Black Immigrant Daily News

News Americas, GEORGETOWN, Guyana, Tues. April 18, 2023: Bourbon Guyana, a subsidiary of Bourbon Corporation, has become the first offshore support vessel operator in Guyana. The company will provide a range of offshore support services to oil and gas operators working in the country’s waters.

The move comes as the offshore oil and gas industry in Guyana continues to grow rapidly. ExxonMobil, one of the largest players in the sector, has discovered more than 9 billion barrels of oil equivalent in the country’s waters since 2015.

Bourbon Guyana’s fleet of modern vessels includes supply boats, fast crew boats, and anchor handling tug supply vessels. These vessels are designed to meet the specific needs of the offshore oil and gas industry and are equipped with the latest technology and safety features.

The company’s services will include transportation of personnel and equipment to and from offshore installations, towing and mooring of drilling rigs and other equipment, and supply of goods and materials to offshore facilities. Bourbon Guyana will also provide a range of other services such as firefighting, rescue and recovery, and pollution control.

Bourbon Guyana is committed to providing high-quality services that meet the needs of its clients while also ensuring the safety of its employees and the protection of the environment. The company’s vessels are operated by highly trained and experienced crews who are equipped with the latest safety equipment and technology.

Bourbon Corporation has a strong track record of providing offshore support services to the oil and gas industry around the world. The company has a presence in more than 45 countries and operates a fleet of more than 450 vessels.

The launch of Bourbon Guyana is expected to boost the country’s offshore oil and gas sector and create new job opportunities for local residents. The company is committed to working closely with local communities and stakeholders to ensure that its operations have a positive impact on the local economy and environment.

As the offshore oil and gas industry in Guyana continues to grow, Bourbon Guyana is well positioned to play a key role in supporting the sector and helping to unlock the country’s potential as a major player in the global energy market.

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Black Immigrant Daily News

News Americas, CASTRIES, St. Lucia, Mon. April 17, 2023: Investors seeking a new opportunity for investment in the Caribbean can now take advantage of Saint Lucia’s National Action Bonds (NAB). Introduced following approvals from the CBI Board and the Deputy Prime Minister, the NAB provides investors with the only refundable option available amongst the Caribbean nations offering Citizenship by Investment programs.

With a minimum investment of $300,000, regardless of family size, the NAB is available to both single applicants and families. It is a non-interest-bearing bond that requires investors to hold the investment for a minimum of five years, after which the funds are refunded to the investor.

Previously, the Government Bonds investment option provided a minimum investment amount of $500,000. The NAB offers a similar investment option for applicants, with the added benefit of being refundable.

The NAB is ideal for large families seeking to secure a brighter future in Saint Lucia. Investors can include any number of qualifying dependents on their application, which makes this a perfect opportunity for those with large families.

The NAB offers a unique opportunity for investors to support sustainable development and climate action in Saint Lucia, while also receiving a refund of their investment after the five-year holding period. Contact us today to learn more about this exciting new investment opportunity!

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Black Immigrant Daily News

By Arthur Deakin

News Americas, WASHINGTON, D.C., Fri. April 14, 2023: Within months, Guyana is expected to have auctioned 14 different oil blocks surrounding the biggest offshore oil discovery in the last decade. The government has announced that there could be 25 billion barrels of oil equivalent within those blocks, equivalent to nearly 60% of proven U.S. oil supplies. Big oil, such as Shell, Chevron, Petrobras, and ExxonMobil, have paid for seismic data in anticipation of a potential bid. 

Their participation will depend on the newly revised Production Sharing Agreement (PSA), which is stipulated to increase the government’s initial share of oil revenues from 14% to 27% (plus 10% income tax). Other decisive factors, including a potential 50% farmout of the awarded acreage after three years of seismic testing, are yet to be determined. 

Graph 1: How much will a U$100 million oil lift generate in revenues for Guyana?

