The project, which is pending government approval, would start production in 2029, lifting the country’s capacity to more than 1.4 million barrels of oil per day.Exxon operates all production in Guyana, with Hess Corp and China’s CNOOC as partners.
Indented in the Guyana’s 2016 Production Sharing Agreement (PSA) with Exxon, is a clear and unequivocal statement (I will break it down in layman language) – renegotiation of the Oil Contract is quite possible as long as there is mutual agreement (Exxon & the Guyana Government) on both sides. It did not specify any limitations to renegotiation because unanticipated fluctuations/market conditions can cut both ways. For simplicity sake, I offer this as an example.
With new projects to come on stream soon, Guyana will continue to see greater earnings from the oil and gas sector. At the current production level, over US$1.5 Billion is being generated every month.
If you and a partner invest in a boat and decide to split profits equally, you will feel cheated if her share is much greater than 50%.
Like 80% of Guyana’s college graduates, Richard Singh had left the tiny South American nation for better job prospects abroad. Then, in a surprising turn of events, he realized he could make more money back home.
President of Guyana Irfaan Ali says his government is evaluating the feasibility of a second major gas initiative to complement the ongoing gas to energy project at Wales, Essequibo Islands-West Demerara.
The arbitration process to determine whether ExxonMobil can block the $53 billion sale of Hess Corp to Chevron is stalled due to the incomplete appointment of a third arbitrator, according to Reuters.
According to the Guyana Times, ExxonMobil has started appraisal drilling at its Lau-Lau 2 well site in the prolific Stabroek Block offshore Guyana, where it had previously discovered over 300 ft of oil at the Lau-Lau 1 well. The Maritime Administration Department announced that this appraisal, conducted by the drillship MODU Noble Sam Croft, will run from June 16 to July 31, 2024.
Traders’ pessimism in the global oil market began to increase after OPEC reiterated it might consider rolling back production cuts in 2024.
Rystad Energy recently predicted that global oil supply growth will be virtually non-existent this year because of the OPEC+ cuts without mentioning spare capacity.
Crude prices have recovered in recent days, but the supply side looks bearish due to OPEC+’s spare capacity and rising production from the US, Guyana, and Brazil.
Trinidad and Tobago-based conservation group, Fishermen and Friends of the Sea (FFOS) is expressing concern over the risk of a possible oil spill in the waters near CARICOM member state Guyana, saying such a disaster could negatively affect the entire Caribbean region.