoirs.

The well data will be analyzed to better understand the full potential of the well. The Snoek-1 well discovery was announced in March 2017. Snoek is ExxonMobil’s third oil discovery on the Stabroek Block and was drilled in a new reservoir. It encountered more than 82 feet of high quality, oil-bearing sandstone reservoirs.

The well data is being analyzed to better understand the full potential of the well. Kaieteur News contacted ExxonMobil’s Head Office in Georgetown yesterday, and was told that the drill ship, Stena Carron is currently wrapping up an exercise at the Liza-4 well and will soon move over to the Payara area.

The drilling operation at the Payara-2 well, will utilise the following vessels: Stena Carron, M/V Cat Island, M/V Fast Titan, M/V Hannah Chouest and the HOS Commander.All mariners are required to stay clear of these vessels and navigate with caution when in this vicinity.

3) Several questions unanswered about nation’s oil find.
Jul 31, 2017 News 0 Comments — www.kaieteurnewsonline.com

– Georgetown Chamber of Commerce

The Georgetown Chamber of Commerce and Industry (GCCI) still has many unanswered questions about the future of Guyana with oil as one of the main resources contributing to the country’s economy.

GCCI recently launched the eight edition of its yearly magazine—Business Journal. This year’s edition focused on “the promise of oil.”
Because of the theme of the Magazine, GCCI invited an executive of ExxonMobil to speak at the event as well as Minister of Natural Resources, Raphael Trotman. While ExxonMobil’s Operations Manager, Doug Mc Gehee attended the event; Minister Trotman was a no show.

However, GCCI was hoping to have the Minister shed light on many issues at the event.
During his speech, GCCI President, Deodat Indar said that the Chamber is committed to working with the Minister and the Ministry of Natural Resources. He said, however, that like any good partner, the chamber will constructively criticize when necessary for the good of the private sector and by extension the Guyanese workers.

Indar commended Minister Trotman in his absence for his outreach with respect to consultation on the oil refinery prospects for Guyana, local content policy and the Petroleum Commission Bill.
He then expressed hope that Trotman can make a few things clear to the members of the Chamber who were present at that forum.
“Minister, in your delivery, I would like to first charge you to give this gathering of great minds here your thinking and intention on the local content policy that is currently in its draft stage, in terms of: the date we should expect an approved policy? And, what model was used as a framework to develop the current draft policy?”

With respect to the Petroleum Commission Bill that is before a parliamentary select Committee; Indar said that the GCCI is very interested in knowing, “What external model was considered in the drafting of the bill? And, was it Newfoundland, Norwegian, Australian, Alaskan?”

Photo; President of GCCI Deodat Indar

Also, Indar expressed hope that the Minister would explain the proposed Petroleum Commission Board and its makeup, independence, appointment, remuneration and removal of Board members.
Further, the GCCI president wanted to know how the bill meshes with good governance, transparency and being Bi-partisan.
“We see from many parts of the daily media and on social media that we have the potential to be a wealthy nation with flow of oil money. Guyana can witness an economic explosion with the Gross Domestic Product (GBP) growing between 400 to 2000% in the next two decades.”

He continued, “We also know as seasoned business people that basic management principles dictate a company with a diversified base of products and services are likely to be healthy and sustainable, these same principles apply to running a country.”

The businessman said that it is imperative that Guyana learns from the mistakes of others and recognizes that any country that has its economy dependent on one or two sectors will be doomed by it in the long term. He pointed to what is going on in Venezuela where 95.6 percent of its economy is dependent on oil which among other things has fractured its society. Indar said that a diversified economy will lead to a sustainable economy.

With that being said, Indar expressed hope that Trotman can shed light on government’s plan to ensure a diversified economy.
Indar said too that the GCCI hopes that the government is already working on strategies for the most effective use of oil revenues. He said, “We would like to see expenditure in the area of; education, healthcare, infrastructure such as bridges, roads, ports, ICT, quality infrastructure and programs for the alleviation of the poor.”

Finally, Indar turned his attention to the outstanding Sovereign Wealth Fund policy.
He noted that the Sovereign Wealth Fund is supposed to be a rainy day fund. He said however that the GCCI found that some countries use monies from their Sovereign Wealth Fund for current year running expenditure that are supposed to be funded from normal revenue cycles of government. Indar expressed his opinion that, “this is not what a SWF should be; I have just describe what would be tantamount to putting your money in a bag with holes if government is to take this approach. I warn against it.”

The President of the Chamber said that it would be welcomed if Trotman can give explanations on “What model was used to develop the framework for the SWF and when would we expect a first draft to be release so we can provide commentary?”
While all those answered requested by Indar remain outstanding, a few questions were answered by ExxonMobil’s Operations Manager, Dough Mc Gehee.

He gave those who gathered a detailed run down on the operations. Mc Gehee noted that the overall estimation of oil already discovered in Guyana is now between 2.25 billion and 2.75 billion oil equivalent barrels. This, according to Mc Gehee, represents oil bearing rocks found in Liza one, two, three and four wells, Liza deep, Payara and Snoek. He reminded that oil was not found in commercial quantities at the Skipjack well.

Mc Gehee even joked that when Skipjack was found empty, they decided that the luck was with Liza so they named the others Liza three, Liza four and Liza deep.
The Operations Manager said that ExxonMobil is committed to exploiting the full potential of the Stabroek Block and “so we will keep drilling.”
He said that about 120 barrels of oil will be produced a day for the first 20 years in Guyana.

4)

 

9. Geología – Día del Apóstol Santiago y Patria Gallega – 25 Julio

Santiago de Compostela - MCAL
Santiago de Compostela – pic. MCAL

9. Geología – Día del Apóstol Santiago y Patria Gallega – 25 Julio – V.010817

Santiago de Compostela.

Contenido (12):

1. Introduccion

2. Día del Apóstol Santiago y Día de la Patria Gallega – 25 Julio 2017

3. Día del Apóstol Santiago y día grande de Galicia

4. ¿Desde cuándo Santiago Apóstol es patrón de España?

5 ¿Desde cuándo se celebra el Día de Galicia cada 25 de julio?

6. Parador de Santiago de Compostela – 5 Stars – GL

7. Santiago de Compostela (Old Town) is located in Galicia, situated in the far north-west of Spain.

8. La rocas de Santiago de Compostela:

9. Geology of Galicia

10. Investigadores de Madrid y Salamanca lideran un proyecto nacional centrado en el puzle geológico gallego

11. Un canto a Galicia – Cancion – Julio Iglesias, iconic song

12. Musica de Tuna – Pasa la Tuna rondando – Video sobre la historia de la Tuna

”  All-in-1 Consultant,  Available-to-Serve-You.

For grounded, vintage stewardship to successfully find lots of oil, mineral resources, develop your business and get sustained value for money ?

See <Contact & Contract Me> at marcelchinalien@gmail.com “.

Doei, salu2, ciao, até logo, grüssen, cordialement, salut, добрый день, ajoo, tur kos bon mi dushi hendenan na Switi Sranan i mi famiri na switi Korsou, tan bun allamala !

1) Introduccion

Marvellous Old Town, unique Parador Nacional hotel, superb sea food, wine, música de las tunas españolas y portugueses en Plaza Obradoiro, peregrinos, splendid Gondwana and Laurussia geology and rocks, a swirling cocktail in this post.

” Un canto a Galicia “. Nostalgia del tiempo que huye y esperanza de un dia renacido. España.

History, architecture, a culinary experience, music, Spanish fiestas, geology, during the last week of July.

Explore, discover, dream away.

One of the trips with my dear family. With mainly my own pictures (not – photo shopped).

Previously I had twice visited Santiago de Compostela.

The first time as a primary school kid with my parents and the whole family at the end of the fifties. On our way from the Netherlands, back home to the Caribbean.

To our little paradise island, discovered in 1499 by Alonso de Ojeda and Amerigo Vespucci. As part of the third trip of Christophorus Columbus (1498-1500) to America. When the world for most people was still flat, like a wet sub-sea Dutch polder or a delicious pizza dalla bella Napoli.

During the sabbatical year of my dear dad in Europe.. Exploring and crossing the Old Continent by bus and train. The trip during which I most probably became infected and incubated by the exploration virus, that has happily accompanied me since then. Such as from Amsterdam, via within others Paris, Lourdes, Irun, Barcelona, Madrid, Toledo, Salamanca. Further south to Fatima and the harbour of Lisbon. Homeward bound on the cruise liner Santa Maria, among the largest and most luxurious Portuguese-flag liners at the time. An exciting and interesting story. Similar to Chistophoro Columbus, crossing the wide Atlantic.

Soon afterwards, on 23 January 1961 the Santa Maria became (in)famous as the first cruise liner to be hijacked, by Portuguese and Spanish political rebels. Aiming to force political change in Portugal. The chief architect and leader was Henrique Galvao. A Portuguese military officer, writer and politician exiled in Caracas, Venezuela since 1959. The hijacking ended when, after the US naval intervention, the ship arrived in Recife, Brazil, where the rebels were given political asylum.

An iconic hijacking history.

Henrique Galvão wrote his account of the hijacking as A Minha Cruzada Pró-Portugal. Santa Maria (São Paulo, Livraria Martins, 1961), translated as Santa Maria: my crusade for Portugal (Cleveland OH, World Publishing/London, Weidenfeld & Nicolson, 1961).

Eric C. de Brabander has written a novel related with the hijacking. After 50 years he discovers that he is the son of one of the hijackers. Lost since long and living in Brazil. Vieira, owner of a supermarket in Curacao. A historical novel ” De supermarket van Vieira” (2013, ISBN10: 9062658415).

The story of the hijacking was told in the 2010 Portuguese feature film Assalto ao Santa Maria.

Ourselves we followed this hijacking ” live ” and with much attention, knowing and having been for 2 weeks on this ship. It was breaking news then, in the newspapers, on my own Panasonic transistor radio and on the black & white tv at home.

The second time I visited Santiago was in 1976. With Wim Litjens, now barrister-at-law, then brown cafe buddy and one of my 15 housemates from historical student house Huize Maupertuus in Hogewoerd 76, Leiden. When we crossed and explored Europe, from Leiden southwards to Coimbra in Portugal. Visiting within others Paris, Bordeaux, Cataluna, Costa Brava, Blanes, Barcelona, la Rioja, Leon, Salamanca, Ciudad Rodrigo, Galicia, Asturias, Belmont de Miranda, Pais Vasco etc. etc. etc.

A voyage in my 2CV Citroen.

On the return trip, from Bilbao back home, crossing the Pyrenees with only one (1) cylinder, as de second one was damaged. At 60 km. per hour.

Please join, enjoy !

And certainly visit, if you have the opportunity.

2) Día del Apóstol Santiago y Día de la Patria Gallega – 25 Julio 2017

Esta es una fecha muy importante para la ciudad, ya que reúne el tema religioso y el político, porque este día se conmemoran dos hechos muy importantes.

Generalmente se celebra en el Ayuntamiento de la ciudad y en las plazas públicas, donde se realizan actos, espectáculos, conciertos, obras que representan estos hechos.

Santiago de Compostela - MCAL 5
Santiago de Compostela – MCAL 5

La celebración comienza el 24 por la noche como víspera del día de la fiesta, en la plaza principal de la ciudad, la Plaza del Obradoiro se desarrolla una gran ceremonia con fuegos artificiales y productos pirotécnicos. Algo realmente imperdible. Así comienza la quincena dedicada a estas celebraciones.

Santiago de Compostela - MCAL 17
Santiago de Compostela – MCAL 17

Es el día 25 cuando se realizan las ofrendas al Apóstol Santiago, es una escena muy emotiva ver como miles de seguidores llegan a la Catedral a dejar su homenaje.

Santiago de Compostela - MCAL 2
Santiago de Compostela – MCAL 2

3) Día del Apóstol Santiago y día grande de Galicia

El 25 de julio todos los años se celebra el Día de Galicia y la Festividad del Apóstol Santiago, una celebración que tiene lugar en múltiples localidades españolas y puntos de todo el mundo.

Sin embargo, desde el final de la Dictadura en España, el Día del Apóstol no es festivo en todo el país, sino únicamente en las comunidades autónomas que así lo deciden cada año al configurar su calendario de fiestas, con la excepción de Galicia, que celebra su día grande, por lo que es festivo todos los años.

Santiago de Compostela - MCAL 4
Santiago de Compostela – MCAL 4

El Apóstol Santiago es una de las figuras más importantes de santoral cristiano y leyenda en torno a la que surge el fenómeno de la peregrinación del Camino de Santiago hace más de mil años en el norte de la Península.

Tras el supuesto descubrimiento del sepulcro donde descansaban sus restos, alrededor del año 813, numerosos cristianos del norte de la geografía comenzaron a peregrinar a lo que hoy es Santiago de Compostelapara mostrar su devoción.

Esta costumbre se convirtió en tradición, expandiéndose el fenómeno del Camino de Santiago a toda Europa, por lo que la ciudad santa se convirtió en uno de los centros de peregrinación más importantes de la cristiandad, junto a Roma y Jerusalén.

Santiago de Compostela - MCAL 6
Santiago de Compostela – MCAL 6

La importancia del Camino, la figura de Santiago Apóstol y la propia ciudad como centro de peregrinación hicieron que en el año 1122 el papa Calixto II decidiera implantar el Año Santo Compostelano, celebrándose cada año en el que el 25 de julio cayera en domingo.

En cada Año Santo o Xacobeo (se celebra 14 veces cada siglo) se otorgan indulgencias a todos aquellos peregrinos que en Santiago de Compostela cumplan los requisitos de visitar la catedral, recibir los sacramentos y rezar una oración.

Santiago de Compostela - MCAL 7
Santiago de Compostela – MCAL 7

4)¿Desde cuándo Santiago Apóstol es patrón de España?

Pese a que desde el siglo IX los reyes de la reconquista reconocían a Santiago Apóstol como su patrón, no fue hasta el siglo XVII cuando el patronato de España le fue concedido al santo.

Fue por obra del papa Urbano VIII, quien parece que por presiones del clero compostelano en 1630 decidió, bajo el reinado de Felipe IV, que el apóstol Santiago el Mayor fuera reconocido oficialmente como único patrón de España (que desde 1627 compartía con Santa Teresa de Jesús). Esta decisión se hizo conjuntamente con el reconocimiento por parte de la Iglesia de que sus restos estaban enterrados en Compostela y estableciendo además que la festividad de Santiago Apóstol se celebrara cada 25 de julio.

Santiago de Compostela - MCAL 8
Santiago de Compostela – pic. MCAL 8

Desde 1646, por obra de Felipe IV, está institucionalizado el Voto de Santiago, que siguiendo la tradición de los reyes cristianos del norte de la Península en los tiempos de la Reconquista, daba una ofrenda por parte de los reyes, príncipes y del arzobispo de Compostela a la Iglesia de Santiago cada 25 de julio. Esta ofrenda sigue teniendo lugar a día de hoy, aunque de forma simbólica, en la celebración de la misa en el Día del Apóstol.

Santiago de Compostela - MCAL 9
Santiago de Compostela – pic. MCAL 9

5) ¿Desde cuándo se celebra el Día de Galicia cada 25 de julio?

La celebración del Día de Galicia, Día Nacional de Galicia o Día da Patria Galega cada 25 de julio, coincidiendo con el Día del Apóstol, es una iniciativa que surge en una reunión de Irmandades da Fala en 1919, una agrupación cultural y política gallega de carácter nacionalista, que determina que esta festividad se celebre cada año a partir de 1920. Durante la dictadura franquista, se prohibe la celebración, que pasa a la clandestinidad y a celebrarse por los emigrantes gallegos en el extranjero; no es hasta 1979, por decreto de la Xunta de Galicia, cuando se establece como fiesta oficial de la Comunidad Autónoma de Galicia.

