Page 10 - LatAmOil Week 07 2021

LatAmOil GUYANA LatAmOil

The compressor leak has forced ExxonMobil to reporters in Georgetown.
flare associated gas from the Liza-1 field at a rate The former EPA chief also criticised the US
of 16mn cubic feet (453,100 cubic metres) per company for not taking steps to prevent the
day, higher than the official limit of 14 mmcf compressor leak, noting that it had experienced
(396,500 cubic metres) per day. the same equipment problem last year. Exxon-
Guyana’s government has instructed the US Mobil seems to have relied on a temporary fix
major to replace the faulty equipment and bring rather than resolving the problem, and suspend-
gas flaring back down as soon as possible, but it ing production might have led to faster action,
has also indicated that it will not impose fines for he argued.
the violation at this time. The US major is working with Hess, a
US-based independent company, and China
Former official lashes out National Offshore Oil Corp. (CNOOC) to
This stance has drawn criticism from Vincent develop Stabroek, which lies in the deepwater
Adams, the former head of Guyana’s Environ- section of Guyana’s offshore zone. To date, the
mental Protection Agency (EPA). partners have discovered oil in 18 sections of the
Adams said at a press conference on Febru- block, which appears to hold around 9bn barrels
ary 17 that he would have ordered ExxonMobil of oil equivalent (boe) in recoverable reserves.
to suspend operations if the uptick in flaring had Liza-1 became the first section to begin
occurred during his time in office. “[It] is explicit commercial production in December 2019.
in the law that the EPA has the authority to ter- ExxonMobil has also sanctioned development
minate operations at any time, and that is what at Liza-2, which is slated to begin production in
I would’ve done because we have been bending 2022; and Payara, which will come on stream in
over [backwards] for [ExxonMobil],” he told 2024. ™

Guyana’s government hopes to choose

new oil marketing contractor by April

GUYANA’S Vice President Bharrat Jagdeo has criteria imposed by Granger’s administration
said that Georgetown expects to choose a new and invite all 29 potential contractors to submit
contractor to market its share of oil from the new bids.
Liza-1 field by April, when its next 1mn barrel “We are now discussing whether we just go
cargo is scheduled to be loaded for export. He and invite the same companies and change the
has also indicated, though, that the government so-called pre-qualification criteria ... [If] the cri-
may revise the rules in order to bring the bidding teria are set up in a way where you can disqual-
process to a successful conclusion. ify a person for lack of technical capacity, who is
Jagdeo told reporters last week that George- already selling your oil, something is wrong with
town had not been able to select a contractor that,” he commented.
yet, even though 29 companies had submitted If the conditions can be simplified so that the
bids for the oil marketing contract. As result, 29 companies can demonstrate their ability the
he said, it had to ask the investors developing market the oil, he said, Guyana will be able to
Liza-1 – the US companies ExxonMobil and make a straightforward decision on the basis of
Hess, plus China National Offshore Oil Corp. competitive pricing.
(CNOOC) – to market its fourth 1mn-barrel
cargo in December.
The vice president blamed the delay on the
previous presidential administration, saying
that David Granger’s right-leaning APNU-Alli-
ance for Change faction had imposed conditions
that effectively nullified the offers submitted by
28 of these companies. Additionally, he noted
that the only company to have satisfied all the
existing criteria was Lukoil Pan Americas, a sub-
sidiary of LITASCO, the trading arm of Russia’s
largest private oil operator Lukoil.
He described this result as “nonsensical” and
said President Irfaan Ali’s administration was
considering a change in the rules. Specifically,
he said, the government wants to remove the . Vice President Bharrat Jagdeo (Image: Headline News Guyana)

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