Guyana

[energy_isere]

CGX, Frontera Make Another Oil Discovery in Guyana

by Rocky Teodoro|Rigzone Staff|Monday, November 13, 2023

Joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation have announced the discovery of a total of 114 feet (35 meters) of net pay at the Wei-1 well on the Corentyne block, approximately 124.3 miles (200 kilometers) offshore from Georgetown, Guyana.

The JV believes that the rock quality discovered in the Maastrichtian horizon in the Wei-1 well is analogous to that reported in the Liza Discovery on the Stabroek block. “Results further demonstrate the potential for a standalone shallow oil resource development across the Corentyne block”, the two companies said in a joint news release, adding that the JV has discovered total net pay of 342 feet (104 meters) to date on the Corentyne block to date
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https://www.rigzone.com/news/cgx_fronte ... 1-article/

[energy_isere]

Production at the Payara development, Guyana’s third offshore oil development on the Stabroek Block, started ahead of schedule, Exxon Mobil Corp. said.

by Paul Anderson|Rigzone Staff|Thursday, November 16, 2023

The Prosperity floating, production, storage and offloading (FPSO) vessel will have a total production capacity of approximately 620,000 barrels of oil per day. It is expected to reach initial production of approximately 220,000 barrels per day over the first half of next year as new wells come online, ExxonMobil said in a press release. This additional capacity will be the third major milestone towards reaching a combined production capacity of more than 1.2 million barrels per day on the Stabroek Block by year-end 2027, it said.
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https://www.rigzone.com/news/exxons_pay ... 4-article/

[energy_isere]

Le Guyana envisage l'implantation de bases militaires face au Venezuela

AFP le 24 nov. 2023

Le Guyana envisage l'implantation de bases militaires dans la région pétrolifère de l'Essequibo réclamée par le Venezuela, a annoncé jeudi son vice-président, avant la visite de délégations du ministère américain de la Défense.

"Nous n'avons jamais été intéressés par des bases militaires mais nous devons protéger nos intérêts nationaux", a déclaré le dirigeant, Bharrat Jagdeo, lors d'une conférence de presse.

La tension entre le petit pays d'Amérique du Sud et le Venezuela voisin est à son comble à l'approche d'un référendum organisé le 3 décembre par Caracas en vue d'une annexion de l'Essequibo.

Attribuée au Guyana par une décision arbitrale de 1899, ce territoire de 160.000 km2, représentant les deux tiers de la superficie du pays, a avivé la convoitise du Venezuela depuis que du pétrole y a été découvert par le groupe américain ExxonMobil en 2015.

Le référendum organisé par le Venezuela doit notamment porter sur une récusation de l'arbitrage de 1899, souhaitée par Caracas, et sur l'attribution de la nationalité vénézuélienne aux habitants de l'Essequibo.

"Ce qui nous intéresse, c'est de maintenir la paix dans notre pays et à nos frontières, mais nous travaillons avec nos alliés pour nous assurer d'être parés à toute éventualité", a affirmé M. Jagdeo.

"Toutes les options disponibles seront exploitées", a-t-il martelé, soulignant que le Guyana entretenait des liens de coopération militaire avec "un certain nombre de pays".

Le pays accueillera la semaine prochaine deux délégations du ministère américain de la Défense, avant une visite de "haut niveau", a indiqué le vice-président.

M. Jagdeo a précisé que son pays souhaitait avant tout que le différend puisse être tranché par la Cour internationale de justice (CIJ), que Georgetown a saisie, mais dont Caracas conteste la compétence.

Le Venezuela estime que la frontière naturelle entre les deux pays est délimitée par le fleuve Essequibo et que la région du même nom doit lui revenir.

La revendication vénézuélienne est d'autant plus brûlante qu'une nouvelle découverte de pétrole a eu lieu en octobre dans la région, ajoutant aux réserves du Guyana au moins 10 milliards de barils.

