Guyana’s First Shipment of Crude Oil off to United States – 1 million barrels of light crude

MV Yannis

(Caribbean 360) – GEORGETOWN, Guyana, Tuesday January 21, 2020 – A Marshall Islands-registered oil tanker, MV Yannis has successfully lifted Guyana’s first shipment of crude, setting sail for the United States with 1 million barrels of light crude.

The Guyana National Bureau of Standards (GNBS), which is responsible for independently ensuring the accurate measurement of Guyana’s oil from the Stabroek Block, reported that the first offloading of crude oil on the floating production storage and offloading (FPSO) commenced last Saturday morning and all activities were executed as planned.

Lifts are expected approximately every 10 to 12 days from henceforth.         

“This first lift, due to the record set from discovery to production by the operator, sets Guyana firmly on its way to becoming one of the wealthiest countries on the globe per capita, according to many industry specialists,” a statement from the Department of Energy said.

Already, the sector has witnessed foreign direct investment (FDI) in excess of US$500 million, the creation of over 1,700 direct jobs, over 600 service providers, and the establishment of over 70 joint ventures, alliances and partnerships which continue to increase.

“Oil revenues from this venture alone are projected to realize approximately US$300 million in this first year and more than tripling over the next five years. This is expected to directly benefit every Guyanese during this Decade of Development through the provision of revenues to develop other important sectors such as agriculture, energy and manufacturing, as well as vastly improved social and educational services, world class infrastructure, increased wages, job opportunities and an overall better quality of life over the long term,” the Department of Energy added.

Production in Guyana commenced on December 20, 2019, less than five years after the first-ever commercial discovery at the 6.6 million acres Stabroek Block. It is expected that up to 120,000 barrels of oil per day will be produced.

To date, there has been a total of 17 oil finds in Guyana.

Post a comment or leave a trackback: Trackback URL.

Comments

  • Jim  On February 26, 2020 at 7:43 pm

    Guyana is set to hold the most oil reserves in the world, not only just as per capita. Disputed blocks like Roraima (formerly Anadarko) might contain more oil than the tar sands of Venezuela.

  • Clyde Duncan  On February 27, 2020 at 2:31 am

    Anger Over World Bank’s $55m Pledge to Guyana’s Fossil Fuel Industry

    Campaigners say move is ‘blatant contradiction’ of lender’s climate commitments

    Jasper Jolly | The Guardian UK

    THE WORLD BANK HAS BEEN CRITICISED FOR PROVIDING $55M (£43M) TO AID FOSSIL FUEL EXTRACTION IN GUYANA, AT THE SAME TIME THAT IT HAS PLEDGED TO STOP DIRECT FUNDING OF OIL AND GAS PRODUCTION.

    The Washington-based institution, which provides loans and grants to aid the development of poorer countries, will provide $20m to pay for the training of Guyanese oil and gas officials, including those involved in the marketing of oil.

    It will also provide $35m to revamp the banking and insurance sectors in the country, in anticipation of the influx of billions of dollars of oil money from new oilfields.

    The World Bank gained plaudits from environmental groups in 2017 when it pledged to “no longer finance upstream oil and gas” after 2019.

    However, the pledge allowed it to finance the strengthening of governance and regulation in poorer countries, in the hope of avoiding the so-called resource curse in which oil wealth brings corruption and misuse of money.

    Campaigners said the World Bank’s focus on the oil and gas sectors clashes with its commitments “to help countries accelerate the transition to sustainable energy” and to support the 2015 Paris agreement goal of keeping global temperature increases to below 2C.

    “THE WORLD BANK’S PUBLIC ASSISTANCE TO UPSTREAM OIL DEVELOPMENT IN GUYANA IS A BLATANT CONTRADICTION TO GUYANA’S CLIMATE CHANGE PRIORITIES AND THE BANK’S COMMITMENT TO THE PARIS CLIMATE AGREEMENT — I am perplexed by the World Bank’s disregard for its own warning.” said Heike Mainhardt, a senior advisor at Urgewald, a German non-governmental organisation that has tracked the projects.

    Mainhardt said the World Bank’s provision of assistance to the Guyanese government and general budget support allowed it to get around its pledge not to finance upstream oil and gas projects. The country’s rulers were then free to use the money to finance oil development directly, he added.

    GUYANA IS EXPECTED TO BECOME ONE OF THE WORLD’S LARGEST OIL PRODUCERS AFTER US FIRM EXXONMOBIL, ALONG WITH THE CONSORTIUM PARTNERS HESS AND CHINA’S STATE-OWNED CNOOC, FOUND SITES THAT COULD DELIVER 8BN BARRELS OF OIL, INCLUDING IN THE OFFSHORE STABROEK BLOCK.

    THE DISCOVERY COULD PROMPT MASSIVE CHANGE FOR A COUNTRY OF ONLY 800,000 PEOPLE AND LESS THAN $5,000 IN GDP PER PERSON IN 2018.

    The consultancy Rystad Energy this month forecast that Guyana’s oil production could reach 1.2m barrels per day by the end of the decade, lifting total annual oil revenues well above $20bn at current prices.

    It said government income – projected to be about $270m in 2020 – could reach nearly $10bn annually within a decade, far outstripping Guyana’s 2018 GDP of $3.9bn.

    Melinda Janki, an international lawyer challenging oil development in Guyana, asked why the World Bank was not funding cheap renewable energy for the country. JANKI SAID THE INSTITUTION WAS “PUSHING GUYANA DOWN A FINANCIALLY DISASTROUS DEVELOPMENT PATH”.

    Oil production has become a significant issue in the run-up to Guyana’s election in March, after criticism of the incumbent government run by President David Granger.

    This month Global Witness, a corruption monitor, said a 40-year deal agreed between the government and ExxonMobil for drilling rights would deprive the country of $55bn. The Guyanese opposition has promised to renegotiate the contracts.

    A WORLD BANK SPOKESWOMAN SAID: “THE WORLD BANK HAS NOT PROVIDED ANY FINANCING TO DEVELOP THE STABROEK BLOCK OILFIELD.”

    She added that the resources governance project “is aligned with the World Bank’s 2017 One Planet summit announcement that the World Bank Group will no longer finance upstream oil and gas, but will continue to help client countries strengthen transparency, governance, institutional capacity, and the energy regulatory environment, including oil and gas.”

    • brandli62  On February 27, 2020 at 5:51 am

      In my humble opinion, the Guyanese government should just ignore the complaints by some self-righteous environmentalists. Guyana needs the oil revenue to finance infrastructure, education, and services to its people. The next government should adhere to its environmental policies moving Guyana to renewable energy sources. With the anticipated oil revenue, this might be achieved sooner than expected.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: