-visiting professor highlights inclusivity in petroleum sector

PROFESSOR Jorge Manuel Guira, Director of the University of Reading Law School on Thursday afternoon emphasised the importance of the citizenry in development of the country’s petroleum sector.
At the same time, the visiting academic pointed to the benefits of a Sovereign Wealth Fund (SWF) , which he noted is a good long-term plan, which will see the country prosper. Professor Guira was at the time presenting a lecture titled, “Paradise found in Guyana? Meeting the challenges of oil and gas exploration and production,” at the Theatre Guild Playhouse in Kingston.
Speaking to a sizeable audience, Professor Guira noted that the long-term plans of the authorities should consider the “local content” of the sector. He said that “it’s not just build a road or having a building,” but also other areas of development such as providing education, training, network and eco-system development. He noted also that persons can also network with other entities here and overseas aimed at developing the economy.
“So that everyone can make more money, can do better and there is a genuine eco- system which benefits the citizens of the country,” he added. Professor Guira noted that the government is “living in interesting times, a term which he likened to the “Chinese Curse “ a term which states “may you live in interesting times.” He said that for the government, it is not easy to develop a new sector within a short space of time.

He said that there are key challenges which the authorities face as regards the evolving petroleum sector. He listed them as sustainability, transparency and anti-corruption, education and training as well as the Venezuela border controversy. In addition, he noted that relations with the Caribbean Community (CARICOM) , especially with Trinidad and Tobago , an oil-producing nation , should also be considered.
As regards the government’s response to those challenges, he said that there are positive responses however, he noted that it is still early days. He said that implementation of the laws and institutional support are key to the sector’s future. He said that in the production of oil and gas, a company’s operations lasts approximately 25 years .The time period includes the issuance of licences by the state, seismic and research analysis, exploration and drilling the development phase and later, abandonment.
Meanwhile, Professor Guira noted that for the SWF to be effective, it must “be checked with accountability and strong oversight to preserve capital, while capping spending.” He said that if the authorities wish for the country to be truly wealthy, “you must invest and not consume.”
A new Sovereign Wealth Fund — a state-owned fund which will reinvest oil and gas revenues — and a new Petroleum Commission, a regulatory agency, are centrepieces of the proposed legal and institutional framework. The framework is being developed to provide oversight of the sector in the lead-up to first oil, which is forecasted for the year 2020.