7. Gusher in Guyana. Will oil corrupt this state?

 

Map Guiana 1875 - Royal Geographical Society London - Robert Herman Schomburgk
Map Guiana 1875 – Royal Geographical Society London – Robert Herman Schomburgk

 

0. Note Marcel Chin-A-Lien – V.21.06.18

1. The gusher in Guyana. Will oil corrupt a small Caribbean state? – The Economist

2. This government does not have an impressive record. – Harry Gill – PPP/C Member of Parliament, Guyana

3. Guyana – oil, gas and corruption – Claudius Prince

4. Guyana’s oil and gas sector. Laws not enough to stop corruption – Foreign panellists at Guyana forum – July 7, 2017

5. Oil will not fall victim to vicious ‘friends and family’ culture – Trotman promises – Aug 16, 2017 – Kaieteur News – By Kiana    Wilburg

6. Guyana finally submits EITI application
Aug 19, 2017 – Reblogged from kaieteurnewsonline.com

7. Corruption Perception Index: Guyana and nearby countries – From Worldbank 2017.

8. Stemming corruption in Guyana. –  Apr 06, 2018 Editorial – Kaieteur News

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

0) Note Marcel Chin-A-Lien

Will Guyana be affected by the Oil Curse and the Dutch disease, from 2020 on when oil production begins? Why ?  Dutch disease and resource-based international trade.

Three (3) explanations for the Dutch Disease.

Many books and publications exist on this subject. Some scientist have even dedicated a large part of their life studying this phenomenon. Much can be found by researching on internet. You may want to have a look at some of these publications. For a subject that will be of prime importance for Guyana the coming decades.

A) Based on resource endowments, as Heckscher-Ohlin (H-O model, Stockholm School of Economics, 1933.
Building on David Ricardo’s theory of comparative advantage). And Heckscher-Olin-Vanek.
And by the Stolper-Samuelson theorem.

B) Explained by the classic economy theory of W. Max Corden and J. Peter Neary, 1982.
W.M. Corden (1984), ” Boom Sector and Dutch Disease Economics: Survey and Consolidation.” Oxford Economic Papers 36:362.

C) As explained by Juan Pablo Pérez Alfonso, from oilrich country Venezuela. Prominent Venezuelan diplomat, politician, and lawyer.
Responsible for the creation of OPEC. In one of his excellent books such as ” The devil’s excrement ” or ” Hundiéndonos en los excrementos del Diablo”, 1976, Caracas, Editorial Lisbona.

A book that I studied with great interest back in 1977.
On arrival and start of my career in Caracas. By that time, the bustling and booming, so-called Sucursal del Cielo and La Venezuela Saudita.
Caracas, a moveable feast by then. Just as in ” A moveable feast ” on Paris, by Hemingway.

1)The gusher in Guyana. Will oil corrupt a small Caribbean state

Reblogged from: www.economist.com/news/americas/21724385-it-will-take-better-politicians-resist-corrosive-power-petrodollars-will-oil-corrupt – Jun 29th 2017 – The Americas- The Economist Magazine

South America’s only English-speaking country is one of its poorest. But perhaps not for much longer: Guyana has struck black gold. By 2020 ExxonMobil, the world’s biggest private oil firm, expects to be pumping oil in Guyanese waters, with Hess and Nexen, its American and Chinese partner firms.

In the past two years they have found reserves of around 2bn barrels. Five more promising prospects will be drilled by 2018, and then perhaps a dozen more. Guyana could be producing 120,000 barrels per day by 2020, and more than 400,000 by the mid 2020s.

Even with oil at under $50 a barrel, this is vast wealth for a nation of just 750,000. But the Guyanese seem strangely underwhelmed. “It will not trickle down,” a street trader shrugs. Little of the work will be done onshore.

Guyana has few engineers and no heavy industry. A global glut of refining capacity means there is no point in Guyana building its own. Oil will be pumped into giant vessels, then shipped directly to foreign markets.

So the main question is how the government will spend its share of the windfall. There is talk of a sovereign wealth fund and projects to boost long-term growth: an all-weather road linking the capital, Georgetown, to the interior and Brazil; a deepwater port; hydro-electric schemes; better health care and schools.

But Guyana already had diamonds and gold, and little of that wealth was shared. Horse-drawn carts still weave through the Georgetown traffic. Large new gold mines under Australian and Canadian ownership have boosted export earnings and the tax take. But small locally owned ones smuggle much of their output abroad, bypassing the taxman. State-owned sugar producers gobble subsidies. Cash will be tight until the oil starts flowing.

Retail sales are down. Nightspots are closing. “Businesses are scared to invest,” says an accountant. He blames a crackdown on money-laundering and graft. Others blame a newish local office of America’s Drug Enforcement Administration for reducing the flow of drugs cash.

The minister for natural resources, Raphael Trotman, wants Guyana to sign up to the Extractive Industries Transparency Initiative, which monitors mineral revenues to stop them being stolen. The Guyana Oil and Gas Association, a recently formed coalition of private firms and individuals, aims to promote transparency in the industry. But oil tends to corrupt weak governments. And Guyana’s is far from strong; the country has a history of corruption and its politics are bitter and racially polarised.

An alliance led by the mainly Afro-Guyanese People’s National Congress, the party that governed from 1964 to 1992 through rigged elections, squeaked back into power in 2015. It is locked in a standoff with the opposition over who should become the new head of the elections commission, which has kept elections broadly free and fair since 1992. If no deal is reached, the constitution seems to allow the president to impose his choice—in which case the leader of the opposition People’s Progressive Party, which is mostly supported by Indo-Guyanese people, threatens to sue.

The risk is that Guyana’s petrodollars will be squandered on more sugar subsidies and pay rises for the unproductive public sector. The next election is due in 2020 just when the oil starts to flow. The victor could enjoy a well-lubricated quarter century in office.

This article appeared in the The Americas section of the print edition under the headline “The gusher in Guyana”.
The Economist
It will take better politicians to resist the corrosive power of petrodollars.

2) This government does not have an impressive record

Dear Editor,
With no clear policy to create jobs and grow the economy, and with an unprecedented number of blunders, scandals, and corrupt practices haunting this administration, lies, deception and voter-fraud are the only options available to the APNU+AFC to cling to power in 2020. Not even campaign promises can get them elected this time around for we all know the APNU+AFC cannot be trusted to keep campaign promises.

The Guyana Chronicle of Sunday, 16 July quoted President Granger as saying, “We are actually looking at means to reduce the taxation burdens.” Ironically, this is precisely one of the strategies proposed by the APNU+AFC Re-election Campaign (REEC). The People’s Progressive Party (PPP) has long been calling on the government to repeal the draconian tax burdens imposed on working class Guyanese since taking office, and the Leader of the Opposition, Dr. Bharrat Jagdeo has already said that he will rescind these immediately upon his party being elected back into office. So what’s new?

As I’ve mentioned in a previous letter, the Administration’s greatest fear is having to compete against a highly motivated PPP/C in 2020 with Bharrat Jagdeo as its Presidential Candidate. They will do everything to prevent this from happening, and are bold enough to risk tampering with the judiciary to achieve this objective. They have been using propaganda to fool the Guyanese electorate into believing that the People’s Progressive Party is corrupt and racist. All lies and deception that must now be challenged!

As mentioned above, President Granger has already started to tout the implementation of the strategy to ease heavy taxation. This is a serious admission that both the burdensome tax measures imposed by government in the 2017 National Budget and the 2 AM closure of bars and night-clubs by Minister Khemraj Ramjattan were unpopular among APNU+AFC supporters and could cost them votes in the 2020 election.

