UNOC Signs Memorandum of Understanding With CNOOC to Start a Partnership in Exploration in the Albertine Graben (05.09.2018)

The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

“The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

“Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

“We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

“Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

“The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

“Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

“Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

“For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

“It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

“During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

“The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

“One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

“According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

“The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

“Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Guyana: The Ministry of Foreign Affairs has condemned reports carried in Venezuelan press regarding the approval of a new resolution approved by the Energy and Petroleum Commission of the Venezuelan National Assembly (19.03.2017)

It has come to the attention of the Government of Guyana through a media report in the Venezuelan publication El Nacional of 15th March 2017 that a resolution of the Energy and Petroleum Commission of the National Assembly of the Bolivarian Republic of Venezuela entitled ‘Approved Agreement to Reject Oil Operations in the Essequibo’ has called for the immediate cessation of on-going offshore oil exploration and exploitation activities under Guyanese license in the Stabroek concession block well within the maritime Exclusive Economic Zone of Guyana in accordance with international law. So far as the Government of Guyana is aware, the Government of Venezuela has not adopted or otherwise endorsed the resolution, in which case the Government of Guyana would respond as appropriate.

The inflammatory resolution contains serious factual and legal errors. First, it suggests erroneously that the offshore activities in Guyanese waters have “recently” commenced whereas the Stabroek license was awarded in 1999 and exploration commenced the following year in 2000, 17 years ago. Second, it suggests erroneously that Guyana is prohibited from developing its resources in this area because of Article V of the Geneva Agreement of 1966. But nothing whatsoever in the terms of that provision indicates that the parties cannot exercise jurisdiction over their sovereign territories. Otherwise, it would mean that for the past fifty years, Guyana had no right to develop 70% of its territory, and the same applies to Venezuela’s development of the Orinoco region and adjacent maritime area which, like the Essequibo, was the subject of the 1899 Arbitral Award. Needless to say, such an argument is manifestly absurd.

This political posturing comes at an unfortunate time when the UN Secretary-General has appointed Ambassador Dag Nylander as his Personal Representative to provide Guyana and Venezuela a final opportunity to resort to the Good Offices process in order to resolve the controversy arising from Venezuela’s contention that the 1899 Arbitral Award delimiting the land boundary between Guyana and Venezuela is “null and void”. The parties have until the end of 2017 to make significant progress in arriving at a final resolution of the controversy failing which the Secretary-General will refer the matter to the International Court of Justice. Guyana is fully committed to the search for a full and final resolution of the controversy under the Good Offices process in the limited time that remains. Such deliberate provocations and absurd demands that Guyana halt all development activities, especially when for over fifty years Venezuela has intimidated Guyana and obstructed a resolution of the controversy in accordance with international law, only serve to undermine this final opportunity for the parties to once and for all bring an end to this matter by agreement, failing which adjudication will be the only remaining means of settlement.

Guyana remains committed to friendly and neighbourly relations with the Government and people of Venezuela, but it will categorically refuse to surrender any of the sovereign rights to which it is entitled under international law, not least in this, the fifty-first anniversary of its independence from colonial rule, as a new period of prosperity awaits its people.

Ministry of Foreign Affairs
March 17, 2017

Press and Publicity Unit
Ministry of the Presidency

A look into the Exxon Mobile offshore adventure in Guyana!

There been in the works for years about offshore drilling on the outside of the coast of Guyana. This has been well-known and is internationally known, as before the drilling the start. There was made arrangement between Exxon Mobile and Republic of Guyana. Therefore the squabble of the sea-bed and the ocean with Venezuela and Guyana… shows that both nations knew the value, as even at one point the Suriname could have showed with aggression of force towards Guyana. This was in the calculation of the United States Oil Company. Exxon Mobile was aware of this even in the 1990s and therefore before the boarders of the sea nd the republics right of the possible offshore adventure, the company had assessed the possible problems ahead. That shows how far this company goes to get massive profits. This is one of the Standard Oil babies, therefore the Exxon Mobile has a history and that repeat itself. Even Rex Tillerson the newly appointed State Secretary in the Trump Administration had something to do with newly forged deals with the Guyana republic. As the Republic of Guyana, also difference in value of the oil reserve between 2016 and 2017 is staggering. That the oil value goes from $70bn in 2016 instead of $200bn in 2017. This shows the proof what is coming and what the state can benefit from the oil drilling. Take a look!

Tillerson in Guyaya:

“Rex Tillerson was scheduled to meet with Guyanese President David Granger at mid week to discuss ExxonMobil’s humongous oil and gas find of the country’s Atlantic coast back in May of last year. He was due to arrive late Tuesday” (…) “Oil Minister Raphael Trotman says every effort is being made to avoid this. Legislation which had catered mostly to deal with exploration rather than production is being updated, local content clauses requiring companies to hire locals and buy local will be included and professionals are being scrambled for overseas training in areas including petroleum law” (…) “Trotman has also said that a big chunk of revenues from the first few years of production — expected to commence around 2019-20 — will go to Exxon, meaning that Guyana “would be getting hundreds of millions of dollars but once that phased is passed we are taking about billions annually. At today’s prices the Liza find is worth about $70 billion dollars” (Wilkerson, 2016).

