Oil by 2020

ExxonMobil Country Manager Jeff Simon briefed the media at yesterday’s press conference [Photo by Samuel Maughn)
ExxonMobil Country Manager Jeff Simon briefed the media at yesterday’s press conference (Photo by Samuel Maughn)

Oil by 2020

 

–Exxon pegs production at 100,000 barrels per day

By Ravin Singh
GUYANA is poised to start, from as early as 2020, producing an estimated 100,000 barrels of “good quality” oil per day, ExxonMobil has revealed.The announcement, made yesterday by ExxonMobil’s Country Manager Jeff Simon at a media engagement at Cara Lodge in Georgetown, saw Simon explaining that mainly drilling will be done between 2016 and 2019.

In May 2015, after having drilled the first Liza-1 well in the Stabroek Bloc offshore Guyana, the company made its first announcement of an oil find. In June this year, following the drilling of the Liza-2 well, another announcement was made of a “world-class discovery” of between 800 million and 1.4 billion barrels of oil. The company is presently drilling the Liza-3 well in preparation for exploration in about four to five years’ time.

Noting that the installation of project facilities will be done between 2019 and 2020, Simon said that during the period at reference, ExxonMobil will be developing infrastructure to process 100,000 barrels per day, which is about 20,000 barrels more than what Trinidad and Tobago currently produces.

LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

He was equally keen to make this statement: “The oil is of good quality; it is not sour, and does not have things which will make it difficult to purify.”

He, however, sought to dispel the notion that ExxonMobil’s operation in Guyana is likely to create employment for thousands of Guyanese, saying that only two floating production, storage and offloading (FPSO) vessels will be in operation, each requiring at least 50 persons.

While those persons will not be Guyanese because of the technicality of the operation, Simon said, approximately 300 Guyanese are already working with the company in terms of providing fuel and food supplies; as well as security, transportation, waste management, medical and information technology, among other services.

He, however, disclosed that the company has targeted having between 75% and 95% of its total staff being Guyanese.

“The greatest benefit is the revenue stream provided to the country,” Simon said, adding: “If job creation is critical, then take some of that money and put it into areas where job creation could be exponential relative to what we are talking about here,” he advised.

KEY BENEFITS
Jobs apart, Guyanese would also benefit from training in the petroleum industry. Back in July, Minister of State, Joseph Harmon, had said at a post-Cabinet press briefing that ExxonMobil has indicated to Government that it plans to train Guyanese in various spheres of activity associated with petroleum exploration and production.

This point was also articulated by Minister of Natural Resources, Raphael Trotman, who also said in July that the Government of Guyana continues to stress the importance of training for Guyanese.

“As part of the new dispensation, we have stressed to the company that they must be involved in training, and not after-production; pre-production. We are doing (the) best we can to train as many people as possible. I should add that many Guyanese who already work in the oil and gas industry in other parts of the world are expressing their willingness to come home,” the Minister had said.

In addition, Education Minister Dr. Rupert Roopnaraine had announced that the Education Ministry, in conjunction with the University of Guyana (UG), would be establishing a special facility or school for oil and gas exploration.

COSTWISE
In relation to cost, Simon noted, the Production Sharing Agreement that the company has with the Government of Guyana caters for the recovery of billions of US dollars that have been invested by ExxonMobil.

To date, the company has expended about US$500M, with that figure expected to climb to billions as exploration, and subsequently production, takes effect.

Guyana, on the other hand, will receive about half of its revenues from ‘profit oil’, while a fraction would go to ExxonMobil and other investors to recoup investment through ‘cost oil’.

Original Post

Mo money, mo money, mo money for the politicians to steal, whether it is pnc or ppp. Oil can be a blessing but in Guyana's case it will be a curse as the current govt have abandoned all plans to develop the economy and are placing all their eggs in the oil basket.

Drugb posted:

Mo money, mo money, mo money for the politicians to steal, whether it is pnc or ppp. Oil can be a blessing but in Guyana's case it will be a curse as the current govt have abandoned all plans to develop the economy and are placing all their eggs in the oil basket.