Le Guyana dispose des plus importantes réserves de pétrole par habitant au monde. Le Venezuela possède pour sa part les plus importantes réserves prouvées de la planète.

https://www.connaissancedesenergies.org ... ela-231124

[energy_isere]

ExxonMobil Guyana moves forward with sixth offshore development

le 12/04/2024 europetrole

ExxonMobil has made a final investment decision for the Whiptail development offshore Guyana, after receiving the required government and regulatory approvals. Whiptail, the sixth project on the Stabroek block, is expected to add approximately 250,000 barrels of daily capacity by the end of 2027.

“Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day,” said Liam Mallon, president of ExxonMobil Upstream Company. “Our unrivaled success in developing the Guyana resource at industry-leading pace, cost and environmental performance is built on close collaboration with the government of Guyana, as well as our partners, suppliers, and contractors. The Stabroek block developments are among the lowest emissions intensity assets in ExxonMobil’s upstream portfolio and will provide the world with additional reliable energy supplies now and for years to come.”

The $12.7 billion Whiptail project will include up to 10 drill centers with 48 production and injection wells.

“We are committed to helping spread the benefits throughout the country by investing in local Guyanese communities and projects to support the country’s phased and sustainable development,” Mallon said.

Production from the six Stabroek block developments will generate tens of billions of dollars of revenue and significant economic development for Guyana. Since first production in 2019, more than $4.2 billion has been paid into the Guyana Natural Resource Fund.

There are currently 6,200 Guyanese working in support of Stabroek block operations—which is 70% of the workforce. The cumulative spend of ExxonMobil Guyana and its contractors with Guyanese suppliers since 2015 surpassed $1.5 billion at the end of 2023.

The Floating Production Storage and Offloading (FPSO) vessel for the Whiptail project, to be named Jaguar, is under construction. Three FPSOs – the Liza Destiny, Liza Unity and Prosperity – are currently operating offshore Guyana and are safely producing more than 600,000 barrels of oil per day. Construction is underway on FPSOs for the Yellowtail and Uaru projects, with Yellowtail anticipated to start production in 2025 and Uaru targeted in 2026.

ExxonMobil affiliate ExxonMobil Guyana Limited is operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.

https://www.euro-petrole.com/exxonmobil ... -n-i-26915

[energy_isere]

suite du post au dessus.

SBM Bags Contracts for ExxonMobil's Latest Guyana Project

by Rocky Teodoro|Rigzone Staff | Tuesday, April 16, 2024

SBM Offshore NV has secured contracts for the Whiptail development project in Guyana's Stabroek Block from ExxonMobil Guyana Limited (EMGL).

Under the contracts, SBM Offshore will construct and install the floating production, storage and offloading unit (FPSO) Jaguar. SBM Offshore will transfer ownership of the FPSO before its installation in Guyana, the company said in a recent news release.

SBM Offshore noted that it expects to operate the FPSO for 10 years under the operations and maintenance enabling agreement it signed last year.

SBM Offshore said the FPSO Jaguar’s design is based on its seventh new build, multi-purpose floater hull combined with several standardized topside modules. The FPSO will be designed to produce 250,000 barrels of oil per day, and have an associated gas treatment capacity of 540 million cubic feet per day, as well as a water injection capacity of 300,000 barrels per day. The FPSO will be spread moored at a water depth of about 5348 feet (1,630 meters) and will be able to store around two million barrels of crude oil, according to the release.

The award follows completion of front-end engineering and design studies, receipt of requisite government approvals and the final investment decision on the project by ExxonMobil and block partners, according to the release.

Exxon Mobil Corp. recently made a final investment decision (FID) for the Whiptail development offshore Guyana after receiving government and regulatory approvals.It is the sixth project on the Stabroek block and is expected to add approximately 250,000 barrels of daily capacity by the end of 2027, the company said in a news release Friday. The project, estimated to cost $12.7 billion, will include up to 10 drill centers with 48 production and injection wells.

