Institute of the AmericasInstitute of the AmericasXXII Annual La Jolla Energy ConferenceXXII Annual La Jolla Energy Conference
May 20 May 20 ‐‐
22, 2013 22, 2013
La Jolla, California, U.S.ALa Jolla, California, U.S.A..
Newell DennisonNewell Dennison
2
COUNTRY PROFILECOUNTRY PROFILE
Capital:
Georgetown
Languages:
English (Official)
Amerindian dialects, Creole
Size:
83,000 sq. miles (215,000 km2)
Population:
789,600
Currency:
Guyanese Dollar
GYD$ 205 x US$1
Time Zone:
UTC/GMT -
4 hours
Political System:
Democracy
Westminster based system
Legal System:
Based on English Common Law with certain admixtures of Roman–Dutch Law
Religions:
Christian 43%, Hindu 28%, Muslim 12%
Brazil
Venezuela
3
MACROECONOMIC STABILITY MACROECONOMIC STABILITY AND GROWTHAND GROWTH
Current Annual Growth
Annual Growth
Since 2005
Gross Domestic Product: US $2.3 billion 12% 22%
Foreign Direct Invest: US $294 million 27% 21%
International Reserves: US $749.7 million 24% 25%
Exports US $1.1 billion 27% 15%
“Guyana has weathered the global crisis well, sustaining a solid macroeconomic performance supported by prudent policies. Directors commended the authorities’
commitment to further entrench macroeconomic stability and fiscal sustainability, while promoting long term growth and development”
-
IMF Review
4
FDI IN GUYANAFDI IN GUYANAForeign Direct Investment 2005 to 2012 (US$ Million)
In 2012, FDI as a percentage of GDP in Guyana reached 12%, one of the highest rates in the Caribbean and Latin America
Source: Ministry of Finance, Guyana
5
The United States Geological Survey (USGS) has identified the
Guyana‐Suriname
basin
as
having
the
second
most
attractive
under‐explored
basin
in
the
world
with
a
potential
of
15.2
billion
barrels
of
oil
and
were
a
discovery
to
be
production
targets would be estimated at 50 million barrels per year.6
PETROLEUM OVERVIEWPETROLEUM OVERVIEW
Historical Status Of Offshore Oil And Gas Development In Guyana
7
UPDATE BY COMPANYANADARKO ‐
Awarded deep water Roraima
Block, June 2012
ESSO/SHELL ‐
~ 7000 km. 2D seismic (2008, 2010); 1st
renewal ‐
June 2012; ~1250 sq.km. 3D seismic acquisition comp. 2013
CGX ‐
3D seismic (Dec 2008) in a seamless but separately
contracted acquisition with REPSOL et.al. over their adjacent
blocks. 3D seismic acquisition (Jan.2012) for a total of 3000
plus sq.km
; Eagle well drilled in 2012, was dry, plug and
abandoned; JV opportunities possible.
REPSOL et. al. ‐
Jaguar 1 HPHT plugged & abandoned but
encouraging outcome ; continuation being discussed; new
well considered
Signed new Petroleum Agreement in May 2013 for exploration
and production operations in the Guyana concession acreage
referred to as the Kanuku
Block.
NABI Oil & Gas ‐
small interest at Drill, East Coast Demerara.
Awarded PSA in June 2012 & should be drilling in 2013.
ON Energy ‐
very keen to revisit coastal area; new data acquisition
contemplated
TOGI/CANACOL ‐
drilled Apoteri
K2 offset well in the Takutu
Basin
in 2011 (near Karanambo
1 well which was drilled in 1982 by
Home Oil), was plugged & abandoned; renewal PSA awarded
as at May 2012, new well planned in 2013.
Petroleum GeoServices
‐Speculative 2D seismic (Dec 2008)
completed in unlicensed ultra deepwater areas.
ANADARKO
ESSO/SHELL
REPSOL et. al.
CGX
TOGI/CANACOL
NABI Oil
ON Energy
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9
2D SeismicUltra deep
water (2008)
2D Seismic
Deep Water
(2008/10)
Objective
remains
to
acquire
discovery
evidence
of
petroliferous
occurrences in the basin fringe.
Petroleum Division of the Guyana Geology and Mines Commission is
the
local agency involved in exploring for hydrocarbons.
