– Minister Bharrat urges countrymen to build capacity for sector
By Vishani Ragobeer
THOUGH 2020 was a year marked by several employment constraints and uncertainties, owing to the COVID-19 pandemic and Guyana’s protracted elections period, 2,338 Guyanese were hired to service the oil and gas industry at the Stabroek block, offshore Guyana, according to Minister of Natural Resources, Vickram Bharrat.
“In 2020, local employees under the Stabroek Block grew by 23 per cent with 2,338 persons being hired in the following areas: managerial professionals such as lawyers, engineers, business executives, and other skilled technicians such as plumbers, electricians, crane operators, and welders, to name a few,” the minister said, while delivering remarks at a virtual forum, on Friday.
With the influx of businesses and visitors to Guyana, the Natural Resources Minister noted that there will be a greater demand for logistics, accommodation, transportation, medical and relocation services. Welding and fabrication skills will be in growing demand, too. Guyana’s burgeoning oil and gas industry, and the spin-off industries, is expected to garner significant revenues for the country, the minister said, too. These revenues, he posited, will be used to enhance the country’s national development.
Currently, the Stabroek Block – the first offshore oil block wherein oil is being extracted from – is estimated to contain more than nine billion oil equivalent barrels of recoverable resources. After a year of production, the Liza Destiny — the Floating Production, Storage and Offloading (FPSO) vessel offshore — has been able to reach its capacity of 120,000 barrels of oil per day. Meanwhile, the next FPSO– the Liza Unity– is expected to commence production in the first half of 2022.
Over the next few years, extraction and production offshore is expected to increase exponentially. In fact, the Natural Resources Minister highlighted that by 2027, Guyana will have at least seven FPSO vessels, operating offshore.
“With more development to come on stream, and (as) other operators discover oil, the demand for skilled workers will only increase,” Minister Bharrat said, emphasising: “I urge you today to enhance your skills, build capacity, establish partnerships and learn from each other and be innovative.”
He also noted that the government has recognised that private sector investment is crucial in developing the local capacity and in tapping into the opportunities presented for local businesses to offer services to the industry. Additionally, he said that the government has recognised its role as a developmental partner in facilitating investment.
He underscored, however, that while investment is welcomed, emphasis must also be placed on local capacity to ensure that Guyanese are managing the sector well.
“It is a new sector to us and in building capacity, we have been bargaining for strong local content in the oil and gas industry and other sectors, but at the same time, as a country and as a people, we need to build capacity and we need to ensure that we have the resources available to ensure that we truly realise the potential from the oil and gas sector,” Minister Bharrat explained too.
Importantly, he noted that there is no better way to learn and build capacity than by learning from those already involved in the industry. It is for this reason he emphasised that the local content framework must make provisions for backward, forward and lateral linkages which will allow for the transfer of skills and the inclusion of local suppliers and businesses.
