New oil producer Guyana on edge over vote tally
Tension and uncertainty over Guyana's parliamentary election results have clouded the forecast for the country's emerging oil industry.
The ruling coalition led by the People's National Congress (PNC) is claiming victory in the 2 March election. But opposition parties and international election observers are criticizing the vote count, focusing on Region 4 around the capital Georgetown, one of 10 regions in the country of 750,000 people.
The political controversy follows the December 2019 launch of light sweet crude production from the offshore Stabroek block, where operator ExxonMobil has made a string of big discoveries since 2015. The block holds an estimated 8bn bl of oil equivalent reserves, the US major says.
No matter the electoral outcome, ExxonMobil and its partners, US independent Hess and Chinese state-owned CNOOC unit Nexen, seem likely to proceed with developing at least 750,000 b/d in 2025. But the winner of the disputed election will determine how much farther Guyana's oil industry will grow.
The opposition People's Progress Party (PPP) sees ExxonMobil as a pioneer that deserves to maintain its existing contract terms. But the party wants to toughen royalties and other fiscal conditions for companies that picked up licenses after ExxonMobil, including Chevron, Total, Repsol, Eni and Tullow.
Guyana's election commission has yet to declare final official results. But President David Granger is already boasting of another term, based on preliminary results favoring the PNC. The PPP says the government is stealing the election.
A joint statement by diplomatic missions in Georgetown said the vote tally for Region 4 was incomplete, yielding "questionable" results.
The Atlanta-based Carter Center observation team said "the tabulation process that had been taking place in Region 4 was circumvented," resulting in a Region 4 tally that is "not credible."
Former president Bharrat Jagdeo of the PPP alleged discrepancies between the preliminary results and the voter roll in Region 4.
Behind the chaos, Guyana's energy department is forging ahead with plans to set up a sovereign wealth fund. A tender for a one-year contract to market the government's share of crude production closes on 12 March.
By Canute James
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
