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First million barrels of Guyana oil lifted
Narper
2020-01-22 00:28:28
By Stabroek News January 21, 2020
The Department of Energy (DE) last night announced that the oil tanker MV Yannis has successfully lifted Guyanas first shipment of crude.
The Yannis set sail yesterday for the USA with 1 million barrels of Guyanas light crude, a statement from the DE said.
It added that the Guyana National Bureau of Standards (GNBS) has reported that the first offloading of crude oil commenced on the morning of Saturday, January 18, 2020 and all activities were executed as planned. The GNBS is responsible for independently ensuring the accurate measurement of Guyanas oil from the Stabroek Block.
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Dan_De_Lyan
2020-01-22 00:35:43
In reply to Narper
What is the remittances to the Guyanese coffers
camos
2020-01-22 01:19:39
In reply to Dan_De_Lyan
that is my concern also,did they get $5 per barrel?
Emir
2020-01-22 02:03:14
In reply to Dan_De_Lyan
No payment yet, the first oil will be refined in the USA and then tested.
Guyana will begin collecting royalties when the oil company recoups 25% of start up expenditure under a complicated formula.
It is expected that Guyana will start receiving royalties in real terms beginning in 2027.
However, they can borrow now against the future earnings.
bravos
2020-01-22 13:39:38
In reply to Emir
Damn..
Guyana better be careful.
Congrats on their first move..
steveo
2020-01-22 13:43:40
In reply to Narper
Thats all for Exxon
dayne
2020-01-22 13:46:35
In reply to Emir
It reads like a financial trap, what is the interest rate they will be charged to borrow that money against what they are going to receive?
positiveg
2020-01-22 13:58:01
In reply to Emir
Wow, so that's how it works. takes 7 years for you to start to recoup wow
Is that basically a standard around the world?
Asking aas a real novice who's interested in how things like this work
thanks in advance.
doosra
2020-01-22 14:08:54
In reply to positiveg
It is expected that Guyana will start receiving royalties in real terms beginning in 2027.
Emir tried a fast one on those who skim read
Wow, so that's how it works. takes 7 years for you to start to recoup wow
camos
2020-01-22 14:12:30
In reply to doosra
what is the reality?
SnoopDog
2020-01-22 15:53:22
In reply to camos
what is the reality?
Thanks to Granger who sold out Guyana's rights to Exxon for a week of free food and drinks in Houston and $20 mil USD hidden away from the public and then promptly pocketed by him and his cronies, Guyana won't see a penny for all that oil.
And, by 2027 the the worldwide dependency on crude oil and fossil fuels will start to diminish. But thanks to Granger the Guyanese people will still have their magic beans.
camos
2020-01-22 16:11:55
In reply to SnoopDog
sad! was there any public debate on the issue?
SnoopDog
2020-01-22 16:25:21
In reply to camos
sad! was there any public debate on the issue?
HAHAHAHAHAHAHA!!!
Public debate about those leeches going to Houston on Exxon's dime and stuffing their fat asses with steak, wine, and pasta salad then getting $20 million to piss away instead of depositing it into the treasury?
Come on Bro.
sgtdjones
2020-01-22 17:12:13
bravos
2020-01-22 17:12:27
In reply to SnoopDog
funny af the way you put it,I lol'd hard,but real sad if true..
Everyone else involved is guaranteed to make lotsa money and making years already,from day one..plenty USD coming here from Guyana a while now..
Hundreds of millions a year for the past few..and man laughing at T&T..
hope they get it right for Guyana sake...else everyone else will still make but Guyana..
Production costs are production costs..
Runs
2020-01-22 17:24:56
In reply to SnoopDog
Jan Mangal told them to make all the documents public, he was their Adviser, they promptly fired him. Trotman was the govt Minister who signed the documents, he is an attorney, his excuse was that he did not read the docs but relied on his staff to do.
