Explanation to the eleven UG students on the Crab Island facility

May 14, 2017 Letters

Dear Editor,
A letter published in your newspaper on May 13, 2017 by University of Guyana students on the feasibility of an on-shore base and other matters relating to the Government of Guyana’s contractual arrangement with ExxonMobil is referred.
The Ministry of Natural Resources welcomes the interest displayed by this group of students and their Lecturer and avails itself to answer all questions and allay all concerns as best as possible.
Where the proposed on-shore base is concerned, it must be stated that though the Ministry of Natural Resources has identified Crab Island, Berbice as a very possible site, the necessary feasibility and environmental and social impact studies have not been completed and for this reason there is no sanctioned project.
The Government of Guyana and the private sector are firm in their shared commitment to work towards ensuring that all support services for the oil and gas industry take place in Guyana to ensure investments and jobs for Guyanese, and to this end, are in agreement that an on-shore supply base is an imperative. ExxonMobil and the other international operators share this belief as well. The exact location has not yet been settled and arrangements are being made to formally approach an international institution to conduct the necessary studies to answer the questions of what type of on-shore base Guyana will need, where it should best be located and how the corporate and financial structures should be configured. The students and young people of Guyana are reminded of government’s promise to seek the best advice that is available locally and internationally to guide its decision-making.
On the wider issues of the contractual arrangements with ExxonMobil, it is reiterated that the APNU+AFC government on taking office met an agreement that was signed in 1999, and based on advice received, chose not to make any fundamental changes and disclosures to, and about, the agreement and to respect its terms. Further, since taking office, the government has issued no new prospecting licenses for the areas referred to in the letter as these were pre-existing concessions to companies that remain in force.
The Minister of Natural Resources intends to meet with students again, and to continue to share perspectives on the developing oil and gas industry. The students who penned the letter will be contacted directly. Further, the national outreach exercise, which commenced at the University of Guyana’s Turkeyen Campus, is presently on-going and the University and other institutions will continue to receive special attention as we proceed to prepare for first oil in 2020.
N. Johann Earle
Public Affairs and Communications Officer
Ministry of Natural Resources

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