Our youth were knowingly deceived and used by the APNU+AFC during the last election, and they hope to “mamaguy” young voters again with the same strategy being suggested here. Not a word about implementing a plan to create jobs and opportunities for the youth as promised in the APNU+AFC 2015 Manifesto.

When the APNU+AFC came to office in 2015, it didn’t take long for the Granger Administration to start blowing out the over US$700 million left by the PPP/C in foreign exchange reserves at the Bank of Guyana. Ministers were paid hefty salaries ranging from $1.2 million to $1.7 million monthly; New luxury vehicles were bought for the President and his ministers, costing as much as $22 million each; The number of ministers were increased from 18 under the PPP/C to 27 plus the President under this Administration, with most ministries now run by a Junior Minister and a Senior Minister.

This incompetence obviously puts additional burden on the financial resources of the country to pay all these ministers fat salaries, provide housing for them, costing taxpayers as much as $500,000 per month; The spouses of ministers now travel with them first class at taxpayers’ expense, and some ministers are allowed to spend unlimited amounts as travel expenses without having to account for the spending of taxpayers’ money upon their return. The President travelled to the Bahamas on a chartered plane costing Guyanese taxpayers millions rather than flying there first class via Miami on a commercial flight for a fraction of the cost.

Then billions of taxpayers’ dollars were spent settling lawsuits that could have been won if we had a competent Attorney General that was half as brilliant as the one we had before. The Administration shamelessly wasted billions of taxpayers’ money on the bottom house drug storage bond and the D’Urban Park white elephant. But instead of cutting back on these elaborate and wasteful government expenditures, the Granger Administration is now forced to find other sources of income that would allow them to continue living “the good life”. Hence over 200 new tax measures have been imposed upon the Guyanese working-class in the two-plus years they have been in office. What a shame!

The other big lie propagated by this government to justify the failure to grow the economy and to provide jobs, is that money from the thriving illegal drug trade played a major role in boosting the under-ground economy under the previous PPP/C government. Well, if this was true, and this APNU+AFC government was successful in stopping this massive drug trade, why is it that SOCU’s big claim to fame so far is going after Jagdeo’s house in Pradoville 2 and Anil Nandlall’s Law journals?

Why aren’t these notorious drug dealers that ran the under-ground economy under the Jagdeo and Ramotar Administrations been arrested and brought to justice by SOCU and Attorney General Basil Williams? I’ll tell you why, because these are all lies made up by the APNU+AFC to get rid of the PPP/C. Just like the other “proposed measure” mentioned in Basil Williams email that reads:
The word “perception” used here is evident that they themselves do not believe this to be true. When compared to the number of Blacks holding prominent positions in the PPP/C, long-time PNC stalwart Anna Ally and a few others may be the only non-AFC Indians that hold a comparable position in the PNC/APNU. Fueling “the perception that the PPP is racist” may have worked in the past, but more Afro-Guyanese are willing to admit they were much better-off under the PPP/C that they are today under the APNU+AFC.
HARRY GILL – PPP/C Member of Parliament

3) Guyana, oil, gas and corruption

Dear Editor,
There are two things I will comment on observations on the above matter made by Ms. Vicky McPherson a shareholder in the Global Energy and Infrastructure group as reported in Kaieteur News of 7th July 2017.

First the shareholder is said to have opined that laws will not be enough to prevent corruption in our oil and gas industry. Obviously, this opinion of MS McPherson is correct. The presence of laws never did or never will, by themselves prevent crime.
The second aspect of Ms. McPherson’s reported comments was the suggestion that what is needed to deter corruption is “leadership and the personal conviction to not steal from the public purse.” This statement is not as clear as a casual examination might suggest it is, and lends itself to various interpretations.

I will take both aspects of this statement to be referring to both leaders at the national political decision making level and senior persons Guyana identify to monitor and participate in the management of the oil industry on its behalf. With this as my understanding of the context in which the statement was made I now turn to examine what we know about white collar crime to see if it comports with the shareholder’s notion of what will halt its presence.

To do so I turn to Sutherland’s Differential Association theory for assistance.
While the theory of Differential Association (DA) has its short falls (like all theories), it remains the most used theory for explaining causation for white collar crime. Essentially DA holds that our behaviour is influenced by the extent to which we share the values and definitions of law and its violation held by our colleagues (our reference group).

Thus, Sutherland saw this crime as a natural consequence of the interaction with criminal lifestyle. A straightforward way for us to gain an appreciation of Sutherlands’ DA theory is to recall the old and familiar saying “show me your company and I will tell you who you are.” An examination of alleged white-collar crimes in Guyana’s recent history seems to support Sutherland’s contention.

When the now governing parties were in the opposition they accused then president Jagdeo of committing white collar crimes – reference his Prado 1 and Prado 2 homes. The life styles of ministers in Jagdeo’s government and other senior government functionaries exceed what their salaries could make possible. These said officials felt comfortable telling the nation their sudden wealth was achieved courtesy of barrels sent by relatives.

Friends of the President purchased the people’s property at below market price. When these things happened, we knew these senior functionaries felt comfortable doing these things because they were assured of support from their colleagues (reference group).Persons with whom, according to Sutherland, they “share values and definitions favorable to law violation.”

For quite some time now the social scientist has noted the tendency of humans to adopt the values of our colleagues/reference group. Social psychology tells us that the tendency to confirm to group values and behaviour is really an effort to satisfy our need for acceptance and the maintenance of group harmony. Indeed, not understanding this willingness of individuals to adopt the values and behaviour of their reference group is what lead to many of us exclaiming, on hearing of the corrupt acts of someone we knew prior to his/her elevation to positions of influence and authority – “he change! He was never a person like that.”

It is expected that the oil sector will come on stream somewhere near the end of this government’s present term. While we know what to expect from the PPP based upon its past behaviour which suggest a willingness to pursue self-aggrandizement at the expense of the poor, what are we to expect if the present government is returned to power?

It would seem to me that the same yard stick of gauging future behaviour based upon past conduct that I employed earlier for assessing the PPP must also be used for suggesting how the APNU/AFC is likely to behave if returned to power.
Based upon his behaviour thus far, only the malicious and childishly partisan would suggest that President Granger shows any interest in self-aggrandizement. From his conduct, it seems showering himself with material riches is not his definition of a successful life, his emphasis seems to be focused on personal spiritual growth. So, while the PPP is rotten from the head down and therefore offers ideal conditions for white collar crimes to flourish, in the case of the APNU/AFC government the accommodating of such crimes comes from the wider community of its governing group. .

Remember Sutherland’s theory did not focus on the behaviour of the leader but on the wider leadership – colleagues who are one’s “reference group.” It is their acceptance of criminal behaviour that offers the accommodating environment for such crimes. Support for the correctness of Sutherland’s focus on leadership rather than the leader can be seen in the fact that even during the presidency of a simple man like Dr. Jagan white collar crime was said to be rampant among senior PPP officials.

So, under the APNU/AFC government when we recall the drugs bond scandal, the mystery surrounding the purchase of millions of dollars of drugs, are we not seeing a culture in the government which suggests support for messing with the peoples’ money? And what are we to make of a government which see no harm in taking from the public purse to award themselves 50% raise in salaries while telling poor workers “all we can afford to give you is 10% or below?”

A government that uses poor taxpayers’ dollars to provide ministers with rented houses, costing half a million dollars each month? When a government could look out for itself in this brazen manner, at the expense of workers, what are we to conclude? Isn’t it, based on its behavior, giving credence to Sutherland’s contention that white collar crime flourishes where persons in position of authority share a favorable definition of law violation?