Santiago de Compostela - MCAL 10
Santiago de Compostela – my own pic. MCAL 10

6) Parador de Santiago de Compostela – 5 Stars – GL

We stayed in one of the most luxurious and beautiful hotels in the Paradores chain, located in Santiago de Compostela.
In this city, the destination of millions of pilgrims, rays of sunlight illuminate the building façades in summer and the rain creates a magical ambiance that overtakes the cobbled streets in winter.
The Parador de Santiago, known as the Hostal dos Reis Católicos, is a blend of history, art and tradition, the dream of pilgrims and emblem of Santiago.
It is located on Obradoiro Square near the cathedral, creating an area of spectacular beauty in one of the most visited provincial capitals in the world.
A stay at this Parador means a visit to a truly unique and exclusive location.
Santiago de Compostela - MCAL 11
Santiago de Compostela – MCAL 11

The hotel was built as a royal hospital in 1499 to accommodate pilgrims traveling to Santiago.

Today, it continues to invite visitors to enjoy a city that is as universal as it is fascinating. Inside this Parador Museum, considered the oldest hotel in the world, you will discover four beautiful cloisters, elegant rooms, spectacular guest rooms and a luxurious dining room that offers fish and meat prepared in the Galician style, along with classic apple filloas (a type of crêpe) and crème brûlée.

Santiago de Compostela - MCAL 12
Santiago de Compostela – pic. MCAL 12

Santiago is a magical city of almost indescribable beauty, where you will not only look, but you will also feel.

In addition to the cathedral and the spectacular Obradoiro and Quintana squares, other sights include Santa María A Real do Sar Collegiate Church.

Together with the cathedral, this is the church that has preserved the largest part of its original Romanesque stonework and it has an interior with lovely proportions.

There is also the Renaissance Colegio de Fonseca (Fonseca School) and the magnificent San Martiño Pinario Monastery. These are just some of the places well worth visiting in the city’s fine historic district.

Santiago de Compostela - MCAL 12
Santiago de Compostela – MCAL 12

The charm and the hustle and bustle of Abastos Market in the morning; the beautifully maintained Alameda Park, which boasts spectacular views of the old quarter; the church, convent and park of San Domingos de Bonaval, home to the Pantheon of Illustrious Galicians; and the green spaces around the capital, extending all the way to the sea, just half an hour away, will guide you through this city brimming with history and beauty.

It marks the end of the Camino (Way of St. James) and the start of a one-of-a-kind experience we invite you to enjoy in exceptional accommodations, the Parador de Santiago.

Santiago de Compostela - MCAL 13
Santiago de Compostela – MCAL 13

7) Santiago de Compostela (Old Town) is located in Galicia, situated in the far north-west of Spain.

In the beginning of the 9th century, a hermit called Pelagius saw a mysterious light shining over a Roman tomb forgotten in the middle of a forest. Very soon, the incredible news spread all over the Christian world: the tomb of St. James the Greater, the beloved apostle of Jesus Christ, had been discovered in a far site near the finis terrae, the end of the known Earth, in the northwest of Iberian Peninsula.

Santiago de Compostela - MCAL
Geologic map Santiago de Compostela – info.igme.es, hoja 94, 4-7 – MCAL

A few years later, this site became a famous pilgrimage town, one of the most important of Christianity. Pilgrims came from all over Europe following the Camino de Santiago to reach the city born around the Holy Tomb, exercising a great influence on the surrounding area.

This is evidenced in the small towns, churches, hospitals, and monasteries that were built near the Camino to attend to the thousands of pilgrims who came to visit the tomb. This influence in the local architecture and art was especially strong and long-lasting in the north-west of Spain, but the fame and the reputation of the sanctuary of Santiago de Compostela went well beyond; Galicia was even known in the Nordic sagas as Jakobsland.

Santiago de Compostela - MCAL 14
Santiago de Compostela – MCAL 14

This famous pilgrimage site also became a symbol in the Spanish Christians’ struggle against Islam. Destroyed by the Muslims at the end of the 10th century, it was completely rebuilt in the following century.

The Old Town of Santiago de Compostela, together with the outlying Santa Maria de Conxo Monastery, constitutes an extraordinary ensemble of distinguished monuments. The squares and narrow streets of the Old Town contain Romanesque, Gothic, Renaissance, Baroque, and Neoclassicist buildings.

This town is not only a harmonious and very well preserved historical city, but also a place deeply imbued with faith. The cathedral, considered as a masterpiece of Romanesque architecture, keeps the remarkable Pórtico de la Gloria, a jewel of the medieval sculpture. However, the authentic symbol of the city is the Baroque western façade of the cathedral, which forms one of the sides of the square of Obradoiro, one of the world´s most beautiful urban areas.

Santiago de Compostela - MCAL 16
Santiago de Compostela – MCAL 16

The phenomenon of pilgrimage is not only a relevant historical fact, but also a continuous movement thanks to the celebration of the Holy Years.

Criterion (i): Around its cathedral, which is a world renowned masterpiece of Romanesque art, Santiago de Compostela conserves a valuable historic centre, known as one of Christianity´s greatest holy cities. All European cultural and artistic currents, from the Middle Ages to the present day, left extraordinary works of art in Santiago de Compostela.

Santiago de Compostela - MCAL 17
Santiago de Compostela – pic. MCAL 17

Criterion (ii): During both the Romanesque and Baroque periods, the sanctuary of Santiago de Compostela exerted a decisive influence on the development of architecture and art, not only in Galicia, but also in the north of the Iberian Peninsula.

Criterion (vi): Santiago de Compostela is associated with one of the major themes of medieval history. From the shores of the North and Baltic Seas, thousands of pilgrims carrying the symbol of the scallop and the pilgrim’s staff walked, for centuries, to the Galician sanctuary along the paths of Santiago de Compostela, veritable roads of the Faith.

Santiago de Compostela - MCAL 16
Santiago de Compostela – pic. MCAL 16

Integrity

The property encompasses 108 ha, with a 217 ha buffer zone. Santiago de Compostela shows a remarkable state of conservation, largely due to conservation policies that have preserved the integrity of monuments and buildings that form the civil and religious architectural ensemble.

Elements from the Middle Ages are integrated with those from the Renaissance, as well as the constructions from the 17th and 18th centuries into a high-quality urban fabric. The Old Town is a liveable and lively place where inhabitants and business coexist with tourism.

The urban development has respected natural spaces where the green Galician fields join the historical city. In this respect, the property integrates the urban ensemble, historical oakwoods and open green spaces.

Santiago de Compostela - MCAL 18
Santiago de Compostela – MCAL 18

Authenticity

Throughout its history, Santiago de Compostela has received different influences, and the Old Town has integrated these different styles and currents with local traditions. The result of this mixture is a city where the original Galician architecture, with its typical wooden galleries and traditional materials, like stone, wood, or iron, combines with great monuments that constitute a splendid tour across the history of European and universal art.

Santiago de Compostela - MCAL 19
Santiago de Compostela – MCAL 19

Protection and management requirements

The conservation of Santiago de Compostela is the responsibility of the Consortium of Santiago de Compostela, created in 1991 and integrated by the national, regional, and local public administrations, as well as the archbishopric and the University.

From its creation, the Consortium has carried out important works of restoration of monuments and public spaces, and has subsidized and implemented rehabilitation projects, both for housing and business premises in order to preserve the traditional activities of the historical centre. It also supports conservation actions carried out by the Town Hall of the city and the autonomous government of Galicia.

Santiago de Compostela - MCAL 20
Santiago de Compostela – MCAL 20

The regulatory framework that allows for conservation and management action is prescribed in the Special Plan for the Protection and Rehabilitation of the City of Santiago de Compostela.

Santiago de Compostela - MCAL 21
Santiago de Compostela – MCAL 21

In terms of management challenges, Santiago de Compostela is facing the pressures of mass tourism, which produces overcrowding around the cathedral and provokes changes in traditional commercial activities.

Actions have been undertaken towards diversifying the touristic offer and diverting visitor flows to the suburbs of the city, such as with the construction of the City of the Culture of Galicia, a modern complex constructed by the Regional Government on Mount Gaias, in the proximity of the historical centre of Santiago de Compostela. In the future, adaptive changes will need to be foreseen in the Special Plan for the Protection and Rehabilitation of the City of Santiago de Compostela to preserve the traditional commercial activities in the Old Town, and to support the policies of conservation of buildings and monuments, as well as the recovery of degraded spaces.

Santiago de Compostela - MCAL 22
Santiago de Compostela – MCAL 22

8) La rocas de Santiago de Compostela:

Santiago de Compostela - piedras - MCAL2
Santiago de Compostela – piedras – MCAL2

Sobre las diferentes rocas igneas y metamorficas utilizadas en los edificios, casas y plazas se ha publicado un interesante trabajo titulado ” As Pedras de Compostela ” de Ma. Concepcion Gonzalez Adan y Pedro Cantineras Garcia. Fue editado para celebrar el dia de la Geologia , titulado Geolodia en Espana.

Los Geolodías quieren divulgar de la Geología y de la profesión del geólogo desde la Sociedad Geológica de España y consisten en un conjunto de excursiones gratuitas, guiadas por geólogos y abiertas a todo tipo de público, sean cuales sean sus conocimientos de Geología.

En la zona vieja de Santiago, no mas observando las rocas utilizadas para la construcción de las iglesias, casa y calles, se percibe la historia geológica de Galicia. Puesto que todas las piedras para la construcción provienen de canteras de los alrededores.

La mayor parte proviene del llamado Complejo de Ordenes, de edad Precambrico – Ordovicico, y de los granitos Varisticos, los cuales rodean a Santiago de Compostela.

Santiago de Compostela - piedras - MCAL1
Santiago de Compostela – piedras – MCAL1

Re: http://www.sociedadgeologica.es/archivos_pdf/gdia13_corua_trip.pdf

9) Geology of Galicia:

La geología de Galicia integra dos continentes y un antiguo océano

Inserted note Marcel Chin-A-Lien:

Leiden University, the Netherlands.

During some 25 years (1955 – 1980) geology students from my Leiden Alma Mater (of of my 4) have done research in Galicia.

Resulting in numerous master and Ph.D. theses on the geology of Galicia. Much of this information was used for the official geologic map of Galicia.

Reference, for example: De Leidse Geoloog – Lustrumuitgave 1933 – 2008 – Veldwerk ! (Anniversary XV edition, 2008, Leidse Geologische Vereniging, LGV).

Geology NW Spain - MCAL
Geology NW Spain – MCAL

10) Investigadores de Madrid y Salamanca lideran un proyecto nacional centrado en el puzle geológico gallego. –

by R.Romar in www.lavozdegalicia.es/noticia/sociedad/2010/07/12/geologia-galicia-integra-dos-continentes

Santiago de Compostela - MCAL
Geologic map Santiago de Compostela – info.igme.es, hoja 94, 4-7 – MCAL

Hace 410 millones Galicia no existía como tal. El basamento de roca que daría lugar a su creación estaba repartido en los dos grandes continentes que en la época formaban parte de la tierra: Laurasia, en el norte, y Gondwana, en el sur. Y, en el medio, el océano Reico. Todo este espacio se fundió luego en un único macrocontinente: Pangea. Y en este gigantesco puzle que logró ensamblarse, Galicia es una de las piezas claves para estudiar la formación del supercontinente y, por extensión, la historia geológica de la Tierra

Este es uno de los objetivos del proyecto Consolider, uno de los programas estrella financiados por el Ministerio de Ciencia e Innovación, coordinado por las universidades de Salamanca y Complutense de Madrid. La iniciativa se enmarca, además, en el International Geological Correlation Program de la Unesco.

«Galicia es el mejor laboratorio natural para estudiar el ensamblado de Pangea», asegura Ricardo Arenas, uno de los directores del proyecto y catedrático de Petrología en la Universidad Complutense.

«El proyecto trata de reconstruir la historia paleozoica de Galicia (hace entre 300 y 400 millones de años) e integrarla en la historia geológica de la Tierra», apunta José Ramón Martínez Catalán, el otro responsable de la investigación y geólogo de la Universidad de Salamanca.

El proyecto, iniciado hace tres años, ya ha arrojado interesantes conclusiones que se han expuesto en publicaciones y congresos internacionales. Ahora se sabe que lo que hoy en día es Galicia es una representación de tres mundos que aún se conservan en su geología: la comunidad alberga piezas de Laurasia, un gran continente que estaba integrado por Norteamérica, Báltica (Escandinavia) y parte de Rusia; del enorme continente del sur llamado Gondwana y del océano Reico. «Partes de Galicia formaban parte de tres mundos diferentes», constata Ricardo Arenas. «Es la pieza fundamental para reconstruir el puzle», asegura José Ramón Martínez Catalán.

Geology Iberia - Galicia - Gondwana - MCAL
Geology Iberia – Galicia – Gondwana – MCAL

Cartografía digital

Partes de Ordes y el cabo Ortegal son el legado del océano Reico, que se cerró en la colisión y parte de él cabalgó sobre Galicia. A Coruña y parte del complejo de Ordes eran de Laurasia y la zona sur y oriental de Gondwana.

Pero el trabajo desarrollado hasta ahora no solo aporta conocimientos sobre el pasado geológico de Galicia, en particular, y del mundo en general, sino que también ha sido utilizado por el Instituto Geológico Minero para perfeccionar la cartografía digital de la comunidad.

Geology - W-E x-section NW Spain
Geology – W-E x-section NW Spain

11) Un canto a Galicia – Cancion – Julio Iglesias, iconic song. https://youtu.be/7pB0fKhimBI

Eu queroche tanto,
e ainda non o sabes…
Eu queroche tanto,
terra do meu pai.

Quero as tuas ribeiras
que me fan lembrare
os teus ollos tristes
que me fan chorare.

Un canto a Galicia, hey,
terra do meu pai.
Un canto a Galicia, hey,
miña terra nai.

Teño morriña, hey,
teño saudade,
porque estou lonxe
de eses teus lares.

Eu queroche tanto,
e ainda non o sabes…
Eu queroche tanto,
terra do meu pai.

Quero as tuas ribeiras
que me fan lembrare
os teus ollos tristes
que me fan chorare.

Un canto a Galicia, hey,
terra do meu pai.
Un canto a Galicia, hey,
miña terra nai.

Teño morriña, hey,
teño saudade,
porque estou lonxe
de eses teus lares.

Teño morriña,
teño saudade,
porque estou lonxe
de eses teus lares…

De eses teus lares…
De esos teus lares…

¡Teño morriña!
¡Teño saudade!

Un canto a Galicia, hey,
terra do meu pai.
Un canto a Galicia, hey,
miña terra nai.

12) Musica de Tuna – Pasa la Tuna Rondando 

12.1) Musica de Tuna. – Re: https://en.wikipedia.org/wiki/Tuna_(music)

In Santiago de Compostela one can see and hear the music of many so-called tuna groups. A tuna is a group of university students in traditional university dress who play traditional instruments and sing serenades. This creates a a festive and happy mood wherever they act. The tradition originated in Spain and Portugal in the 13th century as a means of students to earn money or food. Nowadays students don’t belong to a “tuna” for money nor food, but seeking to keep a tradition alive, for fun, to travel a lot and to meet new people from other universities. A senior member of a tuna is a “tunante”, but is usually known simply as a “tuno”. The newbies are known as “caloiros”.

The name TUNA may come from French roi de Thunes,[1] “king of Tunis“, a title used by leaders of vagabonds. But there is also a legend of a real King of Tunis, known for his love to music and party that usually liked to walk around the streets at night playing and singing. That explains why the term roi de Thunes was applied.

In the old times (medieval days) the Sopistas would use their musical talents to entertain people in exchange for a coin and a bowl of soup (sopa, in Portuguese and Spanish, hence the name sopistas). They would also play their music under the windows of the ladies they wished to court.

