All it takes is your imagination and some capital input

Apr 16, 2017 AFC Column, Features / Columnists

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Due diligence and mapping are in progress for a fully functional onshore oil and gas facility at Crab Island located in the mouth of the Berbice River at 6.283°N 57.517°W. The island measures one mile in circumference, and it was so named because of the numerous crabs living and breeding there. Incidentally, before the British took over Berbice in the year 1815, the Dutch settlers had built a fort on the island called St. Andries.
The Ministry of Natural Resources is convinced that it is an ideal location for an onshore supply base equipped and resourced to cater to the oil and gas exploration and eventually the production companies. The companies that have been issued licences to explore Guyana’s deep waters include Repsol, Tullow Oil, CGX, JHI, Eco Atlantic and Ratio Oil.
The government will be investing US$500 million to construct the onshore supply base, and all things being equal, construction should begin in 2017. When completed, the facility will serve as a logistics and supply base for offshore oil platforms in the Stabroek Block and other locations in Guyana’s territorial waters.

BENEFITS FOR PRIVATE BUSINESS
The supply base will consist of many different components including heavy industrial businesses for maintenance of industrial equipment, metal fabrication, warehousing, storage and handling of spare parts, vehicle repairs and even hospitality services such as food production and accommodation.
The supply base is expected to create approximately 600 jobs that will have a positive impact on Berbice. For many years the business community has been looking for solutions to keep their young people and their trained skills in the county, graduates of secondary schools, Tech/Voc institutes and graduates from the Tain and John’s UG campuses.
For decades, rice growers, millers and producers of by-products; metal work establishment owners, large scale retailers, private cane farmers and others have been decrying the shortage of labour and skills at every level. On the other hand, youths and other employable citizens bemoan the shortage of jobs, so they migrate to the city or out of the country.
The decision to locate the Logistics and Supply Base at Crab Island was influenced by several factors, the major one being the many jobs that will be created with the establishment of new enterprises that should be supplying the oil vessels and platforms. Secondly, the location with its available space is ideal. The term used to describe the Crab Island location in this context is “Most Optimal”. In addition, there is a need to set up a dedicated supply base away from the always congested Port Georgetown (Water St.) in the city.
One more essential factor in the choice of location is the need to ensure that there is local involvement to better regulate the supply chain for this exploration and oil production business. We are determined to ensure that the people of Guyana could participate in this venture as far as circumstances permit.

CREATING OUR OWN JOB OPPORTUNITIES
We have heard the advice given by the Chairman of the Energy Chamber of Trinidad and Tobago, Dr. Dax Driver, during a visit to Guyana. He said, “There is plenty of room for small and medium sized businesses to find a niche for themselves in a hydrocarbon industry (in upstream and downstream service businesses). Jobs in the energy sector are not just for highly qualified professionals with Masters Degrees. There are lots of extremely well paying jobs in the industry for people with technical or craft-level qualifications. In fact, the jobs for people with practical technical skills tend to be the best paying jobs”.
He noted though, that it will be tough for inexperienced Guyanese to land jobs on this major offshore floating, production storage and off-take (FPSO) operation which is extremely complex, risky and highly capital intensive. World class operators such as Exxon and Esso, he warned, generally prefer to employ contractors and service companies they know and trust.
The thing for us to do right away is a lot of research; first to determine the best products to supply to the facility, then to acquire the highest phytosanitary and ISO certifications. The Guyana National Bureau of Standards (GNBS) is equipped to provide the necessary guidance.
Considering all the positive spin-offs, Guyana needs to establish this supply base here to support the oil operations. It may be a public-private partnership, or government-funded arrangement. At present, ExxonMobil uses bases in neighbouring Trinidad and Tobago and Port Georgetown, but their officials have made reference to the longer time periods for supply vessels to travel between the vessels and the T&T base. Guyana is closer, and Crab Island is even closer. Trinidad is planning to continue providing on-shore supply services to ExxonMobil when production starts, so setting up our Crab Island supply base assumes greater importance.

SPIN-OFF INDUSTRIES
Worldwide, experts agree that there at least 167 different industries that spin off of oil and gas production. We say again that few countries are as widely resourced as Guyana is, but unfortunately as unknown. The Department of Tourism has been touting the many avenues for enterprising Guyanese to tap the resources in their own environments, manufacture by-products that are uniquely Guyanese, utilize the Internet to market the products and improve your visibility to customers anywhere in the world, and give your business an injection.
We say that this imminent oil industry will not only provide much needed funds to the national treasury, it will provide a readymade market for many of our products. Take Berbice for instance, where Crab Island is located. There is so much potential in these regions (5 and 6) for new endeavours, e.g. inland fish farms to provide aquatic creatures for decoration (aquariums) and fresh water fish and crustaceans for food. Rice and sugar cane are grown in abundance and the prospects for a wealth of value-added products are great.
The people working on the oil vessels, some of whom would be here for protracted periods, would welcome the chance to eat indigenous foods, to participate in our cultures, to experience the much touted Guyanese hospitality, and even visit rice mills and production facilities to see how the products are made.
We urge you to take full advantage of the oil industry and all it has to offer. All it takes is your imagination and some capital input.

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