With all the above as our reality, tell me, why should we believe that this government and its senior appointees will not also use oil money in the same selfish manner and that white collar crime will not continue to plague the nation?
Claudius Prince

4) Guyana’s oil and gas sector. Laws not enough to stop corruption

– Foreign panellists stress at local forum

With Guyana now moving to set in place the necessary laws and regulations to govern the emerging oil and gas sector, it’s going to take more than that to stop corruption.
This is the opinion of Vicky McPherson, a Shareholder in the Global Energy & Infrastructure Group and the Africa Practice Group at the international law firm, Greenberg Traurig.

“The most important thing to acknowledge about corruption is that you can have all of the laws and regulations in place, but if you don’t have the leadership and the personal conviction to not steal from the public coffers, none of this matters,” she said.

McPherson was at the time responding to a question posed by Chief Executive Officer (CEO) of the State Assets Recovery Unit (SARU) Aubrey Heath-Retemyer, on whether there has been any attempt to safely determine the level of involvement of larger countries in corrupting smaller oil-rich states.

This statement would come at a time when Guyana is moving to put in place the necessary laws, policies and regulatory bodies to govern the emerging oil and gas sector. These would include the 1) Local Content Policy, 2) the Sovereign Wealth Fund, and the 3) Petroleum Commission Act, among others.

McPherson, who appeared as a panellist at the “Public Corruption and the Oil Curse” symposium held at Le Meridian Pegasus Hotel in Kingston, Georgetown yesterday, told Heath-Retemyer that she is not aware of any “quantifiable” report, and outlined several factors that can prevent corruption from outside sources. These factors, she said, include Civil Society and a Free Press.

“The things that distinguish many developing countries from others in terms of how corrupt their system becomes after the discovery of oil and other natural resources, are those two factors…whether or not civil society is active and vocal of the development of that industry, and whether the press will report what it ultimately will find – if it’s doing its job.”

McPherson said also that citizens have a major role to play in ensuring transparency.
“If the citizens demand transparency, that will go a long way in terms of ensuring that the government and those who benefit from government contracts do not personally benefit to the detriment of Guyana as a whole,” she said.

Echoing McPherson’s view that laws will not be enough to combat corruption was David Holukoff, the Director of Grant Thornton in the British Virgin Islands.
The firm is regarded as the world’s seventh largest professional services network of independent accounting and consulting member firms which provide assurance, tax and advisory services to privately-held businesses, public interest entities, and public sector entities.
“It’s not just about laws, because there is always a loophole…When we’re doing our forensic investigations, it’s about the will and the leadership from the top…and the unwillingness to accept corruption and chase after and get rid of the bad players,” he said.

5)  Oil will not fall victim to vicious ‘friends and family’ culture:Trotman promises

Reblogged from guyaneseonline.wordpress.com & kaieteurnews.com – August 16, 2017

Oil will not fall victim to vicious ‘friends and family’ culture – Trotman promises
Aug 16, 2017 – Kaieteur News – By Kiana Wilburg

The mining, forestry, and broadcasting sectors, among others, have been victims of an (Photo : Minister of Natural Resources, Raphael Trotman)
unscrupulous culture. It is a culture which sees the close friends and families connected to government officials benefitting from revenue and/or resources which are intended for the benefit and development of the state and its people.

But this culture is not unique to Guyana. It is particularly prevalent in the oil and gas sectors around the world. As Guyana prepares for this new industry which is poised to bring gushing streams of revenue, Minister of Natural Resources, Raphael Trotman is assuring that the Government is going above and beyond to insulate the oil sector from corruption.

In an interview with this newspaper yesterday, Trotman said that the culture in Guyana of having riches belonging to the state trickle down to family and friends connected to the government, is something that the APNU+AFC coaltion is very conscious of.

The Minister said, “But what we are doing as a government is developing a raft of good governance mechanisms and initiatives. So you have the Extractive Industries Transparency Initiative (EITI) process which would take care of things like beneficial ownership and the engagement or involvement of family and friends and so forth.”

Trotman reminded that Prime Minister, Moses Nagamootoo would have brought before the National Assembly, amendments to the Integrity Commission Act which has been in the form of a regimented Code of Conduct for public officials.

With this in mind, the Natural Resources Minister said, “We are looking at a raft of legislation and other initiatives to strengthen good governance matters in that regard. At the end of the day, it is not something that is lost on the government, and we have been looking at ways in which we can plug loopholes, ensure declarations, guarantee arms-length relations between persons of influence and contracts and so forth…”

He added, “The Family and friends culture will not permeate oil and gas sector. We have to and we will, insulate the industry from undue influences and corruption. Bear in mind, however, that Guyana is a small country of less than one million people. You go into some place and you realize that you actually went to school with someone there or you know the person. So that is the context of Guyana.”

The Natural Resources Minister said that the idea, nonetheless, is to ensure that ministers and persons of influence are not allowed to divert oil resources which belong to the state and its people to their family and friends.

EQUATORIAL GUINEA

It was on Monday that Kaieteur News carried an article which showed how the friends and families connected to the Government of Equatorial Guinea live lifestyles fit for kings and queens.

These “selected” individuals can happily enjoy their riches today, much to the credit of USA oil giant ExxonMobil.

But a damning investigation later revealed that the source of their wealth was due to the fact that ExxonMobil was funneling millions of dollars into a private account belonging to the Government. And that is not all. ExxonMobil was also granting contracts to the friends and family members connected to the Government of Equatorial Guinea.

At one of the hearings held by the American Senate Subcommittee in 2004, Senator Jeff Merkley grilled at length, Rex Tillerson, who was the CEO of ExxonMobil. He is now the US Secretary of State.

Tillerson was questioned on the fact that there were a number of contracts that ExxonMobil did with companies which had strong ties to the friends and family members of the Government of Equatorial Guinea. Merkley said that this included building leases and land leases and a series of other contracts. He added that the net effect was the transfer of more riches to the Government of Equatorial Guinea.

Merkley pointed out that ExxonMobil’s actions raised this moral question: How could this company be engaging Equatorial Guinea in such a manner, that it was essentially enriching the leaders, without little thought of how this was going to impact the people there?

Merkley also pointed out that the unfavourable state of Equatorial Guinea is even reported on by the US State Department.

Tillerson said that while he is aware of the circumstances spoken of by the Senator, he merely maintained that during his time, there were no violations.

With the aforementioned in mind, several anti-corruption advocates fear that the same may take place in Guyana.

6)  Guyana finally submits EITI application

Aug 19, 2017 News 0 Comments – Reblogged from kaieteurnewsonline.com – By Kiana Wilburg

The submission of Guyana’s application for membership into the Extractive Industries Transparency Initiative (EITI) was yesterday facilitated at the Ministry of Natural Resources on Brickdam.

Photo: (centre) Natural Resources Minister, Raphael Trotman handing over Guyana’s EITI application to GYEITI Head, Dr. Rudy Jadoopat while being flanked by other stakeholder.

At the simple ceremony, Natural Resources Minister, Raphael Trotman handed over a copy of the application to Head of the EITI local chapter, Dr. Rudy Jadoopat. The Guyana EITI (GYEITI) Head collected the document on behalf of the regional EITI head, Dr. Francisco Paris, who witnessed the occasion via Skype. Dr. Paris is currently in Oslo, Norway, and an electronic copy of the document was sent to him later yesterday.

Present at the event were various industry stakeholders, including Patrick Harding, of the gold industry and ExxonMobil’s Country Manager in Guyana, Rod Henson. Mike McCormack, who is the head of the Multi-Stakeholder Group, was also present at the event.
In his opening remarks, Trotman said that the submission of the application is a signal achievement for good governance in Guyana. He then recognized the work done by the previous government, as it was the PPP which some years ago, made the decision to take Guyana in this direction. Trotman noted that thereafter, in November of 2015, a cabinet decision was taken by the APNU+AFC Government to continue the process.

