OPERATIONS
2023 OVERVIEW
In 2023, the operational landscape saw significant strides in human performance, marked by an unwavering commitment to safety and efficiency.
The facility continues to develop and evolve into a safer more efficient working area. This collaborative approach was also evident during a P.A.C.E lifting review. The GYSBI teams took the information and feedback provided into various forums and discussions, found what would work and be sustainable for GYSBI safe systems of work, and implemented into daily use.
Enhancements to the berthing area with the addition of a 4th berth, new fendering system, and extension of berth 1 has greatly increased the facilities capacity and operational capabilities. With the further addition of an ad-hoc equipment fleet along with the revitalization of the current fleet, we continue to bolster logistical capabilities.
Crew engagement and focus in core work scopes remained consistently high, culminating in a successful year characterized by achievements in logistical support, personnel utilization, HSE performance, environmental stewardship, and ensuring local talent have been set on the promotional path for leadership roles.
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OPERATIONS
CGX PROJECT
OPERATIONS
• 15 x Visits to shore base in 5-month campaign.
• Top hole and completion + testing equip loaded.
• 36’’ / 22’’ / 18-5/8’’ / 13-3/8’’ / 9-5/8’’ / 7’’ Liner.
• Bulk cargo supplemented with Halliburton and SLB GYSBI – drilling mud / completion brines and potable water.
• Fuel loading using RTW – a first for GYSBI with no operational impacts or QHSSE issues.
• Strictly controlled time-critical berthing and mooring due to commercial terms with the client.
SAIPEM
In 2023, GYSBI was awarded the Cargo Management Logistics Contract with Saipem in support of the Yellowtail Project.
The scope of works includes the provision of a quayside facility to receive project materials, offloading, transportation, temporary storage & preservation and loading onto supply vessels (SV) or pipe supply vessels (PSV) in accordance with project schedule and requirements.
Project materials consists of line pipes, buoyancy modules, VIV strakes, items for jumpers’ fabrication and miscellaneous materials.
To date, we have received four (4) pipe shipments totalling 21,000 Tons. This has been received, offloaded, transported, and stored by GYSBI and consortiums.
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GAS TO ENERGY PROJECT
HIGHLIGHTS
The primary objectives of the Gas to Energy (GTE) project were centered around completing the early works phase, which involved crucial tasks such as installing temporary bridges and making essential road improvements. These initial efforts played a vital role in preparing the project site for subsequent phases, particularly the development of the Heavy Haul Road (HHR) and the Initial Site Preparation (ISP) at the Integrated Plant Site.
At the core of the project’s goals was the construction of the HHR, which was designed to provide access to the Integrated Plant Site. The execution of the ISP was essential to ensuring the site was ready for future plant construction activities. Together, these coordinated efforts formed the fundamental groundwork necessary for the successful realization of the GTE Integrated Plant Project in Guyana.
BRIDGES & CIVIL WORKS
Despite starting with a minimal workforce and limited equipment on-site due to restricted access to the project area, the GYSBI team successfully executed the first phase of the berth and constructed initial access roads. These efforts enabled the expansion of the project and the commencement of bulk material receiving.
The timely supply and installation of five bridges by GYSBI within a constrained timeframe demonstrates an important accomplishment for the project.
The completion of the Early Works - Civil Works scope marked a momentous achievement for the project, with 4,800 meters of roadworks completed, including access roads to the berth. A substantial amount of materials, including 53,302 cubic meters (93,982 tons) of sand and 18,143 cubic meters (29,028 tons) of crusher run, were successfully delivered and placed.
LNDCH4 – Phase 2
GYSBI has successfully navigated from Phase 1 with Exxon Mobil to Phase 2 with Lindsayca, smoothly transitioning their operations. Moving into Phase 2, our main objectives are delivery and placement of sand, loam and crusher run. This shift indicates a progression in the project scope and involves different logistical considerations and expanded operations.
