IN an unprecedented move to create a vibrant oil and gas sector by increasing governance and monitoring of offshore explorations, Natural Resources and the Environment Minister, Robert Persaud last evening, at the Pegasus Hotel, announced the approval, by Cabinet, of Guyana’s Upstream Oil and Gas Policy.This comes at a time when, according to Minister Persaud, Guyana’s “potential [of producing]… more than 15.2 billion barrels of oil” has seen the country “considered to be the second most attractive exploration basin in the world.”
Explaining the ‘across the board’ potential for Guyana’s new policy, Persaud said, “It must be recognised that Guyana’s legal, regulatory and contractual framework is attractive for petroleum investors, while simultaneously ensuring that there are maximum benefits accruing to the people of Guyana.”
The Minister was keen to note this as he alluded to an already developing oil and gas sector which is expected to pump much needed revenue into the country. The oil and gas policy, which the Minister spoke extensively on, was approved by Cabinet with assistance from the Commonwealth Secretariat in developing the document.
“The new policy provides the Government with a strong platform for effective development and governance of exploration and developmental activities, both onshore and offshore,” Minister Persaud added.
Through the policy, the Natural Resources Minister made clear the Government’s position to have a “detailed articulation of our objective of ensuring that we create an internationally competitive upstream oil and gas sector.”
This, he said, could only be possible by re-engaging partners like the U.S. Geological Survey through the U.S. Embassy in Guyana, as well as the Canadian High Commission “on the development of a complete and comprehensive framework for the management of the sector.”
The Minister similarly called on Guyana’s Private Sector to buy into the policy as they become part of the driving force “contributing to the socio-economic development of the country.”
Guyana is rapidly progressing as a nation to be recognised in the energy industry. Minister Persaud outlined a number of bilateral programmes with the U.S. and Canada. He similarly alluded to “a number of multilateral programmes with organisations such as UNDP [United Nations Development Programme] to address many of the complex issues critical to a sustainable oil and gas sector and one that deals with the challenges.”
The Minister conclusively noted, “Guyana is confident that companies, including Exxon Mobil, will see this policy, as well as other initiatives, as laying the foundation… of an oil and gas sector.”
Venturing some 100 miles off of Guyana’s shore, Exxon Mobil, through their subsidiary, Esso Exploration and Production Guyana Limited, has invested some US$200M into offshore operations. Expected to begin in 2015, the exploration exercise could run for as long as seven years.