Trotman also singled out McCormack and Hilbert Shields, who possess years of experience in the extractive sector, for their invaluable contributions towards the process.
Once the application is accepted, Trotman said that Guyana would become the 53rd member of EITI.
According to Jadoopat, the application is being submitted this month so that Guyana can make it in time for the EITI meeting coming up in October, where it is expected that its application will be approved.
Jadoopat said that once all goes well, Guyana should be submitting its first report as an implementing country of the EITI Standard by April 2019.

EITI is an international body that was established in 2003 with the aim of making it harder for governments and companies to hide the truth about the proceeds garnered from the extractive industries.
The companies in the extractive sector report on what they are paying the government, and the government reports separately on what it received from the companies in the sector. A report is then prepared by a Multi-Stakeholder Group. The document, among other things, will highlight whether the numbers data collected from the two add up, or if there is an irregularity.
Jadoopat explained that Guyana must be praised for intensifying its efforts, in recent years, to satisfy EITI candidate sign-up requirements.

The official noted that the Government of Guyana had announced its commitment to implement the EITI Standards since May 2010. He noted that Guyana and EITI even signed a Memorandum of Understanding in 2012, which paved the way for Guyana to be assisted with its preparation of EITI candidacy.
He noted that the Inter-American Development Bank (IDB), the World Bank and the Carter Center provided assistance to the Government and supported its efforts towards EITI candidacy. Jadoopat said it is expected that this will continue.
Furthermore, Jadoopat said that Guyana has stepped up in achieving meaningful progress towards eligibility to apply for EITI candidacy.

He noted that the coalition government has since reaffirmed the country’s commitment to EITI and announced the establishment of the Guyana Extractive Industries Transparency Initiative.
Following this was the appointment of a National Coordinator and a Deputy Coordinator on February 1, last. A Multi-Stakeholder Group (MSG), which is one of the requirements of EITI, was officially launched on February 15, last.
Jadoopat explained that the MSG GYEITI comprises 12 members, nominated by Civil Society, the Extractive Industry and Government in the ratio 4:4:4. He said that there are also 12 alternates; one for each member from the respective sectors.
Additionally, the National Coordinator said that the MSG GYEITI has agreed to hold regular meetings, at least once a month. He noted that Sub-Groups have been formed to actively engage in finalizing Terms of Reference, a Confidentiality Agreement and a Work Plan.

“Barring any unforeseen obstacles, The Cooperative Republic of Guyana can become an EITI candidate before the end of 2017. Additionally, in order to set the stage to implement the EITI Standard nationally, measures will be taken to assist the MSG in making decisions on how the EITI process should work in Guyana,” Jadoopat expressed.
He said that other measures will see moves being made to embark on comprehensive data and information compilation on the governance of the extractive sectors of Guyana, preparation of regular reports and issuance of recommendations for improving sector governance.

The National Coordinator said that efforts will also be geared towards the design of a comprehensive public awareness campaign to promote and explain the work of the Guyana EITI and also inform public debate and seek recommendations.
Jadoopat also noted that the Multi-Stakeholder approach is central to the operation and philosophy of the EITI, as it reflects on how the GYEITI is governed and implemented. He said that the GYEITI Multi-Stakeholder Group, like in other EITI countries, has been established to oversee EITI implementation.

“The MSG is the main decision-making body responsible for setting objectives for EITI implementation, producing EITI Reports and ensuring that the findings contribute to public debate. A fully functioning MSG is essential for Guyana to be accepted as an EITI Candidate country and for the successful EITI implementation thereafter,” the National Coordinator asserted.
He continued, “The EITI Standard contains some minimum requirements related to the role, rights and responsibilities of the MSG that can help ensure efficient MSG oversight of the EITI implementation process.”
Jadoopat added that the government, as stipulated in the International EITI Standard 1.4, has committed to working with Civil Society and Companies.

The official said that the government has been instrumental in ensuring that the preconditions for EITI candidacy are satisfied.
He said, “It has unequivocally and boldly announced its commitment to work with civil society and companies. Also, the government has agreed to ensure that there are no obstacles to civil society’s participation in the EITI processes. It agreed to refrain from actions which may result in narrowing of, or restricting public debate in relation to the EITI implementation.”
Furthermore, Jadoopat took the opportunity to encourage all to consider it their civilian duty to actively participate in the activities and work of the GYEITI.

7) Corruption Perception Index: Guyana and nearby countries – From Worldbank 2017: A high index of 130. Near to Venezuela.

https://govdata360.worldbank.org/indicators/hf04fbdb3?country=GUY&indicator=32535&countries=SUR,BRA,VEN,TTO&viz=line_chart&years=2012,2014

Corruption Perception Index
Corruption Perception Index.

From: https://govdata360.worldbank.org/indicators/hf04fbdb3?country=GUY&indicator=32535&countries=SUR,BRA,VEN,TTO&viz=line_chart&years=2012,2014

8. Stemming corruption in Guyana –  Apr 06, 2018 Editorial – Kaieteur News

Apr 06, 2018 Editorial – Kaieteur News

Opinion: Stemming corruption in Guyana

 

 

 

 

 

6. Guyana. Concerns about arrangement with ExxonMobil

 

Guyana Discoveries & Prospects – MapStand Ltd. 2008


Serious concerns about Government’s arrangement with ExxonMobil need urgent answers

6. Guyana. Serious concerns about Government’s arrangement with ExxonMobil need urgent answers – V210817

Contents (3) :

0. Arrangement Guyana Government with ExxonMobil –

How much money would Guyana get from ExxonMobil’s offshore oil production? – Note Marcel Chin-A-Lien – July 29, 2017

1. Serious concerns about Govt.’s arrangement with ExxonMobil need urgent answers. – July 3, 2017

2. ExxonMobil contract review. We have a right to review any contract – Trotman tells Jagdeo – June 30, 2016

0) Arrangement 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 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 ?

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

This is a simple estimate of the monies involved. But it gives a fair idea of what everyone wants to know.

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

Assumptions are:

A gross oil production volume of 1,5 billion barrels, average production of 160 million/day during 13 years, oil price US$ 50 / barrel, Capex-Opex 11 billion US$, initial production in 2020:

Total oil revenue would be some 75 US$ billion.

Total profit oil is 68 billion US$.

Guyana Government profit share is some 36 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%.

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

1) Serious concerns about Govt.’s arrangement with ExxonMobil need urgent answers.

Jul 03, 2017 News,www.kaieteurnewsonline/2017/07/03

• Is there a ceiling for cost recovery in any given year?
• How does the Govt. of Guyana intend to validate the costs?
• What were the duties and tax concessions granted?

By Abena Rockcliffe- Campbell

There are many questions that remain unanswered about Guyana’s arrangement with oil giant ExxonMobil and some of the country’s leading minds are becoming antsy about what this really means.
Prominent Attorney Nigel Hughes, who is also a Director of Guyana Oil and Gas Association (GOGA), recently delivered a presentation at an international academic conference hosted by the University of West Indies Law faculty. Hughes’ presentation was titled “Guyana’s new frontier.”
At that forum, Hughes highlighted that there is a deficit of information in the public domain about key issues regarding Guyana’s arrangement with ExxonMobil.
Hughes gave the attendees a synopsis of Guyana’s journey to where it is at present. He went as far back as to Independence and travelled all the way to the announcement of the oil discovery in 2015 – then to government’s announcement of the two percent royalty Guyana is to receive form ExxonMobil when oil production begins.
Hughes told the conference that after the initial announcement of the Liza-1 find, locals began voicing concerns about the management of the oil resource.
“Some chatter began locally about the management of this resource. What shape the developmental plans for the country will take and exactly what part of the newly discovered resource would Guyana benefit from?”
The Attorney noted that on June 1 this year, government announced that it is expected to grant a production licence to Exxon.
“The release stated, the production licence is required to be finalized before the developers make their final investment decision for the project in June 2017.” The production licence has since been granted.

