GEORGETOWN, Guyana - President Irfaan Ali Tuesday said that a fifth production vessel, regarded as the largest Floating Production, Storage, and Offloading (FPSO) in Guyana’s fleet expected to arrive off the coast of Guyana this week.
President Irfaan Ali, speaking at news conference on Tuesday (CMC Photo)Ali said that the vessel had set sail from Singapore in early August and was built at a cost of US$12.7 billion.
“It is the largest FPSO in Guyana’s fleet, designed to add roughly 250,000 barrels per day and push national output above one million barrel a day for the first time. Currently our four operating FPSO, Lisa Destiny, Unity, Prosperity and One Guyana, produce roughly between 900 to 920,000 barrels per day,” Ali told a news conference.
He told reporters that the production sharing formula has never changed and that it remains exactly what was written in the 2016 agreement.
“Royalty first, then up to 75 per cent of production can go to cost recovery, and whatever is left is split evenly between Guyana and Starbroek Coventurers. It is important for us to understand the concept of profit oil that agreements speak of.”
Ali said that Guyana’s share of Starbroek block oil has increased from 12.5 per cent to 39.8 per cent and “this has occurred, as I said, because the cost bank has been recovered two years earlier than originally expected”.
He said that in terms of barrels, 75 of every 100 barrels produced went to cost recovery and that today, only about 20 barrels go to cost.
He said while the US$55 billion expenditure was paid off, the cost bank is not saturated or entirely depleted.
“The 20 barrel today account for operating and other costs, which still form part of the cost bank. That which is left, which is called the profit oil, is split evenly between Guyana and the companies.
“Guyana’s half is about 39.8 barrels out of every 100. The companies matching 39.8 barrels split three ways between the co-venturers. So that is where we are in relation to that.”
Ali said that his ruling People’s Progressive Party/Civic (PPP/C) had promised in its manifesto ahead of the last general election that it the government would continue the modernisation of the national procurement system.
“I’m pleased to tell you that the finance secretary is leading the effort to have, before the end of this year, completed the e-procurement system fully completed and integrated. And the e-procurement system will have a digital bidder’s register, an e-tender lifecycle module, a national e-tender portal, and an e-marketplace.”
Ali said that this will remove all of the need for the massive papers and move from a paper-based system to a complete e-system, electronic system, that is trackable throughout the process.
He said regarding the digital bidder’s register, the authorities have already had a bidder registered, however, “it will be expanded to include the following information for each contractor, supplier, consultant, beneficial ownership, GRE and NIS compliance, classifications, small, medium, and large contractor, class performance, debarments, and suspension.
“The e-tender portal, the MPTAB website will be upgraded into a single window, where all public procurement plans, tender notices, bidding documents, clarifications, bid submissions, and award notices are uploaded.”
