says CEO of Nigeria-based Nestoil Group
By Feona Morrison
GUYANA is rapidly emerging as the leading oil and gas hub in South America, according to Dr. Ernest Azudialu-Obiejesi, Chairman and Chief Executive Officer (CEO) of Nestoil Group.
Nestoil was incorporated in 1991 and is Nigeria’s largest indigenous engineering, procurement, construction, and commissioning (EPCC) company in the oil and gas sector.
Speaking on this week’s episode of the Energy Perspectives Podcast, Dr. Azudialu-Obiejesi, visited Guyana for a four-day fact-finding mission from June 9 to 12, 2024, highlighted Guyana’s remarkable progress and vast potential in the oil and gas industry.
“The level of opportunities [in Guyana] have been wonderful. I see a country that is heading towards a boom in the oil and gas industry. I see a country that will emerge in the short run as one of the biggest oil and gas hubs in South America,” he said.
The Nigerian businessman has urged Guyana to prioritise local content in the ongoing development of its growing oil and gas industry and to draw lessons from his country’s experiences.
Dr Azudialu-Obiejesi underscored the paramount importance of incorporating local businesses and workforce in the sector to guarantee sustainable economic growth and development, highlighting Nestoil’s significant contribution to local content in Nigeria. According to him, Nigeria has achieved a lot thanks to its local content laws.
He pointed out that Guyana could benefit from Nigeria’s experience, notably in terms of local content legislation, funding for local participation, and thorough training programmes to empower the local workforce.
He urged the Guyana government to ensure that the local content law is reviewed and enforced.
“The government has to ensure that the local content law is not only written but that it is enforced. If you write it like Nigeria and you don’t enforce it, at the end of the day, the billions [of dollars] that will pass through Guyana will not improve or touch the lives of the people. The local content law in Nigeria came a bit late…after many years of production.”
As of April 2024, over 800 companies have been approved to be included in the Local Content Register. An estimated 6,000 jobs have been created as a result of the country’s robust local content legislation. Since its enactment in 2021, the law has earned approximately US$1 billion in revenue, with an additional US$550 million expected in 2024.
The Local Content Secretariat, a unit within the Natural Resources Ministry, will commence a review of the legislation with the aim of improving it.
This amendment will target increasing the areas in which companies are mandated to utilise Guyanese goods and services, adding 20 services. The oil and gas sector is also projected to hire over 1,600 more Guyanese over the next three years.
In addition, Dr. Azudialu-Obiejesi also stressed the necessity of ensuring that oil investments help the overall economy, citing areas such as tourism and technology.
He believes that the government has positioned Guyana advantageously to become a big player in the oil and gas business by utilising lessons learnt from other countries.
The CEO noted that Guyana’s business-friendly environment will attract investors.