Attorney-at-Law Nigel Hughes

Hughes continued, “Extraction from the Liza field is expected to commence in 2020 at an initial rate of 100,000 barrels per day in the first phase. Not only an ambitious schedule to production but perhaps unprecedented.”
He said that the government also announced that Guyana will receive a royalty of two percent of the gross earnings and benefit from 50 percent of the profits from the sale of petroleum once production commences.
Hughes noted that what was not announced, however, was whether there was a ceiling for cost recovery in any given year. Yearly cost recovery ceiling would refer to the amount of money which government and ExxonMobil agree that the company will take out from the yearly revenues generated in order to recover its investment. The amount of money agreed on will reflect in Guyana’s yearly piece of the pie. It has already been established that Guyana is supposed to get 50 percent of the profit and two percent royalty.
Case study: If ExxonMobil receives $100 per year and takes out $70 for cost recovery purposes that would leave only $30. Two percent will then have to be taken out for royalty and the remainder is to be divided 50-50. Therefore, cost recovery ceiling is an important factor in getting to understanding just how much Guyana will benefit yearly.
Hughes also pointed out that there has been no indication whether cost recovery is a percentage of revenue.
The Attorney at Law also told the conference that Guyanese are yet to be told how the government intends to validate the costs ExxonMobil has incurred. This is important, as the possibility of inflated cost cannot be ruled out.
Hughes said too that “there is also an absence of any information on key variables including life of the project in years, the total investment, the annual fixed cost per year, estimated cost of a barrel of oil for the project, and whether any duties, tax concessions were granted.”
Guyana has had a history of granting huge tax concessions. This practice was notorious under the rule of the People’s Progressive Party/Civic government. Of course, it is a practice around the world for investors to be granted concessions. But the level of concessions usually matches the benefits that the country is expected to receive. Assessments are usually done in this regard. But that is not usually the case in Guyana. There has since been proof in some cases that companies imported items that had nothing to do with the projects they proposed.
Hughes, during his presentation also told the students about the call made by the Working People’s Alliance (WPA) for more information to be put in the public domain
He said, “One of the parties in the Governing Coalition called on the Government to publish the contract.”
He noted too that the Chairman of the WPA, in a letter to President David Granger said, “There is no justifiable reason for not publishing this contract. Seeking public comment on it is our democratic obligation. And engaging the widest possible sharing of views can only help the coalition government to make wiser decisions.”
Nigel Hughes
Reference:
Jul 03, 2017 News,www.kaieteurnewsonline/2017/07/03

2) Exxon Mobil Contract Review… We have a right to review any contract — Trotman tells Jagdeo

Leader of the Opposition, Bharrat Jagdeo.

Leader of the Opposition, Bharrat Jagdeo.

Moments after being criticised by the main Parliamentary Opposition’s Leader, Bharrat Jagdeo, the Minister of Natural Resources and the Environment, Raphael Trotman, fired back. He described Jagdeo’s comments as nothing but “trash”.

Earlier yesterday during a Press Conference hosted by the People’s Progressive Party/Civic (PPP/C) at the party’s Headquarters in Robb Street Georgetown, Jagdeo heavily criticized the move made by Trotman to review the 1999 Exxon Mobil contract.
The Opposition Leader told media operatives that the review of the contract will create a passage for corruption to enter into the Ministry.

He claims that there is poor management of the Ministry by a “mediocre” and “incompetent “Trotman.
Last evening Minister Trotman dismissed Jagdeo’s claims and said that the Government has a right to review any contract signed by the PPP Government and what Jagdeo is saying is nothing but trash.
“The government has a right to review any contract that the PPP has signed. We have that right to do so and I think what they are worried about is when we start reviewing contracts, they will be embarrassed. So that is a right that we have as government,” Trotman said.

Jagdeo also stated that it always raises concern when Ministers or politicians involve themselves in negotiations with companies, particularly oil companies.

Such engagements he added, lead to politicians selling out national interest.
He called on the Minister to explain the reason for the review and state whether more concessions will be given. Jagdeo explained that the oil and gas sector will be an important sector and the State should get the best agreement possible.
Trotman dismissed the Opposition Leader. He said that he would never expect to hear anything better from Jagdeo.
“Jagdeo being a Former President and “attacking” a ministry is an indication that the “ministry is hurting him”.
“Gold is up, diamonds are up, bauxite is up, timber is doing well and we’re about to declare oil so that is what has him vexed.”

Trotman also stated that Jagdeo may be “upset” because the Norwegians ignored his request to cut off the Norway funds from Guyana. He indicated that Norway has in fact, decided to continue.
“So he cannot point to any sector; any component of the Natural Resources saying that it is in trouble. He can say what he wants; we are well advised; we have international experts advising us but we will exercise our rights as a sovereign state and as a government. He is no longer President. He is the leader of the opposition and he has to remember who he is. So let him earn his salary there,” Trotman said.
The Minister concluded if Jagdeo is serious about debating this issue in Parliament, he is most welcome to “any day”.

 

5. Generation and migration of hydrocarbons in the Maracaibo basin, Venezuela: An integrated basin study

Generation and migration of hydrocarbons in the Maracaibo basin, Venezuela: An integrated basin study.

Authors: Suhas Talukdar, Oswaldo Gallango, Marcel Chin-A-Lien,
1985.
Published in Advances in Organic Geochemistry, 1985, Part I, Petroleum Geochemistry – Proceedings of the 12th International Meeting on Organic Geochemistry. Jülich, Germany, 16-20 september 1985. Page 261 – 280.

A landmark publication, novel in 1985.
Integrating all previous studies, done by the other international companies (pre-nationalisation) and affiliates of Petroleos de Venezuela.
With our own new investigations and developed insights.
On petroleum geology, generation, migration, well and basin modelling; organic geochemistry, biomarkers, steranes, terpanes, demethylated hopanes C29; oil-oil, oil-source rock correlations and exploration and production.
It was based on 2 years of applied research. Has evolved into a classic reference on Maracaibo Basin, with a respectable citation index (160 Google Scholar citations).

Our scientific guide and friend during this study was prof.dr. John M. Hunt (1919-2005) from Woods Hole Oceanographic Institution, Massachusetts, M.I.T., USA.
Pioneer and writer of the classic reference textbooks Petroleum Geochemistry and Geology, 1979 and 1996. Our study, article and findings on generation, migration and accumulation were also used and included in his 1996 updated book.

John, thank you so much for your mentorship and superb scientific guidance while unveiling us the secrets of petroleum geochemistry, during 1982 – 1984.
Also for revising the 400 pages of our original report:

” This looks and it weighs as a very fat Ph.D. thesis, to revise ” was your first astonished remark.
” John, no problem, we will book you another week in your favourite Tamanaco hotel, we replied “, somewhat surprised.

For sculpturing, brainwashing and transforming our mindsets ?
Into integrated petroleum explorationists – basin modellers – organic geochemistry – generation – migration professionals: becoming better explorationists.
Thank you !