From its origins to the present day, from and through of the Tunas have continued the cultivation of popular instruments such as the bandurria, lute, guitar and tambourine, instruments which are named in the Spanish book Libro del Buen Amor by Juan Ruiz (c. 1283 – c. 1350).[2]

For these occupations, they took their guitars and bandurrias and sang popular songs. The tunos or sopistas also showed abilities for music, and in courting ladies that they had been wooing to.[3] The sopistas were poor students that with their music, friendly personality and craftiness scoured for cheap eats for a few coins in the eating-houses, convents, streets and squares.[4]

Expansion even into the Netherlands (edit)

In 1964, in Eindhoven, a number of students at the Eindhoven University of Technology came up with a new hazing prank: they had some incoming freshmen learn some Spanish songs and serenade a society lady in Eindhoven (possibly the lady in question was Mrs. Tromp, wife of the then-director of Philips). The serenading group was a hit and in 1964 the students founded Tuna Ciudad de Luz (Tuna of the City of Light, in reference to the importance of Philips Lighting to Eindhoven).[5][6] Starting in 1965 Tuna Ciudad de Luz was invited to Madrid regularly for certamina by several Spanish tunas; in order to return the favor, Ciudad de Luz started inviting the Spanish tunas to Eindhoven in 1986 (their 1986 certamen was the first ever held outside Spain).[6]

Since then the tuna tradition has spread to several other universities in the Netherlands. There are currently five tunas in the Netherlands: Tuna Ciudad de Luz in Eindhoven, Tuna de la Ciudad Jarrera in Tilburg, Tuna Universitaria de Maastricht in Maastricht, Cuarentuna de Holanda (former students of Ciudad de Luz) and Tuna Veterana de La Haya (former student in The Hague). There are also two tunas for female students: La Tuniña in Eindhoven and Tuna Femenina Universitaria de Leiden in Leiden.

12.2) Pasa la Tuna Rondando – Re: https://www.youtube.com/watch?v=CfCgUuSZyAc

Un precioso documental sobre esta tradición universitaria española. Con la preciosa voz del solista de las Islas Canarias. Tradición también en Portugal, America Latina y expandida hasta a Holanda, en el 1964.

Nosotros mismos tuvimos la oportunidad de disfrutar de las canciones de Tunas en ocasiones y entornos muy diversos y donde nos encanta estar.

Siempre muy placentero, alegre, nostálgico y a veces picaro su música. Toca y alegra al alma.

Como en la Plaza Obradoiro de Santiago de Compostela, a medianoche.

Plaza Mayor de Salamanca.

Madrid, en la Plaza Mayor, Las Cuevas de Luis Candelas (*.) 

( https://es-la.facebook.com/public/Las-Cuevas-De-Luis-Candelas-Las-Cuevas).

Corren los primeros años del 1800, cuando nace Luis Candelas Cagigal. Un mozuelo que va creciendo con fama, labrándose la profesión de bandolero. Con chaquetilla azul turquesa, pantalón de Mahón y faja de Corinto, Candelas se convierte en un personaje célebre robando establecimientos y saltando diligencias.

Tras sus robos acude al Arco de Cuchilleros. Uno de los lugares más típicos del antiguo Madrid, enclavado en la herreriana Plaza Mayor – donde se encuentran hoy en día “Las Cuevas de Luis Candelas” -, que en el siglo XIX era sitio concurrido por lo más castizo de la época y chicoleo de majas y chisperos.

Es precisamente allí, bajo el Arco de Cuchilleros y en sus cuevas, donde Luis Candelas – conocido así por sus amigos, y Don Luis Álvarez de Cobos para los que lo eran menos – se escondía con su “cuadrilla” y preparaba sus golpes, porque disponían de muchas salidas al exterior que despistaban a sus perseguidores…

Tras su matrimonio con Manuela Sánchez en la Iglesia de San Cayetano, marcha a Zamora donde reside algún tiempo hasta que decide su vuelta a Madrid. En 1837 lo atrapan y hecha pública su sentencia, le condenan a muerte a garrote vil. Su ficha rezaba así: “ Luis Candelas Cagigal, de 28 años, casado, natural de Madrid, con domicilio en Cuchilleros, 1 , ladrón profesional, estatura regular, pelo negro, sin redecilla, ojos al pelo, boca grande y mandíbula prominente, bien formado y recio ”.

La condena se lleva a efecto en presencia del pueblo y en las afueras de las puertas de Toledo de Madrid. Sus últimas palabras fueron éstas:
SÉ FELIZ, PATRIA MÍA

En La Taberna Real, cual en el siglo 16 formaba parte de la cocina del Palacio Real, situado en la Plaza Isabel II, frente al Teatro Real (.)

(https://www.facebook.com/TabernaReal/).

En Bogota, en el restaurante del Hotel Tequendama, un dia en diciembre, acercandose a las Navidades (Tuna Navarra, https://www.facebook.com/tuna.navarra.bogota/).

 

15. Guyana. ExxonMobil announces second giant field.

Guyana - Payara 2 Giant discovery - ExxonMobil - MCAL
Guyana – Payara 2 Giant discovery – ExxonMobil – MCAL

15. Guyana. ExxonMobil announces second giant field – Payara – 500 million barrels. V.020817

Stabroek Block contains 2.25 billion – 2.75 billion oil-equivalent barrels. July 25, 2017.  

 

Guyana - ExxonMobil - Payara 2 giant field - MCAL
Guyana – ExxonMobil – Payara 2 giant field – MCAL
Guyana - ExxonMobil - Payara 2 giant field - MCAL
Guyana – ExxonMobil – Payara 2 giant field – 12 publications – MCAL

Contents:

0. Note Marcel Chin-A-Lien – Arrangement Guyana Government with ExxonMobil –

How much money would Guyana get from ExxonMobil’s offshore oil production – July 27, 2017

1. ExxonMobil announces second giant oilfield offshore Guyana – Payara – 500 million barrels found – July 25, 2017 – D.Chabrol

2. ExxonMobil strikes more oil offshore Guyana – value could be US$6.2 billion –

3. Guyana: ExxonMobil says Liza to flow at 100,000 barrels per day – Jan 29, 2017,  Kaieteur News

4. Another find confirms Guyana’s oil deposits larger than envisaged – March 31, 2017, Kaieteur News

5. ExxonMobil to continue exploring in Guyana waters despite Venezuela’s claim – Map – June 24, 2015, Caribbean360

6. Guyana basin floor fans (Liza, Payara)

Deep-Water-Champion1

0) Arrangement Guyana Government with ExxonMobil

How much money would Guyana get from ExxonMobil offshore oil production ?

Note of Marcel Chin-A-Lien

The contents of the arrangement that the Guyana Government in 1999, has signed and apparently recently renegotiated with ExxonMobil, has never been published.

Therefore there is a lot of uncertainty and public discussions on transparency going on regarding this important item.

This to know how much money Guyana would get from its offshore production.

In 1998 Guyana signed an arrangement (PPL) with CGX.

My educated-guess is that the arrangement signed with ExxonMobil in 1999 could resemble the arrangement signed previously with CGX.

The contents of this PPL can be found by researching Internet publications.

The Petroleum Prospecting License (PPL) was signed between CGX Energy,Inc.(Company) and the Government of Guyana (Government) on June 24, 1998.

The main articles are:

Cost recovery production allocation is as follows.

Maximum Cost Recovery is 75% during the first 3 years, afterwards 65%.

Profit Oil Split (Developer Share): During the first 5 years, 50% for the first 40,000 b/d. And 47% for Production above 40,000 b/d. After 5 years, 45 % for all production.

The Developer does not pay income tax. The PPL provides that the income tax is paid from the Government’s share of the profit oil.

The Company has an exemption from VAT, exercise taxes, duties, fees, levies and from property tax.

The Company does not pay royalty. This is considered to be included in the Government’s share of profit oil.

Training expenses of US$ 40,000 per year are required, only during the exploration period. These are qualified as exploration expenses.

Annual license rental payments of US$ 40,000 per year are required during the exploration and production period.

In my opinion this represents a very good deal (arrangement) for the Company.

And a rather ” inconvenient deal ” for the Government.

Tip that can benefit a country with billions of US$:

Always be so diligent to first design, negotiate and only later sign your own PSC.

Customised with those clauses and articles you wish to have.

Consult e.g. with a clever and seasoned PSC and E&P specialists and advisors with worldwide experience. Once signed it is extremely difficult to change and adapt it substantially.

From what I perceive from publications the Government did recently renegotiate the original PPL with ExxonMobil and obtained somewhat better conditions.

Including a royalty and a 50% – 50% overall share.

One would assume that the original 1999 PPL was rather favourable for ExxonMobil. Given that it was signed in a period when there was relatively little interest of IOC’s in offshore Guyana.

As is usual in such cases and in high risk, still non-oil-proven basins, it is to be assumed that Guyana has granted rather favourable (“soft”) conditions to ExxonMobil. In order to attract exploration investments with a clear work program, including seismic and drilling.

Now that it has become a proven basin, it is a different ball game.

Contracts with new entrants could be negotiated with a much better share for Guyana.

By focussing on items such as the royalty percentage, ring fencing, the ceiling for cost recovery. By drastically optimising its profit share, from the ‘ profit oil “, immediately after the IOC has recouped its investments from the ” cost oil ” .

Financial engineering, valuation and cash flow modelling, in tandem with the expected production profiles from the fields are fundamental in this respect.

The main objective of Guyana should be to maximise its petroleum wealth by encouraging appropriate levels of offshore activities.

To this end Guyana must design a robust fiscal system with for example the following characteristics. It should provide a fair return for both the state and the international companies. It has to be clear and avoid undue speculation, just as is now frequently surfacing in the press. Administration has to be efficient without undue rules, permits and burdens. At the same time it should provide enough flexibility and create a healthy, competitive competition and market efficiency.

A much different Petroleum Sharing Contract is certainly highly recommended in my opinion.

How much money would Guyana get from ExxonMobil’s offshore oil production ?

The following estimate represents merely my own, personal opinion.

Assuming that the ExxonMobil PPL contains the same articles as the PPL with CGX.

A ballpark estimate of the monies involved is as follows.

Precise data can be obtained by making a full DCF economic analysis.

Assumptions are:

Gross oil production volume of 1.5 billion barrels, 160 thousand /bbls /day /during 13 years, oil price US$ 50 / barrel, Capex-Opex 11 billion US$, initial production starting 2020:

Total oil revenue is some 75 billion US$.

Total profit oil is 68 billion US$.

Guyana Government Profit Share is some 35 billion US$.

This amount will be received in the period 2020 – 2033.

Almost 3 billion US$ per year.

Payout (end of negative cash flow) is reached in about 4 years, in 2024.

The economics of the Liza – Payara – Snoek giant fields development is highly profitable, with an IRR exceeding 100%.

Marcel Chin-A-Lien – Advisor Petroleum Exploration & Production, Business-Commercial-Policy Development, PSC’s.

1) ExxonMobil announces second giant oilfield offshore Guyana – Payara – 500 million barrels found

> Inserted note at october 2018:

ExxonMobil announced its ninth discovery offshore Guyana at the Hammerhead-1 well on August 30, proving a new play concept for potential development. Hammerhead-1 encountered approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,373 feet (1,150 meters) of water.

The company said there is potential for additional production from significant undrilled targets and plans for rapid exploration and appraisal drilling. A second exploration vessel, the Noble Tom Madden, is due to arrive in Guyana in October to accelerate exploration of high potential opportunities and will commence drilling at the Pluma prospect approximately 17 miles (27 kilometers) from Turbot. <

IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM) today announced it has discovered additional oil in the Payara reservoir offshore Guyana, increasing the total Payara discovery to approximately 500 million oil-equivalent barrels.

These positive well results increase the estimated gross recoverable resource for the Stabroek Block to between 2.25 billion oil-equivalent barrels and 2.75 billion oil-equivalent barrels.    

The well was successfully drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Limited and encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone in the Payara field.

It was safely drilled to 19,068 feet (5,812 meters) in approximately 7,000 feet (2,135 meters) of water. The well is only 12 miles (20 kilometers) northwest of the recently funded Liza phase 1 project on the Stabroek Block, which is approximately 130 miles offshore Guyana.

“Payara-2 confirms the second giant field discovered in Guyana,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Payara, Liza and the adjacent satellite discoveries at Snoek and Liza Deep will provide the foundation for world class oil developments and deliver substantial benefits to Guyana. We are committed to continue to evaluate the full potential of the Stabroek Block.”

The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is the largest refiner and marketer of petroleum products, and its chemical company is one of the largest in the world.

2) ExxonMobil strikes more oil offshore Guyana – value could be US$6.2 billion

Stena Carron oil drill ship

Stena Carron oil drill ship

US oil giant ExxonMobil made its third significant discovery in its drilling explorations offshore Guyana.
ExxonMobil’s partner, Hess Corporation made this announcement in its third-quarter earnings on Wednesday, noting that the Liza 3 exploratory well’s net present value could be US$6.2 billion based on calculations from the Bank of Montreal (BMO) Capital Markets.

Liza 3, the fourth well spud by the super major, is in the Stabroek block, about 193 kilometres offshore Guyana.   

In late June, Exxon’s drilling results at Liza 2 revealed more than 58 metres of oil-bearing sandstone reservoirs in Upper Cretaceous formations. The well was drilled to 5475 metres at 1692 metres water depth. Drilling results confirmed recoverable resources to be between 800 million and 1.4 billion barrels of oil equivalent. Data from the Liza 2 well test is being assessed.

In May 2015, Exxon confirmed its significant oil discovery at its Liza 1 exploration well, where more than 295 feet of high-quality oil-bearing sandstone reservoirs was encountered.
The Liza wells are being drilled with the Stena Carron harsh environment drillship.
On September 8, ExxonMobil announced that its third exploratory well, Skipjack (the third well drilled and not Liza 3 as reported in the local media) was unsuccessful since it did not yield commercial quantities of hydrocarbons.
ExxonMobil spud Liza 3 after Skipjack turned up unfavourable. Skipjack was a separate prospect 25 miles northwest of the Liza wells.
The Liza 3 well, like Liza 2, will be focused on testing the flank of the Liza structure to determine the aerial extent of the reservoir.
In July 2016, ExxonMobil submitted a development plan for Liza to Guyana’s Environmental Protection Agency to begin the environmental review process.
That plan calls for a pair of rigs to drill development wells from two drill centres, each with a corresponding water injection site to the east.

Business site Bloomberg in June this year reported that ExxonMobil’s oil discovery off the coast of Guyana may hold as much as 1.4 billion barrels, twice the size of the previous estimate, making it potentially worth about US$70 billion based on current prices.
Bloomberg observed that this announcement comes as the oil industry emerges from the worst market slump in decades. Since dipping to a 12-year low in January, Brent crude oil, the international benchmark for crude oil, has risen nearly 80 per cent to about US$50 a barrel.
However, the discovery may not add to global oil supplies for years as deepwater finds can take half a decade or more to bring into production.

ExxonMobil Country Manager Jeff Simmons had announced that the US super major was likely to start production in 2020 with up to 100,000 barrels per day.
He noted though that the estimated 100,000 barrels per day would not remain constant for the proposed 20-year period that the company would be drilling, since there would be continuous drilling and actual production of oil, causing the output to fluctuate.
According to a BMO report on Oil and Gas 360, ExxonMobil plans to use two drillships to simultaneously drill development wells beginning in 2019.

Exxon holds a 45 per cent interest in the project, with Hess holding 30 per cent, and the remaining 25 per cent belonging to China State-owned offshore oil producer CNOOC.
ExxonMobil is expected to make an announcement on this new find sometime this week.

3) Guyana: ExxonMobil says Liza to flow at 100,000 barrels per day

Jan 29, 2017  Kaieteur News –  17 production wells planned

Trinidad (Oil and Gas Journal)- ExxonMobil Corp.’s giant Liza discovery offshore Guyana will have an average production of 100,000 b/d of oil when it begins flowing in 2020 according to the company’s Country Manager Jeff Simons.