The 18m signing bonus was hidden and the Finance Minister denied having such on numerous occasions until evidence was produced.
His excuse then was they put the money in a high interest account and expected to use to pay legal fees for the Gy/ Venez border issue.
DAVE400
2020-01-22 17:26:25
does anyone know what oil price makes the operation viable? whats the estimated per barrel cost of production when fully online?
any data available?
how does Guyana oil production cost (when mature) compare to neighbors ...and to shale oil production...
it cam be ironic that Guyana oil may contribute to falling prices and in turn harming its own viability.
Runs
2020-01-22 17:29:25
In reply to DAVE400
All I know is that they will sell at Brent crude prices
SnoopDog
2020-01-22 17:30:25
In reply to sgtdjones and bravos
I mean what kind of brain dead asswipes negotiate to pay for ALL of Exxon's exploration and production costs in exchange for 2% royalties and 50% profit share?
So basically, the 2% royalties and 50% profits are being paid back to Exxon until all of Exxon's costs are wiped out - in about 5-6 year's time estimate.
But then again the dummies may just decide to borrow back on the royalties and profits now being paid back to Exxon (like a vendor take back mortgage) and at IMF interest rates.
bravos
2020-01-22 17:31:32
In reply to DAVE400
I think it's close to $50.
Brilliant comment btw..
camos
2020-01-22 17:31:32
In reply to Runs
that is very high grade, usually about $5 above WTI.
SnoopDog
2020-01-22 17:33:03
In reply to Runs
Jan Mangal told them to make all the documents public, he was their Adviser, they promptly fired him. Trotman was the govt Minister who signed the documents, he is an attorney, his excuse was that he did not read the docs but relied on his staff to do.
The 18m signing bonus was hidden and the Finance Minister denied having such on numerous occasions until evidence was produced.
His excuse then was they put the money in a high interest account and expected to use to pay legal fees for the Gy/ Venez border issue.
Jan's a bright guy who has been in that industry for decades. Why would the dummies listen to him?
As for the $18 million secret signing bonus - that money done spend Bro. High interest account meh rass.
camos
2020-01-22 17:33:54
In reply to SnoopDog
So basically, the 2% royalties and 50% profits are being paid back to Exxon until all of Exxon's costs are wiped out - in about 5-6 year's time estimate.
and by then equipment has to be replaced and charges start again.
bravos
2020-01-22 17:34:02
In reply to SnoopDog
the character you horrifically quoted me with thinks Guyana got the best deal..
sgtdjones
2020-01-22 17:35:40
In reply to SnoopDog
By then the deposits will pump heavy oil resulting in lower prices. The light-heavy mixture now being pumped is comparable to Galeota crude.
I was on an Exxon Rig last week and it's not brent crude. It's being sent to Texas to be upgraded.
Trinidad have the same deal but 10 % royalties. In North America, such deals are completely different.
bravos
2020-01-22 17:38:39
In reply to SnoopDog
from picking strawberries to petroleum scientist..
BeatDball
2020-01-22 17:39:52
SnoopDog
2020-01-22 17:40:26
In reply to camos
and by then equipment has to be replaced and charges start again.
Very true.
And no one knows what state the oil industry will be in come 2027. The entire planet is starting to slowly wean off dependency on crude and fossil fuels.
Look at the stock market and compare oil stocks to renewable energy stocks.
Guyana lost a great opportunity to get a fresh new deal with Exxon where they could have at least maximized their profits at this early stage when oil prices are still competitive.
bravos
2020-01-22 17:43:15
In reply to SnoopDog
How much are they projected to earn over the period as it is?
SnoopDog
2020-01-22 17:47:51
In reply to bravos
How much are they projected to earn over the period as it is?
The numbers I've heard is that they will earn $230 million this year and $2 billion by 2025.
I don't have the numbers for Exxon's costs which Guyana has to repay.
