Guyana cautious on 2021 oil output, price

: Crude oil
21/02/15

Guyana forecasts average crude production of 109,000 b/d in 2021, 46.7pc above last year but short of initial expectations because of a recurring technical glitch.

The government is predicting a 4pc year-on-year increase in the Brent crude price to around $43.9/bl, finance minister Ashni Singh said on delivering the country's budget plan. The price forecast is well below the current Ice front-month April Brent crude futures contract price of more than $63/bl.

ExxonMobil is currently producing 120,000 b/d of crude from the deepwater Stabroek block off Guyana's coast. Around 10,000 b/d of output has been affected by problems with a natural gas compression seal.

The issue that first arose last year had suppressed production to a low of 27,500 b/d in June 2020 and impeded the Liza Destiny floating production, storage and offloading (FPSO) unit from reaching the 120,000 b/d first-stage target until December 2020, nine months behind schedule.

The problem recurred earlier this month, and repairs could take up to eight weeks, the company has said.

ExxonMobil declined to comment on Singh's 2021 forecast. "We are managing production rates on the Liza Destiny to ensure safe and responsible operations and within permit limits."

The glitch is "a temporary, unplanned event, and once repairs are safely completed, we will be able to ramp up and produce at full capacity," the company said.

Oil revenue drove up Guyana's GDP by 43.5pc in 2020, and growth is expected to hit 20.9pc in 2021, Singh said.

Guyana's oil income through royalties and exports of its share of crude has reached $206.6mn, vice president Bharrat Jagdeo said.

ExxonMobil started producing 32.1°API Liza crude on Stabroek in December 2019 and forecasts output of 750,000 b/d by 2026.

ExxonMobil has a 45pc stake in Stabroek, with Hess holding 30pc and Chinese state-owned CNOOC unit Nexen with 25pc.

By Canute James

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24/11/14

Cop: German opposition pushes for Article 6

Berlin, 14 November (Argus) — Germany's main opposition parties have welcomed the progress achieved on Article 6 of the Paris Agreement in at the UN Cop 29 climate summit in Baku, Azerbaijan. They have called on Germany and the EU to make better use of the instrument to allow for more cost-efficient climate action. Germany's dominant opposition party, the right-of-centre CDU/CSU, on 14 November commended the framework under Article 6 as an efficient way of reducing greenhouse gas (GHG) emissions. Article 6 of the Paris accord aims to help set rules on global carbon trade. The Article 6 mechanism allows for reductions to happen where they are quickest, cheapest and easiest to be carried out, the CDU head of the working group on climate action and energy, Andreas Jung, said in a debate in the lower house of parliament, the Bundestag. The deputy head of the FDP faction Lukas Koehler, also speaking in the Bundestag on 14 November, called on Germany and the EU to "finally" integrate the Article 6 in their climate action plans. Koehler argued that if for instance Germany's progress in emissions reduction should turn out to be too slow, the country could temporarily shift its efforts — and the associated finance — to where more rapid mitigation might be achieved, such as Brazil. The EU, of which Germany is a member state, will not make use of Article 6 credits, at least until 2030, to reach its so-called nationally determined contribution (NDC) – its climate action pledge — under the Paris climate accord. The EU has been seeing progress on ongoing Article 6 negotiations at Cop 29, the European Commission's principal advisor for international aspects of EU climate policy Jacob Werksman said today, "mostly because parties are now agreeing with the EU and others that were concerned about the transparency and accountability of the bilateral markets that operate under Article 6.2". Werksman believes there is enough momentum for negotiations to be concluded next week, noting that the atmosphere has "improved" compared with previous negotiations, which echoes the sentiment expressed by a number of negotiators earlier this week . Werksman pointed in particular to the US now agreeing with others and helping to broker compromises. Koehler also warned German government representatives in Baku to refrain from "expensive" pledges which may strain the country's budget. Developed countries agreed in 2009 to deliver $100bn/yr in climate finance to developing nations, and Cop 29 is focused on the next iteration of this — the new collective quantified goal (NCQG) . In a statement, Germany — represented by Scholz despite his absence at the Cop — and other G7 members like Canada, France, or the Netherlands agreed that "developed countries must continue to take the lead and live up to existing finance commitments". Germany faces early elections as the government lost its majority last week following the sacking, by chancellor Olaf Scholz of the Social Democrat SPD, of finance minister Christian Lindner of the pro-business FDP party and the FDP's subsequent withdrawal from the ruling coalition. Polls suggest that the CDU/CSU group will easily win the next federal elections which are scheduled to take place on 23 February. The FDP's persistent refusal to allow Germany to take on more debt to enable more public funding, including of clean technologies, was the main reason for Lindner's sacking. By Chloe Jardine and Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Guyana hires floating generators to avert outages

24/11/14

Guyana hires floating generators to avert outages

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Cop: EU ETS volatility problem for corporate CCS case

24/11/14

Cop: EU ETS volatility problem for corporate CCS case

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IEA sees wider oil market surplus next year

24/11/14

IEA sees wider oil market surplus next year

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Cop: Argentina pulls delegation from Baku

24/11/13

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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