Page 8 - LatAmOil Week 16 2022
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LatAmOil                                        COLOMBIA                                            LatAmOil



                         “In order to get back to the [levels] of production
                         they had maybe 10 years or 15 years or 20 years
                         ago, it will take about three to four years because
                         they don’t have the technical capacity to [reach]
                         that acceleration,” he told Bloomberg.
                           By contrast, Duque said, Colombia has
                         already laid the groundwork necessary to push
                         production upward. He declared that his coun-
                         try was on track to see its oil output reach 1mn
                         bpd in the near future. Yields may even rise by
                         50-100%, reaching 1.5-2.0mn bpd within the
                         next four years, if plans for working with com-
                         panies from the US and other companies to
                         develop new upstream assets come to fruition,   File photo of President Ivan Duque (Photo: Presidencia.gov.co)
                         he said.
                           He drew particular attention to the poten-  to historically large hydrocarbon deposits.
                         tial of the country’s offshore assets, saying that   “Colombia today can become a strategic energy
                         the undeveloped subsea fields that the country   supplier, not only to the US but to other markets
                         has been offering to investors might be home   around the world,” he declared. ™



                                                        GUYANA
       Former CDB official describes Guyana’s



       estimate of GTP project cost as reasonable






                         DR. Justin Ram, the former director of eco-
                         nomics at the Caribbean Development Bank
                         (CDB), has declared that he believes Guyana’s
                         cost estimate of $900mn-$1bn for a planned gas-
                         to-power (GTP) project is reasonable and not
                         overstated.
                           In fact, he said in a recent interview with Oil-
                         NOW.gy, the final price tag for the GTP initia-
                         tive may end up being even higher.
                           During the interview, he pointed out that
                         Guyana was “starting from scratch” with respect
                         to setting up all the facilities and infrastructure
                         associated with the GTP project. Under these
                         circumstances, he said, the country has a great
                         deal of work to do before it can begin to make
                         any use of the associated gas contained in its   The GTP project will see gas from Stabroek piped to shore (Image: ExxonMobil)
                         offshore oilfields. The impact this has on costs
                         should not be overlooked, he said.   materials, equipment and other inputs needed
                           “I am not too concerned about that price,   to build the pipeline and other facilities associ-
                         because I think that is within the general ball-  ated with the GTP scheme are likely to rise.
                         park of trying to bring gas to shore ... I don’t   These price increases will affect projects
                         think it sounds out of whack,” he remarked.  around the world, not just in this particular case,
                           Ram said he believed the money would be   he added.
                         well spent, as the GTP project would deliver   “The cost of [the GTP] project could actually
                         more than its face value to the Guyanese econ-  go up again, but that has nothing to do with what
                         omy. He also hailed Georgetown’s efforts to   is going on in Guyana,” he said. “It is all about
                         secure private-sector investment for the project,   international price of capacity, the price to bring
                         saying that this arrangement would help reduce   people in, the price for the materials to build the
                         risks.                               actual infrastructure.”
                           Nevertheless, he cautioned that the final   Guyana’s  government  is  working  with
                         price tag might be higher than originally pro-  Esso Exploration and Production Guyana Ltd
                         jected. Since the global economy is currently in   (EEPGL), a subsidiary of US-based ExxonMo-
                         an inflationary period, he noted, the costs of the   bil, on the GTP project.



       P8                                       www. NEWSBASE .com                           Week 16   21•April•2022
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