By law in Guyana Parliament:

“This Order may be cited as the Petroleum (Exploration and Production) (Tax Laws) (Esso Exploration and Production Limited, CNOOCNexen Petroleum Guyana Limited and Hess Guyana Exploration Limited) Order 2016” (…) ““Agreement” means the Petroleum Agreement between the Government of Guyana of the one part and Esso Exploration and Production Limited, CNOOCNexen Petroleum Guyana Limited and Hess Guyana Exploration Limited of the other part dated 27 June 2016 concerning the Stabroek Block, Offshore Guyana, which is a production sharing agreement” (Guyana, 2016).

Agreement in 1990s:

“Esso Exploration and Production Guyana Limited (EEPGL) has a Production Sharing Contract with the Government of Guyana dating back to 1999, which now covers 26.8k km2 in the Stabroek block, following required acreage releases (Figure A.1). In 2014, Hess (30%) and Nexen (25%) farmed in to the block. In May 2015, EEPGL announced a significant discovery of high-quality oil-bearing sands with the Liza-1 well (approximately 190 km [120 miles] offshore Guyana)” (Esso, P: 1, 2016).

Staboek oil drilling:

“The FPSO will be designed to receive full well stream production and process oil at a design rate of 100,000 Barrels of Oil Per Day (BOPD) annual average, with the ability for sustained peaks of up to 120,000 BOPD, and a minimum oil storage capacity of 1.6 million barrels of oil. It will be designed to remain on station continuously for at least 20 years. Production and injection wells will be tied back (i.e., connected) directly to the FPSO via flowlines and risers. Umbilical(s) will provide power, control, and subsea chemicals to the drill centers” (…) “At peak production during Phase 1, the FPSO will offload up to 1 million barrels of oil to a conventional tanker approximately once every 10 days using an industry proven FPSO tandem offloading configuration. The conventional tanker will be held in position with the assistance of tug(s) to maintain a safe separation distance of approximately 120m from the FPSO” (Esso, P: 8, 2016).

Plan for Decommissioning:

“At this time, the expectation is that the SURF components would be detached from the FPSO and abandoned-in-place on the sea floor, consistent with standard industry practice. Risers and umbilicals would be flushed before being abandoned and wells would also be plugged and abandoned. For each well, cement and mechanical barriers would be used to secure the well casing and isolate the wellbore from the formation. A cement plug would also be set near the mudline surface to cap each well. The FPSO is expected to be towed away” (Esso, P: 11, 20016).

Waste Production:

The new report of 2017 has more details into the production offshore of Guyana. There are certainly new aspects of the oil drilling. Where the environment get a little bigger aspect as even the changes of environment get a few more fleshy details:

“Air emissions resulting from the Project have the potential to change ambient air quality in the Project Area of Interest (AOI) on a localized basis. Potential impact of greenhouse gas emissions from the Project on climate change” (…) “Subsea sound could cause impacts to sensitive marine fauna (e.g., whales, turtles, and fish) in the PDA” (…) “The Project will disturb marine geology and sediments on a localized basis in the PDA and could impact sediment quality from non-aqueous base fluid (NABF) on drill cuttings discharges” (…) “The Project could potentially impact beaches, mangroves, and wetland habitats in the Project AOI as a result of non-routine, unplanned events” (…) “The Project has the potential to adversely impact cultural heritage through localized disturbance of archaeological or historical sites related to Project development. These resources have conservation, cultural, and other values to stakeholders” (Esso, P: 14-17, 2017)

So with this in mind the government has even had a workshop in February this year. So that the Exxon Mobile Corporation and their drilling and offshore petroleum in the sea of Guyana. The whole deal and agreement between the nation and the business is not clear to the public, except that the business is supposed to be licenced for the drilling and give tax-monies of the production. The Exxon Mobile has already proven that they don’t build a refinery, so the export from the platform to the specialized boats to transport petroleum. Therefore the meeting in Jamaica, Kingston, shows the ability to speak with the ones that starting industry in the South American Nation:

“A HIGH-LEVEL team of Government officials was on Wednesday morning briefed by ExxonMobil on its production preparations, a move which marks the commencement of a series of consultations by the U.S. oil giant with stakeholders.The technical briefing was held at the Marriott Hotel, Kingston and a similar exercise was also expected to be carried out later in the day with a team led by Opposition Leader, Bharrat Jagdeo” (…) “The report stated that early, rough estimates by experts of how much recoverable oil Guyana could have range to more than four billion barrels, which at today’s prices would be worth more than US$200B.