Country Manager Jeff Simons

It also expects to produce 165 MMscfd of natural gas that will be mainly used for re-injection into the wells.
Speaking last week at the Energy Chamber of Trinidad and Tobago’s annual energy conference, Simmons said the company will use a floating production, storage, and offloading (FPSO) unit to produce the oil and would then export it, and raised the possibility of it being refined in nearby Trinidad and Tobago.  

He told delegates that the company planned to drill 17 production wells with subsea tiebacks to the FPSO and that ExxonMobil was confident it could meet the early start up deadline because of its use of “cutting edge” technology.

Simmons said no decision had been taken as of yet on whether ExxonMobil would use one or two drillships during the development stage. He noted that ExxonMobil has always been committed to the maximum use of local content but admitted that during production very few jobs will be created in Guyana because a total of 60 people will be required for the production of the oil.

ExxonMobil’s Country Manager said the company has had to use Trinidad and its services during the exploration phase due to the Caribbean island’s relatively close proximity, its long history in oil and gas, and its capacity to service the industry.

Asked if he thought that the company’s production out of the Stabroek block could increase with additional discoveries in the offing, Simmons was careful to point out that there was no certainty in exploration and pointed to the Skipjack prospect, which he said was a geological lookalike to Liza and turned up a dry hole.

“Before drilling Liza our partner left us and we were looking for a new partner because we were not prepared to take the risk alone. Luckily we got Hess and Nexen and luckily we drilled Liza 1 before we drilled Shipjack, which, if you look at them, they look like a mirror image, and one was a massive find while the other failed. So I hope we will find more oil but I can only speak to what we know is there.” Simmons told the conference.

Earlier this month ExxonMobil and its partners announced its Payara-1 well offshore Guyana as its second discovery on the Stabroek block (OGJ Online, Jan. 12, 2017). The Payara-1 well targeted similar aged reservoirs that were proven successful in the Liza discovery.
The well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd., and encountered more than 95 ft of high-quality, oil-bearing sandstone reservoirs. It was drilled to 18,080 ft in 6,660 ft of water. The Payara field discovery is about 10 miles northwest of the Liza discovery.

ExxonMobil also announced that in addition to the Payara discovery, appraisal drilling at Liza-3 identified an additional high-quality, deeper reservoir directly below Liza field, which is estimated to contain between 100-150 million boe.

The Liza 1 well encountered more than 295 ft of high-quality oil-bearing sandstone in May 2015. With the second well on the block, Liza 2, the company confirmed the finding as significant with a potential recoverable resource of 800 million-1.4 billion boe of high-quality oil.

Esso Exploration and Production Guyana Ltd. is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Nexen Petroleum Guyana Ltd. holds 25% interest.

4) Another find confirms Guyana’s oil deposits larger than envisaged – March 31, 2017.     Kaieteur News

Another find confirms Guyana’s oil deposits larger than envisaged

The Stena Carron drillship

Another discovery by United States (US) oil and gas giant – ExxonMobil, has confirmed that Guyana’s oil deposits are larger than what was previously envisaged by experts.

The Stena Carron drillship has moved back to the Liza area to drill the Liza-4 well. (File Photo)

The ExxonMobil Corporation, as promised, yesterday announced positive results on its sixth well – Snoek – located offshore Guyana, confirming a new discovery on the Stabroek Block. Drilling targeted similar aged reservoirs as encountered in previous discoveries at Liza and Payara.  

The announcement would come days after top officials and experts in the field of oil and gas journeyed to Guyana to participate in a major conference which was hosted in the nation’s capital, Georgetown.
Government announced that ExxonMobil was set make a major announcement on its latest well.

According to insiders, the findings so far would suggest that the deposit from the wells are accumulatively over 2.5 billion barrels of potential recoverable resources – way beyond what was previously estimated to be found in the Stabroek Block.
Back in May 2015, ExxonMobil announced a huge oil find in the Liza-1 well and encountered more than 295 feet (90 metres) of high-quality oil-bearing sandstone.

With the second well on the block, Liza-2, the company confirmed the finding as “significant,” with a potential recoverable resource of 800 million to 1.4 billion barrels of oil equivalent.

Drilling operations on ExxonMobil’s Skipjack prospect, the company’s third well in the block offshore Guyana, yielded disappointing results. It was reported that the company did not find commercial quantities of hydrocarbons within that well.

The Liza-3 appraisal well was subsequently drilled to a total depth of 18,100 feet in 6,000 feet of water on a location about 2.7 miles from the Liza-1 discovery. The well hit around 200 feet of net pay “in the same high-quality reservoirs” as the first two Liza wells which would further solidify the potential recoverable oil in the reservoir.

The Payara-1 well – the fifth well – located approximately 10 miles (16 kilometres) northwest of the Liza-1 discovery, was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Limited (EEPGL), and encountered more than 95 feet (29 metres) of high-quality, oil-bearing sandstone reservoirs. The well was safely drilled to a depth of 18,080 feet (5,512 metres) in 6,660 feet (2,030 metres) of water.

According to the Company’s website, the latest discovery at the Snoek well demonstrates the continued success the company has achieved in this ‘technically complex play’.

EEPGL commenced drilling of the Snoek well a little over a month ago and encountered 82 feet (25 metres) of high-quality, oil-bearing sandstone reservoirs.

The well was reportedly safely drilled to 16,978 feet (5,175 metres) in 5,128 feet (1,563 metres) of water on March 18. The Snoek well is located in the southern portion of the Stabroek Block, approximately 5 miles to the southeast of the 2015 Liza-1 discovery.

“As we continue to evaluate the full potential of the broader Stabroek Block, we are also taking the necessary steps to ensure the safe, cost-efficient and responsible development of this world-class resource, which can provide long-term, sustainable benefits to the people of Guyana,” said Steve Greenlee, the President of ExxonMobil Exploration Company.

The Guyana Government yesterday issued a statement welcoming the announcement made by ExxonMobil.
The administration noted its satisfaction with the ‘steady and safe progress’ being made in the execution of the exploratory work programme and congratulated the Captain and crew of the Stena Carron for the continued good results of their endeavours.

“The news of another find offshore Guyana is a source of great pride and pleasure for all Guyanese. The Government of the Cooperative Republic of Guyana, through the Ministry of Natural Resources, will continue to work with ExxonMobil and its partners in the exploration and development of resources in the Stabroek Block of the Guyana Basin even as it continues to engage and update the citizens and important stakeholders about the preparations for petroleum production and other related activities,” the release stated.

Meanwhile, following the drilling exercise Snoek, the Stena Carron drillship has moved back to the Liza area to drill the Liza-4 well – the seventh well – which is approximately 102 nautical miles from the coast of Guyana and covers an area of one square kilometre.

The Stabroek Block is 6.6 million acres (26,800 square kilometres).
EEPGL is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.

Meanwhile, the RV Furgo Explorer will commence a geotechnical survey within the Stabroek Block of the Guyana Maritime zone. This exercise is scheduled for a period of six months.

5)  ExxonMobil to continue exploring in Guyana waters despite Venezuela’s claim

Deep-Water-Champion1CARIBBEAN360  – JUNE 24, 2015

GEORGETOWN, Guyana, Wednesday June 24, 2015 – Don’t expect Guyana to stop its offshore oil exploration because Venezuela is claiming territorial waters where the “black gold” was recently discovered.

President David Granger has made it clear that his government will continue to back oil giant ExxonMobil in its work because the exploration is taking place in Guyana’s exclusive economic zone.  He said he had met with officials from the company and assured them that they had nothing to fear as far as their operations in Guyana’s waters were concerned. 

Venezuela’s President Nicolás Maduro issued a decree on May 25, claiming sovereignty over Guyana’s territorial waters in the Essequibo region of the Atlantic Ocean. Maps created by Venezuela’s National Organisation for Rescue and Maritime Safety (ONSA), after the decree, indicate that the claim would include a large part of the Stabroek Block, where ExxonMobil discovered oil a month ago.

Granger said the Caribbean Community (CARICOM) has been notified of Guyana’s situation and leaders would be formally briefed on the situation at the 36th Heads of Government Conference in Barbados next week.

In addition, all the countries of the Organization of America States (OAS) and Union of South American Nations (UNASUR) have been notified of Venezuela’s claim.

Granger has described Venezuela’s claim as a “legal absurdity” and the worst intrusion on Guyana’s sovereignty.

“It is an affront to the nation and it collides with internal maritime law; it is completely in breach of the United Nations Convention on the Law of the Sea,” the president said.

On May 20, ExxonMobil, the world’s largest refiner of petroleum products, disclosed that it found a deposit of a “significant” amount of oil in the Stabroek Block, about 120 nautical miles offshore Guyana. The company said the discovery was made in one of the two wells it dug, which realized more than 295 feet of high-quality oil-bearing sandstone.

The total area allotted to ExxonMobil for exploration (the Liza Area or the Stabroek Block) covers 26,806 square kilometres.

Source: http://www.caribbean360.com/news/exxonmobil-to-continue-exploring-in-guyana-waters

Map showing Atlantic areas of Guyana claimed by Venezuela.

Venezuela has adjusted Decree 1787 adding a clarification that the delimitation of the Zodimain Atlantica (part of which covers almost all of Guyana’s maritime territory) is to be determined pending the resolution of the 1966 Geneva Agreement.

6) Guyana basin floor fans (Liza, Payara)

Guyana - Berbice Canyon and Basin Plain - Gustavson Associates 2008 - Fig 4-9 - MCAL
Guyana – Berbice Canyon and Basin Plain – Gustavson Associates 2008 – Fig 4-9 – MCAL

8. Guyana. Oil Curse. How to prevent.

8. Guyana. Oil Curse. How to prevent. V.090808

Contents (17)

0. Note by Marcel Chin-A-Lien

1. Oil production may see change in country’s security landscape – July 8, 2017

2. An evil that will sink the country – July 21, 2017

3. A culture of corruption – Nov. 9, 2016

4. Can we overcome our ethnic insecurities and heal our historic wounds of race hate and oppression? – May 5, 2009

5. Judiciary embarks on capacity building for Oil and Gas Sector – Rehanna Ramsay – July 23, 2017

6. Guyana could end up worse off with oil – Jagdeo – June 05, 2017

7. Take away financial incentive of corruption to deter future activities – Jul 31, 2017 News – www. kaieteurnewsonline.com

8. Law enforcement and the judiciary blamed for corruption in Guyana and Caribbean Blame law enforcement, judiciary for corruption       says expert – Jul 28, 2017 Kaieteur News – guyaneseonline.wordpress.com – featuring Dr. Perry Stanislas

9. No conflict of interest in relations between GOG, ExxonMobil and Mangal brothers ??  – Aug 07, 2017 ExxonMobil, News 0 Comments

10) A Greater Measure of Transparency for Guyana – by Francis Quamina Farrier

11) Corruption in Latin America: Taking Stock -By David Lipton, Alejandro Werner, Carlos Gonçalves. September 21, 2017 – IMF BLog –

12) Stemming corruption in Guyana – Kaieteurnews April 4, 2018

13) Curse of the Black Gold: 50 Years of Oil in the Niger Delta – The Guardian

14) The Oil Curse – University Bergen – Law Research

15) https://guyaneseonline.wordpress.com/2018/06/21/guyana-the-country-that-wasnt-ready-to-win-the-lottery/

16)https://www.stabroeknews.com/2018/news/guyana/02/07/securities-council-seeking-info-on-key-shareholder-in-cgx-subsidiary/

17) Twelve Red Flags: Corruption Risks in the Award of Extractive Sector Licenses and Contracts Aaron Sayne, Alexandra Gillies and Andrew Watkins, April 2017:

https://resourcegovernance.org/sites/default/files/documents/corruption-risks-in-the-award-of-extractive-sector-licenses-and-contracts.pdf

0)  Note by M.Chin-A-Lien

” Good geology has led to bad politics, according to M.L. Ross “.

Since the beginning of my career in oil industry 4 decades ago, I was struck and at the same time intrigued by the paradox and co-existance of extreme wealth and poverty, in oil rich Venezuela. And later also in different other oil-rich countries where I have worked.

Since then I have been very interested in reading and analysing the causes of this phenomenon, that is more so a rule than an exception.

The paradoxical wealth of Nations:

The Oil Curse. How Petroleum Wealth Shapes the Development of Nations,

by Michael L. Ross

It is the devil’s excrement.

We are drowning in the devil’s excrement, Juan Pablo Pérez Alfonso, former Venezuelan oil minister, founder of OPEC.

I wish your people had discovered water,

King Idris of Libya, on being told that a US consortium had found oil.

Since 1980, the developing world has become wealthier, more democratic, and more peaceful. Yet this is only true for countries without oil. The oil states, scattered across the Middle east, Africa, Latin america, and Asia, are no wealthier, or more democratic or peaceful, than they were three decades ago. Some are worse off. From 1980 to 2006, per capita incomes fell 6 percent in Venezuela, 45 percent in Gabon, and 85 percent in Iraq. Many oil producers, like Algeria, Angola, Colombia, Nigeria, Sudan, and again, Iraq, have been scarred by decades of civil war.

These political and economic ailments constitute what is called the resource curse. It is more accurately a mineral curse, since these maladies are not caused by other kinds of natural resources, like forests, fresh water, or fertile cropland. Among minerals, petroleum, which accounts for more than 90 percent of the world’s minerals trade, produces the largest problems for the greatest number of countries.

The resource curse is overwhelmingly an oil curse.

Before 1980 there was little evidence of a resource curse. In the developing world, the oil states were just as likely as the non-oil states to have authoritarian governments and suffer from civil wars. Today, the oil states are 50 percent more likely to be ruled by autocrats and more than twice as likely to have civil wars as the non-oil states. They are also more secretive, more financially volatile, and provide women with fewer economic and political oportunities.

Since 1980, good geology has led to bad politics.

The most troubling effects of this scourge are found in the Middle East. The region holds more than half of the world’s proven oil re- serves. It also lags far behind the rest of the world in progress toward democracy, gender equality, and economic reforms. Much of its petroleum wealth lies beneath countries plagued by decades of civil war, like Iraq, Iran, and Algeria. Many observers blame the region’s maladies on its Islamic traditions or colonial heritage. In fact, petroleum wealth is at the root of many of the Middle East’s economic, social, and political ailments and presents formidable challenges for the region’s democratic reformers.

Not all states with oil are susceptible to the curse.

Countries like Norway, Canada, the Netherlands and Great Britain, which have high incomes, diversified economies, and strong democratic institutions, have extracted lots of oil and had few ill effects. The United States, which for much of its history has been both the world’s leading oil producer and the world’s leading oil consumer, has also been an exception in most ways.

Petroleum wealth is overwhelmingly a problem for low- and middle-income countries, not rich, industrialized ones. This creates, unfortunately, what might be called “the irony of oil wealth”:

those countries with the most urgent needs are also the least likely to benefit from their own geologic endowment.

The resource curse was not supposed to happen etc. etc.etc.” <<<

Reference from:  www.sscnet.ucla.edu/polisci/faculty/ross/oilcurse/oil_curse_chapter_1.pdf  <<<

Guyana’s history in 2040, in retrospect.

” The resource curse was not supposed to happen…..”???

Having joined the prosperous league of exceptions ?

Such as The Netherlands, Norway, Canada, Great Britain, USA ?

Hopefully !!!

But anno 2018 ?

Still a very, very, very long way to go. This given the present day Country SWOT characteristics: Social, socio-political, legal-judiciary etc. etc.

To become Oil-Curse-Proof and Dutch-Disease-Proof ?

Observations of how to become a country without the oil curse ?

From analysing oil countries that I have visited myself, with few ill effects?

  1. Strong, modern democratic and political institutions
  2. Government fiscal discipline
  3. No political and no economic corruption
  4. Efficient, transparent governmental and highly professionalised petroleum management related organizations
  5. Civil society with anti-corruption, straight, honest mentality and attitude
  6. Transparency across the whole value and decision chain
  7. Diversified economy
  8. High income

A few interesting references on the Curse of Oil:

  1. The curse of oil: The paradox of plenty. The Economist, www.economist.com/node/5323394
  2. The Oil Curse: How petroleum Wealth Shapes the Development of Nations. Michael L. Ross, ebook ISBN: 9781400841929
  3. Hundiendonos en el excremento del diablo. Juan Pablo Perez Alfonso, Editorial Lisbona 1976, Caracas.