The Whiptail development is the sixth development within the Stabroek block, circa 200 kilometers offshore Guyana. EMGL is the operator and holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, holds a 25 percent interest.

EMGL is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30 percent interest, while CNOOC Petroleum Guyana Limited holds 25 percent interest.

The FID comes after ExxonMobil announced its latest discovery in Guyana’s Stabroek last month, adding to multiple exploration successes in the block.

In November 2023, ExxonMobil Corp. purchased the FPSO vessel Liza Unity in Guyana, which it had been leasing from SBM Offshore NV, for $1.26 billion. Liza Unity is part of the second-phase development of the offshore Liza field. The agreement for the company’s acquisition of Liza Unity extends SBM’s operating and maintenance rights for the unit through 2033.

The 6.6-million-acre Stabroek block is a hotly contested area between global oil giants, as ExxonMobil challenged block partner Hess Corp’s planned stake divestment, which is part of the latter’s pending acquisition by Chevron Corp. The asset holds 11 billion barrels, and production has the potential to double to 1.2 million barrels a day by 2027, raising the oil production profile of Guyana globally.

https://www.rigzone.com/news/sbm_bags_c ... 5-article/

[energy_isere]

Guyana's GDP Skyrocket by Over 40% in a Single Year Thanks to Oil Boom

By Matthew Smith - Jun 27, 2024

Impoverished South American country Guyana, once long ignored by the world, has emerged as a major global oil producer after supermajor Exxon made a swath of world-class discoveries in its territorial waters. Since production began in 2019, the national government in the capital, Georgetown, has reaped a massive economic windfall, with gross domestic product (GDP) surging to record highs. In as little as four years since the height of the COVID-19 pandemic, Guyana’s economy has more than tripled in size, experiencing enviable double-digit annual GDP growth, with the economy expanding by a stunning 43.5% in 2020 alone when most countries saw GDP contract. As oil output expands, Guyana will enjoy further sizzling economic growth, with the gigantic petroleum boom sparking a fiscal bonanza.

After the first oil from Exxon’s Liza-1 floating production storage and offloading (FPSO) vessel in December 2019, Guyana’s oil production has surged, with output expanding nearly ninefold between January 2020 and May 2024. According to Guyana’s Ministry of Natural Resources data, the tiny South American country was lifting 654,270 barrels of crude oil daily, ranking it as the continent’s fifth-largest petroleum producer. Production is touted to continue climbing at a solid clip, well into the mid-2030s, as further offshore facilities are developed, with the lion's share occurring in the prolific Stabroek Block, where Exxon has found at least 11 billion barrels of oil resources.
After bringing three projects online in the Stabroek Block since 2019, Exxon announced in April 2024 that it is proceeding with its sixth project, the $12.7 billion Whiptail facility. This operation is slated for first oil during 2027 and will add 250,000 barrels per day to existing production. The Texas-based supermajor just announced approval of its seventh project for offshore Guyana, the seven-billion-dollar 180,000 barrel per day Hammerhead development, which will come online during 2029. Guyana’s petroleum production is forecast to exceed 1.5 million barrels per day by 2030, potentially making the former British colony South America’s second-biggest oil producer, behind Brazil, and the 14th largest globally.

This rapidly expanding oil output will deliver an ongoing economic bonanza for a country that was among South America’s poorest before Exxon’s throng of world-class oil discoveries. According to S&P Global, Guyana will rank among the world's 15 largest petroleum-producing countries by the mid-2030s, with oil exports forecast to be responsible for 90% of GDP by the end of this decade. For those reasons, the International Monetary Fund (IMF) expects Guyana’s economy to grow by a stunning 33.9% alone during 2024 and then 18.7% in 2025. Those impressive numbers come hot on the heels of a remarkable 33% expansion for 2023, where GDP, in current prices, hit $17 billion or $21,470 per head of population. This saw Guyana become the world’s second-fastest-growing country, with the performance only eclipsed by the Beijing-controlled Macao SAR, where GDP grew 80.5%.