Phase 2 experienced major milestones with the recent accomplishment of the delivery and placement of 1,000,000 m3 of sand and 250 days LTI free. While prioritizing our deadlines, all operations were completed with optimization and full adherence to our safety culture.
SOCIO-ECONOMIC DEVELOPEMENT
GYSBI’s GTE workforce has over 200 employees spanning across two shifts, night and day, with 97% being locals. By providing training and employment opportunities, GYSBI contributed to the development of a skilled workforce within the community and wider Region 3.
Community engagement initiatives such as outreach programs, public forums, and partnerships with local organizations is an important aspect of the works being conducted.
Overall, integrating socio-economic development considerations into this project has helped to maximize the positive impact on communities, fostering long-term sustainability and prosperity.
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VENTURE COMPANIES
UTC LOGISTICS GUYANA INC.
2023 marks the 2nd year of Operation. UTC-G is a joint venture company between UTC Overseas, Muneshwers Ltd, and GYSBI, operating in the competitive supply chain market in Guyana. UTC-G is a local content compliant entity, and is aimed at providing end-to-end freight forwarding solutions for its clients in the areas of international and regional customs brokerage services, transportation, and warehousing.
SUPPLY GUYANA INC.
Established in 2023, SGI is a joint venture company between GYSBI, Muneshwers, and Supply Chain Improvement and Innovation. SGI aims to provide innovative supply chain solutions for the O&G sector in Guyana. Services to include: order fulfillment, transportation, warehousing, inventory, distribution, and supply chain management.
GEORGETOWN ENGINEERING AND MAINTENANCE SERVICES (GEMS)
In December, 2023, GYSBI launched a new specialized engineering and maintenance business focusing on FPSO topside scope execution. As a 100% GYSBI owned Subsidiary, GEM’S mission is to provide specialist services to the highest international and quality standards through innovation and sustainability.
SUSTAINABLE ENVIRONMENT SOLUTIONS GUYANA INC. (SES)
SES is a 50-50 Joint Venture company between GYSBI and Gaico-Corena Ltd. Formed in 2020, SES contracted with EMGL for a 10 year Waste Management Services Contract and further expanded that scope in 2023 with Tank Cleaning Activities. With top line revenue of 2.5B GYD, SES is seeking to expand its scope of work both with EMGL and the local market.
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CORPORATE SOCIAL RESPONSIBILITY (CSR)
GYSBI’s Corporate Social Responsibility (CSRS) initiatives are designed to be sustainable, tangible,and transformative. In 2023, GYSBI piloted several milestone initiatives, which yielded positive coverage in the local, regional and international spheres. They are as follows:
1. The GYSBI Technical Scholarship
This scholarship initiative was launched and piloted in 2023, to provide support to students who are pursuing studies at Technical Institutes across the country. Eleven (11) students drawn from eight (8) regions namely regions 1, 2, 3, 4, 5, 6, 7 and 10 became recipients of this initiative.
These students are currently pursuing studies at the Essequibo Technical Institute, Georgetown Technical Institute, Leonora Technical Institute, Linden Technical Institute and the New Amsterdam Technical Institute. GYSBI’s scholarship programme will continue in 2024, with another tranche of students slated to benefit.
2. Adoption of the Joshua’s House Children Centre
In 2023, GYBSI renewed its Memorandum of Understanding with the Office of the First Lady for the adoption of the Joshua’s House Children Centre. We provide financial aid which covers the following:
a. Electricity
b. Telephone charges
c. Drinking Water
d. Internet
e. Cooking Gas
f. Maintenance & Repairs
g. Salaries
h. Transportation
i. Miscellaneous
In addition, GYSBI has completely overhauled both male and female sleeping quarters and washrooms, provided new beds and mattresses, and rebuilt the front
of the building. Leisure activities for the children are also organized through this programme.
3. Support for the Paws for A Cause
GYSBI has provided tangible support to Paws for A Cause, which is focused on the protection of animals and their welfare. We are also leading support for the construction of a permanent animal home in Paradise, East Coast Demerara.