1) ” Oil production may see change in country’s security landscape

From: www.kaieteurnewsonline.com/2017/07/08, Jul 08, 2017

The security landscape in Guyana may very well change within the coming three years before, and immediately after, oil starts coming out of the ground.

Adjusted security landscape in a country is saidto be a common spin-off of the presence of big oil companies in developing countries around the world.

Dr. Kennedy Mkutu, an associate professor of the United States International University Africa, spoke about this phenomenon yesterday. Dr. Mkutu was one of the facilitators at the just concluded “Oil Curse and its Prevention” symposium that was hosted by the Caribbean Institute of Forensic Accounting (CIFA) and the Guyana Oil and Gas Association (GOGA).

At that forum, Dr. Mkutu delivered a presentation that focused on security governance and the extractive industry in Turkana – the second largest and northwesternmost County in Kenya – looking at how the presence of oil raises new challenges in terms of policing and private security industry, gun control and community security.

That presentation was extensive. Dr. Mkutu spoke about resource abundance being a strong predictor of incidence of civil war. The resource curse at the local level, governance problems and the need for proper legal landscape were also topics that Dr. Mkutu touched on during his presentation, and so were security governance and the dwelling of security firms in resource- rich countries.

During an interview after his presentation, Dr. Mkutu explained why the security landscape of a country often changes with the coming of oil. He said that many oil companies usually import their own security to guard the commodity. “How do countries monitor this (private security, guns, etc., that are in the country)?” he asked.

Dr. Mkutu said that oil companies often say that the police forces and private security firms in certain countries may not be enough, or may not have the level of expertise that they require. “They usually say that they want security companies that they trust and that they think are competent,” said Dr. Mkutu. “So what do they do? They bring their own guys.” He said that the importation of security personnel can have several spin-off effects, one being an outcry from local security firms. “They (local security firms) might say, what about us?

We have been sidelined, we have been bypassed. How does a country deal with these issues?

Strategy needs to begin now,” said Dr. Mkutu. The associate professor said that this is not a matter to be taken lightly by government and citizens of nations, as the monitoring of security firms as well as the amount of weaponry in a country, has been proven to be of utmost importance.”

2)  An evil that will sink the country

Most Guyanese by now have been convinced, by some revelation or other, that they are living in a corrupt society where most of the major institutions are woefully corrupt. There are some institutions that fare better than others in terms of corruption, but in the view of the man-in-the-street, the overwhelming consensus is that many individuals responsible for large financial undertakings are choking with the gains of corruption, which has become a norm in society.

Corruption is all around us; it is endemic and it is a major concern. Many of us have concluded that it near impossible to totally eradicate it. Corruption seems to be the fuel of the nation. A corrupt mindset is embedded in almost every level of society, from those who offer bribes for favors that they would not have obtained under normal circumstances to those public officials who will accept the bribes to fast-track or give consent to a decision on behalf of those who pay the bribes.

The familiar mantra from vote-seeking politicians is that if elected to office, they would stamp out corruption which they stress, continues to stifle the nation’s economic growth and prosperity. As purportedly the major beneficiary of corruption in the country, the last political directorate did not put in place the necessary measures to curb this scourge.

Two years ago, the APNU+AFC coalition came to office with the promise to put in place laws to stamp out corruption and although such laws have been passed, corruption continues unabated because some still find ways to beat the system and there is not much the government can do.

While many have accused the last administration of corruption, they also believe that the beneficiaries of the largesse that flows from corruption are still at the senior levels. The people have had enough platitudes from various administrations in the past regarding their attempts to reduce corruption; now they want to see results.

The government cannot end or fully reduce corruption by itself. It needs help from the public and all stakeholders to substantially reduce corruption and severely punish those found culpable of corrupt practices. While it is in the interest of the government to robustly fight corruption, it is the opinion of many that the administration is just giving lip service to it. We are living in a country that is perennially compromised by rampant dishonesty.

For over a decade, corruption became entrenched in our culture and society, it was actually instituted in the country as a way of governance during the tenure prior to the last election. The current government seems to be setting its own time table and is moving slowly to get there. However, there are few complaints about corruption in this administration, because it seems that no one is listening or are turning a blind eye to it.

When in opposition, the APNU+AFC coalition’s parties complained bitterly about corruption and were very passionate about wiping it out. But now in office, they seem to have lost their fearless zeal to even speak out against corruption because they have realized that it is even more widespread than they could have imagined.

Further, there appears to be a weakening of the safeguards to prevent the political interference and manipulation of prosecutorial authority which is vested with the power to act against offenders of corruption.

The government will stand tall if it ensures that these officials are following the laws and duly prosecute those who are found culpable. Allowing them to do their jobs independently and without political interference is not enough. The last administration did nothing about corruption. It maybe was too rewarding.

Corruption is an evil that will sink the country.

3) A culture of corruption 

Nov 09, 2016 Editorial, Features / Columnists 0 Comments

In Guyana, corruption has become a culture, despite the talk and all the promises to weed it out. Almost every day, there are stories in the news about corruption and so far, only a few have been prosecuted. Corruption is the abuse of public office for private gain. It should not be taken lightly, but it was under the last administration.
Its implications are profound and wide-ranging in that it has spread to all spheres in society. It continues to destroy the psyche of the people andis jeopardizing the prospects for economic growth and human development.
It has undermined confidence and trust in the country. There is a sense of resignation on the part of the people as this cancerous disease continues unabated.

Corruption is no longer a perception as the PPP had claimed; it is real. It exists in all levels of society among people and institutions. The bribers are usually the people who offer kick-backs to politicians, law enforcement and public servants in order to avoid being prosecuted, obtain contracts, or receive benefits. Corruption has thrived in Guyana because many have become wealthy andgovernments have turned a blind eye to it.

Corruption is not only a political problem, it is a social disease, and while accusations are made from both sides of the political divide, the cancer is spreading.

But there was a time just a few years ago when the average citizen in Guyana did not believe that corruption was a major problem in the country. The public had confidence in the integrity of public servants and persons in positions of public trust. Many believed that corruption or the misappropriated of public funds for personal gain was an issue for other Caribbean countries and not Guyana.
It was only during elections that one would hear politicians accuse their opponents of being corrupt, but they hardly even provided evidence to substantiate their claims. While such allegations may have influenced some voters, no high profile person was ever charged and prosecuted.

However, there has been corruption in Guyana for years. During the last fifteen years of PPP rule, corruption was so rampant that it was brought to the forefront of discussion by the public. In the last year, several audit reports have shown that there was massive corruption under the last administration in both the private and the public sectors.

The bribers are usually the people from the private sector and the recipients are those in the public sector. There are many types of corruption, but the most common involves kickbacks from the granting of government contracts to contractors. Another is the offer of bribes to ease the difficulty in doing business.

There have been several documented cases of corrupt practices by senior public officials in the last government, but because of political patronage, they were not fired. In fact, they did not even raise an eyebrow because everyone was doing it, and also the misguided notion that corruption does not kill.

The truth is corruption does kill, and it is a death that lingers on the economy and affects the people, especially the poor.
The government, when in opposition had promised to weed out corruption if elected to office. Now after eighteen months at the helm of the government, it has not delivered on its promise, and even though there is a firm commitment to do so, it has not happened despite the audit reports.

Being transparent and accountable could go a long way towards reducing corruption. Interestingly, the tables have been reversed as the government is now being accused of corruption by the opposition in much the same way it had accused the opposition prior to the May 2015 election.

It is about time the government delivers on its promise to end corruption.It would be in the country’s best interest and would bolster its own credibility It will be unfortunate if it does not.

4) Can we overcome our ethnic insecurities and heal our historic wounds of race hate and oppression?

Dear Editor,
Today (Tuesday 5 May 2009) marks the 171st Anniversary of Indians arriving in Guyana in the year 1838. May all Guyanese celebrate this important milestone in our rich racial heritage.
May all Guyanese use this day to reflect on who we are, what we are as a Nation state in 2009 and where have we arrived in our history?

To our Indian brothers and sisters, you have indeed made mighty contributions to the making of our Nation. With icons such as Doctor Yesu Persaud, entrepreneur par excellence, social activist, humanitarian and cultural leader, who only this weekend gave the welcome remarks for the 26th consecutive year for the show Nrityageet 30 at the National Cultural Centre, there is much to be proud of.

Some Guyanese will become involved in the spurious debate that Tuesday is Arrival Day and not Indian Arrival Day. Yes indeed. Chinese, Portuguese and others were brought to Guyana and history bears a distinct date for their arrival, although these two groups have decided not to commemorate their arrival dates.

As Guyanese, we need to move beyond the politics of the day and use Arrival Day to understand we are a nation of many cultures and races. Our Motto of “One People, One Nation, One destiny” is a dream deferred for all of us and a nightmare for many Guyanese citizens. Perhaps, we should have had a motto that stated “Out of Many, One Nation”.

Many African Guyanese do not pay much attention to the significance of Arrival day. Perhaps it is because captured Africans were savagely brought to Guyana 180 years before Indians. African Guyanese tend to more celebrate August 1 as Emancipation Day and October 12 as African Arrival Day or African Holocaust Day because slavery was a nuclear bomb that destroyed Africa and its advanced civilizations.

African Holocaust Day is commemorated on 12 October because it was on this day in 1492; Columbus arrived in the region, signaling the unbridled decimation of indigenous cultures and peoples throughout the world. So where have we as Guyanese ‘arrived” on this 171st Anniversary?

Today, as over the last decades, we are a divided Nation.
The most telling paragraph in the United Nations Expert Gay McDougall’s Report has been completely ignored by all. This paragraph in her report tells us all we need to know about the state of the Nation in 2009.

“Ethnically based divisions and politics have created two separate and conflicting narratives and perceptions of reality in Guyana.

On the part of the Afro-Guyanese, there is a widely held belief that they are discriminated against by an Indian-dominated and supported government that puts Indian interests to the fore, particularly in resource allocation, government contracts and employment.

On the part of the Indian-Guyanese, there is a belief that an Afro-Centric political opposition, if in power, would settle political scores and work solely in the interests of Afro-Guyanese.”

As recorded, Indian Guyanese believe that the PNC, if in power, would settle political scores and work solely in the interests of Afro-Guyanese.
This observation indicates Indo Guyanese believe the current government is still settling political scores and is working primarily in the interests of Indians in Guyana.
Can we as Guyanese overcome our ethnic insecurities and heal our historic wounds of race hate and oppression.

This is the fundamental question Guyanese should use Arrival Day to reflect on. Today, we are a divided Nation, both internally and externally as we are also a Nation of nomads with half its population outside of our borders. Many Guyanese live in economic or self imposed political exile in many foreign countries
It is becoming clearer by the day that Executive lawlessness and monopoly power are elements of our political decay. It is clearer by the day that Constitutional Reform is critical to the survival of our Nation.
Without Constitutional Reform, nothing else is viable. We need to employ our best minds to neutrally change the constitution. I say neutrally because politicians will not do what is in the best interest of the Nation.
We need to aggressively pursue good governance practices not only by strengthening the capacity of the State but by renewing the spirit of civil engagement in all aspects of public affairs.

Without good governance, without strict adherence to the rule of law, without a morally driven administration, without the legitimate use of power and without responsible regulation; we are heading to become a failed state. No amount of investment will place Guyana on the path of prosperity.
On the 171st anniversary we need to ask ourselves whether it is possible for Guyana to become a peaceful multi-racial, multi-party, multi-cultural, multi-religious plural democracy.

If this is what we want, then many changes need to be made, starting today. First, we must change our attitudes of indifference to each other’s pain. The crimes against Guyanese: extra-judicial killings, corruption, racism and defiance of the rule of law…must be opposed by all races. History has shown us that these types of evil do not last forever.
Second, we must insist all political parties contesting the next elections sign a legally binding pre-election pact that will ensure constitutional reform, the pursuit of good governance, economic revitalization and racial harmony as national priorities.

Third we need a Cabinet based on meritocracy and one that reflects the fundamental cultural dimensions of our society. Cabinet members should reflect the will of the people as recognised by their votes. The Cabinet should reflect competence. Gender and race must be balanced to ensure equity.

Fourth, Parliamentarians should represent specific geographical areas in which they are resident. Any person born in Guyana should be eligible for any political office. Fifth, local government should be constructed on a basis that encourages local decision-making as this is fundamental to any well functioning democracy.
An inclusive society based on merit is a necessary perquisite for racial and political peace.
On the 171th anniversary of Indian Arrival and African Emancipation, all races in Guyana need to feel equal and be equal.

Racial insecurity is a cancer in our society. Each racial group in Guyana must receive equal access and equal treatment, constitutionally, legally, politically, morally, religiously, culturally and economically.
Guyana is a country forged out of a mixture of many races, cultures, religions and ideas.
For our country to flourish, we need the talents of all our people. We have already lost most of our skilled people to foreign lands and this must be reversed before it is too late. All segments of Guyanese society need to participate in the country’s development.

All citizens, including politicians, need to be committed to the fundamental principle of a democratic, multi-racial, multi-ethnic, free enterprise society in which every Guyanese regardless of age, race, religion or creed has an equal opportunity to realize his or her potential Finally, a critical need for all Guyanese is economic prosperity and not the debilitating poverty that consumes us. In Guyana, there is “water, water everywhere and not a drop to drink”.

Poverty is an overwhelming reality in Guyana. As the UNICEF web sites describes:
“Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not being able to go to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom. Poverty has many faces, changing from place to place and across time, and has been described in many ways. More often, poverty is a situation people want to escape”.

Guyana needs new and better leadership. We need to move from “serve the leadership” to “servant leadership”. The former is about racism, corruption, constitutional illegalities and human rights abuses such as torture, extra-judicial killings, drugs. The latter is about visionary, courageous, healing, knowledgeable and compassionate leadership.

On the 171st anniversary of Arrival Day we need to commit to forging a spirit of spiritual and emotional nationalism. If not, we will continue to disintegrate politically, morally, socially and culturally.
This year’s theme for Nrityageet is “unity in diversity through dance”. This year’s theme for Arrival Day should be “unity in diversity through justice for all”.  Eric Phillips

5) Judiciary embarks on capacity building for Oil and Gas sector

In anticipation of new matters which will arise from the emerging Oil and Gas sector, members of the local judiciary have embarked on a capacity building workshop that focused on the regulatory framework of the industry in the Caribbean.

Chancellor of Judiciary (Ag), Justice Yonette Cummings Edwards

Acting Chancellor of the Judiciary, Justice Yonette Cummings-Edwards, who spearheaded the initiative, disclosed that the workshop is intended to build Guyana’s judicial preparedness to deal with matters related to the Oil and Gas sector.

Last week, Minister of State, Joseph Harmon, was among those who acknowledged that local judges will require capacity-building exercises so that they can be able to effectively handle the legal issues that may arise from a complex oil and gas industry which Guyana is currently preparing to be a part of.

Harmon had asserted that “our judges are trained in the law, but there are some specific issues which would arise from this area of development and clearly our judges, I am sure, would adjust to it.”
Harmon added, “The judicial officers are also benefitting from training locally and abroad. And more of this is taking place.”

Responding to comments on the country’s legal capacity to deal with the issue, the Acting Chancellor explained that Oil and Gas was among the main topics at the recently concluded Annual Judges Conference.
Justice Cummings-Edwards disclosed that under this year’s theme “the Role of Guyanese Judiciary in the Evolving Juridical Landscape,” Judges were enlightened on the fundamental legal concepts in the Oil and Gas industry.

The presentations conducted by University of the West Indies (UWI) Oil and Gas Law Lecturer, Alicia Elias-Roberts focused on key legal issues and legal challenges in the sector. According to Justice Cummings-Edwards, the presentation was part of training aimed at preparing the Guyanese Judiciary to meet the demands which the new industry will place on the justice system.