Let us hope and pray that by 2020 we have a new set of at least semi honest politicians in Guyana, a new breed of young and old patriots. They should not allow too many blood sucking leeches(attorneys) to be in the government.


LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

Oil by 2020,  August 30, 2016, By Ravin Singh, Source

Perhaps, an indication that there will not be any production by that time; hopefully that US may control of Venezuela and hence the oil production.

Demerara_Guy posted:

LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

Oil by 2020,  August 30, 2016, By Ravin Singh, Source

Perhaps, an indication that there will not be any production by that time; hopefully that US may control of Venezuela and hence the oil production.

There are many US companies so Exxon is guaranteed nothing even if MadBURRO is kicked out by Venezuelans.

caribny posted:
Demerara_Guy posted:

LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

Oil by 2020,  August 30, 2016, By Ravin Singh, Source

Perhaps, an indication that there will not be any production by that time; hopefully that US may control of Venezuela and hence the oil production.

There are many US companies so Exxon is guaranteed nothing even if MadBURRO is kicked out by Venezuelans.

Should he eventually be removed by the Venezuelans, it is still unlikely that the development of oil in Guyana will materialize.

Demerara_Guy posted:
caribny posted:
Demerara_Guy posted:

LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

Oil by 2020,  August 30, 2016, By Ravin Singh, Source

Perhaps, an indication that there will not be any production by that time; hopefully that US may control of Venezuela and hence the oil production.

There are many US companies so Exxon is guaranteed nothing even if MadBURRO is kicked out by Venezuelans.

Should he eventually be removed by the Venezuelans, it is still unlikely that the development of oil in Guyana will materialize.

Doomsday prophets abound!

Mars posted:
Demerara_Guy posted:
caribny posted:
Demerara_Guy posted:

LIKELY TO FLUCTUATE
And though, from 2020 onwards, there will be continued drilling and actual production of oil, Simon was keen to note that the projected 100,000 barrels per day will not necessarily remain constant for the proposed 20-year period that the company will be drilling; production would rather most likely fluctuate.

Oil by 2020,  August 30, 2016, By Ravin Singh, Source

Perhaps, an indication that there will not be any production by that time; hopefully that US may control of Venezuela and hence the oil production.

There are many US companies so Exxon is guaranteed nothing even if MadBURRO is kicked out by Venezuelans.

Should he eventually be removed by the Venezuelans, it is still unlikely that the development of oil in Guyana will materialize.

Doomsday prophets abound!

Banna you doan know for some people is only PPP who know fo run that country? If PPP were still in, it's likely the development of oil woulda materialize, is only dem gods who know how fo find oil.

Demerara_Guy posted:
 

Should he eventually be removed by the Venezuelans, it is still unlikely that the development of oil in Guyana will materialize.

Did some one tell you that Guyana and Venezuela are the only two nations with oil reserves? 

Venezuela is a founding member of OPEC.  Guyana has yet to join and most likely will not, as I don't even think that T&T is a member.   THAT alone is a reason why an oil company will drill in Guyana regardless as to what happens in Venezuela.  Oil companies want to expand their sources of non OPEC oil. 

And a perfect place to do so is a little backward nation like Guyana which is naïve, and where a man prefers to run around screaming "we gun tek back Guyana for Indians" simply because he cannot admit that he LOST.  Instead of using the fact that he has experience from governing over the past 23 years and should should insist that the current gov't negotiates a proper deal that will be beneficial to Guyana.

What will determine drilling will be the extraction and drilling costs related to oil prices.  Nothing to do with Venezuela.  The biggest constraints will be the fact that your PPP failed to build a proper deep water harbor, even though Brazil offered assistance.   These means that most activity will occur off shore and in Trinidad.  Guyana lost the opportunity to be a large deep water harbor.

Exxon is merely saying what any sensible person already knew, and I have said this many times.  Direct jobs for Guyanese from oil will be limited.

 

The benefit for Guyana will be the revenue source which will allow the development of the national infrastructure facilitating the diversification of the economy and a better life for all Guyanese.  This is the very optimistic side!  But the PNC tend to get drunk very quickly!

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