Guyana’s oil success hinges on well managed natural resource fund, robust local content policy– Energy Chamber President

May 08, 2019 News

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By Kiana Wilburg
Guyana’s success with the oil and gas industry will be determined by a few key factors. According to

President of the Guyana Oil and Gas Energy Chamber (GOGEC), Manniram Prashad, these elements are a well-managed Natural Resource Fund, an impartial Petroleum Commission and a robust Local Content policy to benefit all Guyanese.
Prashad made these remarks at the opening of the Offshore Technology Conference (OTC). The event is being held from May 6 to 9 in Houston, Texas, and Guyana is being represented with a government-private sector contingent.
The Offshore Technology Conference is an event where energy professionals meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources and environmental matters.
Celebrating 50 years since 1969, OTC’s flagship conference is held annually at NRG Park (formerly Reliant Park) in Houston.
At the conference, the official said that the addition of oil to Guyana’s economy is certainly the rising tide needed to lift all economic sectors. He stressed, however, that all must be cognizant of the crude realities of the resource curse and focus as a collective on the management of the windfall that will soon accrue.
It is on this background that Prashad reflected, the Energy Chamber over the years has publicly stressed the importance of building a strong framework for the oil sector. With the crucial factors he mentioned, along with stakeholder participation, Prashad expressed confidence that Guyana will attain unprecedented and sustained socioeconomic development.
He also made reference to the fact that Guyana is already on a commendable growth trajectory. In this regard, Prashad highlighted that Guyana is one of the few countries in Latin America and the Caribbean that has been growing positively over the years. He pointed out, as well, that Guyana’s growth rate of 4.1 percent during 2018 is quite remarkable in comparison to the average of 1.1 percent in the region.
The Energy President said that much of this growth, however, was concentrated in the areas of construction and the services sector specifically, real estate services, wholesale and retail trade and financial and insurance activities. Prashad said that most of the nation’s traditional sectors and manufacturing have recorded positive growth figures too while noting that much is still demanded from these sectors.
The Energy Chamber President said that undoubtedly, Guyana’s economic health will improve drastically in the short and medium terms as oil production is slated to commence in a matter of months. He commented that factors intrinsic to the economy will evolve, thereby changing the nation’s structural dynamics through massive immigration and entrants to Guyana’s market along with rampant training and development in the area of oil and gas.
Already, Prashad said, the authorities are seeing significant flows of foreign direct investments to the nation’s shores thus improving its external accounts whilst stimulating the economy. Along these lines, the Energy Chamber President said that conservative projections of economic growth have placed Guyana amongst the wealthiest nations per capita with at least double digit growth rates soaring as high as 28 percent within the next five years.
The official said, “Definitely, the local private sector is cognizant of these facts. Businesses are forming, expanding, learning and building capabilities necessary for the unimaginable amount of prosperity that will flow. Let alone investments, specifically geared for oil and gas servicing, our businesses in agriculture, manufacturing, tourism, to name a few, are positioning themselves to take advantage of the massively increasing demands as potential and committed investors along with employees and other experts flood our shores.”
Further to this, Prashad said that the Oil and Gas Chamber realises the need for critical investments in the social and physical infrastructure to advance the country. With the expected improvements in the transport infrastructures, investments to realize cheaper and reliable energy especially for manufacturing and value adding, investments in human capital and modernization of the regulatory and legal systems to boost efficiency, Prashad said that the Chamber foresees an investment haven, an ideal destination to do business.
In addition to this, he noted that the essence for being a preferred investment destination lies in clarity and predictability of a country’s policies.
On that note, he concluded, “We believe that through this inclusionary democracy, stakeholders will be able to assist our government to calibrate policies, programmes and projects that would be in the best interest of all.”

 

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