The Conference also encompassed presentations on the evolution of petroleum laws in the Region, and issues to be dealt with such as review of concessions agreement, and the increasing equity and revenue of governments; new tax regulations under the Oil and Gas Sector; the sovereignty independence, socialism and nationalism of the Oil Industry as well as expropriation and Organization of Petroleum Exporting Companies (OPEC).

The Chancellor noted that systems are already in place to handle expeditiously matters of the emerging sector.
“It is worthy to note that emergence of the Oil and Gas Sector in Guyana will be taking place after the introduction in February of new Civil Procedures Rules 2017. These rules are designed to help expedite the pace of civil litigation through adequate case management, a process in which cases are assigned to a single judge from the filing of defence and managed by the same judge to final disposition.

“Alternatively if a fixed date application is filed, a hearing will be fixed before a judge within at the most, 28 days of filing, depending on the nature and urgency of the matter. Litigation arising within the new sector will therefore benefit from the new regime of procedures and should be disposed of without lengthy delays.

Since matters are filed under the Civil Procedure Rules 2017 are now judge-driven, members of the local bar have had to adjust in order to keep abreast with the new practices and procedures.
Justice Cummings Edwards asserted that the judiciary will continue to take the steps necessary to prepare and equip its members to deliver effective and efficient service to all entities and individuals who approach the Courts.

“It is also known that contracts in the Oil and Gas Industry may often contain arbitration clauses by which the contracting parties agree to refer some disputes to international arbitration, thereby reducing the matters taken to Court.”
Recently, Opposition Leader, Bharrat Jagdeo in response to queries on the Oil and Gas Sector asserted that somehow, Guyana has to build capacity when it comes to the judiciary. He expressed the hope that sooner rather than later, specialized courts would be established to deal with such issues. He said that a commercial court, for example, could be put in place to deal specifically with oil and gas cases in a swift matter.

He too shared the opinion that training would be needed for some of Guyana’s judges.
Several legal experts have also opined that Guyana’s judicial system is currently not prepared for the complex legal issues that may arise from the looming multibillion-dollar oil and gas sector.

Attorney-at-Law, Sanjeev Datadin, who has worked with several international oil and gas companies, holds the view that Guyana’s judicial system is simply too slow, understaffed, and lacks individuals with the necessary knowledge and skills.
Were legal issues to arise from the oil and gas sector, Datadin predicts that most companies will opt for arbitration. He opined that there will be arbitration centres just as there are in Trinidad.
The attorney believes that major companies which come into Guyana are going to be distrustful of the judicial system, given the perception of how long cases take to be heard, how easily records get lost, personalities involved, among other discouraging observations.

Datadin said that the arbitration process would have to go up parallel to the court system, since this is how it is usually done.
“It usually would come through the business sector; the chamber of commerce and similar things would establish arbitration tribunals and panels, and then you would need a list of arbitrators.”

6) Guyana could end up worse off with oil – Jagdeo – Jun 05, 2017 News 0 Comment

The Government is giving Guyanese the wrong impression that the coming of oil is an automatic saving grace. There is a real possibility that Guyanese can wake up worse off in 2020 than they are now.

That is the contention of Opposition Leader Bharrat Jagdeo.
At a recent press conference, Jagdeo spoke about the absence of “realism” in the minds of many government officials and said that they are passing the dream onto Guyanese.
The Opposition Leader said that because government expects that Guyana will become rich overnight due to oil, it is forsaking the traditional sectors. “This is dangerous,” he said. Further, Jagdeo said that the money that is projected to be derived from oil is not, by itself, enough to save Guyana.

The Opposition Leader referred to the current deal struck between the Government of Guyana and ExxonMobil where the profit from oil production will be shared equally and government will benefit from a two percent royalty. He said that that deal does not guarantee much for Guyana and that the only assurance is the royalty. This, he said, is because the profit that is to be divided is gross, meaning, profit after cost would have been deducted.

Jagdeo said that there is a real possibility that for many years, there will be no profit when the cost is deducted.
“The one thing that is sure is the royalty; you may not get profit for many years. So we are looking at two percent royalty.”

Oil is currently being sold at around US$50 dollar per barrel. Jagdeo estimated Guyanas royalty come 2020 using that figure.
He said that two percent of US$50 works out to US$1 per barrel. This is to be multiplied by the amount of barrels that Exxon plans to produce a day100,000. That works out to US$100,000 per day which when multiplied by 365 (one year) works out to about US$36M which exchanges to about GY$8B a year.

Opposition Leader, Bharrat Jagdeo

Jagdeo said that the government has signed an agreement with DDL “that will cost the treasury $80B dollars and they are only getting $8B in royalties per year. They have already given up 10 years of future royalty of the oil that we produce by this one agreement. In the meantime the rest of the economy is sinking.”

Jagdeo said that government officials are busy walking around spreading hope of a better life and “the good life” but with no action in place to see the realization of those “dreams”.
He said that many are being offered jobs, money and gas “but there is no realistic basis for these things.”

“So the reason I use those assumptions, it is not a massive sum coming from the royalty, it a fairly decent sum but when compared to a single action that this government did it amounts to nothing at all…they have given up more,” said Jagdeo.
The Opposition leader urged, “People must not sit and wait and think that the oil can save us.”

He said that even if the price of oil per barrel raises and more is derived “we need to use it wisely, not to kill the rest of the sectors. Jobs have to be created elsewhere. The oil industry is not labour intensive and therefore I am arguing that we cannot neglect the traditional sectors.”

Jagdeo questioned, “What if in 2020 the price of oil is US$20…it was 14 dollars at one time…one year, who would have thought that in six months the price of oil could have dropped from over US$120 to US$28 dollars. This is the realism that I am trying to get people to understand.”

Jagdeo said that oil can be blessing or it can be a curse. “It is a curse if you misspend the money and change relative prices and kill off the other sectors of your economy that generate jobs and wealth for people. It has been a curse in many countries because of misuse of the money.”
While Jagdeo is urging the government not to forsake traditional sectors, he too, has in the past, been accused of doing the same.

7)  Take away financial incentive of corruption to deter future activities
Jul 31, 2017 News 0 Comments – www.kaieteurnewsonline.com

– Expert advises

Christopher Camponovo of Halcyon Law Group thinks that if the financial incentive of corrupt practices is taken away from past offenders and they are then made to serve time, a clear message would be sent that corruption will not be tolerated in Guyana.
Camponovo spoke at a recent symposium that focused on the relationship between oil and corruption.

The prevalence of corruption in Guyana was highlighted at that symposium and so were the dangers of the crime.
Highlighting the effects of corruption, one of the facilitators quoted former UN Secretary General, Ban Ki Moon. “When desperately needed development funds are stolen by corrupt individuals and institutions, poor and vulnerable people are robbed of the education, health care and other essential services.”

Camponovo said that it is important that the money be recovered and returned to the state. He described that as a key part of the justice the people of a country should receive.
“Find the money, the money can be found; at least a large part of it. If you remove the financial incentive, people will think twice about it in the future. That will help in the changing of the culture of corruption.”

The lawyer said that when the culture changes, Guyana will be better off.
“Guyanese must develop anti-corruption attitudes to progress,” Camponovo said.
“Where there is a culture of corruption, where it is accepted, any anti-corruption strategy will fail, but in some ways I am an optimist because I do think cultures can be changed.”

Camponovo is one who thinks that to a large extent, law enforcement and the judiciaries are to be blamed for the high levels of corruption in Guyana and the wider Caribbean. This is so because it will only take a few good examples to be made out of corrupt officials to send a message that the crime would not be tolerated.

That is the view also held by United Kingdom’s Dr. Perry Stanislas.
At the same anti-corruption forum, Dr. Stanislas noted that corrupt behaviour is determined by the relative strengths or weaknesses of institutions. It deprives a nation of much needed revenue, he added.

The security expert and University lecturer made that point before referring to an article published in this newspaper in 2012. In that article, Transparency International labelled Guyana as the most corrupt country in the English-speaking Caribbean.

While things are a little better now as regards Guyana’s standing, the country still has a long way to go. Dr. Stanislas said that the desired change will not be achieved unless the crime is no longer tolerated.
“(Guyana) needs to develop an attitude that if you steal from the country we (the law) will be coming after you,” said Dr. Stanislas.
Dr. Stanislas singled out Jeffery Archer, a former British Minister, famous author and wealthy businessman; Martha Stewart, successful business woman and entrepreneur; Conrad Black, former owner of British Daily Telegraph, and several famous hotels/businessman and asked what was the common thread.

“These are rich powerful people but they all spent time in jail; that tells us something about the country they come from.”
Camponovo, noted that very often in Nigeria corrupt politicians are arrested, placed before the court and sent to jail. He said, however, that the problem is that there are so many of them.

He said that this is one area where Guyana’s small population comes in handy. “It will be easier for Guyana with a smaller population, smaller business community, government, etc. you only have to set a few examples,” said Camponovo.

He said that no strategy to tackle corruption can ever be complete without prosecution. “You have to bust some of the bad guys to send a very clear message to people that corruption would not be tolerated. That’s a combination of civil actions and criminal actions.”

He continued, “Where there is a culture where it is accepted any anti-corruption strategy will fail. But in some ways I am an optimist; I do think cultures can be changed and I think the people of Guyana have it much better than the people of Nigeria in the sense that it is a smaller country, population is smaller, institutions are smaller and in some ways more manageable, in Nigeria everyday someone is prosecuted but nothing seems to be changing.”

Camponovo said that if wrongdoers are made to face the fire and are held responsible for theft in a way that respects the rule of law, respects judicial and prosecutorial processes it will effect real change.

8) Law enforcement and the judiciary blamed for corruption in Guyana and Caribbean

Blame law enforcement, judiciary for corruption – says expert

Jul 28, 2017 Kaieteur News – guyaneseonline.wordpress.com – featuring Dr. Perry Stanislas

To a large extent, law enforcement and the judiciary are to be blamed for the high levels of corruption in Guyana and the wider Caribbean. This is so because it will only take a few good examples to be made out of corrupt officials to send a message that the crime would not be tolerated.

That is the view held by a few international experts, particularly United Kingdom’s Dr. Perry Stanislas and Christopher Camponovo of Halcyon Law Group. This view was aired during the recent symposium that examined the relationship between corruption and oil.

At that forum, Dr. Stanislas noted that corrupt behaviour is determined by the relative strengths or weaknesses of institutions. It deprives a nation of much needed revenue, he added.

The security expert and University lecturer made that point before referring to an article published in this newspaper in 2012. The article is one in which Transparency International labeled Guyana as the most corrupt country in the English-speaking Caribbean.
While things are a little better now as regards Guyana’s standing, the country still has a long way to go. Dr. Stanislas said that the desired change will not be achieved unless the crime is no longer tolerated.

“(Guyana) needs to develop an attitude that if you steal from the country we (the law) will be coming after you,” said Dr. Stanislas.
Dr. Stanislas singled out Jeffery Archer, a former British Minister, famous author and wealthy businessman; Martha Stewart, successful business woman and entrepreneur; Conrad Black, former owner of British Daily Telegraph, and several famous hotels/businessman and asked what was the common thread.

Answer, “These are rich powerful people but they all spent time in jail; that tells us something about the country they come from.”
Dr. Stanislas said that Jeffery Archer was a personal and very close friend of Margret Archer but their friendship ended when Archer went down a not so clean path.

“These parts of the world are unlike the Caribbean where politicians associate themselves with criminals. When you go wrong, they will no longer send you a Christmas card, they will not go to your child’s christening and that is how it is supposed to be.”
He said that the politicians just do not associate themselves with criminals “so it is worse if the criminal is a politician.”
Dr. Stanislas then asked the symposium to name a few rich or powerful people who have been jailed in the Caribbean. There was silence, and then one man shouted, ‘Stanford!’

Robert Allen Stanford is an American former financier and sponsor of professional sports who is serving a 110-year federal prison sentence, having been convicted of charges that his investment company was a massive Ponzi scheme and fraud.

Though he is American he lived in Antigua before being jailed. That is where the mix up came. It was soon clarified that Stanford does not count as coming from the Caribbean and in any case it was America that brought him to justice.

Dr. Stanislas then asked the question again, “Can you name a powerful wealthy person in the Caribbean that served a sentence for fraud or corruption.” The silence returned until another man pointed to a case in Granada. It turns out that Granada is the only Caribbean jurisdiction that has jailed a rich white collar criminal.

Dr. Stanislas said that that speaks volume of the Caribbean system. “What is wrong with the Caribbean justice system and law enforcement? Dr. Stanislas said that it is the weakness in these institutions that is attracting the crime.

Christopher Camponovo, of Halcyon Law Group, noted that very often in Nigeria corrupt politicians are arrested, placed before the court and sent to jail. He said, however, that the problem is that there are so many of them.

He said that this is one area where Guyana’s small population comes in handy. “It will be easier for Guyana with a smaller population, smaller business community, government, etc. you only have to set a few examples,” said Camponovo.

He said that no strategy to tackle corruption can ever be complete without prosecution. “You have to bust some of the bad guys to send a very clear message to people that corruption would not be tolerated. That’s a combination of civil actions and criminal actions.”

He continued, “Where there is a culture where it is accepted any anti-corruption strategy will fail. But in some ways I am an optimist; I do think cultures can be changed and I think the people of Guyana have it much better than the people of Nigeria in the sense that it is a smaller country, population is smaller, institutions are smaller and in some ways more manageable, in Nigeria everyday someone is prosecuted but nothing seems to be changing.”

Camponovo said that if wrongdoers are made to face the fire and are held responsible for theft in a way that respects the rule of law, respects judicial and prosecutorial processes it will effect real change.”

9)  No conflict of interest in relations between GOG, ExxonMobil and Mangal brothers
Aug 07, 2017 ExxonMobil, News 0 Comments

– Harmon

Minister of State Joseph Harmon is adamant that no conflict of interest exists in the relationship between itself, the Mangal brothers and ExxonMobil.

Dr. Jan Mangal is as an advisor on oil and gas while his brother, Lars Mangal, has partnered with ExxonMobil.

Persons, who spoke on the grounds of anonymity, expressed concern over the relationship that seemingly has the potential to put Guyana in a bad spot. But those concerns are not shared by Minister of State Joseph Harmon.

Harmon told the media, “Dr. Mangal has written a letter to this effect and it is in the public domain where he states there is no conflict of interest with the work that he is doing as an advisor to the government on oil and gas and at this point in time we do not share that view that there is, in fact, a conflict of interest.”

In the letter to which Harmon referred, Dr. Mangal noted that his term as Petroleum Adviser to President Granger began in March 2017 whereas the re-negotiation of the contract for the Stabroek Block was performed about a year earlier.
That statement contradicts what Harmon, Minister of Natural Resources, Raphael Trotman and Prime Minister Moses Nagamootoo said before which is that negotiations were continuing up to about three months ago. It was only on June, 1 this year that government announced a two percent royalty has been negotiated.

In his letter, Dr. Mangal said that he has not negotiated contracts between any oil company and Guyana.
He said, “President Granger has been clear that his priority is for the oil and gas resource to benefit the Guyanese people without corruption. The Petroleum Adviser supports this objective wholeheartedly.”

As he referred to the article, Mangal said, “It is encouraging to see Guyanese journalists paying attention to potential conflicts of interest.”
“Many in Guyana, including some of our most prominent officials and attorneys, seem not to recognize these conflicts. Hence journalists need to become more adept at investigating possible conflicts of interest by directly querying allegedly involved parties, and highlighting likely abuses. In the recent article in Kaieteur News about the Mangal brothers, it seems the relevant journalists failed to ask about or acknowledge the mitigation measures which are in place.

“They also do not appear to have asked any of the oil companies operating in Guyana if they have perceived or experienced any resulting conflict.”
Mangal said that the risk of corruption is likely to increase with the advent of the oil and gas sector due to the vast sums of money involved, and with the complex transnational business structures. “Objective, specialized and investigative journalism will therefore play a critical role in attaining the President’s vision.”

