GUYANA’S promising oil and gas potential is being modelled after Uganda’s and in January 2017, the authorities will engage the general public on the sector as moves are afoot to strengthen the legislative framework in the lead-up to First Oil.During a forum on Thursday at the Cara Lodge in Quamina Street, in which stakeholders met to commence a two-day interactive seminar entitled ,”Good governance : Preparing for First Oil, “ Minister of Natural Resources , Raphael Trotman, told stakeholders that in July this year a delegation from the ministry visited Uganda to engage the authorities there on that country’s oil sector.
Several government officials, including Minister of Business and tourism, Dominic Gaskin, Members of Parliament, Jermaine Figueira and Audwin Rutherford attended the opening of the forum.
The two-day event was organised by the New Petroleum Producers Discussion Group, a non-profit, non-governmental organisation based in London and its mission is to analyse and promote the understanding of major international issues and current affairs. It is working along with the Natural Resources Ministry as Guyana prepares for First Oil which is expected in the year 2020.
“The group consists of partners Chatham House, the National Resource Governance Institute and the Commonwealth Secretariat. Its work entails bringing together countries such as Guyana, that are about to enter oil production and those who are in similar stride or that are in the initial stages of production. “It provides a setting for conversation on matters relevant to the development of the sector, “ Trotman said. He said that Guyana has been a participant and beneficiary of the group’s discussions in recent years; however, he added that this country’s focus has shifted to a soon- to- be new petroleum producer.
He explained that the New Petroleum group made Guyana “a beneficiary of a unique and open exchange” forum with Uganda. He said that the latter was chosen as a suitable mentor, having recently completed preparations for oil and gas extraction, which is expected to commence next year. Uganda first discovered oil in 2006 and over time, the country has enacted laws and cautiously scrutinised production-sharing agreements to ensure the country receives the best possible deals. The country has since issued eight petroleum licences since the July visit and personnel from that country’s energy sector will be participating in the ongoing forum at the Cara Lodge.
Meanwhile, the government has recognised the need for a highly skilled work force with the advent of oil production. As such, revamping the public education system as well as integration of the supply and demand of labour into a flexible, technical/vocational education and training system is expected to come on stream. The move is expected to rapidly raise skills relevant to the energy sector.
According to Trotman, a set of new policies and legislation will soon be presented for review through public consultations. “They address the governance, regulation and development of opportune settings and establishment of institutional frameworks and agencies”, he said, noting that drafting of the legislation is expected by next month. A public communication framework is among the items which will be addressed. He said that capacities for training locally and internationally are being addressed.
Only Wednesday United States oil giant ExxonMobil created history when it officially gave notice of its find of commercial quantities of oil in the Stabroek Block. The notice was handed over in writing to the Ministry of Natural Resources, the first time an oil-production notice took place in the history of the country. Trotman deemed the event “the trumpet call in heralding further development of the oil sector.”
In May 2015, 800million to 1.4B of high-quality crude oil was estimated following discovery of oil through Exxon’s partner, Esso Corporation at the Liza 1 well in the Stabroek Block. Since then, the company has announced through its partners, additional discoveries raising the prospects of Guyana being a major oil-producing nation in the years ahead. “There is now great expectation, great excitement, and great responsibility in the weeks and months which lie ahead,” Trotman told the room full of members of the public and private sectors at Thursday’s event. The two-day forum will see presentations on several aspects of oil and gas exploration, including the principles and practice of petroleum fiscal systems design, good governance of the petroleum sector and establishing a national oil company .
