THE construction of an onshore oil and gas facility at Crab Island seeks to cater for the expansion of exploration and subsequent production of oil in Guyana. Crab Island is located in the Berbice River.

The government will be investing US$500M to construct the onshore facility during the course of this year. The facility will serve as a logistics and supply-base to the offshore production.

The Guyana Lands and Surveys Commission has been advertising leasehold interest in close proximity to the Island. The facility is expected to create some 600 jobs. Those jobs could bring significant relief to residents of Berbice, who continue to complain about lack of employment.

The supply-base could consist of components which include maintenance, fabrication, warehousing, spares, housing, and spares handling among others. Technical skills such as welding are job opportunities that will be made available when the facility is functional, but opportunities will also be made available during construction. Last year, Minister of Natural Resources, Raphael Trotman had said that jobs which will be created through the establishment of the onshore supply-base facility will enable and enhance the labour force.

Giving the reason behind the selection of Crab Island as the site for the onshore base at the Marriott Hotel last week, Trotman said that the current traffic congestion along Water Street makes that location unsuitable as an onshore base. However, the wharves along Water Street will be used for the first phase of the Liza development. “Water Street will be used… for production in the early years and it is expected that as production increases and more activity come we will migrate to Crab Island,” Minister Trotman explained.

Earlier this month oil producing giant ExxonMobil, advertised for onshore service providers. John Fernandes Limited (JFL) and Muneshwers Limited were among the shortlisted companies. These companies have port facilities along Water Street. However, Minister Trotman pointed out, “Everyone is thinking in terms of Exxon’s operations only but suffice to say we can’t find ourselves thinking of one discovery and one company.” ExxonMobil and its partners struck black gold when significant hydrocarbon reserves were found in the Liza Field. The oil find was officially declared to be of commercial quantities last year. The company has presented to the government and stakeholders its development plans for the Liza field with the projected year 2020 for oil production.

Additionally, there are several other companies that were issued licences to explore Guyana’s deep waters. Those companies include Repsol, Tullow Oil, CGX, JHI, Eco-Atlantic and Ratio Oil. “Some point in time all will be looking to reengage and so the idea is to find an available piece of land or property which can accommodate all the operations,” Minister Trotman pointed out.

(GINA)