Dr. Mangal occupies an Office at the Ministry of the Presidency.

His brother, Lars Mangal, is working with ExxonMobil. He recently won a bid to construct an onshore facility for ExxonMobil.
Lars Mangal, has established a company, Totaltec Oilfield Services. The company was established in 2016.
Guyana Shore Base Incorporated (GYSBI) is currently constructing an onshore base facility to service ExxonMobil’s offshore operations. The site is located at the Muneshwers wharf in Houston, East Bank, Demerara. The wharf is being converted from a container port into the onshore base facility.

GYSBI is a partnership between Muneshwers Limited, Pacific Rim Constructors, Totaltec Oilfield Services and LED Offshore.
The 28-acre warehousing and logistics base will see services that were previously accessed in Trinidad and Tobago by Exxon, being brought to Guyana. Those services include port facilities, accommodations on site, fuel bunkering, bulk cementing and mud plants.
The offshore facility will employ an estimated 100 persons directly, and 200-300 persons indirectly when it is fully operational.

10)  A Greater Measure of Transparency for Guyana – by Francis Quamina Farrier – Reblogged from guyaneseonlinewordpress.com – August 16, 2017

GYEITI – at Region 10. Guyana
The Guyana Extraction Industries Transparency Initiative (GYEITI) which was established earlier this year, 2017, will soon be accepted as another member of the Global EITI Family of Nations, if all continues to go as planned.

This longed-for mechanism for better governance in Guyana, is now much closer to realisation. That was announced by the recently appointed National Coordinator of the GYEITI, Dr Rudy R. Jadoopat. The Guyanese-born economist and former Youth Trade Unionist, brings to the job, over three decades of international experience.

So what is the Guyana Extraction Industries Transparency Initiative (GYEITI) all about? The short answer is that it is a coalition of governments, companies, investors, civil society and partner organisations, working together to ensure a much greater degree of transparency, and with it, a Citizenry capable of accessing information regards business transactions which done by their governments, investors and non-government organisations; in a nutshell, EITI empowers citizens in member countries to be able to access the kind of information, which in the past, was held as top secret, and to have such information, citizens can hold their political representatives and others, accountable for business which will impact the lives of the ordinary folks and others.

During the past two weeks – July 8 to 20, 2017 – GYEITI has held five out-reach workshops; at Corriverton, Bartica, Linden, Charity and Georgetown, where the public was addressed by representatives from EITI, government, civil society and Investors, including Exxon Mobile. During those workshops, a wide variety of questions were entertained from the Floor and responses given, generally to the satisfaction of the gathering.

At Corriverton, the principal questions from the Floor were about the Exxon Mobile Oil and Gas exploration. At Bartica the principal questions were linked to the Gold Mining Industry, and at Linden, to the Bauxite Industry. Questions from the floor at the Out-Reach Workshop at Charity, were also about the Oil and Gas exploration and the Gold Mining Industry.

The published Policy Forum of GYEITI states the following;

(a) Ensuring Corporate Social Responsibility.

(b) Encouraging the sharing of Information.

(c) Revealing Beneficial Ownership, and

(d) Promoting Revenue Transparency.

EITI being in Guyana is not unique, since it has already been established in over fifty countries around the world, and the number is growing. With Guyana’s application soon to be official accepted, our country will be elevated to a country in which corruption will dwindle, as is the case in other EITI Member countries. Some of the EITI member countries are Nigeria, Norway, Sierra Leone, Suriname, Liberia, The United Kingdom, Peru, Colombia, Togo, The Dominion Republic, Ghana, Honduras, Senegal, Zambia, Germany, the United States and Trinidad and Tobago.

The fifth and final of this first series of Out-Reach Workshops, was held at the Marian Academy in Georgetown. The principal speaker was Minister of Natural Resources, Hon. Raphael Trotman, MP, who referred to himself as “the first among equals” in the partnership of Government, Civil Society and Industry, in bringing more Transparency to governance in Guyana, as is unfolding in over fifty other Democratic countries around the world.

As was the case at the other four GYEITI out-reach workshops, there was a wide range of questions from the floor at this fifth workshop in Georgetown, one being whether there will be similar out-reach workshops in some of the far-flung communities, such as Mabaruma, Mahdia and Lethem. That was answered in the affirmative.

Among those who addressed one or more of the five Workshops, were National Coordinator, GYEITI Secretariat, Dr. Rudy R. Jadoopat, Deputy Coordinator GYEITI Secretariat, Diane Barker, Guyana Country Representative The Carter Center, Jason Calder, Deputy Director Office of the Budget, Ministry of Finance, Gillian Pollard, MSG Member, Extractive Industry, Patrick Harding, MSG Member, Civil Society, Najuma Nelson, MSG Member, Civil Society, Gomin Comacho and Exxon Mobil Country Manager, Rod Henson.

11) Corruption in Latin America: Taking stock – IMF Blog sept. 2017 –

https://blogs.imf.org/2017/09/21/corruption-in-latin-america-taking-stock/#more-21310

Corruption continues to make headlines in Latin America. From a scheme to shelter assets leaked by documents in Panama, to the Petrobras and Odebrecht scandals that have spread beyond Brazil, to eight former Mexican state governors facing charges or being convicted, the region has seen its share of economic and political fallout from corruption. Latin Americans are showing increasing signs of discontent and demanding that their governments tackle corruption more aggressively.

In this first part of two blogs, we look at how corruption in Latin America compares to other regions and explain why it is so difficult to combat. Part of the answer lies in the fact that systemic corruption is so endemic to the fabric of society, that changes in behavior require a major shift in expectations. As corruption drains public resources and drags down economic growth in multiple ways, the IMF has committed to work together with our members to confront the problem.

Corruption exists in many forms

Corruption—the abuse of public office for private gain—involves illicit payments or favors and how they are distributed. However, it can take different forms. It can occur at a “grand” or political level and/or at the “petty” or bureaucratic level. When corrupt behavior is so pervasive and entrenched, it can become the norm. In these systemic cases, corruption can even affect the design and implementation of policies, and skew regulatory or state decisions such as the case of Ukraine.

Corruption could also involve individual projects and how they are awarded or renegotiated. A prominent recent example is the construction firm Odebrecht, which spent considerable resources buying the support of key public officials in exchange for contracts in several Latin American economies. Other forms of corruption occur at lower tiers, including how licenses and zoning rights are granted. While corrupt activities can be initiated either on the supply (offering a bribe) or demand side (asking for a bribe), in practice it is often hard to separate the two.

The corruption trap

Given its high social costs, why is it so hard to successfully fight corruption? As in any type of social interaction, individual beliefs and expectations are crucial. When systemic corruption is the norm, people believe that other people are accepting or offering bribes. Given these beliefs, deviating from foul play is costly from the point of view of the individual. Like in the Odebrecht example, construction companies offering bribes are more likely to get projects than ones that do not—even if the latter are more efficient. Moreover, this inefficient equilibrium is self-perpetuating because companies and politicians can collude and use proceeds from past corrupt actions to secure future benefits at the expense of society.

Countries need forceful policies that lead to changes in social perceptions so corruption is seen as the exception rather than the rule. And as corruption falls, governments will more easily detect those who remain corrupt because they will stand out.

But achieving this realignment in incentives and behavior is not easy. Fighting corruption is a collective action problem with political dimensions. Isolated efforts are not likely to work. A multifaceted and resolute push is needed to initiate positive dynamics out of the bad equilibrium. For that, strong leadership and society’s support are key.

Corruption is still a problem in Latin America

Corruption is difficult to measure, but different measures of corruption perceptions correlate quite strongly. Across these different measures, Latin America and the Caribbean appear on par with other emerging market economies, but fare substantially worse than advanced economies.

At the same time, regional averages mask a great deal of variation across countries. Corruption perceptions in some countries, such as Chile and Uruguay, are similar to levels seen in advanced economies. Interestingly, Chile and Uruguay also score well in other institutional and governance indicators, and have relatively higher income per capita levels. The rest of the region does not score as well. To varying degrees, this reflects poor law enforcement, lack of fiscal transparency, bureaucratic red tape, loopholes and weak contractual frameworks in public procurement and investment, and weak governance in state-owned enterprises.

Limited progress

It is not easy to track concrete improvements in Latin America because some measures are not fully comparable across time. Moreover, perceptions of corruption may in fact rise even when corruption falls because more is being investigated and uncovered.

While there are some cases of significant improvement over the past 20 years in emerging markets, there are fewer success stories in Latin America. For example, control of corruption in Honduras has noticeably improved (though remains high), reflecting recent actions regarding the police force, the social security administration, and the tax administration. Overall, however, most changes in Latin America are relatively small. Corruption is hard to get rid of once it’s there.

The cost of corruption

Previous studies show that corruption can hinder sustainable and inclusive growth. With systemic corruption, the state’s capacity to perform its core functions is weakened, making costs macro-critical. In addition, higher corruption tends to be accompanied by higher inequality. Some commonly recognized costs evident in parts of Latin America include: lower provision of public goods (which hurts the poor disproportionately), misallocation of talent and capital through distorted incentives, higher levels of distrust in society and lower legitimacy of government, higher economic uncertainty, and lower private and foreign investment.

Nevertheless, it is hard to statistically pin down the precise impact of corruption on development since causation runs both ways. Our illustrative estimates suggest that an improvement in corruption from the lowest quartile to the median could raise per capita income by about $3,000 in Latin America over the medium term, although part of this gain reflects coinciding factors like overall institutional improvements.

Window of opportunity

Corruption in Latin America remains too high. The latest surveys tell us that the public is losing patience, which creates a window of opportunity for national leaders. Developing and enforcing a coherent strategy to fight corruption is difficult, entails learning by doing, depends on country circumstances, and is one part of a broader development strategy. But drawing from international and regional experience can provide insights and guidance to combat corruption. Our next blog will offer some concrete suggestions for Latin America.

By IMFBlog| September 21st, 2017|capital markets, commodities, Corporate Risk, corruption, developing countries, Economic outlook, Economic research, Emerging Markets, Global Governance, Government, inclusive growth, International Monetary Fund, Investment, Latin America, Politics

12) Stemming corruption in Guyana

Opinion: Stemming corruption in Guyana

13) Curse of the Black Gold: 50 Years of Oil in the Niger Delta

https://www.theguardian.com/environment/gallery/2010/mar/05/curse-black-gold-nigeria

14)  The Oil Curse – University Bergen – Law Research

http://www.uib.no/en/news/43420/oil-curse

15)

7. Tour de France – Tour de Géologie – Tour du Vin

Tour de France 2017 - route - MCAL - 2
Tour de France 2017 – route – MCAL – 2

Tour de France - Cover - MCAL - 1
Tour de France – Cover – MCAL – 1

Champagne Area

Follow or cycle the trail of bubbles. Across this epic wine region. Where you can drink champagne in many of the magnificent champagne bars around.

Madame de Pompadour stated that champagne is the only drink that enhances a woman’s beauty.

Champagne is first of all and foremost a real wine. It is a proper vignoble with a lot of diversity. What makes it so interesting is that there are as many different champagnes as winemakers. Champagnes are really rooted in a landscape upon which both man and nature have bestowed an epic tranquility.

The Montagne the Reims is one of the 3 key champagne zones. It is a gentle plateau where vines roll in waves up to woodland across the top.

There are about 16,000 champagne grape growers, and 4,300 make their own wines. Therefore there are so many different tastes and related stories behind.

Further to the south you find the gentle chardonnay slopes of the Cote des Blancs.

To the east the Marne river is the area with vine slopes of independent producers. They have been working with pinot meaner since Dom Perignon in the 17th century. Perignon is indicated to be the inventor of champagne. He also promoted it with pioneering blending, with corkage and thicker bottles that did not explode.

In both Reims and Epernay the Avenue de Champagne is rich in the great names. Moet & Chandon, Pol Roger, Perrier-Jouet. You will also find different champagne bars that showcase and promote the smaller, less known independent producers. Have a try, it is certainly worth.

Remember, ” Too much of anything is a bad thing. But too much champagne is just right ” according to Scott Fitzgerald.

Moet & Chandon

The grandeur and richness of Moet comes form its lands and know-how. The estate has 1,200 hectares, each with 10,000 vines and each produces enough grapes for one bottle. They are fermented in some 25 km of tunnels, beneath the streets of Epernay and of Hotel Moet, the grandest of all its buildings.

Imperial, Grand Vintage and Grand Vintage Rose are blended from 3 grapes. Pinot noir, for the structure. Meunier for the texture. And Chardonnay for elegance.

Blending the distinctive Moet Imperial is more so rational, using previous years’ blends for consistency blending.

Blending of vintage Moet however is done emotional and is only released in outstanding years.

Champagne is the ultimate social drink, a superb wine that is not drunk alone. Often the Friday begins with a bottle of champagne, to celebrate the beginning of the weekend.

Champagne area - MCAL - 7
Champagne area – MCAL – 7
Tour de France - Champagne area - MCAL - 6
Tour de France – Champagne area – MCAL – 6
Tour de France - Wine areas - MCAL - 5
Tour de France – Wine areas – MCAL – 5
Tour de France - Geological Column, Time Scale, Wine areas - MCAL - 4
Tour de France – Geological Column, Time Scale, Wine areas – MCAL – 4
Tour de France - Geological Map - MCAL - 3
Tour de France – Geological Map – MCAL – 3

Tour de France 2017

The Tour de France is one of the world’s most fabulous and notorious sporting events.

From its humble origins over a century ago to its present day glory, the Tour de France has always been a race that has inspired fascination. The exploits of the riders, Tommy Simpson’s death of the slopes of Mont Ventoux, Lance Armstrong’s controversial career and Bradley Wiggins’ historic win, continue to enthral audiences worldwide.

Géologie Massif du Galibier - MCAL
Géologie Massif du Galibier – MCAL

On your own flat or curved screen at home, by watching the Tour de France, you also experience the thrill and intensity of the Tour de France for example during its most challenging climbs. From the dizzying heights of the 2,715-metre ascent of Col de la Bonette to the historic Great St Bernard Pass.
On Col du Galibier, not far away from my own 6 month fieldwork area in the Italian Cottian Alps, with its incredibly tortuous 15 percent gradient climb.

A tough gradient that also my brand new Citroën 2CV  Deux Chevaux, Fourgonnette model (16 hp, 425 cc) and its driver had to experience and conquer back in 1973. Obtaining a maximum speed uphill of only some 15 kilometres in gear one. With the big load of pieces of la Bella Italia. Rock samples for my thesis. Just to mention the garnet schists, augen gneisses, grafite- and cloritoid micashists, cargneules, marbles, schistes lustres, prasinites and ovardites of Forte Fenestrelle, serpentinites and ofi-calcites. All first subducted, later obductic and now exhumed Palaeozoic basement to Jurassic metamorphosed rocks.

And Alpe d’Huez’s famous hairpins, where legendary cyclists such as Fausto Coppi and Marco Pantani once showed off their physical strength and stamina, and blasted home with unbelievable acceleration and will-power that left other cyclists tasting their On your own flat or curved screen at home, by watching the Tour de France, you also experience the thrill and intensity of the Tour de France for example during its most challenging climbs. From the dizzying heights of the 2,715-metre ascent of Col de la Bonette to the historic Great St Bernard Pass.

Tour de France of 1989 is surely the greatest ever. A race that saw Greg LeMond overturn a 50-second deficit to Laurent Fignon on the final stage on the Champs Élysées to snatch the title by a mere eight seconds. After three weeks and more than 3200 kilometres in the saddle, this remains the smallest margin of victory in the Tour’s 100+ year history.

As a geologist and explorationist for me the Tour de France simultaneously represents a fascinating Tour de Geologie and Tour de Vin.