4. Sports Promotion
GYSBI has supported the advancement of sports, especially within schools, through our sponsorship of initiatives such as the Under-14 Schools’ Football Tournament and the Schools’ Under-18 Football Tournament.
5. Quarterly Blood Drives
In collaboration with the National Blood Transfusion Services, in 2023, GYSBI was able to facilitate the donation of 90 pints of blood. From this donation, 3 pints were given to a 6-year-old, who was hospitalized and in dire need of B+ Blood. For these outstanding contributions, GYSBI received an award from the Ministry of Health.
6. Breast Cancer Awareness Support
In partnership with the Guyana Cancer Society, Giving Hope Foundation and Guyana Telephone and Telegraph Company (GTT), we provide financial support through sponsorship, to offset the costs of mammograms.
Other Notable Events of 2023:
GYSBI hosted former Prime Minister of the United Kingdom, the Right Honourable Tony Blair, who was accompanied by the President of Guyana. The former Secretary of State of the United States, Mr. Mike Pompeo and all of Guyana’s Ambassadors, High Commissioners and Head of Missions also visited our facilities.
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FINANCIAL SUMMARY 2023
Guyana Shore Base Inc. (GYSBI)
Consolidated Financial Statements 2023 was independently assessed for the preparation and fair presentation in accordance with International Financial Reporting Standards (IFRS) and concluded with an opinion of true and fair view, in all material aspects. GYSBI Financial Statements are 100% compliant with Companies Act 1991.
GYSBI has demonstrated resilience and adaptability in navigating the complexities of the oil and gas industry. With a solid foundation, sound strategy, and unwavering commitment to excellence, the company is well-positioned to capitalize on emerging opportunities and deliver sustainable value for all stakeholders.
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2023 HIGHLIGHTS
GYBSI continues to thrive and be a key market leader in the Oil & Gas Industry in Guyana recording a 90% increase in revenue YoY.
During the fiscal year revenue closed at USD182M driven by Gas to Energy Project works and Shore Base activities surpassing the 2023 Operational Budget.
GYSBI made substantial investments in Guyana as we have increased our asset portfolio by 14% to GYD$56 Billion in 2023.
The Company successfully executed a restructuring of its 80M USD Debt Portfolio with improved terms as well as reduced debt service.
Shareholders’ loans approximately 90% repaid in 2023 and the remainder expected to close out in Q1 2024.
In the fiscal year 2023, GYSBI reported robust financial performance, achieving an increase in Equity by 35% to GYC 13.6 Billion. This facilitated a dividend declaration of GYD 1.7 Billion.
CariCRIS assessed GYSBI based on a Regional and Local scale benchmarks resulting in a favorably position of CariAA- and gyAAA respectively.
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Statement of Cash Flows .......................................................................................... 21 Statement of Profit & Loss and Other Comprehensive Income ............................ 18 Independent Auditor’s Report ................................................................................. 16 Statement of Changes in Equity .............................................................................. 19 Notes to the Financial Statements .......................................................................... 22 Statement of Financial Position ............................................................................... 20 15
INDEX
Opinion
We have audited the accompanying financial statements of Guyana Shore Base Inc. and subsidiaries (the Group) which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows for the year then ended, a summary of significant accounting policies and other explanatory notes as set out on pages 2 to 28.
In our opinion, the consolidated financial statements give a true and fair view, in all material respects of the financial position of Guyana Shore Base Inc. and subsidiaries as at 31 December 2023, its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Basis Of Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the International Ethics Standards for Accountants Code that is relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibility Of Those Charged With Governance For The Financial Statements
The Directors/Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards and for such control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing these consolidated financial statements, management is responsible for assessing the Company and Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
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As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Group financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Group financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern;
• Evaluate the overall presentation, structure and content of the Group financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
• Obtain sufficient. appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Group financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on other legal and regulatory requirements
The financial statements comply with the requirements of the Companies Act 1991.
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