WHEN the local oil and gas industry emerged following the 2015 discovery by ExxonMobil in the Stabroek Block, headlines soon followed, raising concerns that the country would fall prey to the dreaded ‘Dutch Disease’ or the natural resource curse.
Fears of sole reliance on the petroleum sector and the consequences of an economy that lacked diversification inundated the news; however, over the last eight years, the country has seen significant spending in its other productive sectors, while oil and gas companies have provided support for the agriculture sector to propel the country towards its food security goals.
On Friday, October 20, the country’s annual Agri-Investment Forum and Expo weas held. At that event, President Mohamed Irfaan Ali announced that ExxonMobil Guyana and its co-venturers Hess Guyana Exploration Limited and CNOOC Petroleum Guyana Limited would be funding the expansion of the Agriculture Innovative and Entrepreneurship Programme (AIEP)—a multi-million US dollar investment. The funding is being provided through the consortium’s Greater Guyana Initiative (GGI), a US$100 million programme to build capacity in Guyana.
The President noted that this project, which will see the development of hydroponic farms in Regions Two, Five and 10, will benefit hundreds of young people and play a pivotal role in Guyana’s food security objectives. It is being marketed as a key initiative in supporting Guyana’s commitment to aid in reducing CARICOM’s food import bill by 25 per cent by 2025.
This project is not the first such effort by oil and gas companies to support the country’s agriculture sector, in keeping with Guyana’s ambition to be the ‘breadbasket of the Caribbean’. The GGI funded a Hinterland Poultry Project valued at more than GY$120 million or US$608,000 to boost the poultry industry in the hinterland region.
Before the introduction of that project, the Rupununi alone was spending hundreds of millions of dollars on importing meat and eggs from neighbouring Brazil. Through the companies’ investment, local farmers were trained and provided with equipment to hatch their chicks, rear their chickens and process and package the meat.
ExxonMobil’s prime contractors are making similar efforts. SBM Offshore is the builder and operator of the Floating, Production, Storage and Offloading (FPSO) vessels producing oil offshore. In 2020, the company launched its ‘Green Farms Initiative’, which saw an investment into constructing a greenhouse facility that spans three acres at the Guyanese-owned Plympton Farms, located at Dora, along the Linden/Soesdyke Highway.
This farm produces fresh vegetables that were previously imported to supply the FPSOs operating offshore and the catering company that provides meals for SBM Offshore’s onshore locations. The farm utilised advanced hydroponic technology, supporting sustainable farming development while providing employment opportunities for neighbouring community residents.
Simultaneously, the company is contributing significantly to the country’s aquaculture sector through the Hubu Aquaculture Project. Through this initiative, SBM Offshore supports the development of Hubu AquaFarms, located on the East Bank of Essequibo. A hatchery, which is rearing premium shrimp and prawns, has been completed at Le Destin while the grow-out ponds are being constructed at Hubu.
Guyana’s agriculture sector remains pivotal to the country’s economic growth. From the expansion of agro-processing to investment in new crops and technology, the government has been deliberate in its approach to ensure that Guyana reaches its food production objectives. The supporting efforts of these oil and gas companies to push the country’s accomplishments in this area speak to the importance of private sector support and local content development, even outside their main activities. Such collaboration and initiatives are essential factors in creating a diversified economy.