Separate from this auction, Vice President Bharrat Jagdeo is also considering negotiating blocks directly with oil companies located in Qatar, Britain, the United Arab Emirates, and India. Having two different award mechanisms, one for private and one for public companies, can cause uncertainty and jealousy in the market as different terms are offered to different types of players. Government-to-government negotiations are often done behind closed doors, leaving little room for accountability.  Further clarity on what companies should expect, both from the PSA and the bilateral negotiations, will help assuage market concerns. 

It is no secret that ExxonMobil, Hess and CNOOC (Stabroek Consortium) have seen extraordinary commercial success in the Stabroek Block since 2015. Crafted in 2015, the government’s initial PSA allowed upstream players to recover up to 75% of their exploration cost if they struck “gold”, de-risking the Stabroek Block’s financial burden. This is exactly what happened. While the global average of successful offshore exploration wells stood at 25% in 2020, the Stabroek Consortium has seen an exploration success rate of 90%. Although the success has been constant, wells are increasingly being drilled in more complex, more costly, and less promising areas within the Stabroek Block. These success rates will almost certainly drop.

In fact, in neighboring Brazil´s pre-salt area, Petrobras’ nearly 100% exploration success rate in the early 2010s has fallen to the 25% levels seen across the industry. During the 2010s, Shell and ExxonMobil sank nearly US$4 billion dollars in Brazilian exploration and failed to come up with significant commercial discoveries. In April 2023, ExxonMobil announced it would quit drilling in Brazil. 

The surrounding blocks in Guyana have also seen very limited success, with commercial quantities discovered in only one well outside the Stabroek Block (Kawa-1 well in the Corentyne Block). This is despite significant exploration efforts and large investments being made by upstream players such as CGX and Repsol, who have failed to see a pay-out. The potential in Guyana is enormous, but it is likely that many oil companies will come out empty-handed. 

In addition to close analysis of the seismic data, companies seeking to position themselves favorably to win this tender need to establish good relationships with both the public and the private sector in Guyana. In a country with less than 800,000 people, where power is concentrated in the hands of a few, being well-connected is of paramount importance. 

Unlike auctions in Brazil, where the signing bonus and cost oil vary by block, Guyana has set a fixed US$10 million signing bonus for its shallow blocks and US$20 million for the more attractive deep-water fields. As such, companies won’t be able to offer the government a higher percentage of profit oil in their bids, but they can include certain incentives within their bids to increase their chances of being selected. One option is to provide guarantees of socially or environmentally impactful investments in local communities with a percentage of the profit oil. Another option is to form a bidding consortium that is extremely well capitalized, diverse, and experienced, creating leverage for the Guyanese government which seeks to reduce its dependence on the Stabroek consortium. A third idea would be to offer accelerated payment conditions to increase the governments´ access to liquidity.  

Another important factor to include in the bid is a work program that abides by local content rules. In this work program, bidders should have milestones that show their inclusion of local employees in relevant services. This is especially important within the 14 different local content categories that require between 90 to 100% local staff, ranging from catering to ground transportation. 

Halliburton, Schlumberger, and other multinationals that now have local offices in Guyana and are seeking to win contracts from the winners of the auction, must also ensure their local content requisites are covered. In fact, a local content certificate awards suppliers a 5% boost in their score when being evaluated by contractors, complemented by a strong financial standing, and proven technical expertise. The Ramps Logistics controversy shows that any discrepancies in paperwork can lead to legal challenges by the Local Content Secretariat, although the court denied any wrongdoing by Ramps and ultimately awarded their certificate. 

It is also important to reflect on previous tenders to forecast what to expect in Guyana. In Guyana, the two winners of the marketing contracts related to the government’s share of profit oil were awarded to the lowest compliant bids in 2021* and 2022. This reflects that bidders must position their bids as the most profitable option for Guyana vis-à-vis their peers, using investment guarantees and incorporating work programs that encourage local economic opportunities.