After that astonishing GDP growth, despite being one of South America’s smallest economies, Guyana finished 2023 as the continent’s second wealthiest country, behind Uruguay, on a per capita basis. The astounding 33.9% GDP growth slated for 2024 ranks Guyana as the world’s fastest-growing economy. If it is achieved, the country’s GDP will hit an all-time high of $21 billion, which is equivalent to $26,590 per head of population. This will see Guyana’s GDP per capita surpass Uruguay's, making the tiny country of less than one million the wealthiest in South America when using that metric. As oil production expands, so will GDP, with the IMF forecasting that Guyana’s economy will be worth $31 billion by the end of this decade. The considerable profitability of Exxon’s operations in the Stabroek Block offshore Guyana will incentivize further investment.

https://oilprice.com/Energy/Crude-Oil/G ... -Boom.html

[energy_isere]

Exxon Plans Seventh Oil Project Offshore Guyana

By Tsvetana Paraskova - Jul 16, 2024

ExxonMobil continues to bet big on Guyana, planning a new project set for start-up in 2029 and expected to boost Guyana’s oil production capacity to over 1.4 million barrels per day (bpd).

The development plan for the Hammerhead project entails the drilling of up to 30 wells in the Hammerhead discovery from 2018 in the Stabroek Block, according to Exxon’s plan which the Guyana government made public on Monday.
Exxon is the operator of the Stabroek Block offshore Guyana, from which the U.S. supermajor and its partners currently pump more than 600,000 bpd.

The project is set to undergo environmental reviews and needs a final approval from the Guyanese government.

Guyana’s Environmental Protection Agency (EPA) on Monday said that Exxon, as the operator of the Stabroek Block, would be required to conduct an Environmental Impact Assessment for Hammerhead, its seventh deepwater project in the block.

According to current plans, oil production at Hammerhead is expected to begin in 2029 via another Floating Production Storage and Offloading (FPSO) vessel, at a rate of between 120,000 bpd and 180,000 bpd.

Exxon and its Stabroek partners, U.S. Hess Corporation and CNOOC of China, currently produce all the oil in the South American country, which became the newest oil-exporting nation at the end of 2019.
Plans for the seventh project on Stabroek are being drafted three months after Exxon made a final investment decision for its sixth project, the $12.7-billion Whiptail development offshore Guyana, after receiving the required government and regulatory approvals.

Exxon targets the Whiptail project to start oil production in 2027, adding 250,000 bpd to Guyana’s oil output capacity.

“Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day,” Liam Mallon, president of ExxonMobil Upstream Company, said in April, commenting on the decision to invest in the Whiptail project.

https://oilprice.com/Latest-Energy-News ... uyana.html

le Guyana va donc croiser la production de l'Angola d'ici 2 à 3 ans.

[energy_isere]

Guyana opens tender for solar-plus-storage projects

August 12, 2024 Patrick Jowett

Guyana Power and Light has launched a tender for an EPC contractor to build three solar plants in Guyana with a combined 15 MWp capacity and 22 MWh of battery storage. Applications are due by Sept. 26, according to the tender documents.

The publicly owned utility company is executing the tender on behalf of the national government. Financing for the projects will come from funds under the Guyana-Norway partnership.
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Guyana had 8 MW of deployed solar at the end of last year, according to figures from the International Renewable Energy Agency (IRENA).

https://www.pv-magazine.com/2024/08/12/ ... -projects/

[energy_isere]

Guyana Anticipates Seventh Exxon Oil Project Development Plan in Early 2025

By Michael Kern - Aug 16, 2024

Guyana expects to receive the development plan for Exxon’s seventh oil project offshore the South American country early next year, Natural Rsources Minister Vickram Bharrat has said.

