–as Guyana progresses as an oil-and-gas nation
GUYANESE and international investors have been positioning themselves to capitalise on the direct and spin-off benefits of Guyana’s nascent oil-and-gas industry, but amidst the existing and growing enthusiasm, stakeholders have to be wary of over- investing.
While not denying that this sector augurs well for Guyana, General Manager of the Guyana Shore Base Inc (GYSBI), Sean Hill, who has over 16 years of experience in the field, advised investors to be careful and not to over-invest in the industry.
“It makes no sense to over-invest and go in one direction when the end user is not looking for that,” Hill said during a recent interview with the Guyana Chronicle.
By over-investing, stakeholders would be pulling on limited resources, such as personnel from other industries, such as sugar and mining. And, at the end of the day, this, Hill believes, would not help Guyana in any way.
One aspect of advancement that stakeholders should be particularly mindful of is the infrastructure required for the oil-and- gas sector.
“One of our concerns is about over-inflating expectations on how much infrastructure is needed for this industry…there needs to be realistic benchmarks as to the amount of infrastructure that is needed, so it does not outpace the need of the industry,” Hill reasoned. Speaking about his company’s strategy, he said they invest strategically and grow the shore base in alignment with the needs of ExxonMobil, which is practically Guyana’s oil-and-gas industry right now. As the country moves forward, prudent decisions will have to be made, but the current projections remain positive. Seen as the new investment capital of the Region, Guyana is fast becoming a magnet for major investors in the oil-and-gas sector, attracting even some Fortune 500 companies which have started to ‘migrate’ here from Brazil and Trinidad and Tobago.
“Already, a lot of current foreign direct investors are expanding their services to Guyana…they are even moving their headquarters to this country…these are being moved from Trinidad and Tobago, and even Brazil, to Guyana,” Chief Executive Officer (CEO) of Go-Invest, Dr. Peter Ramsaroop said during a recent interview with this newspaper.
Most of these companies are focused on offering oilfield support services to the offshore operations in the oil-and-gas sector. Oil-and-gas services are considered to be a supportive part for the oil exploration and production companies.
They are services that include oil-well maintenance, completion, production, supply, and logistical support services in both onshore and offshore activities.
These services will be offered directly to ExxonMobil, the company operating in the Stabroek, Canje and Kaieteur Blocks, offshore Guyana.
Some 18 discoveries have so far been made in the Stabroek Block since 2015, but just three projects have so far been sanctioned – Liza One, Two and Payara. The operator, ExxonMobil, expects this to ramp up to around five by 2026, generating more than 750,000 barrels of oil per day. Since 2015, ExxonMobil has increased its estimated recoverable resource base in Guyana to more than nine billion oil-equivalent barrels. Among some of the companies already servicing ExxonMobil’s operations are Schlumberger and Halliburton, both Fortune 500 companies.