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Approval of Oil Field Development Plans gives Guyana room to reclaim lost value – T&T Expert, Anthony Paul
By Kiana Wilburg
Guyana’s Production Sharing Agreements (PSAs) with industry majors like ExxonMobil and Tullow Oil have been heavily criticized for their gaping loopholes that allow for significant revenue loss to the State.
But Local Content Expert and Energy Advisor, Anthony Paul says, “All is not lost!”
During his guest appearance last week on Kaieteur Radio’s Guyana’s Oil and You Programme, Paul said that the authorities have enough mechanisms in place to claw back some of the value lost through the deals that have been deemed as lopsided. One of these mechanisms he said is the approval the companies would need in order to go ahead with developing oil fields offshore.
Oil and Gas Expert, Anthony Paul
The Trinidadian said, “Guyana is making discovery after discovery. And each oil field has to be developed by the operator. But the company has to submit a plan on how it will go about doing this. This plan requires approval from government. Now that approval process allows the Government of Guyana to pause the clock and say, ‘Let’s think about this and see how we do this in Guyana’s best interest.”
Paul added, “So my view is that despite all the skepticism, Guyana has mechanisms in place to claw back some of the value from some of the deals that have been criticized for not being the best.”
In the existing discoveries such as the 14 made in the Stabroek Block by ExxonMobil, Paul said Guyana can ensure it ramps up the existing benefits by looking at local content. In doing so, he advised that the authorities monitor and record not just the volume, but also the value of the projects being awarded to local businesses and the salary being earning by those working in the sector.
This, he said, takes skillful leadership and commitment. But more importantly, Paul said it requires that all Guyanese understand the industry and all that can be possible from the effective management of it.
“It is easy to bash government but sometimes it is only doing what it can while working with limitations…Sometimes bad decisions are often made through innocence and Guyanese can help the government in this regard by bringing their voices and skills to help the government in the work it is doing.”
By the same token, the Energy Advisor said that the government has a responsibility to be open to advice and understand that all criticism is not negative but rather, an alternative view. Further, Paul stressed that the government must also lend support to those trying to assist by giving them information they can use.
“At the end of the day, the people who are criticizing are Guyanese. They are the owners of the resource and the government is managing based on their behalf. Both sides have to work together in order for oil to be a success,” the Trinidadian Expert concluded.
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