“We have not received the field development plan as yet,” Bharrat said, as carried by Reuters.
“That will probably be in the first quarter of 2025, and then we will conduct the necessary due diligence with the view of issuing the license once everything is okay,” the minister added.

Earlier this year, U.S. supermajor ExxonMobil – which currently pumps in a consortium with U.S. Hess Corporation and CNOOC of China all the crude oil that Guyana produces – announced that it plans to develop a seventh offshore oil project on the prolific Stabroek block.

The new project, Hammerhead, is set for start-up in 2029 and expected to boost Guyana’s oil production capacity to more than 1.4 million barrels per day (bpd).

Currently, Exxon’s consortium in Guyana produces about 650,000 bpd.

The Hammerhead discovery, announced in August 2018, was ExxonMobil’s ninth oil discovery in the Stabroek Block.
Hammerhead is now planned to be ExxonMobil’s seventh oil project.

Hammerhead is set to undergo environmental reviews and needs a final approval from the Guyanese government.

Guyana’s Environmental Protection Agency (EPA) last month said that Exxon, as the operator of the Stabroek Block, would be required to conduct an Environmental Impact Assessment for Hammerhead, its seventh deepwater project in the block.

According to current plans, oil production at Hammerhead is expected to begin in 2029 via another Floating Production Storage and Offloading (FPSO) vessel, at a rate of between 120,000 bpd and 180,000 bpd.

Plans for the seventh project on Stabroek are being drafted a few months after Exxon made a final investment decision for its sixth project, the $12.7-billion Whiptail development offshore Guyana, after receiving the required government and regulatory approvals.

https://oilprice.com/Latest-Energy-News ... -2025.html

[energy_isere]

Production sharing agreements accepted for five Guyana offshore oil blocks

By Kemol King October 16, 2024
Reuters

Energy firms TotalEnergies (TTEF.PA), opens new tab, Qatar Energy, Petronas (PETRA.UL), Cybele Energy, Delcorp and International Group Investment have reached agreements with Guyana over terms of production sharing deals to explore five oil and gas offshore blocks, the energy ministry said on Wednesday.
A tender launched in 2022 for areas in shallow and deep waters led to offers for eight blocks, part of the government's effort to diversify its energy industry dominated by a consortium led by Exxon Mobil (XOM.N)

The Exxon group, which also is in talks with the government over terms to explore offshore area S8 that is part of the tender, is interested in assessing carbon capture and storage opportunities within the block, the ministry said in a release.
A production sharing agreement for that block is under review, the ministry added, without elaborating.
A government official said in May that Guyana's cabinet had approved a bid by Qatar Energy, TotalEnergies and Petronas for exploring shallow water block S4 and negotiations over non-fiscal terms had begun.

By then, the government had also initiated separate talks with Exxon, Hess Corp (HES.N), opens new tab and CNOOC over their bid, Exxon's head for Guyana said.
Final documents for the areas have not been signed.
Guyana's energy ministry also said in the release that a response from local energy company Sispro is pending related to its offers for two of the blocks.
Guyana's tender board said separately this month that local group VHE Consulting won a $1.5 million contract to audit Exxon's expenses and Guyana's profit oil share for the 2021-2023 period.

https://www.reuters.com/business/energy ... 024-10-16/

[energy_isere]

Exxon Hits 500 Million-Barrel Oil Milestone In Guyana

By Alex Kimani - Nov 14, 2024,

U.S. oil and gas giant, Exxon Mobil Corp. (NYSE:XOM) announced on Wednesday it has reached 500M barrels of oil produced from Guyana's offshore Stabroek block, just five years after it kicked off production at the location. The Exxon-led consortium which includes Hess Corp. (NYSE:HES) and China's Cnooc (OTCPK:CEOHF) have set a target to reach production of at least 1.3M bbl/day of oil by year-end 2027, a feat it hopes to achieve when six approved offshore projects come online. According to Exxon, the first three projects--Liza Phase 1, Liza Phase 2 and Payara--are already pumping more than 650K bbl/day.