In addition to the Liza field, Exxon and drilling partner, Esso Exploration and Production Guyana Limited are also exploring the Payara field, which is part of a block of 6.6 million acres. On January 12, Exxon announced that its drilling partner encountered more than 95 feet (29 metres) of high-quality, oil-bearing sandstone reservoirs at Payara. It said that the area was safely drilled to 18,080 feet (5,512 meters) in 6,660 feet (2,030 metres) of water” (Solomon, 2017).

So the plans of drilling are set and the anticipated waste is happening as well. That Exxon Mobile will make a killing on these fields in pure and true. The massive reserves will surely make the government of Guyana happy as they even got settled who owned the waters between them and Venezuela.

There are so many more things to come as the proof of the environmental problems and the financial implications is also coming to the forefront with the different values in 2016 and 2017. Exxon Mobile has been hands on and used all means, even foreseen the implications of their activity in Guyana, as they we’re even embedded with the government before the drilling and before the settlement and lawful judgement on who could licence the sea and offshore areas was put in order. Even decades before and therefore the problems with Venezuela and Surinam over who owns it, shows the true levels of planning that the Oil Corporations does. That the Exxon Mobile leadership does what it takes to get giant petroleum reserves. Like the Standard Oil did in the past, so does it future clone Exxon.

We can just follow and wonder what this will lead too and what sort of ways the state can get the funds and resources into the consolidation funds, not to speak of in use for the citizens of Guyana. Not only the elite and the central leadership as so many petro-dollars have ended at. Let’s hope that the Guyana Republic and their leadership can sustain the offshore adventure and also give it back to its citizens. Peace.

Reference:

Esso Exploration and Production Limited Project – ‘SUPPLEMENTAL INFORMATION TO THE APPLICATION FOR ENVIRONMENTAL AUTHORISATION FOR EEPGL’S LIZA PHASE 1 DEVELOPMENT, STABROEK LICENSE AREA, OFFSHORE GUYANA’  (8/2/2016) “ESSO EXPLORATION AND PRODUCTION GUYANA LTD”

Esso Exploration and Production Guyana Ltd – ‘PROJECT SUMMARY FOR LIZA PHASE 1 DEVELOPMENT, STABROEK LICENSE AREA, OFFSHORE GUYANA’ (January 2017)

Memorial of Guyana – ‘Exxon signs PSC for Deepwater Acreage off Guyana; Adds to Global Deepwater Portfolio’ (14.06.1999).

Guyana: ‘THE PETROLEUM (EXPLORATION AND PRODUCTION) ACT – IN EXERCISE OF THE POWER CONFERRED UPON ME BY SECTION 51 OF THE PETROLEUM (EXPLORATION AND PRODUCTION) ACT, I MAKE THE FOLLOWING ORDER’ No. 10 of 2016 (2^nd August 2016).

Solomon, Alva – ‘Oil Brief –Exxon briefs Gov’t, Opposition on preparations for oil production’ (01.02.2017) link: https://guyanachronicle.com/2017/02/01/oil-brief-exxon-briefs-govt-opposition-on-preparations-for-oil-production

Wilkinson, Bert – ‘Tillerson scrubs Guyana visit’ (15.12.2016) link: http://www.caribbeanlifenews.com/stories/2016/12/2016-12-16-bw-tillerson-trump-pick-cancels-guyana-visit-cl.html

U.S. Department of the Army Corps 24 hour notification letter to continue building the Dakota Access Pipeline (07.02.2017)

Jay Smooth: “Thoughts On The Women’s March That Already Feels Like So Long Ago Because These Are The End Times” (Youtube-Clip)

Trump, the Great Dictator has entered the building!

Congratulation Mr. Donald J. Trump you act like Dictator and behave like a tyrant. Your legacy is built over and days. You complained and whine like a bitch that Barrack Obama as President made lots of Presidential Orders, but the first thing you do is to make a dozen’s of them yourself.

Like this one:

“The Secretary of Commerce shall conduct outreach to stakeholders concerning the impact of Federal regulations on domestic manufacturing and shall solicit comments from the public for a period not to exceed 60 days concerning Federal actions to streamline permitting and reduce regulatory burdens for domestic manufacturers. As part of this process, the Secretary of Commerce shall coordinate with the Secretaries of Agriculture and Energy, the Administrator of the Environmental Protection Agency, the Director of the Office of Management and Budget, the Administrator of the Small Business Administration, and such other agency heads as may be appropriate” (MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES, 24.01.2017, Donald J. Trump).