*For 2021, the lowest bidder was Chinese company Sinochem, at 0.02 cents/b, but the lowest compliant evaluated bidder was Saudi Aramco’s trading arm ATL.* 

EDITOR’S NOTE: Arthur Deakin is the Director of the Energy Practice at AMI (Americas Market Intelligence), where he helps companies expand into Guyana and the wider Latin American region through market research and strategic analysis. In the past 10 years, AMI has helped companies understand the Guyanese market, navigate Guyana’s local content legislation, and position themselves to win new contracts.

NewsAmericasNow.com

Black Immigrant Daily News

News Americas, NEW YORK, NY, Thurs. April 13, 2023: Attention Caribbean New Yorkers and Black immigrants! The Empire State Development (ESD) has opened the application window for the fifth round of the Grow-NY food and agriculture competition.

This competition, which is funded through the Upstate Revitalization Initiatives, aims to revitalize communities and grow the economy by connecting innovators and investors in the food, beverage, and agriculture sectors globally.

This is a fantastic opportunity for global food and agriculture startups to win up to $1 million and receive business development support that connects them with the region’s resources. Winners are required to operate in at least one of the 22 Grow-NY counties for at least 12 months and agree to a “pay-it-forward” provision in the form of an equity agreement.

If you’re interested, don’t wait too long to apply – applications must be submitted by 5 p.m. ET on Thursday, June 15, and finalists will be announced in August.

In August, up to 20 finalists will be assigned mentors and enter the business development phase. All finalists will receive bespoke entrepreneurial support and valuable regional introductions, additional training to hone their live pitches, and an expenses-paid, three-day business development trip to the region for up to two team members.

The selected finalists will present their business plans during the Grow-NY Summit, Tuesday, November 14 – Wednesday, November 15 in Binghamton, New York, alongside a symposium of panel conversations and keynotes, a showcase of agencies, companies, research groups, and other organizations that serve startups working in food and ag, and a student stage where middle and high school aged New Yorkers will pitch their ag and food tech ideas. New this year, the Summit will also include a Dairy Innovation Showcase featuring participants in the Northeastern Dairy Product Innovation Competition, also currently accepting applications.

Judges will base award decisions on the following five criteria:

Viability of Commercialization and Business Model – the potential for the entrant to generate revenue and maintain a cost structure that allows for a competitive and sustainable business, demonstrate technological readiness, or innovate to fulfill its value proposition;

Team – demonstration of a level of cohesion, completeness, diversity, and readiness within the team of founders, employees, and advisors; inclusion or plans for inclusion of employees and advisors from communities that have historically been excluded from the innovation economy, such as women and minorities;

Customer Value – the degree to which the entrant is providing something for which customers are willing to pay, and addressing a substantial market;

Food and Agriculture Innovation – the extent to which the entrant is pushing what’s considered state-of-the-art in the food and agriculture industries, and contributing to Upstate NY’s status as a global leader in innovation in these markets;

Growth – ability to generate significant growth, as measured and assessed by employment and revenue growth and the potential for returns and liquidity for equity holders; and

Regional Job Creation – the potential for creating high-quality jobs in the Grow-NY footprint and relevance to the existing food and ag ecosystem.

The Grow-NY region, which hosts over 40 percent of New York’s 33,438 farms, includes an abundance of vibrant, fertile lands along with such major urban population centers as Rochester, Syracuse, Ithaca, and Binghamton. It is a 22-county region comprised of the following three areas:

Finger Lakes – Genesee, Livingston, Monroe, Orleans, Ontario, Seneca, Wayne, Wyoming, and Yates

Central New York – Cayuga, Cortland, Madison, Onondaga, and Oswego

Southern Tier – Broome, Chemung, Chenango, Delaware, Schuyler, Steuben, Tioga, and Tompkins

To learn more about the Grow-NY competition, visit www.grow-ny.com.

To learn more about the Cornell Center for Regional Economic Advancement, visit: http://crea.cornell.edu/.

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