Data by the Guyana government has revealed that the consortium's agreement generated $6.33B for the partners last year, with Exxon netting $2.9B, Hess earning $1.88B, while Cnooc amassed $1.52B from Stabroek. Exxon Mobil owns 45% of the Stabroek block; Hess 30% while Cnooc owns a 25% stake.

Exxon will soon start generating natural gas at its Guyana assets. Netherlands-based SBM Offshore has just completed the $1.23B sale of its fifth floating production, storage, and offloading (FPSO) unit to Exxon for use in offshore Guyana. With a production capacity of 250,000 barrels of oil per day, the FPSO Jaguar has a daily associated gas treatment capacity of 540 million cubic feet and a water injection capacity of 300,000 barrels per day. ExxonMobil is progressing with plans to build a Gas to Energy Project in cooperation with the Government of Guyana, with start-up expected by the end of 2024. According to Exxon, the project will significantly reduce the cost of electricity in Guyana. The proposed project would bring associated gas from ExxonMobil Guyana-operated projects offshore (Liza Phase 1 and 2) via pipeline to onshore gas processing facilities. The pipeline would transport up to ~50 million standard cubic feet per day of natural gas to the facilities.

The three oil majors have completely transformed the economy of the tiny South American country. Whereas, historically, Guyana's GDP per capita was among the lowest in South America, extraordinary economic growth since 2020, averaging 42.3 percent over the last three years, brought GDP per capita to $20,360 in 2023, up from $6,477 in 2019. Guyana is now considered an upper-middle-income country.

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https://oilprice.com/Energy/Crude-Oil/E ... uyana.html

[energy_isere]

J'ignorais cette particularité de la population au Guyana :

Au Guyana, Narendra Modi offre la coopération indienne aux pays caribéens

AFP le 20 nov. 2024

Le Premier ministre indien Narendra Modi, en visite deux jours au Guyana, petit État du Nord de l'Amérique du sud dont plus de 40% de la population est d'origine indienne, a proposé mercredi sa coopération aux pays de la Communauté Caribéenne (Caricom).

Lors de ce deuxième sommet Inde-Caricom, le Premier ministre a notamment rappelé le lancement par l'Inde d'un nouveau satellite en 2027 : "En tirant parti de la technologie spatiale, nous pourrons travailler ensemble dans des domaines tels que la cartographie des ressources, les études climatiques et l'agriculture dans les pays de la Caricom".

M. Modi a aussi évoqué les sargasses (algues brunes qui ont envahi une partie des côtes et plages caribéennes) indiquant que celles-ci pouvaient être transformées en engrais.

"L'Inde sera heureuse de renforcer sa coopération avec vous tous dans tous ces domaines", a-t-il lancé, évoquant également le transport maritime, l'agriculture ou la lutte contre la pêche illégale et les trafics de drogue ou d'être humains, entre autres.

L'Inde et les 15 pays de la Caricom, dont le siège est à Georgetown, avaient convenu en 2023 d'organiser un sommet commercial chaque année.

- Guyana, partenaire privilégié -

Précédemment, l'Inde et le Guyana ont signé plusieurs accords de coopération portant notamment sur l'agriculture, la défense mais aussi les "hydrocarbures", alors que le Guyana --800.000 habitants-- dispose des plus grandes réserves de pétrole per capita de la planète et est appelé à devenir un acteur important sur le marché international du brut.

"Nous ne cesserons de déployer des efforts pour renforcer notre coopération commerciale et économique mutuelle", a déclaré M. Modi lors d'une rencontre avec le président guyanien Irfaan Ali, soulignant ses origines indiennes comme 40% de la population.

"Ceux qui sont arrivés depuis l'Inde au Guyana il y a 180 ans ont jeté les bases de nos relations. Aujourd'hui, la communauté indienne du Guyana apporte une contribution très importante à son développement", a ajouté M. Modi.

