The Story within the Story…Our potential oil industry should take a page from the Aurora Mines experience

Feb 12, 2017 News

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By Leonard Gildarie

As we speak, ExxonMobil has started preparations to drill yet another exploratory well in its

concessions offshore Guyana. I have a gut feeling that they will confirm that the oil reservoir that they have stumbled on is even bigger than first thought.
This game-changing development will undoubtedly alter the fortunes of this country, which since independence has struggled to stand on its own.
We remain one of the poorest countries in this part of the hemisphere, not a tag that any Guyanese should be proud of. Our infrastructure remains in poor shape and corruption, bad spending, and a migration of skills have all saddled us an uphill task to build this country into a first class one. However, I am deeply confident we have what it takes. But it will demand hard work, honest politicians and all hands on deck. I have spoken about this before.
Our deal and arrangements that will have to be tied up before we even attempt to pump one drop of oil will have to ensure that Guyana benefits.
In addition to the revenues that we should receive directly from every barrel of oil, a big part of the production activities should be from the spin-off activities.
The oil production platform offshore will need billions of dollars annually in materials, spare parts, food, transportation and other logistical services.
We have announced plans to build a US$500M on-shore site in the Berbice River mouth that will offer from helipad to storage, to a central logistical point. It will have to include a major wharf to berth ships and also high security that will be demanded by ExxonMobil, a US-owned company.
The discovery of oil has the world sitting up and taking notice. Some persons who never looked twice have started to woo us.
I don’t want to crow about it, but the reality is that we have to be careful.
Barbados and Trinidad, two CARICOM allies, have been deporting Guyanese like crazy. They have a right to protect their borders.
A number of their traders have been coming to Guyana recently, buying up the US dollars and forcing Central Bank to step in and announce a temporary halt in the buying of both Bajan and TT dollars.
I was recently speaking with a good friend from Trinidad, an oil-rich country that is miles ahead of Guyana in terms of development. They are now suffering because of a heavy dependence on oil and their failure to reduce spending. Trinidad, for example, has an excellent manufacturing base.
According to my friend, the US embassy there is tough on visitor’s visas. He has tried several times to visit relatives in the US, but has been turned down. He wanted to know if it is better to try in Guyana. I warned him to stick to Trinidad. The US people hate when you lie to them.
Yes, in recent years, hundreds more Guyanese have been benefitting from the travel visas. It means the US has confidence in Guyanese to return home instead of staying there. It shocked me to know that Trinis are finding it that tough.
So, as we move into the critical phase of tying up our deal with ExxonMobil, we have to ensure we receive a good deal.
Yes, because of the very nature of offshore operations, ExxonMobil and its partners will be demanding services that have to be conducted by trained personnel. Security and safety are taken very seriously on board the platforms. There are special containers to even take a bottle of water on board the platform.
In Guyana, we have one Canadian company that I have been paying close attention to.
Guyana Goldfields Inc., which operates the Aurora Mines in Region Seven, has built the biggest gold mining operations last year producing over 150,000 ounces. It has received significant concessions.
They have managed to employ hundreds of locals. I am told that the company has made enough money to buy its own equipment to do a lot of the work that has been contracted.
That is right. It has taken on locals who own trucks and other heavy equipment to move the materials from the mining pits to the mills. Food, chemicals, parts and fuel are among the items that local businesses have been contracted to take from Buckhall, in the Essequibo River, to Aurora, the base of operations.
Drivers, operators, mechanics…they are all being employed, by the scores.
Guyana Goldfields was reportedly set to buy its own fleet of vehicles and equipment but stood down after appeals from local contractors.
I like this company. That is what we want from ExxonMobil.
Yes, we don’t have the expertise as yet. But we have three years before 2020 to get it right.
We have people with financial resources and the will, right on this 83,000-square mile plot on which we live. They have the ability to raise the money. We have experts in the US and around the world to teach us. I am saying that we can and must do it to really benefit from the oil.
We cannot be comfortable alone with receiving proceeds from every barrel. We must stand our ground and demand that part of the arrangements include the transfer of skills…that is a big term for training for our people. We have to look down the road to an oil refinery and even management of our own well.
I dare say we are in the driver’s seat.
In the media, we are privy to information. If one is interested, the big picture of how good we can have it becomes easy to see.
So strap yourself in, Guyana, and get ready for the ride.

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