Oil and Gas monies to spread into the future, not gobbled up

Oil and Gas monies to spread into the future, not gobbled up – PM

Mar 28, 2017 News

The proceeds from Guyana’s emerging oil and gas sector should be used in such a manner that they spread into the future and not used willy-nilly as opportunities present themselves to government.

ExxonMobil’s Country Manager, Jeff Simons, paying rapt attention yesterday morning.

This was according to the Prime Minister (PM), Moses Nagamootoo, who was addressing the Guyana Oil and Gas Association (GOGA)’s Oil & Gas Conference and Exposition. The two-day forum which ends today is being held at the Marriott Hotel, Kingston Georgetown yesterday.
The two-day confabulation is operating under the theme, ‘The initiation of a transformative industry’ and features more than 20 local and foreign exhibitors showcasing their products and services related to the oil and gas sector.
Yesterday’s proceeding focused on four broad themes including technologies for offshore development, environment regulatory and safety standards experience from other territories and business opportunities that can be developed in Guyana.
The PM was at the time, on the topic of the establishment of a Sovereign Wealth Fund (SWF) which deals with the management of proceeds from the natural resources sector.
“We like (our) resources to spread into the future and not just be gobbled up by any administration – any administration – that would feel the resources could be deployed for short term gains or buying votes,” PM Nagamootoo said.
Nagamootoo announced government’s support to use a portion of the monies to better the future of the country.
He also spoke about the emerging sector being characterized by accountability and transparency.

Prime Minister (PM) of the State, Moses Nagamootoo, delivering remarks at the Guyana Oil and Gas Association (GOGA)’s Oil & Gas Conference and Exposition yesterday.

“We can’t just extract our strategic resources and not be held accountable,” Nagamootoo said.
He also applauded Natural Resources Minister, Raphael Trotman, for taking the initiative to begin the discussions about open data; open information as regards to Guyana’s oil and gas potentials and at the time, seek out ‘allies’ who would help the State develop the legal framework.
“After the recent launch of the Extractive Industries Transparency Initiative (EITI) Multi-Stakeholder Group, we felt that we needed not only to ensure that we have an environmental impact assessment done but the important thing for us was that our oil and gas industry should be characterised by transparency and by accountability,” Prime Minister Nagamootoo explained.
The PM’s remarks would come days before ExxonMobil is scheduled to commence drilling its seventh well – Liza 4 – within the Stabroek Block offshore Demerara.
Back in May 2015, ExxonMobil announced a huge oil find in the Liza-1 well and encountered more than 295 ft (90 metres) of high-quality oil-bearing sandstone. With the second well on the block, Liza-2, the company confirmed the finding as “significant,” with a potential recoverable resource of 800 million to 1.4 billion barrels of oil equivalent.
The Payara-1 well, located approximately 10 miles (16 kilometers) northwest

Some of the attendees at the event held at Marriott Hotel yesterday morning.

of the Liza-1 discovery, was drilled by ExxonMobil’s affiliate Esso Exploration and Production Guyana Limited (EEPGL), and encountered more than 95 feet (29 meters) of high-quality, oil-bearing sandstone reservoirs. The well was safely drilled to a depth of 18,080 feet (5,512 meters) in 6,660 feet (2,030 meters) of water.
Meanwhile, the RV Furgo Explorer will commence a geotechnical survey on behalf of the EEPGL, within the Stabroek Block of the Guyana Maritime zone. This exercise is scheduled for a period of six months.