While the brave cyclists, such as Froome, Quintana, Uran, Aru, Ten Dam and the whole peloton cross the French countryside and mountains, they also cycle cross-sections through the geologic history, my geological maps, the maps and vineyards of the famous wine districts of France, that I avidly consult during the different stages.

An extra exciting dimension to the emotions of the Tour and cyclists:

Tour de France, Tour de Geologie, Tour de Vin; Bycicles, Geology, Viticulture, Three-in-One for me.

Sunday 23th July, 2017, 19:20 p.m., Champs-Élysées, Froome or Quintana ?

Please have a look at the maps, the geology and how this influences on the terroir and specifics of the different wine areas. Most maps are taken from the comprehensive book of James E. Wilson, Terroir, The Role of Geology, Climate, and Culture in the Making of French Wines – 1998 – ISBN 0-520-21936-8.

Salut, enjoy !

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Doei, salu2, ciao, até logo, grüssen, cordialement, salut, добрый день, ajoo, tur kos bon mi dushi hendenan na Switi Sranan i mi famiri na switi Korsou, tan bun allamala !

 

 

3. French Guyana – France bans oil and gas exploration

France bans petroleum exploration in Guyana - Mr. N. Hulot and Mr. A. Schwarzenegger
France bans petroleum exploration in Guyana – Mr. N. Hulot and Mr. A. Schwarzenegger on photo.

France to ban all new oil and gas exploration in renewable energy drive.
‘Ecological transition’ minister says law will be passed later this year.

The minister, previously famed in France for his environmental activism and nature documentaries, also outlined proposals to increase the taxation on diesel and to “make decisions faster” to curtail pollution.

Mr Macron said he was opposed to exploration for gas and favoured a ban on fracking during his election campaign, particularly in the overseas territory of French Guiana.
But Mr Hulot was among those warning that any ban would trigger lawsuits from energy companies and saying change must be imposed gradually.

Around 75 per cent of France’s electricity is currently provided by nuclear power stations, with the industry employing around 200,000 people and led by state-owned EDF.

A law was passed last year to reduce the nuclear proportion to 50 per cent by 2025, sparking controversy over potential job losses and the closure of up to 20 reactors.

Mr Macron reinstated his commitment to the law last month but has evaded concrete targets for the ultimate aim of making France run completely on renewable energy.

The President is also planning a huge renovation programme for French homes to reduce energy consumption, cut carbon dioxide emissions, reduce energy poverty and create jobs.

He and Mr Hulot discussed renewable energy schemes and global warming with Arnold Schwarzenegger, the actor and former Governor of California, as part of his trip to France on Friday.

Mr Schwarzenegger said he was honoured to speak to Mr Macron and ministers about “how we can work together for a clean energy future” and was seen posing with a T-shirt reading “Make Our Planet Great Again” with Mr Hulot.

The Hollywood star has publicly sparred with Donald Trump, a fellow Republican and Apprentice host over climate change and the President’s decision to withdraw the US from the historic Paris accords.

France was among the countries heavily criticising the decision, with the government posting an annotated White House video on social media refuting the President’s claims that the agreement was a “bad deal” for the US.

Lizzie Dearden @lizziedearden Saturday 24 June 2017 11:42 BST101 comments

From: The Independent Online, 23th June, 2017.

http://www.independent.co.uk/news/world/europe/france-ban-new-oil-gas-exploration-stop-granting-licences-macron-hulot-renewable-energy-drive-a7806161.html

2. What Guyana needs to know about ExxonMobil—Pt 4…ExxonMobil shows two faces to investors, partners

What Guyana needs to know about ExxonMobil – Part 4:  ExxonMobil shows two faces to investors, partners

In one way or the other, Guyana has certainly paid the price for its ignorance.
It has paid the price for its failure to conduct due diligence on several companies, for its failure to monitor the operations of entities; for its failure to craft air-tight contracts/agreements which can safeguard the nation against the abusive and greedy nature of some mega-corporations. It has paid for failing to learn from the mistakes of other nations.
With such a wealth of experience in making all the wrong moves for one reason or the other, Guyanese are in their right to ask themselves a most salient question when facing an oil giant like ExxonMobil: CAN THEY BE TRUSTED?
In recent weeks, Kaieteur News embarked on a series of articles which served to enlighten the citizenry on all they need to know about a company with which Guyana is going to sign a life changing contract.
Through detailed research, this publication has presented the facts on how ExxonMobil seems to have a pattern of entering weak nations with non-transparent governments.
All are rich in oil but their people are still no better off today. It was also exposed how ExxonMobil has a history of underpaying royalties in territories it operates. Its own mother country, the United States, was no exception from this type of behaviour.
In this installment Kaieteur News will show how ExxonMobil is now facing several lawsuits, including one for allegedly deceiving its shareholders in the US.
According to www.theguardian.com, (https://www.theguardian.com/business/2017/may/31/exxonmobil-climate-change-cost-shareholders )
ExxonMobil was forced to be more frank with its shareholders regarding the effect climate change will have on the operations and profitability of the company.
The report by the Guardian notes that Climate Change poses a real threat to the sustainability and the manner in which ExxonMobil will continue to operate its business in the future. Climate Change, the article notes, is a “material financial threat” for ExxonMobil.
But that is not all. ExxonMobil is currently under investigation by the Offices of the New York Attorney General and Massachusetts for being deceitful about climate change, something the company, of course, has denied.
According to the www.nytimes.com, (https://www.nytimes.com/2015/11/06/science/exxon-mobil-under-investigation-in-new-york-over-climate-statements.html) , an investigation is being carried out to determine whether the company has been truthful to the public on the issue of climate change or if it deceived its investors about the impact the challenging issue can have on the business.
Attorney General Eric T. Schneiderman issued a subpoena to Exxon Mobil, for extensive financial records, emails and other documents that would be helpful to the investigation, the NY Times reported.
The media outlet said, “The investigation focuses on whether statements the company made to investors about climate risks as recently as this year were consistent with the company’s own long-running scientific research.”
“The inquiry would include a period of at least a decade during which ExxonMobil funded outside groups that sought to undermine climate science, even as its in-house scientists were outlining the potential consequences — and uncertainties — to company executives.”
In short, ExxonMobil was actually paying lobbyists to deny the impact of climate change.
ExxonMobil has been accused over the years of funding certain groups and government officials/parties to promote disinformation about the effects of climate change. It has of course denied this to the end, but the media reports on this matter are overwhelming.
The Guardian (www.theguardian.com) is just one media site which has placed this issue in the spotlight. The news entity has reported that ExxonMobil has been funding anti-climate groups such as the American Legislative Exchange Council (Alec). It based this conclusion on tax records. (https://www.theguardian.com/environment/2015/jul/15/exxon-mobil-gave-millions-climate-denying-lawmakers)
In addition to the aforementioned, civil proceedings have been filed against ExxonMobil by some of its own shareholders who feel deceived by the company regarding the truth about climate change and the toll it will take on the business’s fortunes as most nations are being encouraged to move in the direction of cleaner sources of energy.
According to www.insideclimatenews.org. (https://insideclimatenews.org/news/18112016/exxon-climate-change-research-oil-reserves-stranded-assets-lawsuit), the deception by ExxonMobil led to the investors paying inflated prices for Exxon stock and subjected them to financial losses because the company knew the value of its oil reserves was less than what it was telling investors. This was also noted in the lawsuit which was filed in a Texas federal court this year. (see link for full lawsuit: https://www.documentcloud.org/documents/3215695-Class-Action-Exxon-Complaint.html) .
In the court action, the plaintiff is calling for compensation for all damages sustained as a result of the defendant’s wrongdoing, in an amount to be proven at trial, including interest thereon.
The plaintiff is of the firm belief that, “During the Class Period, as detailed herein, Defendants made false and misleading statements and engaged in a scheme to deceive the market and a course of conduct that artificially inflated the price of Exxon common stock and operated as a fraud or deceit on Class Period purchasers of Exxon common stock by misrepresenting the value of the Company’s business and prospects by overstating its earnings and concealing the significant defects in its internal controls.”
The lawsuit goes on to state, “As Defendants’ misrepresentations and fraudulent conduct became apparent to the market, the price of Exxon common stock fell precipitously, as the prior artificial inflation came out of the price. As a result of their purchases of Exxon common stock during the Class Period, plaintiff and other members of the class suffered economic loss, i.e, damages, under the Federal Securities Laws.”
Adding to ExxonMobil’s climate change woes, is the fact that even the Security Exchange Council (SEC) has also launched an investigation in an effort to ascertain if the oil king has been completely honest with investors about climate risks and accounting issues concerning its reserves.

CONCLUSION
With the aforementioned in mind, it would not be irrational for Guyanese to urge Government officials to be wary of the nature of the oil king it is dealing with and to act cautiously.
It would not be unreasonable for Guyanese to urge the Government to monitor the operations of the entity; to craft an air-tight contract/agreement that will safeguard the nation against the abusive and greedy nature of this mega-corporation.
It would not be unreasonable to call on the Government to learn from the painful and irreversible mistakes made by other nations.
Failure to do so, would surely lead the nation into a position where 10 years later, it would be worse off than it is today.

From: www.kaieteurnewsonline.com – June 28th – 12:55 AM

”  All-in-1 Consultant,  Available-to-Serve-You.

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1. Guyana Basin. ExxonMobil makes FID on Liza development offshore Guyana

Liza Phase 1 – V.13.06.18

1) Liza Phase 1 – Update @ June 20, 2018

The Liza Phase 1 development continues to rapidly progress, with the commencement of development drilling offshore Guyana.

Development drilling began in May for the first of 17 wells planned for Phase 1, laying the foundation for production startup in 2020.

Liza Phase 1 is expected to generate over $7 billion in royalty and profit oil revenues for Guyana over the life of the project. Additional benefits will accrue from other development projects now being planned.

Liza Phase 1 involves the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel named Liza Destiny, along with four undersea drill centers with 17 production wells. Construction of the FPSO and subsea equipment is under way in more than a dozen countries.

“The Longtail discovery is in close proximity to the Turbot discovery southeast of the Liza field,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Longtail drilling results are under evaluation. However, the combined estimated recoverable resources of Turbot and Longtail will exceed 500 million barrels of oil equivalent, and will contribute to the evaluation of development options in this eastern portion of the block.”

The release said that ExxonMobil is currently making plans to add a second exploration vessel offshore Guyana in addition to the Stena Carron drillship, bringing its total number of drillships on the Stabroek Block to three. The new vessel will operate in parallel to the Stena Carron to explore the block’s numerous high-value prospects.

The release said that the Noble Bob Douglas is completing initial stages of development drilling for Liza Phase 1, for which ExxonMobil announced a funding decision in 2017.

Phase 1 will comprise 17 wells connected to a floating production, storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day.

First oil is expected in early 2020. Phase 2 concepts are similar to Phase 1 and involve a second FPSO with production capacity of 220,000 barrels per day. A third development, Payara, is planned to follow Liza Phase 2.

http://news.exxonmobil.com/press-release/exxonmobil-advances-liza-phase-1-development

500,000 bpd forecast based on production from Liza, Payara and Pacora.

Oil production forecast 500,000 + bbls/day.

Oil production in Guyana is expected to surpass the 500,000 barrels per day mark by the end of the next decade based on production from several offshore developments.

OilNOW recently sat down with ExxonMobil Guyana’s Senior Director, Public and Government Affairs, Kimberly Brasington for an outline of what that projection is based on, and this is what she had to say;

2) ExxonMobil makes FID on Liza development offshore Guyana
HOUSTON, June 16, 06/16/2017, By OGJ editors

ExxonMobil Corp. has made a final investment decision on the first phase of development for Liza field 190 km offshore Guyana.
The company also reported results from the Liza-4 well, which the firm said encountered more than 197 ft of high-quality, oil-bearing sandstone reservoirs and will underpin a potential Liza Phase 2 development.
Gross recoverable resources for the 6-million-acre Stabroek block are now estimated at 2-2.5 billion boe, including Liza and the Liza Deep, Payara, and Snoek exploration wells (OGJ Online, Mar. 30, 2017).
The Liza Phase 1 development includes a subsea production system and a floating production, storage, and offloading vessel designed to produce as much as 120,000 b/d of oil. The FPSO contract was let to SBM Offshore NV late last year (OGJ Online, Dec. 20, 2016).
Liza field lies in 1,500-1,900 m of water. Four drill centers are envisioned with a total of 17 wells, including 8 production wells, 6 water-injection wells, and 3 gas-injection wells.

ExxonMobil last month let an engineering, procurement, construction, and installation contract to Saipem SPA for work on risers, flow lines, and associated structures and jumpers (OGJ Online, May 10, 2017). The contract also includes transportation and installation of umbilicals, manifolds, and foundations for production as well as water and gas injection systems.
Production is expected to begin by 2020, less than 5 years after discovery of the field. Phase 1 is expected to cost just more than $4.4 billion, which includes a lease capitalization cost of $1.2 billion for the FPSO facility, and will develop 450 million bbl of oil.
ExxonMobil submitted an application for a production license and its initial development plan for Liza field in early December. The development has received regulatory approval from the government of Guyana.
Esso Exploration & Production Guyana Ltd. is operator with 45% interest. Hess Guyana Exploration Ltd. has 30% and CNOOC Nexen Petroleum Guyana Ltd. 25%. Esso E&P Guyana also operates Canje and Kaieteur blocks offshore Guyana.
Drilling of the Payara-2 well on Stabroek is expected to commence in late June and will also test a deeper prospect underlying the Payara oil discovery.

Guyana Basin – ExxonMobil – FID – Lisa development plan

From: http://www.ogj.com/articles/2017/06/exxonmobil-makes-fid-on-liza-development-offshore-guyana.html

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4. An exhilarating Morgan in Leiden, the Netherlands

3. A really exhilarating Morgan ARP 4.
Leiden (Rapenburg, Nonnenbrug, in front of the historic University Academie building), my Alma Mater in the Netherlands.

”  All-in-1 Consultant,  Available-to-Serve-You.

For grounded, vintage stewardship to successfully find lots of oil, mineral resources, develop your business and get sustained value for money ?

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Leiden, the Netherlands:

A university city since 1575, Leiden houses Leiden University, the oldest university of the Netherlands, and Leiden University Medical Center. Leiden is a city with a rich cultural heritage, not only in science, but also in the arts. One of the world’s most famous painters, Rembrandt, was born and educated in Leiden. Other famous Leiden painters include Lucas van Leyden, Jan van Goyen and Jan van Steen. The city has been one of Europe’s most prominent scientific centres for more than four centuries. Modern scientific medical research and teaching started in the early 18th century in Leiden with Boerhaave. Many important scientific discoveries have been made here, giving rise to Leiden’s motto: ‘City of Discoveries’.

Leiden University is one of Europe’s top universities, it boasts thirteen Nobel Prize winners, it is a member of the League of European Research Universities and positioned highly in all international academic rankings. It is twinned with Oxford, the location of the United Kingdom’s oldest university. Leiden University and Leiden University of Applied Sciences (Leidse Hogeschool) together have around 35,000 students. Leiden is a typical university city, university buildings are scattered throughout the city and the many students from all over the world give the city a bustling, vivid and international atmosphere.
From: en.m.wikipedia.org

Morgan ARP 4:

In this, the 65th year of Plus 4 production, Morgan are pleased to announce the AR P4. Since 1950, the exhilarating Morgan +4 has been the mainstay of Morgan production and to celebrate this, a strictly limited run of 50 will be built. Each hand assembled and tuned by Morgan’s experienced AR Motorsport technicians. With enhanced on-road performance and driver comfort in mind, each car embraces a powerful Cosworth two litre engine, new interior and an extended list of standard features.

2.0 LITRE COSWORTH ENGINE
A special car requires a special engine, one that has been developed to give drivers the ultimate driving experience. Cosworth, famous for over 50 years of racing success at all levels, provide their 2.0 litre engine for the ARP4. Developing 225bhp, the ARP4 is the most powerful production Plus 4 ever built.

Text: www.morgan-motor.co.uk.