Oct 26, 2020 News
-TT expert urges Guyana to avoid making same mistakes
Kaieteur News – Now that Guyana is more than nine months into facilitating lifts of its light, sweet crude being produced in the Liza Phase One field, industry experts are of the firm view that the nation’s leaders ought to have in place, effective hydrocarbon accounting systems.
Specifically holding this viewpoint is Petroleum Consultant, Randall Mohammed.
During an exclusive interview with Kaieteur News, Mohammed explained that hydrocarbon accounting systems are used by petroleum nations across the world to ensure they are able to track gas and oil ownership from the point of production to the point of sale.
If these systems are not effective, Mohammed said there can be errors and delays in hydrocarbon accounting which can result in significant financial loss for the state.
Taking this into consideration, Mohammed said it is essential that the Guyanese authorities make every effort to ensure that not only hydrocarbon computer systems that execute such accounting rules are correctly programmed, but that measurements are accurate, and that reporting is timely.
Mohammed said: “Guyana has commenced lifting and selling oil from Liza One and soon Liza Two will come online…The objective is to implement a proper accounting system ahead of future production and sales so that Guyana can ensure it is not suffering any losses. It is the job of every government to protect the state…”
To further cement his case, Mohammed shared that four years ago he had commissioned a survey to be done on the importance of hydrocarbon accounting systems. Mohammed said he had hired a consultant, Dr. Hisham Nofal, to conduct the survey on his behalf.
The industry expert who hails from Trinidad and Tobago said: “In total, we surveyed 53 national oil companies across the Middle East, Asia, Africa and Latin America with crude oil production from a low of 50,000 barrels of oil per day (bpd) to a high of 2.6 million bpd for South America including Brazil, Venezuela, Colombia, Ecuador, Argentina, Cuba, Peru and Bolivia.”
The Energy Consultant said that the survey concluded that more than 35% of the national oil companies and governments around the world did not have a proper hydrocarbon accounting system to reconcile volumes. He said that they simply accepted what was invoiced by the oil companies.
Ideally, Mohammed said that data should be reconciled from the metering system at the wellhead to FPSO (floating production storage and offloading vessel) and FPSO to sales pipeline or tanker accounting for the difference in contaminates such as water. In the absence of this, he said that nations suffer significant revenue leakage.
With this in mind, the TT expert cautioned that it is in Guyana’s interests to ensure that it has the right systems in place to ensure it is not suffering any major losses. He commented that a good accounting system will ensure better performance monitoring.
It also forms the basis of any future study for improving the current system.
Nov 27, 2020Ifill’s all-round work gives Regal Masters 10-Wkt win W/Dem Mavericks remain unbeaten joined W/ B’ce & Jai Hind in play offs An outstanding all-round performance from Anthony Ifill, who...
Nov 27, 2020
Nov 27, 2020
Nov 26, 2020
Nov 26, 2020
Nov 26, 2020
Kaieteur News – Leonard Craig and Michael Carrington are two of the better young people politics has produced. I say... more
By Sir Ronald Sanders Kaieteur News – Governments in Central America are calling for “Climate Justice” after the... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]