Petroleum
Division’s
investigation
in
pursuit
of
fossil
fuels
continues
from the North West District (Barima
–
Waini) to the Corentyne, which
is along the Guyana Northern Coast. Modest results has been found in
the search for lignite, pitch and gas.
Deployment of gas capture devices continue as the pilot project for gas
utilization in remote areas.
Exploration Opportunities in the Takutu
Basin. 10
•
Guyana
provides
opportunities
for
investors
in
the
energy
sector;
viz.
petroleum, hydro, solar, wind and biogas.
•
Oil and gas resources
are estimated at 2.2 billion barrels and
6
trillion
cu.
ft.
(28.3
billion
cu.
meters
approx.)
respectively
in
the
Guyana
Basin
which
covers
the
entire
coastal
region
and
offshore
into
the
Atlantic
Ocean
of
Guyana basin where full exploitation of these resources is encouraged.
•
New venture developments in Industry and Manufacturing.
•
Infrastructure upgrades
and other developments. 11
•
The
GoG
will
facilitate
an
enabling
environment
for
the
private
sector
to
finance and manage petroleum activities.
•
The GoG
Oil, Gas, and Mining Policy will transition to integrated
services;
technical assistance guarantees; and knowledge products
•
Opportunities
to
provide
advice
on
legal,
fiscal,
contract
issues,
regulations for conservation minded engineering and development;
sector
reforms, and privatization.
•
Extraction
contracts
must
benefit
Guyana
and
support
future
exploration
and production.
•
The Government of Guyana will be working with the Extractive Industries
Transparency
Initiative,
to
implement
the
transparency
principles
of
the
EITI process in the hydrocarbon sectors.12
»
Investment in this sector may lead to direct business such
as:
engineering,
maintenance,
fabrication,
barging,
towing,
trucking,
all
which
call
for
new and/or
improved
port
facilities;
industrial
yards,
air
services; security, surveillance and intelligence.
»
Post
Discovery
Investment:
will
include;
fabrication and
installation,
pipeline
construction
and
deployment;
processing
plant,
bunkerage
facilities, floating
production
storage
and
offloading
(FPSO)
systems.
13
»
Insurance and bonds
»
Petrochemicals
»
Power generation development
»
Associated services such as; bauxite processing; welding and fabrication, logistic solutions and
warehousing
»
Housing projects
»
Specialized education establishments
»
Research and Development14
»
Discretionary exemption of Customs Duty, Value‐Added and Excise Taxes on:
˃
Machinery
˃
Equipment
˃
Building materials
˃
Other items such as vehicles, etc.
»
These incentives are geared towards attracting investment to Guyana.
15
»
Effective Governance for :1.
Sound science for decision‐making: 2.
National and international cooperation3.
Poverty alleviation4.
National development planning5.
National and international policy setting and technical assistance6.
Sustainable national and regional development7.
Strengthen and harmonization of national laws and institutions
»
Government of Guyana imperatives are to permit reasonable
regard for a possible successful outcome that company
methods can provide. This has to be balanced with known
company behaviour
e.g. of taking inventory; optimizing
financial gain from capital sources etc.
»
Known mechanisms can address such potential situations
and indeed they are applied. (escalating rentals, mandatory
relinquishments, work based rather than money based
programmes, etc.) 16
»
Ensure Resource Efficiency:1.
Focuses on reducing the adverse environmental impacts of producing,
processing and using goods and services, while also meeting human needs and
improving well‐being.
2.
Building capacity for policy action
3.
Seizing investment opportunities
4.
Stimulating demand for resource efficient goods and services
5.
Assessing critical trends
»
Ensuring the Sustainable Management of Guyana’s Natural
Resources along a Low Carbon Development Pathway
»
Meet the increasingly difficult challenge of the increased global
use of natural resources.
»
Support an approach to natural resources that promotes
competitiveness, well‐being and environmental responsibility.
»
Emphasize the intelligent use of natural resources.
»
Avoid the Resource Curse
17
CHALLENGES AND CHALLENGES AND OPPORTUNITIES FOR GUYANA OPPORTUNITIES FOR GUYANA
Thank You for your Attention.Thank You for your Attention.
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Innovativeness together with Innovativeness together with sustainable and responsible sustainable and responsible
operations are essential to future operations are essential to future success.success.