Venezuela, Maracaibo Basin, Hydrocarbon generation, migration, accumulation - 1
Venezuela, Maracaibo Basin, Hydrocarbon generation, migration, accumulation – 1

Abstract
The history of hydrocarbon generation and migration in the Maracaibo Basin, Venezuela, is closely related to its stratigraphic, structural and tectonic evolution during the Cretaceous and Cenozoic times. Geochemical evaluation of the possible source rocks within the Cretaceous and the Tertiary sequences indicates that the argillaceous limestones and calcareous shales of the La Luna Formation (Cenomanian-Coniacian) are the most important source rocks in the basin. These rocks contain organic carbon ranging from 1.5 to 9.6% (c. original TOC 2.5–10.8%), have fluorescent amorphous marine, type II organic matter (oil prone) and have in the immature stage a H-index of 700 mg HC/g TOC and a H/C ratio of 1.5. The beginning of the oil window in these rocks occurs at a relatively low thermal maturity (Lopatin TTI about 10) and the peak of oil generation corresponds to a TTI value of 35.
Geochemistry of oils from the different reservoirs (Cretaceous, Paleocene, Eocene and Miocene beds), and oil-oil and oil-source rock correlation studies based on biomarkers have identified three genetic types of oil in the basin: a marine type essentially derived from the La Luna source, a terrestrial type possibly originating either from the Cretaceous Lisure shales or the Paleocene shales, and a third type derived from the mixing of the first two types. The marine type oil is distributed extensively throughout the basin whereas the terrestrial as well as the mixed marine and terrestrial types are found only in the southwestern part of the basin. The marine type oils have been further subdivided based on their alteration and maturity.

Reconstruction of the hydrocarbon generating areas at different geological times using TTI-maturity diagrams indicates that the generation of oil and gas in the basin took place during two periods; the first phase occured during the Middle to Upper Eocene times in the northeastern part of the basin, while the second phase occured during the Upper Miocene to Recent times in the central, western and southern parts of the basin.

Based on organic geochemical and sedimentological characteristics, it is proposed that primary migration of oil from the La Luna source rocks took place by expulsion of hydrocarbons through abundant microfractures developed by the pore fluid overpressure during hydrocarbon generation. Mass balance considerations suggest that the expulsion probably occurred as a hydrocarbon single phase and the expulsion efficiency for oil in La Luna source rocks should have been very high (30–50%).

Taking into consideration the development of oil and gas kitchens through time, the paleostructures at the time of hydrocarbon generation, and the characteristics of oils, the migration history of the oil and gas generated from the La Luna source has been outlined. Mixing of oils, derived at different times (Eocene and Miocene-Recent) from the La Luna source of different areas, appeared to have taken place in Block IV, Block 11, Lago-Lamar, Motatan and Bolivar Coastal fields.

Keywords
generation of petroleummigration of petroleumintegrated basin studyMaracaibo BasinLa Luna source rocksoil-oil and oil-source rock correlationTTI maturity modellingexpulsion of hydrocarbonsexpulsion efficiency

Venezuela, Maracaibo Basin, Hydrocarbon generation, migration, accumulation - 2
Venezuela, Maracaibo Basin, Hydrocarbon generation, migration, accumulation – 2

https://youtu.be/Dsrm6WTuOW0

https://youtu.be/-0-7ABwIDx4

4. Suriname Araku 500 MMb trap – Tullow Oil: Guyana, Jamaica, Uruguay

4. Suriname Araku 500 MMb trap – Tullow Oil: Guyana, Jamaica, Uruguay – V.230817

Suriname - Araku prospect - MCAL

Suriname – Araku prospect – MCAL

Contents:

1. Notes of Marcel Chin-A-Lien on Offshore Suriname Potential

1.1 ” Birth Announcement ” of a Massive Oil Region: on behalf of ” Guyana Basin “.

1.2 ” To Whom it May Concern ”

2. Atlantic Crossover: Tullow Keeps Focus Offshore South America

3. Tullow Shares Dip, post-mortem Araku, 6 nov. 2017.

Liza Giant Field & Amaila Prospect
Liza Giant Field & Amaila Prospect

1) Notes of Marcel Chin-A-Lien on Offshore Suriname Potential

When I served Staatsolie as an exploration consultant in Paramaribo, for offshore Suriname I had the privilege to study and promote this promising prospective area to Tullow Oil. The PSC was diligently negotiated and signed.

Araku area and prospect was also one of my own favourites. My educated guess is that Araku could have been the first giant oil discovery offshore Suriname (P.D. Resulted to be a bone dry hole).

In december 2009 I presented ” New Outlook for the Suriname NW Offshore ” in a congress in Trinidad (Energy Caribbean 2009 Conference, Trinidad, 7-8 December 2009).

With the whole gamut of leads, prospects, play types, basins, in tandem with the newly designed license areas.
This as a sound, comprehensive, integrated scientific subsurface and business development playground basis. To promote the high prospectivity of offshore Suriname. As part of the strategy and continuous effort of Staatsolie since decades ago.

I had the great honour to serve Staatsolie for an extended period. Herewith also obtaining the opportunity to contribute to Suriname. Sranankondre in Sranan Tongo.

Where (part of) the roots and history of my grandparents, parents, family and also mine are located (see: https://mar-petroleumexplorationconsultant.com/5-tower-babel-vs-privilige-multi-lingual-multi-cultural-global-citizen/).

The presentation was based on my own grounded re-interpretation, re-evaluation and integration of all previous subsurface reports and information of the multinationals. Resulting in a whole both new and positive outlook on the petroleum potential of NW offshore. My own point of view.
Novel and repetitive high impact leads, traps, prospects, play types, mini- and Jurassic basins were unveiled, mapped and highlighted.
The presentation and its content, fortunately was rated by the attendees as excellent (to brilliant).

Guiana-Suriname Basin - Play Concept & Petroleum Habitat
Guiana-Suriname Basin – Play Concept & Petroleum Habitat – 2009 – Own acryl painting of Berbice Canyon with shelf and deepwater fan plays – Such as 6 years later uncovered by ExxonMobil 9 giant discoveries of post 2015 – Paintings, of my wife, presented during art exhibition, april 2010, Paramaribo, Suriname at Embassy/Consulate of Venezuela.

Soon following many IOC’s, such as Tullow showed tangible interest in urgently obtaining certain areas presented. Especially after I showed, discussed and promoted the high potential of the prospects on my workstation with their exploration manager. F2F, B2B. These areas were negotiated and diligently covered with PSC’s. Blocks 47 (Confined Fan System) and 54 (Araku prospect)

In-house Staatsolie and previous to the negotiations we had already analysed, determined and fenced the level playing landscape with the boundaries for the PSC clauses and work program we wished to obtain. This within others based on the size of the prospects and an accompanying valuation and cash flow modelling of the expected petroleum volumes of the prospects and license area.

The present day licensed area covers also part of the north-eastern area. The Demerara High (some 40,000 km2), since long forgotten and mainly neglected because of 4 dry holes. Such as well Demerara A2-1 drilled 39 years ago, in 1978.

Following my interpretation of the petroleum potential of the Demerara High (that incorporates a Jurassic basin and probably also Carboniferous sediments, inverted in Albian time) with the old 2D available, I created awareness, promoted and presented it in Staatsolie to the BOED. To obtain a budget for a modern 2dD survey. Following I designed the specifics for the acquisition area and program and for the processing sequence. This was later acquired and executed.

It is now an authentic joy to see that almost the whole area, promoted since 9 years ago in Trinidad, is now under license covered by 12 IOC’s and covering more than half of the offshore area of 180,000 square km.

Covered by some 65,000 km of 2D and 17,000 square km of 3D (as of July 2013).

This thanks to the diligent, intelligent, continual updating, upgrading and pro-active promotion of offshore, by the very competitive group of professionals and specialists in Staatsolie.

A real big achievement. Congrats. Fersteri !

Based on the unique petroleum system(s) in this basin, one can only be convinced that the Guyana Basin is an awakening oil giant.