"La visite du Premier ministre Modi représente une pierre blanche dans le renforcement de la coopération entre nos deux nations", quant à lui affirmé M. Ali, soulignant un "grand héritage partagé par la culture et le sang".

Le ministre guyanien des Ressources naturelles, Vickram Bharrat, a déclaré à la presse que l'Inde était intéressée par l'achat de pétrole guyanien.

M. Modi doit quitter le Guyana jeudi.

https://www.connaissancedesenergies.org ... ens-241120

[energy_isere]

US Export Credit Agency Finalizes $527MM Energy Loan for Guyana

by Jov Onsat|Rigzone Staff | Monday, December 30, 2024

The board of the Export-Import Bank of the United States (EXIM) has approved about $527 million in financing for an Exxon Mobil Corp.-supported gas-to-power project in Guyana that the export credit agency said would double the South American country’s installed generation capacity.

The loan to the Guyanese Finance Ministry will aid the construction of a natural gas separation plant and a 300-megawatt combined-cycle gas turbine power plant, as well as support services related to the gas pipeline near the capital Georgetown.

“This project will allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas-powered turbines to generate electricity”, EXIM said in an online statement. “Without this gas-to-energy project, Guyana will continue to import fuel oil, one of the highest polluting fossil fuels, and be unable to decommission hundreds of less efficient local generators”.

The project will avoid over 460,000 tons of carbon dioxide a year, the equivalent of consuming over one million barrels of oil, according to EXIM.

EXIM president and chair Reta Jo Lewis said, “I am especially proud to continue to support Bank priorities and charter mandates along with projects that align with the administration’s economic, energy, and national security priorities”.

EXIM added, “The financing will support a U.S. joint venture involving Lindsayca, a Texas-based company, and CH4 Systems, a Puerto Rican small business, and services provided by ExxonMobil”.

“The financing will also support more than one dozen U.S. companies”, it said, adding the project will provide about 1,500 jobs across 11 U.S. states and territories.

The loan is also an implementation of EXIM’s China and Transformational Exports Program, a mandate for the agency to aid U.S. exporters facing competition from Chinese counterparts, EXIM said.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), the Guyanese project would only contribute to grid overbuild at the expense of the project being bailed out due to debt.

“ExxonMobil would gain the most from the Gas to Energy Project, through profits from pipeline construction, lending money to Guyana, and selling natural gas”, the Lakewood, Ohio-based think tank said in an analysis published October 4, 2023.

“Instead of spending billions for an overbuilt, fossil fuel-reliant grid that will leave Guyana in debt for years, IEEFA found that Guyana could use its oil profits for a reliable, low-cost rooftop solar solution that would save billions while providing low-carbon electricity to the entire country”, IEEFA added.

Guyana’s Department of Public Information (DPI) said in a separate statement about the loan approval that an independent technical and environmental feasibility study had been conducted and a review by the U.S. Congress passed before the loan approval.

On criticisms that the loan supports a fossil fuel project, Guyanese Vice President Bharrat Jagdeo, in comments relayed in the DPI statement, pointed to EXIM’s statement that the project will result in emission reduction.

“In addition, the government will be saving approximately $100 million annually on fuel costs, while electricity costs will be slashed by 50 percent, leading to an annual saving of $250 million”, the DPI statement added.

Jagdeo said, “It has an impact on both balance of payment of the country and also in the pockets of Guyanese companies and individuals”. Jadeo noted the EXIM loan would cover only 25 percent of the project.

The DPI said, “Approximately $2 billion is required to construct the major facility, with the government expending its own resources to finance the rest of the project, including through a partnership with ExxonMobil”.

Rigzone sent comment requests to ExxonMobil, EXIM and Guyana’s Finance Ministry and DPI about the concerns raised by IEEFA.

https://www.rigzone.com/news/wire/us_ex ... 1-article/