BeatDball
2020-01-22 17:49:42
In reply to SnoopDog How else to modernity? Like every charge...if it isn't cash, it gwine have to be credit/financing!
Runs
2020-01-22 17:50:11
In reply to SnoopDog
I found it rather disturbing that they chose not to use his expertise but as we all know quite well, the locals are intimidated by overseas educated professionals and will be hostile to such.
bravos
2020-01-22 17:51:15
In reply to SnoopDog
seems like peanuts for such a project.
T&T does collect more than that from BP or Shell alone in a bad year..
Oh well half a loaf is better than none..
SnoopDog
2020-01-22 17:55:29
In reply to BeatDeDotard'sballs
How else to modernity? Like every charge...if it isn't cash, it gwine have to be credit/financing!
Obviously you graduated from Dotard University if you think borrowing more money than you can afford to pay back is a great idea.
SnoopDog
2020-01-22 17:58:43
In reply to bravos
Oh well half a loaf is better than none..
The new PPP presidential candidate, Irfaan Ali, who incidentally has much brains as Granger, has said he would scrap this deal and re-negotiate a new one with better terms for Guyana's royalties and profit sharing.
I personally think it's all election bluster and campaign bullshit.
sgtdjones
2020-01-22 17:59:26
In reply to DAVE400
does anyone know what oil price makes the operation viable? whats the estimated per barrel cost of production when fully online?
any data available?
If you are a shareholder of Exxon and request such you will get it.If not Exxon will not make such available.
The oil is similar to Galeota crude (40°API Galeota Mix), it will be upgraded in Houston.
how does Guyana oil production cost (when mature) compare to neighbors ...and to shale oil production...
Guyana deal is for all companies to recover costs, then pay a royalty. Trinidad has the same deal, its royalties came from Natural gas, not Oil. It imported Oil from Russia for PetroTrin
Shale Oil and Gas makes a profit during the first three years, then it goes into the red. It depends on high worldwide prices or such well are capped.
it cam be ironic that Guyana oil may contribute to falling prices and in turn harming its own viability.
Oil is not going anywhere for the next 50 years, it will be a marketable commodity.
Prices are controlled by a Cartel.
Guyana's oil will not get world prices,
just a Lil below. It is the same as Venezuelan Oil, one needs naphtha to pump it into tankers.
I posted this before.
BeatDball
2020-01-22 18:01:12
In reply to SnoopDog Alyuh stop bellyaching...SOP for oil companies to do, 'suh suh suh', as the guyneez would say. Shouldn't GT, have atleast consulted TT or Nigeria? Just saying...btw, you seem quite impressive at these finer points!?
camos
2020-01-22 18:02:01
with giveaways like this US has all rights to fear Chinese presence in the area!
sgtdjones
2020-01-22 18:02:54
In reply to SnoopDog
The numbers I've heard is that they will earn $230 million this year and $2 billion by 2025.
I have posted the numbers before
Aprox 300 million till 2025
Aprox 6 billion after 2025.
sgtdjones
2020-01-22 18:07:00
In reply to SnoopDog
BeatDeDotard'sballs Obviously you graduated from Dotard University
bravos didn't finish high school
Ask him about averages,
Murders on the Mexican bridge,
His murders projection for 2019
T&t had a 5 billion US per year oil revenue
in the 1960s.
T&T gets its royalty from Natural Gas a fixed price commodity. Not oil.etc, etc
He is a Typical bobolee...
Where is Courtesy..he can get the archives to prove the above
SnoopDog
2020-01-22 18:07:01
In reply to BeatDeDotard'sballs
Shouldn't GT, have atleast consulted TT or Nigeria?
Election Rigger Granger had Jan Mangal, a man with decades of experience in this industry, at his disposal and his lazy ass lackey Trotman fired him.
They were only interested in getting some free food and booze and an easy $20 mil U.S.D. from Exxon to spend on new SUV's and teeth whitening products.
bravos
2020-01-22 18:10:00
In reply to SnoopDog
Stabroek should send this article to the powers that be..