Clearly evidenced, first in 1965 by the onshore giant Tambaredjo Oil field. Fifty years later followed by the recent giant elephant discoveries of ExxonMobil in nearby Guyana.

http://emg.geoscienceworld.org/content/8/1-2
Birth Tambaredjo Giant Field – Discovery “water” well 1965 – Taken from Th.E.Wong et al. p. 383, 1998 – MCAL

1.1)” Birth Announcement ” of a Massive Oil Region:on behalf of ” Guyana Basin “.

In 1965 Guyana Basin proudly announced the birth of its first giant field (unnoticed by the majority of explorers) in onshore Suriname:

Name: Tambaredjo.

Weight: Billion barrel oil field

Father: Geological and Mining Service, GMD (ir. Hugo Coleridge, discoverer). Paleocene, Saramacca Fm. sands at a depth of 150 – 425 metres. Also in Miocene, Coesewijne Fm. sands.

Mother: Canje Formation, U-Cretaceous, Cenomanian source rock (extended Tethys Ocean, Continental Margin family of La Luna, Querecual and Naparima Hill formations).

Place: Tambaredjo, Calcutta, Saramacca district, Suriname.

Time: 13 October, 1965.

Details:

A. Tambaredjo oil is not lazy or obtuse at all.

The newly born and expelled petroleum at a young age already managed to travel (migrate) all alone. Using only its genetic buoyancy instinct. As navigator in the dark, unknown subsurface.

Covering a super long distance (ca. 200 km – ” Olympic Gold Medal, Neogene-Long-Distance-Walking “) while pro-actively searching for a suitable home (reservoir). That could provide a safe, leakproof roof (Paleocene shale) and spacious, interconnected pores as confortable habitat. Finally well-received in the fluvial-deltaic Palaeocene T-sands and Miocene Coesewijne, in the most up-dip part of the basin.

Suriname - Source: SOM & Austinbridgeporth FIG. 9 - MCAL
Suriname – ” Tambaredjo giant field: Welcome, this is where I live, this is my structural habitat ” – Source & credit: SOM & Austinbridgeporth FIG. 9 – MCAL – http://www.geoexpro.com/articles/2016/10/suriname-new-technology-unlocks-hydrocarbon-potential

Onshore, Tambaredjo?

The ultimate spot, where nowadays one would dare to wildcat with a first oil well. As a most sophisticated and learned digital explorationist. With all the present day information available on the workstation.

In the prolific Guyana Basin.

A most adventurous migration history, still unlocked and untold by Mr. Tambaredjo.

When and who did you visit since you left the kitchen of mother Canje Fm.? Where did you temporarily camp on route? Which stratigraphic fairways and tectonic shortcuts did you take? Who in addition facilitated your long voyage. How much weight did you gain (lose), decending from 45 to 16 degrees API and 500-cp, low vanadium and sulphur oil ?  Did you earlier split up with your family, if yes, where are they now located. What was the time schedule  of your voyage? When did you depart and arrive? Do you represent only one generation or multiple generations? As a migrant, from – 5000 m. to -180 m.?

Before obtaining definite shelter. Voyaging from mother’s Canje Formation kitchen deep offshore towards Palaeocene T-sands.

Migration history easily unveiled ??

Following 18 will all give you a geologically democratic, interesting and most valid answer. The convincing answer. Part of…

Accompanied by splendid migration maps and traffic arrows, indicating the petroleum where to walk. Like a Tom Tom Navigator. Authentic geo-art using all the colours of the rainbow, to make migration and accumulation more pleasant.

BasinMod1D, BasinMod 2D, BasinMod3D, MigriX, IFE-MIG3D-BAS, ZetaWare Trinity, PetroMod, Temis2D, Temis3D, TemisFlow, CougarFlow, OilTracers, Charge Risk, Gussow fill-spill, In-Reservoir Alteration, Biodegradation, Biomarkers.

Of course.

Do not forget to analyse why the provided pre-drill “truth” unfortunately proved to be “false”, post-drill and post-mortem.

After drilling the bone and astonishing bone dry, some 200 million US$ hole(s). Without a single ppm of petroleum. The mud loggers and mud logging unit had a most boring time. Such as in…..guess which one(s).

Post-Mortem ?

Where myself I was happy to learn the best lessons in my career. This as I have been in charge of having to write and present them for more than a decade. A close look in the mirror. This time without make-up, without tricks and treats.

” High impact discovery well to-be ” ?

B. Discovered by accident while prospecting for water (….very sorry about that big mistake….).

C. Carrying out a water-drilling project to supply water to a nearby school and village (….our sincere excuses…but…unfortunately we found a giant oilfield….instead of the clean and abundant water we promised you all for your little school in Tambaredjo village).

D. I am in production since 1982. About 115 MMbo produced from 3 oil fields, 87 MMbo remaining reserves, 17,000 bopd production currently.

E. I do have an intrinsic preference for structural basement highs and additional structural elements. The Calcutta Uplift and the E-W Tambaredjo, NE-SW Broederschap, NE-SW Weg near Zee major fault systems. Basement-rooted (and Cretaceous-post-Albian inversion originated) faults that terminate in the Eocene and Miocene.

F. In the offshore area: Find out by yourself. I do not reveal all my secrets so easily.

Exploration tip and discovery moral ??

So now and then, dare to drill pro-actively for water, if you wish to find oil (elephants).

As a matter of fact one most often pro-actively explores for oil, and finds only water (euphemistically called “technical discovery wells”, the proof for existence of reservoir rocks).

Birth of its second and third giant fields was announced by the arrival of Guyanese twin-sisters Liza and Payara. In 2015 and 2017.

The continuing story will most certainly involve many, many more giant discoveries in the near future.

Brothers, sisters, cousins and nephews of Mr. Tambaredjo, Mrs. Liza and Mrs. Payara.

Such as also in switi Sranankondre.

Guyana Basin, Awakened in 1965.

Since 2015, 50 years later, accelerating and entering a new, prosperous and exiting booming petroleum cycle.

1.2) ” To Whom it May Concern”

Sranankondre?

Srananman, ala mala pasensi, nog ff, next december ?

Bigi pokoe en kaseko op Vrijheidsplein, wowww !

Waarde neef Errol, fa waka?

Begin s.v.p. alvast een mooi olie ontdekkingsliedje te componeren. In Sranantongo. Kaseko style. En reserveer ook een datum voor de primeur tijdens het optreden met je gezellige band. Let me know. Thx in advance.

South South West !

Deel van mijn recente antwoord – email aan mijn zeer lieve oude tante in Switi Sranan: over olie:

” Lieve tante,

Om uw vraag te beantwoorden.

Het grote oliefonds waar u het over heeft in uw email. Dat ik u indertijd in 2009 had voorspeld, de olie ?
Terwijl het gras groeit sterft het paard, schrijft u zo vrolijk ?

Die olie komt zoals eerder beloofd nu wel heel spoedig.
Misschien wel samen met Sint en Piet, dit jaar nog dus, hopelijk:
Maar alles eerst keurig op een rijtje.
Eerst de grote olie Vondst.
Daarna het grote olie Fonds (….oliefonds, waar u het over heeft).
All-In, All-2-You, dus met al het goede en ook de verhoogde AOW, die erbij hoort.
Voor ala Sranansma na switi Sranankondre.

Ik ben slechts een hele simpele exploratie petroleum geoloog.
Die voortdurend snuffelt naar olie, al 40 jaar lang, op 4 continenten.
Dus wat ik zeg, schrijf en beweer is niet zomaar uit de lucht gegrepen.
Niet gegrepen uit de hedendaagse iCloud.
Maar gelukkig gebaseerd op grondige bestudering en op feiten.

Die reuze olie vondst in Sranankondre is zeer zeker op komst.
Nog ff pasensi tante.

Ik hoop dat in december ala Sranansma bigi pokoe en kaseko kunnen gaan dansen*.

Ala sma. Zelfs die met bigifutu.
De bigisma, de bigiman’s, de bigitaki’s, de bigifisi’s, de bigifasi’s, de bigimemre’s, de bigidoin’s, de bigidagu’s, de bigi-ai’s, vooral de bigi taki’s.

Gezamenlijk en gebroederlijk met de bigi-popokaisneki, bigitodo, bigi-watradagu, op bigibigi dei.

Op het Vrijheids plein. Voormalig Gouverneurs plein.
Op de pier van Torarica. En tevens op Bigiwowoyo.
Bigiyari, srefsrefi.
Bigiyari.

Lieve tante,
Zet uw kotomisi maar alvast klaar.
Voor de bigi konfriyari, fesadei en opo opo fesa.
Om de olie ontdekking te vieren. Suriname, Sranankondre.

Oli.

Bun furu. A no spotu….Moro mofo.

Made in Sranankondre, by Canje Formation.

Overigens, Guyana ? Poti sma ??

Zoals men aldaar pleegde te zeggen over de naaste buren ??
Fos’fosi, fosten. Voor 2015.

Tachtig (80) miljard US$ gross is Guyana’s recente reuze olie vondst waard.
Tachtig maal het jaar budget waar de Surinaamse regering en haar ministeries over beschikken voor switi Sranan, per jaar.

Guyana? Poti sma ??

Nnn..Nooit meer zeggen.
Fos’fosi, fosten. Voor 2015.

Suriname?
Binnenkort, nog ff pasensi tangitangi.

Poti sma nanga poti Kondre??
Fos’fosi, fosten.
Voor 2018.

Tan bun ala famiri, God Bless You All.”
Brief van MCAL aan zijn lieve, oude tante na switi Sranan Kondre.

1.Reference: www.epmag.com. February 8, 2017 – Velda Addison, Senior Editor, Digital News Group Hart Energy &

2. Re: www.tullowoil.com – August 2017

2) Atlantic Crossover: Tullow Keeps Focus Offshore South America

Tullow - oct. 2018
Tullow – oct. 2018

Velda Addison Senior Editor, Digital News Group Hart Energy Wednesday, February 8, 2017 – 2:00pm

Africa-focused Tullow Oil is stepping up its plans offshore South America after divesting interests in its Norwegian assets and exiting other areas.

Suriname - Araku prospect - MCAL
Suriname – Araku prospect – MCAL

The London-based E&P, which operates the TEN fields and its flagship Jubilee Field offshore Ghana, said it plans to drill the Araku prospect offshore Suriname, the smallest country in South America, in second-half 2017.

“This prospect is a large structural trap which has a resource potential estimated at over 500 MMbo [million barrels of oil],” the company said Feb. 8 in its 2016 full-year results. “It has been significantly de-risked by a 3-D seismic survey carried out in 2015, which identified geophysical characteristics that are consistent with potential oil or gas effects in the target reservoirs.”

Tullow is among the oil and gas companies that have kept some new frontiers in their exploration schemes, despite unfavorable market conditions that caused many to slow exploration spending. In 2016, Tullow halted frontier exploration efforts in Ethiopia, French Guiana, Greenland, Guinea, Madagascar and Norway.

“As we focus our free cash flow primarily on reducing our debt, capital discipline remains critical,” said CEO Aidan Heavey, who will take over as chairman when Paul McDade becomes CEO. “We have made excellent progress with our East African developments and are building a high-quality exploration portfolio to grow our business.”

With more than 25 exploration wells drilled offshore, Suriname has been described by state oil company Staatsolie as “virtually underexplored.” Commercial production has only come from onshore fields, which together produce about 17,000 barrels per day (bbl/d) of oil.

Tullow has interests in two licenses offshore Suriname covering a total of 10,849 sq km (4,189 sq miles). These include Block 54, where the Araku prospect is located, and the nearby Block 47. A drop core survey spanning the blocks was completed last year.

The company has said its Jubilee play could expand from West Africa across the Atlantic Ocean to Block 47. That was the case for Tullow offshore French Guiana, where the Zaedyus exploration well hit oil in two turbidite fans five years ago. At the time, Tullow said the objective of the well was to test whether the Jubilee play was mirrored on the other side of the Atlantic.

Although the oil discovery offshore French Guiana opened a new hydrocarbon basin and helped lower exploration risks in nearby Suriname and Guyana, Tullow eventually shifted focus to Suriname after an unsuccessful drilling campaign in 2013. Other Suriname players include Apache Corp. (NYSE: APC), Cepsa, Chevron Corp. (NYSE: CVX), DEA, Kosmos Energy, Noble Energy Inc. (NYSE: NBL), Petronas, Statoil ASA (NYSE: STO) and Staatsolie, which has invited others to farm in to blocks B and C—both located closer to the shoreline in water depths of up to 30 m offshore Suriname.

Citing a 2012 U.S. Geological Survey report, Staatsolie said the Guyana-Suriname Basin has an estimated resource potential of 13.6 Bbbl, placing it among the world’s largest basins in terms of prospectivity.

Tullow Oil - Guyana prospect - Updip Liza - MCAL
Tullow Oil – Guyana prospect – Updip Liza – MCAL

Many are already closely watching activity west of Suriname–offshore Guyana–where ExxonMobil’s exploration work in the Stabroek Block has pointed to recoverable resources of more than 1 Bboe.

Tullow, which has interest in two licenses offshore Ghana, said it plans to acquire 3-D seismic data over the offshore Orinduik license, which is updip of ExxonMobil’s Liza oil discovery.

Elsewhere offshore South America, Tullow said it began a 2,500-sq km (956-sq mile) 3-D seismic program offshore Uruguay. The company aims to “capture data over high-quality leads identified in Block 15 in the Pelotas Basin.”

In addition, Tullow said it plans to acquire another 680 km (423 miles) of 2-D seismic data offshore Jamaica. This follows the completion of a drop core and seep study in the Walton Morant blocks, which identified a live oil seep, the company said.

Tullow - Caribbean & South America - MCAL
Tullow – Caribbean & South America – MCAL

While the company works to build its exploration portfolio, it is still coping with the downturn’s aftermath.

Tullow reported an operating loss of $754.7 million for 2016, down 31% from 2015’s loss of $1.09 billion. The company’s exploration write-offs totaled $723 million in 2016.

Lower oil prices hit revenue, which dropped 21% to about $1.3 billion, despite bringing the TEN fields into production. Working interest production was down 9% for the year, averaging 67,100 boe/d.

“The impact of first oil from the TEN fields was offset by reduced production from the Jubilee Field as a result of the Turret Remediation Project, declines in U.K. and Netherlands gas production, as well as reductions across the nonoperated West Africa portfolio,” Tullow said.

The company reported capital investment of about $900 billion in 2016, mostly for development activities in Africa.

“2016 is likely to mark the low tide point for Tullow, with production set to increase in 2017 into a rising oil price environment,” Mirabaud Securities analysts said in a Reuters article.

The analysts added that Tullow should be able to reduce its debt pile, which increased to $4.78 billion by year-end 2016 up from $4.02 billion, primarily due to TEN expenses.

Moving forward, Tullow said it intends to control capex, dropping spend to $500 million in 2017 from $900 million last year. Exploration and appraisal spending will be limited to about $125 million.

From:  www.epmag.com. February 8, 2017 – Velda Addison, Senior Editor, Digital News Group Hart Energy

2) Tullow Shares Dip, post-mortem Araku, 6 nov. 2017. 

https://oilnow.gy/featured/tullow-shares-dip-on-araku-disappointment/

3) Under Construction

 

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.

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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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

”  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 !