In­con­sis­ten­cies in Rys­tad En­ergy re­port

Stabroek News Sunday - - REGIONAL NEWS -

Dear Edi­tor,

On June 1st, 2018 the Stabroek News pub­lished an ar­ti­cle dis­cussing a re­port by Nor­way’s Rys­tad En­ergy. Other Caribbean news­pa­pers have pub­lished sim­i­lar ar­ti­cles. How­ever, there ap­pears to be in­con­sis­ten­cies in the re­port that need clar­i­fi­ca­tion. Here are a few points of con­cern:

1. It was stated that Rys­tad is fore­cast­ing 600,000 bar­rels per day (bpd) in the next decade. The IMF re­port fore­casted 100,000 bpd for Liza Phase 1 well. (This well is es­ti­mated to hold 450 mil­lion bar­rels of oil). Cur­rently, 3.2 bil­lion bar­rels of oil have been con­firmed to ex­ist by the oil com­pa­nies. Now, that is more than 7 times the Liza Phase 1 dis­cov­ery, hence, one would ex­pect a fore­cast of at least 700,000 bpd, not 600,000 bpd?

2. In the ar­ti­cle, it stated for the Liza field, that US$10 bil­lion will be split be­tween Guyana and the oil com­pa­nies. This means that Guyana would re­ceive US$5 bil­lion. Exxon’s man­age­ment has been quoted in the news say­ing Guyana will earn US$7 bil­lion from Liza Phase 1 when oil is priced at US$50. Why is the Rys­tad fig­ure lower espe­cially given the price of oil lately has fluc­tu­ated in the US$70 to US$80 range?

3. The ar­ti­cle also stated that ac­cord­ing to Rys­tad, Guyana will earn US$15 bil­lion an­nu­ally from oil and gas in the next decade. Now, that would mean Guyana would earn at least US$150 bil­lion. But if Exxon’s man­age­ment is say­ing that Guyana would earn US$7 bil­lion on the 450 mil­lion Liza Phase 1, then if we scale that num­ber up to the 3.2 bil­lion re­serves, that should mean that Guyana would earn ap­prox­i­mately US$50 bil­lion not 3 times that amount.

It would be ap­pre­ci­ated if Stabroek News or Rys­tad En­ergy clar­ify the in­con­sis­ten­cies in th­ese fig­ures or pub­lish a copy of the Rys­tad re­port.

Yours faith­fully, Darsh Khu­sial, Mike Per­saud, and Charles Su­grim on be­half of Oil and Gov­er­nance Net­work

Newspapers in English

Newspapers from Guyana

© PressReader. All rights reserved.