I really thought the earnings for Guyana would be much more based on our own..
SnoopDog
2020-01-22 18:13:04
In reply to sgtdjones
Oil is not going anywhere for the next 50 years, it will be a marketable commodity.
Prices are controlled by a Cartel.
Crude and fossil fuels are the Horse and Buggy of 1908 Bro.
Look at where the money is going these days - it ain't on oil and fossil fuels.
The guy who made buggy whips in 1908 was out of business by 1914.
camos
2020-01-22 18:14:06
In reply to sgtdjones
T&T gets its royalty from Natural Gas a fixed price commodity
price varies like EVERY other commodity, how could you have a futures market for a fixed price commodity?
BeatDball
2020-01-22 18:15:10
Boi, I'm out...I'm vexed! De man call me a bobolee!
camos
2020-01-22 18:17:16
In reply to SnoopDog
Crude and fossil fuels are the Horse and Buggy of 1908 Bro.
I think it will have a diminished energy role in the decades ahead, will still be an input in a lot of chemicals process but those are not high value.
SnoopDog
2020-01-22 18:19:20
In reply to camos
I think it will have a diminished energy role in the decades ahead, will still be an input in a lot of chemicals process but those are not high value.
Yep. I agree.
sgtdjones
2020-01-22 18:36:28
In reply to camos
Camos they have signed contracts to deliver at a certain price.
Runs
2020-01-22 21:20:37
Exxon hiding Guyanas gas.
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bravos
2020-01-23 02:26:14
In reply to Runs
plenty speculation ..
camos
2020-01-23 02:52:06
where is my boy Edris Dookie ,isn't he working in oil exploration?
Dan_De_Lyan
2020-01-23 03:12:36
In reply to camos
CGX Edris?
johndom90
2020-01-23 07:02:22
In reply to SnoopDog
And the local capitalists are lambasting chinese business practice as eye gouging and stealing.
dayne
2020-01-23 13:21:04
In reply to Runs
Good article find, Guyana's negotiators are no match for the international businessmen they are doing business with, Exxon is going to play all the games under the sun and then leave Guyana with the environmental mess when they are done.
camos
2020-01-23 13:54:44
In reply to Dan_De_Lyan
CGX Edris?
not sure what you are asking there, we went to school together in Montreal.
DAVE400
2020-01-23 14:15:44
In reply to sgtdjones
thanks for the info
Kay
2020-01-23 14:31:00
In reply to camos
Dr. Edris Dookie was a co-founder of CGX Energy. I think he now owns Mid-Atlantic Oil & Gas
XFactor
2020-01-23 15:53:12
In reply to SnoopDog
So basically, the 2% royalties and 50% profits are being paid back to Exxon until all of Exxon's costs are wiped out - in about 5-6 year's time estimate.
Seems like Exxon got the better of the deal. It is simply a tragedy for the Guyanese people.
How many years these reserves have and what happens if Exxon deplete the oil reserves before the end of the contract?
camos
2020-01-23 15:59:05
In reply to Kay
damn! that him yes, one of the coolest guys I ever hang with.
Runs
2020-01-29 13:40:24
With an API of 32.1 degrees and sulfur content of 0.510 percent, the first 1 million barrels of oil being produced at the Liza Phase 1 Development offshore Guyana was lifted just over a week ago and is expected to arrive at a US refinery soon.
This light to medium, sweet crude is expected to attract the interest of refineries in the US Gulf Coast, Europe and China. As freight rates increase, West African crudes with an API gravity range of 28-36° have decreased in the US by 60% since 2016. A continued decrease could occur as USGC refineries look towards Guyanas crude as a closer alternative, IHS Markit said on Friday.
Runs
2020-02-03 15:31:27
How Guyana lost 5 billion to Exxon.
