Newell Dennison. Institute of the Americas XXII Annual La Jolla Energy Conference May 20 22, 2013 La Jolla, California, U.S.A.

Transcription

1 Newell Dennison Institute of the Americas XXII Annual La Jolla Energy Conference May 20 22, 2013 La Jolla, California, U.S.A.

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3 COUNTRY PROFILE Capital: Languages: Georgetown English (Official) Amerindian dialects, Creole Size: 83,000 sq. miles (215,000 km 2 ) Population: 789,600 Venezuela Currency: Guyanese Dollar GYD$ 205 x US$1 Brazil Time Zone: Political System: UTC/GMT - 4 hours Democracy Westminster based system Legal System: Based on English Common Law with certain admixtures of Roman Dutch Law Religions: Christian 43%, Hindu 28%, Muslim 12% 3

4 MACROECONOMIC STABILITY AND GROWTH Annual Growth Current Annual Growth Since 2005 Gross Domestic Product: US $2.3 billion 12% 22% Foreign Direct Invest: US $294 million 27% 21% International Reserves: US $749.7 million 24% 25% Exports US $1.1 billion 27% 15% Guyana has weathered the global crisis well, sustaining a solid macroeconomic performance supported by prudent policies. Directors commended the authorities commitment to further entrench macroeconomic stability and fiscal sustainability, while promoting long term growth and development - IMF Review 4

5 FDI IN GUYANA Foreign Direct Investment 2005 to 2012 (US$ Million) In 2012, FDI as a percentage of GDP in Guyana reached 12%, one of the highest rates in the Caribbean and Latin America 5 Source: Ministry of Finance, Guyana

6 The United States Geological Survey (USGS) has identified the Guyana Suriname basin as having the second most attractive under explored basin in the world with a potential of 15.2 billion barrels of oil and were a discovery to be production targets would be estimated at 50 million barrels per year. 6

7 PETROLEUM OVERVIEW Historical Status Of Offshore Oil And Gas Development In Guyana 7

8 UPDATE BY COMPANY ANADARKO Awarded deep water Roraima Block, June 2012 ESSO/SHELL ~ 7000 km. 2D seismic (2008, 2010); 1 st renewal June 2012; ~1250 sq.km. 3D seismic acquisition comp ANADARKO CGX 3D seismic (Dec 2008) in a seamless but separately contracted acquisition with REPSOL et.al. over their adjacent blocks. 3D seismic acquisition (Jan.2012) for a total of 3000 plus sq.km ; Eagle well drilled in 2012, was dry, plug and abandoned; JV opportunities possible. REPSOL et. al. Jaguar 1 HPHT plugged & abandoned but encouraging outcome ; continuation being discussed; new well considered ESSO/SHELL Signed new Petroleum Agreement in May 2013 for exploration and production operations in the Guyana concession acreage referred to as the Kanuku Block. NABI Oil & Gas small interest at Drill, East Coast Demerara. Awarded PSA in June 2012 & should be drilling in ON Energy very keen to revisit coastal area; new data acquisition contemplated TOGI/CANACOL drilled Apoteri K2 offset well in the Takutu Basin in 2011 (near Karanambo 1 well which was drilled in 1982 by Home Oil), was plugged & abandoned; renewal PSA awarded as at May 2012, new well planned in NABI Oil TOGI/CANACOL ON Energy REPSOL et. al. CGX Petroleum GeoServices Speculative 2D seismic (Dec 2008) completed in unlicensed ultra deepwater areas.

9 2D Seismic Ultra deep water (2008) 2D Seismic Deep Water (2008/10) 9 9

10 Objective remains to acquire discovery evidence of petroliferous occurrences in the basin fringe. Petroleum Division of the Guyana Geology and Mines Commission is the local agency involved in exploring for hydrocarbons. Petroleum Division s investigation in pursuit of fossil fuels continues from the North West District (Barima Waini) to the Corentyne, which is along the Guyana Northern Coast. Modest results has been found in the search for lignite, pitch and gas. Deployment of gas capture devices continue as the pilot project for gas utilization in remote areas. Exploration Opportunities in the Takutu Basin. 10

11 Guyana provides opportunities for investors in the energy sector; viz. petroleum, hydro, solar, wind and biogas. Oil and gas resources are estimated at 2.2 billion barrels and 6 trillion cu. ft. (28.3 billion cu. meters approx.) respectively in the Guyana Basin which covers the entire coastal region and offshore into the Atlantic Ocean of Guyana basin where full exploitation of these resources is encouraged. New venture developments in Industry and Manufacturing. Infrastructure upgrades and other developments. 11

12 The GoG will facilitate an enabling environment for the private sector to finance and manage petroleum activities. The GoG Oil, Gas, and Mining Policy will transition to integrated services; technical assistance guarantees; and knowledge products Opportunities to provide advice on legal, fiscal, contract issues, regulations for conservation minded engineering and development; sector reforms, and privatization. Extraction contracts must benefit Guyana and support future exploration and production. The Government of Guyana will be working with the Extractive Industries Transparency Initiative, to implement the transparency principles of the EITI process in the hydrocarbon sectors. 12

13 » Investment in this sector may lead to direct business such as: engineering, maintenance, fabrication, barging, towing, trucking, all which call for new and/or improved port facilities; industrial yards, air services; security, surveillance and intelligence.» Post Discovery Investment: will include; fabrication and installation, pipeline construction and deployment; processing plant, bunkerage facilities, floating production storage and offloading (FPSO) systems. 13

14 » Insurance and bonds» Petrochemicals» Power generation development» Associated services such as; bauxite processing; welding and fabrication, logistic solutions and warehousing» Housing projects» Specialized education establishments» Research and Development 14

15 » Discretionary exemption of Customs Duty, Value Added and Excise Taxes on: Machinery Equipment Building materials Other items such as vehicles, etc.» These incentives are geared towards attracting investment to Guyana. 15

16 » Effective Governance for : 1. Sound science for decision making: 2. National and international cooperation 3. Poverty alleviation 4. National development planning 5. National and international policy setting and technical assistance 6. Sustainable national and regional development 7. Strengthen and harmonization of national laws and institutions» Government of Guyana imperatives are to permit reasonable regard for a possible successful outcome that company methods can provide. This has to be balanced with known company behaviour e.g. of taking inventory; optimizing financial gain from capital sources etc.» Known mechanisms can address such potential situations and indeed they are applied. (escalating rentals, mandatory relinquishments, work based rather than money based programmes, etc.) 16

17 CHALLENGES AND OPPORTUNITIES FOR GUYANA» Ensure Resource Efficiency: 1. Focuses on reducing the adverse environmental impacts of producing, processing and using goods and services, while also meeting human needs and improving well being. 2. Building capacity for policy action 3. Seizing investment opportunities 4. Stimulating demand for resource efficient goods and services 5. Assessing critical trends» Ensuring the Sustainable Management of Guyana s Natural Resources along a Low Carbon Development Pathway» Meet the increasingly difficult challenge of the increased global use of natural resources.» Support an approach to natural resources that promotes competitiveness, well being and environmental responsibility.» Emphasize the intelligent use of natural resources.» Avoid the Resource Curse 17

18 Thank You for your Attention. Innovativeness together with sustainable and responsible operations are essential to future success. 18