Page 10 - LatAmOil Week 42 2022
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LatAmOil                                         GUYANA                                             LatAmOil



                         The withdrawal will bring the NRF’s balance   of around 1mn barrels of oil each, the BoG said.
                         back down below the equivalent of $1bn. The   These six cargoes will bring the total number
                         BoG reported recently that as of September 30,   of liftings from the country this year up to 13.
                         2022, the fund’s balance stood at GYD219.18bn   To date, the proceeds from 16 cargoes have been
                         ($1.055bn), up by 39.56% or GYD62.12bn   deposited in the NRF.
                         ($298.9mn) from GYD157.05bn ($755.67mn)   All of the money flowing into the sovereign
                         as of June 30, 2022.                 wealth fund originates from exports of crude
                           Most of the increase in the fund’s balance   extracted from the Liza-1 and Liza-2 sections
                         during the third quarter stemmed from the   of Stabroek, an offshore block operated by a
                         lifting of four 1mn-barrel crude oil cargoes,   subsidiary of ExxonMobil (US). These two sites
                         the BoG noted. It also reported, though, that   are currently Guyana’s only producing oilfields.
                         the NRF had earned some GYD995.75mn   ExxonMobil aims to bring the Payara section of
                         ($4.79mn) between July and September from   Stabroek on stream in 2023, followed by Yellow-
                         interest. This put the rate of return on interest   tail in 2024 and Uaru in 2026.
                         earnings at 0.513% for the third quarter, up from   The NRF was officially established under the
                         0.177% in the second quarter.        mandate of a law passed by Guyana’s Parliament
                           The NRF’s interest earnings and rate of   and signed by President Irfaan Ali last Decem-
                         return are expected to be even higher in the   ber. Prior to that date, Guyana’s oil revenues had
                         fourth quarter of the year. This is because Guy-  been held in a special account by the US Federal
                         ana is slated to export an additional six cargoes   Reserve Bank of New York. ™



       Guyana will set aside some unassigned



       offshore blocks for bilateral partnerships






                         GUYANA’S President Irfaan Ali has said that his
                         government intends to set some sections of the
                         country’s offshore zone aside for partnerships
                         with other countries under bilateral accords
                         rather than including them in competitive
                         licensing rounds.
                           Speaking during a joint press conference
                         with Jane Miller, the British High Commissioner
                         to Guyana, Ali said that Georgetown intended to
                         dispose of a number of unassigned blocks in this
                         fashion. He did not identify any of the sites that
                         might be subject to this arrangement but noted
                         that the government of Barbados had also opted
                         to reserve some of its licence areas for partner
                         countries.
                           “We’re going to move to the auctioning of
                         some blocks, and we have some blocks that are
                         set aside for what is termed government-to-gov-
                         ernment partnership. And we’re looking at all
                         our strategic partners with these blocks,” he was
                         quoted as saying by OilNOW.gy.
                           The president went on to say that he had dis-
                         cussed a partnership along similar lines with
                         Boris Johnson, the former British prime min-  Guyana’s offshore zone (Image: Guyana Geology and Mines Commission)
                         ister, during his visit to the UK in April of this
                         year. He did not say explicitly whether the two   such bilateral deals might affect the schedule for
                         countries had struck a bilateral deal that would   auctioning off unassigned licence areas. Guy-
                         ensure a British company’s access to a Guyanese   ana’s government has yet to reveal exactly when
                         offshore block, but he did state that he had told   it will start accepting bids for these blocks, and
                         Johnson that Guyana was hoping for support   the country’s Ministry of Natural Resources
                         from the UK in bolstering its energy security.  reported earlier in October that it was still work-
                           Ali did not say how many offshore blocks   ing to finalise the terms of the contract model
                         might be set aside under government-to-gov-  that the winners of the contests will have to
                         ernment partnerships or comment on whether   follow.



       P10                                      www. NEWSBASE .com                        Week 42   19•October•2022
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