off US$60M Guyana oil wells P

7MONDAY, MARCH 30, 2020 | GUYANATIMESGY.COM NEWS Tullow writes off US$60M on low-quality Guyana oil wells

...low prices dampens future prospects

It was a disappointing 2019 for British oil company Tullow. It was forced to write off US$1.2 billion in wells that were not financially viable, with further write-offs announced for 2020. Included in the 2019 amount is US$60 million for three wells Tullow drilled offshore Guyana but could not continue working on.

The three wells – the Joe, Jethro and Carapa-1, were all deemed not to have been financially viable due to the low-quality oil they contained. According to Tullow Executive Chair Dorothy Thompson in her contriTullow Executive Chair, Dorothy Thompson

bution to the 2019 Annual Report, investors are frustrated with the drilling campaign in Guyana.

“In line with our exploration strategy, we drilled three wildcat exploration wells, acquired promising acreage, and ensured all prospects were subject to rigorous scrutiny. The Joe and Jethro discoveries in Guyana were ultimately disappointing with lower oil quality discovered than originally prognosed, and investors were frustrated,” she said in the recently released report.

“The Carapa-1 well confirmed the presence of hydrocarbons and importantly, supports the potential of the Cretaceous play from the Exxon-operated Stabroek license on both the adjacent Kanuku and Orinduik licenses,” Thompson also said, while adding that they would have to consider carefully how to proceed in Guyana for 2020.

Thompson also said that the Board was disappointed with the financial and operational performance for 2019 and went on to apologise for this in the report. In fact, Tullow’s performance in 2019 led to a shakeup in leadership in the company.

Tullow’s write-offs for 2019 paint a dismal picture for the company

Chief Executive Officer, Paul McDade, and Exploration Director, Angus McCoss, both resigned in December after being stalwarts at the company for over a decade. The duo had previously presided over discoveries from West Africa to Guyana.

“The Board was disappointed by the operational and financial performance, and the overall executive leadership of Tullow’s business in 2019. On behalf of the Board, I would like to apologise for this poor

performance,” she said, adding that “the lower quality of oil found in the Jethro and Joe discoveries in Guyana was a further setback.”

“The next steps in Guyana will be to integrate the three well results into updated geological and geophysical models, with a focus on the high-grading of the Cretaceous portfolio where better quality oil is expected across both the Kanuku and Orinduik Blocks.”

Going forward, Tullow also noted that the falling

oil prices could adversely impact its future financial results and position should the downward trend continue for an extended period of time.

Since the novel coronavirus hit globally, it has had a serious impact not just on lives but also the global economy and specifically, oil. As of March 27, Brent crude has been trading at US$25 a barrel.

Brent crude was being traded at US$66 per barrel when Guyana first started oil production in December

2019. Rystad Energy, a Norway-based research company that has written extensively on Guyana’s oil sector, has projected that the situation will get worse. According to Rystad in a recent missive, the spread of the coronavirus has dealt a blow to the global demand for oil. It noted that in February of this year, the demand for crude dropped by 4.6 million barrels per day. China, where the coronavirus had originated, made up 2.9 million barrels of this cut to demand.

Changing the narrative…

…on PNC rigging I nevitably, as always occurs when the PPP’s about to win an election, the PNC and its acolytes try to shift the narrative to one which claims “African-Guyanese” will be consigned to “another round of slavery” – or worse. If that can be imagined. Back in 1992, conceding that the previous four elections had been rigged by the PNC, they objected to Cheddi Jagan leading the new government. If that were to happen, the Army and Police would rebel, they said. He was “Indian” – an ironic label for a fella who held nothing but contempt for ethnic labels as a dyed-in-the wool communist!

How about Roger Luncheon, the PPP countered, he was “Black”, no? “Nah…too red,” was the riposte!! After 1992, the PPP was castigated for committing “ethnic cleansing” when it made some changes in the civil service personnel. That it was impossible to make such changes in an institution that was 90 per cent African-Guyanese went unacknowledged!! Interestingly when the APNU/AFC Government came in and also made changes, no such comment was made even though the changes were primarily from the 10 per cent “other”!!

Another hyperbolic charge was made by a trade unionist, who recently described himself as “an angry, Black Guyanese man”. He insisted the PPP was committing “economic genocide” against African-Guyanese, even though “Household Income and Expenditure Surveys” had shown that African-Guyanese had been economically worse off under the previous pre-1992 PNC and their condition had improved to match Indian-Guyanese by 1999!! And we know where all these apocalyptic announcements led to between 2000 and 2008, don’t we?? Mo fyaah; slow fyaah!! Anyhow, here we are in 2020, after the elections of 2011 and 2015 showed conclusively that the PPP can be beaten in free and fair elections, the narrative’s again being floated that if the PPP were to get in, it’s genocide time again!! The big question is why?? The PPP doesn’t have its old builtin majority of Indian-Guyanese, so doesn’t this mean it got enough African-Guyanese votes, to put it over the top?? Just as the PNC-as-APNU was able to do with IndianGuyanese in 2015??

If the PPP took its whuppin’ and stayed around for another re-election, why can’t the PNC?? Or, hold it!! Does it think that because it fired 7000 mostly Indian-Guyanese sugar workers during its turn at the helm, the PPP will do the same?? Just because Eusi Kwayana said, “Do fuh do na abeah??”

So, the old chestnut of “power sharing” is back in play. Never mind that the PNC-as-APNU still hasn’t said if its rigging succeeds to form the next government, it’ll practise “power sharing”.

Nope! That’s only for the PPP!!

…on the ABCE Oh, how things change when the shoe’s on the other foot!! Back in 2014, after a feral blast from the PPP had helped sour relations with the Americans, the PNC-as-APNU shed bitter tears about the PPP insulting our “nearest and dearest ally”!! It embraced the “vote like a boss” initiative that was sponsored from those quarters and which did quite a bit to arouse its alienated youth base in 2015.

