…T&T consultant stresses need for transparency in oil sector

LOCAL-content policy must seek to benefit all Guyanese and the decision-making process in the country’s petroleum sector must be transparent.

This was the message given by Trinidadian consultant Anthony Paul to stakeholders at Wednesday’s local content-policy stakeholder engagement at the Georgetown Marriott Hotel in Kingston. The forum was hosted by the Ministry of Natural Resources and its aim was to engage stakeholders on the subject as the draft policy document is compiled.

Paul, who has a wealth of experience working with governments across the globe in the petroleum sector, stressed to the gathering the need for transparency in the sector. “This is so critically important, how can we trust or validate without transparency,” he questioned.
Paul highlighted the issue of experts who may have the wherewithal to secure contracts as against local entities which may not be able to compete with the international companies in the sector. “How do you compare transparency for the locals as against the foreign companies, so you have a fair chance of competing?” he asked.

Local content can be described as the materials, workers, etc. which are used to make a product that is from the area where the product is made, rather than being imported. Paul , who has over 30 years of experience in the petroleum sector , said that the ultimate outcome of Guyana’s local content-policy document is that it must have one aim.
He explained that he looked at Guyana’s national symbol, the Coat of Arms and he noted the words “One Destiny.” He said that destiny must come from a vision which has to be reflected in the process of crafting the document. Paul said that the outcome of the draft process should be long-term and reflect the expectations of the society as he called for “lots “of training of locals in the sector.

“At this point, we are the beginning, we are trying to understand what needs to happen,” Paul said, noting that there are series of stages along the process in the development of the oil sector. Paul reminded the audience that everything that is done must confirm with the country’s constitution, noting that there are a lot of regulations which has to be in place as the sector evolves. “Local content policy must seek the benefit of Guyana“, he said.

In brief remarks, Minister of Natural Resources, Raphael Trotman, expressed hope that the policy framework becomes a national model for local content for all sectors of the economy. “Government will not pretend to have all the answers,” he said, noting that it is the very reason the government has been working with local and international experts as the country prepares to benefit from the oil sector . He said too that the government has been engaging all stakeholders, including members of the Opposition.

Owen Verwey , CEO of Go-invest, told the gathering that there is no or limited possibility for local content at the early stages of the emerging sector . He said joint-venture arrangements can be addressed to ensure meaningful and beneficial achievements in a sustainable manner for both the local investment community and those who are looking for opportunities here. He said Go-Invest has seen many foreign investors, both who have contracts with oil giant ExxonMobil or its subcontractors, as well as those who are exploring the market. ”Most of these are experienced or well- resourced foreign entities,” he said.

According to the Ministry of Natural Resources , through innovative and collaborative mechanisms and in the context of changing circumstances, Guyana intends, by way of local content and value addition, to capture so much value and benefit from the nation’s oil and gas resources and the related activities, that the country shall translate the blessing of its oil and natural gas resources below the ground to a sustainable economy above it, faithful to the country’s “green” brand and the heritage of its people.

“We shall be counted among those few developing nations who have managed an extractive industry and used the patrimony as a source of national development and sustainability,” the ministry states in the policy goal.