…Trotman assures gov’t has solid plans for O&G sector
…says ordinary Guyanese, future generations will benefit

By Navendra Seoraj

GUYANA is set to take off with the advent of the oil and gas sector, which is expected to come on stream this month but Natural Resources Minister, Raphael Trotman believes that there will be some level of “turbulence” in the process.

He explained that turbulence will be in the form of criticisms and negative speculations from naysayers, especially certain political leaders.

“We have waited 50 plus years for this wealth and this is the time to take hold of it… but as usual, there will be extreme turbulence before something great happens,” said Minister Trotman during an interview with social activist, Mark Benschop, on Benschop Radio.
He, however, believes that turbulence is necessary because, without turbulence, when the “greatness” unfolds it would seem mediocre, like there is no struggle surrounding it.
“But trust me, great things are going to happen… the wealth will be spent sensibly for ordinary Guyanese and we have a duty to preserve a great portion of it for future generations,” said the natural resources minister.

Oil and gas wealth will be used to stimulate growth and enterprise, said the minister, adding that there have already been discussions on the way forward at the level of Cabinet.
While government deliberates on the way forward, Trotman gave the assurance that Guyanese will benefit directly and even see spill-off benefits from the new sector.

“The President believes strongly in education…I know there is a need for fast money but if you were to invest in a strong and educated population, that becomes an unbreakable for future development,” said the minister, adding that there will, however, be temptation to “open the nozzles” and let money flow, but there needs to be fiscal discipline.
He believes that Guyanese will be satisfied with the way the funds are used and will have to look forward to, especially when President David Granger unveils his “Decade of Development” plan in the coming weeks.

“My Government is looking to the future. Guyana is entering a new phase of economic development. The advent of petroleum production, next year, will result in sustained expansion of the economy. Petroleum revenues will be prudently managed to ensure sustained benefits to all sectors of the economy.  The ‘rising tide will lift all boats’.  We will launch a Decade of Development: 2020-2029. The ‘Decade’ will witness the emergence of a world-class education system aimed at ensuring that the best skills are available for economic development,” President Granger was reported as saying in September this year.

EDUCATION REFORM
The ‘Decade’ will include at least 10 major sectors of development, inter alia, the President said, pointing to education reform. He said education reform will ensure that the education system is more reflective of the needs of the new economy, access to information technology and of course, the promotion of social cohesion.

President Granger also said the plan will see economic expansion, diversification, restructuring, including value-added manufacturing and food security. There will also be focus on energy security and the transition to renewable and clean sources of energy and environmentally sustainable management of natural resources.

In July 2019, Director of the Department of Energy, Dr. Mark Bynoe, had informed the public that the country will be selling its own share of crude from oil production at Liza Phase 1.

The Liza Destiny, Guyana’s first FPSO set to operate at Liza Phase 1 Development, had arrived in the Stabroek Block some three weeks ahead of schedule. The vessel is twice the length of the Providence Stadium; half the width of the Georgetown Cricket Ground; has the depth of the Kingston Lighthouse and has the capacity to store some 1.6 million barrels of oil.

Apart from HESS, Esso Exploration and Production Guyana Limited (EEPGL) holds 45 per cent interest and CNOOC Petroleum Guyana Limited, a 25 per cent interest in the Stabroek Block.

It is estimated that there is over six billion barrels of oil equivalent in the Block while the involved partners continue to see “multibillion barrels of additional exploration potential”. HESS noted that Exxon’s and its partners’ 14th discovery was announced on the Stabroek Block at the Tripletail-1 exploration well located approximately 3 miles northeast of the Longtail discovery. The Tripletail discovery adds to the 6 billion barrels of oil equivalent. The Liza Phase 1 project will produce up to 120,000 barrels of oil per day at peak rates utilizing the Liza Destiny FPSO.

It is expected to generate over US$7B in royalty and profit oil revenues for Guyana over the life of the project.