What a noble gentleman you are that you’re gaging the United States Department of Agriculture (USDA) and the Environmental Protection Agency (EPA), they are not allowed for staff on Social Media and talk to the Media. So your making blackouts of government institutions before you have been in power a month. Even Gadaffi your friend who rented your land in New York back in the day would be proud, Vladimir Putin must see the vision in your ears and the glowing ignorance in your eyes.

You have already tried to subdue the media with false tragedies and stupid made of stories, while the worst is happening inside your coming cabinet, your hiring of men and woman who is billionaires that couldn’t be more far from the voters who elected you into office. You’re a billionaire who apparently doesn’t care much about acts as long it gives you and your men profits.

Trump MoU on DALP: “The Dakota Access Pipeline (DAPL) under development by Dakota Access, LLC, represents a substantial, multi-billion-dollar private investment in our Nation’s energy infrastructure. This approximately 1,100-mile pipeline is designed to carry approximately 500,000 barrels per day of crude oil from the Bakken and Three Forks oil production areas in North Dakota to oil markets in the United States. At this time, the DAPL is more than 90 percent complete across its entire route. Only a limited portion remains to be constructed. I believe that construction and operation of lawfully permitted pipeline infrastructure serve the national interest” (SUBJECT: Construction of the Dakota Access Pipeline, 24.01.2017, Donald J. Trump).

You speak of being environmental, but open up the petroleum pipelines of Dakota Access Pipeline and Keystone XL. You are such an ass, at the same time deletes the reality of water-quality and other truthful information on your government web-pages. You are gagging the EPA and USDA that looks into the reasonable environment hazards the pipelines would do in dozens of states. But you only see the cash monies and even some of the businesses your sons are running might benefit. You couldn’t care-less.

“In accordance with Executive Order 11423 of August 16, 1968, as amended, and Executive Order 13337 of April 30, 2004, the Secretary of State has delegated authority to receive applications for Presidential permits for the construction, connection, operation, or maintenance, at the borders of the United States, of facilities for the exportation or importation of petroleum, petroleum products, coal, or other fuels to or from a foreign country, and to issue or deny such Presidential permits. As set forth in those Executive Orders, the Secretary of State should issue a Presidential permit for any cross-border pipeline project that “would serve the national interest.” (SUBJECT: Construction of the Keystone XL Pipeline, 24.01.2017, Donald J. Trump).

EPA on DALP Pipeline Route before Pre-Trump Era!

Trump, your acts now are peril with the ways of democratic behavior, you are silencing your own government institutions, not giving to craps about the honest truth. Not that truth ever matters to you as long as you are winning!

That your Presidential Spokesman Sean Spicer and Presidential Advisor Kellyanne Conway feel your coverage is biased and wrong, well, you are the one acting and doing executive orders. You are the one behind the madness called the Trump Era and the Trump administration. I am sure you will soon blackout more institutions, silence the Congress and Senate. As your sinister plans get into effect, because you cannot handle the truth or facts; facts are lies and deceptions to you, they are not useful, because they damage you. Facts are the thing that you hate more than anything else. Therefore you cannot handle that the EPA or USDA are telling the truth about the pipelines and their possible environmental damage.

Trump cannot handle his own government agencies and doesn’t know how they operate, doesn’t know the laws, therefore he orders things he like and been told by his donors like a drone. Being a dictator and dictating the state to be silenced for 60 days. Trump has so little courage and bravery that he doesn’t believe that he can work the system. He has to rig it and make order it to command, because he is the Executive. Surely he will drop more orders daily  than at a busy Chinese takeaway restaurant in Manhattan, New York.

Donald Trump you’re the coming GRAND Dictator, I am sure you haven’t seen the movie or understand the play, but you’re the next up! You don’t care about the implications on the Presidential Orders or Memorandums of Understanding that you’re signing these days. You only see your vision and stature. The only thing mattering is that you’re the man.

Donald Trump, dictating son-of-bitch from Queens, who doesn’t care about the rules or regulations, not even who will become in the people’s eyes; he attacks the media, but he has created the monster and that is himself. Himself is the man who silence EPA and USDA so he can push through environmental dangerous industrial building that has been demonstrated against through the United States Presidential Election 2016. That apparently by default you won, President Trump!

The Executive, the President, the almighty bastard that silence environmental institutions so they doesn’t say the truth about the massive disturbance and possible damage to rivers and destroy the environment… but does the new American President care about that. He only cares about himself.

You are a son-of-a-bitch! Future tyrant and so-far from democratic value Executive the United States has ever had. You as a man cannot even handle staff and institutions to speak their mind while the pipeline constructions are happening. Trump cannot handle that, Trump is little muffled dog under pressure from donors to do this and not caring about the effects it will have. He is 70 years old, so not that his life will be long enough to see the damage or feel it. Not that he is ever travelling in North Dakota near the towns that are affected; neither is he visiting Keystone XL. Trump doesn’t have the heart.

Welcome world, Trump the Great Dictator has entered the building! Peace.