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bravos
2020-02-03 16:19:32
In reply to Runs
55
Runs
2020-02-03 16:59:34
In reply to bravos
Shoots, the opposing party are raking the present govt over the coals about it. Apparently it was one Ministers doing
Bigzinc
2020-02-03 17:15:53
In reply to Runs
ho hum... exxon taking all the money....the guyanese masses getting shafted again ...sans OIL
jala
2020-02-06 06:53:33
In reply to Emir
You are wrong !!! Guyana gets money on every lift !
jala
2020-02-06 07:03:57
A set of lies being peddled by the ppp
Hacks on here !
First , granger nor Trotman didnt sign any contract ! Janet did in 1999
Under the ppp govt! The contract was kept a secret until
President granger released it to the public in 2016!
This govt, knowing it was legally impossible, attempted to renegotiate the contract with Exxon but were only successful in receiving an additional 1% royalty to 2%- the 50% profit oil remained the same , along with the withholding taxes to be paid to govt
This contract is standard for what conditions were in 1999 and I dont blame Janet - we were an unproven commodity and many companies had come up
Empty , drilling several dry wells -
Lets talk about the many oil blocks given away by jagdeo
And Ramotar to friends and family for spit ! People who
Had zero experience in oil exploration!
jala
2020-02-06 07:06:57
For Guyana, the average government take is 60%, which in our benchmarking overview places the country right between major producer Brazil at 63% and fledgling producers Mozambique and Mauritania, at 57%.
We find the current fiscal regime in Guyana to be in line with other emerging oil and gas countries. As Guyana firms up its credentials as an attractive upstream destination, we expect that new awards of production sharing agreements will likely stipulate revised fiscal parameters, with the higher government take, Boodoo concludes.
[Guyanas fiscal regime and overall take has been heavily discussed over time, both domestically and internationally. In 2018, the International Monetary Fund published a paper advising Guyanas government to increase government take for new licenses in order to reflect the impressive run of exploration successes in the Stabroek Block.
The current fiscal regime for Stabroek involves a transparent profit-sharing contract with three main components: a 2% royalty, a profit oil level of 50%, and a cost recovery ceiling of 75%. The contract is reflective of the situation at the time of signing back in 1999, when multiple companies had encountered several dry exploration wells. At the time, E&P companies were seen to be taking a considerable risk by conducting deepwater exploration in the region. To make such frontier drilling attractive, Guyana offered competitive fiscal terms, Boodoo says.
Rystad Energy has benchmarked the Stabroek fiscal regime against the fiscal regimes of other frontier and upcoming oil and gas producing countries, such as Brazil, the United States (deepwater Gulf of Mexico), Mozambique, Israel, Tanzania, Mauritania, Suriname, and the Falkland Islands.
To measure the impact of the fiscal regimes in these countries, Rystad Energy has run its economic model analysis on the Liza Phase 1 project and compared the results against the fiscal regimes for the peer group countries. From there we derive the estimated government take under each countrys fiscal regime, calculating the split of profits between the E&P companies and the government. Government take is defined as the present value of the government take divided by the present value of the profit, where profit is revenue minus investments and operational costs..
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Cardiac
2020-02-06 15:00:57
In reply to jala
It's amazing how everyone seems to think this oil business started with this administration. You are correct, CGX and others were here for years and found nothing. The first contracts were signed in 1999. As Guyanese would say..."The contract and clauses got teeth." So, a renegotiation was done with the present administration and it wasn't much better that what already existed.
I've never been a fan of Trotman and I've heard many rumours of skullduggery, but almost all point to him acting alone and without the knowledge of his party. The Global Witness report seem more speculative and sensational when you really pay attention to the language. There's already been articles in Forbes and a few other media rubbishing the Global Witness report. However, everyone has an agenda at this point and we'll be no closer to the truth until after elections....even then....hold your breath.
Runs
2020-02-09 11:59:20
More on how the deal was made.
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