But suddenly, the sounds coming out from the APNU camp against not just the Yanks but against the entire western bloc – the Brits and the Europeans and Canadians – are sounding suspiciously “feral”. Why, Hamilton Green even suggested that the Carter Center are nothing but a bunch of rednecks, who’re out to lynch the PNC!! The trope has been picked up by a wide swathe of PNC myrmidons and extended to the Brits for working to extend our “enslavement” into the future. Why is this??

Just because they dared to say, “Please if you’re going to rig, at least give us deniability??!! Even Caricom had to balk!!

Readers are invited to send their comments by email to eye@guyanatimesgy.com …on COVID-19 The US is arguing whether total shutdowns will violate the vaunted rights of their citizens. Your Eyewitness wonders whether a threat that exceeds Pearl Harbour and 9/11 doesn’t inspire some flexing?? Just do it!!

The United States Embassy in Guyana has facilitated some 800 citizens here to return home in the last two weeks in light of the coronavirus pandemic, which has been devastating countries around the world including the US.

Guyana had closed its borders, including airspace, from March 18 to April 1 – one week after recording its first imported COVID-19 case via a 52-year-old woman who died days after returning from New York. Four of her family members, including a 13-yearold, have since contracted the deadly virus and are in institutional isolation. The Public Health Ministry on Saturday announced that three more new cases have been confirmed – bringing Guyana’s total cases of coronavirus up to eight.

In a social media post on Saturday evening, the US Embassy here said it was honoured to have helped over 800 American citizens and their families reach the US safely, while committing to continue assistance wherever needed.

The most recent batch to leave Guyana was on Saturday afternoon via a chartered flight provided by Eastern Airlines, which has a capacity for 200 passengers per flight. The flight, Georgetown to Miami, was available via a first-come, first-serve basis.

The US Embassy said in a notice on Sunday that Americans in Georgetown seeking additional flights home should complete an online form (link available on US Embassy Guyana Facebook page). The Mission added that it is continuing to work with commercial airlines to organise more of these “humanitarian flights” for citizens wanting to return to the US.

However, it was noted that since Guyana’s border is closed to incoming flights, the chartered commercial carrier must fly to Guyana empty with extra crew, as such the cost of the one-way flight from the Cheddi Jagan International Airport (CJIA) to the Miami International Airport (MIA), is consequently higher than preCOVID-19 pricing for this route.

In a video message posted on social media last week, US Ambassador to Guyana, Sarah-Ann Lynch, reiterated that there is no higher priority than the protection of US citizens and lending assistance to those who are in need at this historic time in the world’s history.

She noted that the Embassy has been successful in exploring commercial options to fly Americans home, which required special permission from the Guyana Civil Aviation Authority (GCAA) and will continue to make such requests.

“When that permission is granted, there is a sudden announcement of a flight as these announcements come on an irregular basis. As soon as we know about them, we will post that information on our Facebook page. If your plan is to leave Guyana, you need to be ready at a moment’s notice to purchase your ticket and get to the airport,” Ambassador Lynch advised.

The US diplomat has since expressed appreciation to both the GCAA and Eastern Airlines for their help in making these flights available to American citizens.

Eastern Airlines was scheduled to commence flights twice a week from New York City to Guyana on March 19, 2020. However, due to the closure of the CJIA to incoming commercial flights, this had to be postponed.

Nevertheless, the airline has been playing a critical role in flying Americans who are stranded overseas during this deadly outbreak, especially in Central and South America, back home. The US Government has been working with other airlines and Governments around the world to repatriate thousands of Americans under its “Wheels down!” initiative. Meanwhile, similar efforts are being undertaken by the Canadian and United Kingdom Governments to repatriate their citizens here in Georgetown.

In fact, the Canadian High Commission in Guyana had urged its citizens here who wanted to return home via the US to secure seats on Saturday’s Eastern Airlines flight.

A post on the High Commission’s Facebook page indicated that there were “limited seats available” and that Canadian citizens, who fulfil the US entry requirements and were interested, should book their flights.

With regards to the UK, British High Commissioner to Guyana, Greg Quinn, in a video message on Sunday, assured that efforts are being made to secure flights for citizens who want to return home. However, he lamented that in these extraordinary times, there are minimal options available in the near short-term.

He explained that initially, they had been working with the Guyana Government and airlines to allow British nationals, via a chartered aircraft, to fly to Bridgetown, Barbados, for the last connecting flights to London with British Airways and Virgin Atlantic Airways. But those UK-destined flights from Barbados have since stopped as of March 27, hence the High Commission is unable to offer any future charters since it is unclear when they will restart.

“At this time, we do not know how long this will continue for but we’re monitoring the situation. Our colleagues in Barbados are in touch with both airlines, are monitoring the situation closely, and will let us know immediately once the flights restart. When that happens, we will be in touch with you about possible options,” Quinn stated.

Nevertheless, he reassured British citizens that they are doing everything possible to help them get home.

Like the US, citizens from both Canada and the UK are asked to sign online forms to indicate their interest in returning home.

Citizens from these three countries are being asked to check the social media accounts of their respective Missions to be updated on travel arrangements and any other critical information relating to the COVID-19 pandemic.

Additionally, the foreign diplomats are also encouraging their citizens to adhere to the laws and directives established by local authorities to protect themselves and prevent the spread of the coronavirus, especially by practicing social distancing. Over 800 US citizens repatriated home from Guyana – Canada, UK also seeking to do same

British High Commissioner Greg Quinn US Ambassador Sarah-Ann Lynch Persons boarding the chartered Eastern Airlines flight at the CJIA on Saturday afternoon