This article is a Guyana Oil Update for August 2023.
Unbelievable Amount of Oil Hidden in Guyana — Learn More!
Exxon claimed to discover 11 billion barrels of oil in Guyana’s waters. However, Patrick Harrington, an expert from S&P Global Commodity Insights, suggests that the true extent of Guyana's oil reserves could far exceed this figure. Harrington's revelation came during a recent podcast by S&P Global titled "Guyanese Dream: Oil boom in Guyana could transform global crude market."
Harrington's belief in larger reserves gains traction from Guyana's proximity to Venezuela, holder of the world's largest proven oil reserves—over 300 billion barrels.
“For the Stabroek Block development, Guyana is chained to an exploitative deal that gives it a paltry 2% royalty and a 50% share of the profit oil after costs are recovered up to a ceiling of 75%. The Stabroek Block, in which ExxonMobil maintains a 45% operating stake, is supported by co-venturers Hess and CNOOC, holding stakes of 30% and 25%, respectively.”
Intriguingly, ExxonMobil and partners have invested over US$40 billion in the Stabroek Block. The Uaru Project is the latest project and set to launch in 2026.
Keisha Gilkes, Communications Advisor for ExxonMobil Guyana, envisions a transformative partnership. She emphasized that "Guyana is the future for ExxonMobil," a sentiment echoed by Kimberly Brasington, Exxon's Global Country Communications Manager.
However, the mere 2% royalty and a 50% share of the profit oil after costs, add a layer of complexity to an already intricate narrative, prompting the world to closely follow the unfolding developments.
Dominican Republic and Guyana Discuss Building Refinery
The Dominican Republic and Guyana have signed a preliminary pact that lays the groundwork for exploring the construction of a refinery in Guyana. According to the agreement, the refinery would be at least 51% owned by the Dominican Republic government, solidifying their commitment to the project.
Under the terms of the 30-year contract, prices for crude oil supply to the refinery would be subjected to negotiations.
Bids are currently under review for a 30,000-barrel-per-day modular refinery in the country. Both refineries would rely on the crude oil produced by the Exxon Mobil-led consortium in the Stabroek offshore block, which holds significant reserves.
This article was a Guyana Oil Update for August 2023.
By Melissa D. Goolsarran Ramnauth, Esq. | This content is copyright of West Indian Diplomacy, LLC and may not be reproduced without permission.
She runs West Indian Diplomacy, a Caribbean blog aimed at promoting West Indian history and business in the global marketplace. Melissa has been an attorney for over 10 years. She currently focuses on trademark registration, trademark searches, and office actions. She also has extensive legal experience in the areas of trademarks, copyrights, contracts, and business formations. She owns her own Trademark Law Firm that is virtually based out of Fort Lauderdale.
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