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US advising Guyana how to spend “oil” money
Major focus is being placed on the country’s natural resources and should there
be a discovery of oil in the near future, Guyana would be faced with an abundance of revenue which would need to be properly managed for future investments.
In light of this, the US Embassy has launched a three-day workshop at the Cara Lodge Hotel, Quamina Street, where participants will benefit from training in issues such as Offshore Oil and Gas Discovery, Reservoir Management and Unitization from the USA’s model.
The workshop which began yesterday will end tomorrow.
The participants include employees of the Guyana Geology and Mines Commission (GGMC) and the Environmental Protection Agency (EPA).
According to Charge De Affaires, Thomas Pierre, their Energy Governance and Capacity Initiative (ECGI)’s core objective is to maximize the value, efficiency and positive development of oil and gas production and associated revenue flows to the country.
This is accomplished through bolstering institutional capacities, revenue management and technical capability.
US Charge De Affaires, Thomas Pierre
Thomas noted that a framework is necessary for the country although discoveries are yet to be made.
“It is important to keep expectations in check and commercial extraction of petroleum if it is indeed confirmed in Guyana is likely years away, it is critical to have a framework in place at all stages of development of the sector. EGCI provides countries with access to the USA top experts along with their unmatched global expertise on issues related to petroleum geology, exploration and production operation, revenue management, sector regulation, policy reform and implementation and energy sector finance and tax structure,” he explained.
With this workshop, the participants will be more exposed to specific issues such as oil and sector revenue management and related governance efficiency.
More emphasis will also be placed on topics such as optimization of budget and financial management mechanisms.
It was also stated that for this workshop most of the focus is aimed at effective management of trans-boundary resources for utilization.
A government official with the Ministry of Natural Resources and Environment explained that while this is not the first such engagement the country has had in this regard, every initiative is very important to the overall development and progress of the sector.
“The timing of such an initiative or support could not be more appropriate. As we speak we have two rigs offshore drilling, exploration activities going are going according to plan.”
While the inclement weather was blamed for one of these rigs ceasing operations for a period, the drilling has recommenced and there have been no major hiccups.
According to the official, once there is a “good discovery” of oil and gas there will “certainly be a new sector”…one where there is need for building and developing capabilities for effective governance, and overall effectively managing this area.
Noel Dennison, representative of the GGMC, explained to the gathering about the current status of offshore development in Guyana. He noted that the developments were uncertain in the maritime zone since the year 2000 and the GGMC had also been disappointed in the Berbice coastal drilling campaign in 2005.
“There was also insightful work by Groundstar Resources INC to restore prospects in the Takutu Passing as well as high oil prices. The challenge of Guyana is in fast tracking the drilling stages.”
Participants of the three-day workshop
As it relates to reconciling issues, Dennison said that the Guyana Government imperatives should permit reasonable regard for a possible successful outcome that company methods can provide.
This also has to be balanced with known company behavior, taking inventory and optimizing financial gain from capital sources. It is also expected that other companies will commence drilling within a year.
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