Guyana should be partner on oil projects to keep watch on costs

Guyana should be partner on oil projects to keep watch on costs – Suriname’s Oil Boss

Feb 05, 2021 News

By Kiana Wilburg

Managing Director of Staatsolie, Rudolf Elias.

Kaieteur News – Considering the significant benefits Suriname has reaped from choosing to be a partner on all producing projects in its offshore basin, Managing Director of Staatsolie, Suriname’s national oil and gas company, Mr. Rudolf Elias, is of the firm conviction that Guyana should give due consideration to adopting a similar approach.
The official made this and other disclosures during an exclusive interview on Kaieteur Radio’s programme, Guyana’s Oil and You. Elias was asked to provide some insight into the Surinamese experience in being a partner with oil companies that are interested in developing discoveries. He was quick to note that the benefits, particularly as it relates to monitoring costs to be incurred, provide a strong case for countries to have a seat at the table.
During the virtual interview, Elias said, “It is critical to have a seat at the table because you get to have someone who is part of the project team and who will know firsthand what are the costs…and we know there is a transparent process they will go through because we are at the table. They can’t inflate because we are there to see it and that is why I say Staatsolie should always have a seat at the table, because we want to know the costs of the different projects because it is the basis for the inflow the government will have.”
Elias said that this very reasoning underscores the need to have a National Oil Company (NOC) with knowledgeable individuals who can be a partner of choice for “the ExxonMobils, the Totals and the Tullows of the industry.” He added, “The NOC is critical so you can partner with them and talk with them on equal terms and if they want to do ‘A’ you can challenge them. Why do you want to do A? Why not B? We can look out for our own interest to ensure the people of Suriname prosper; the people who should get the most out of it are the people of Suriname.”
Considering these and other benefits, the Managing Director shared that Guyana would be wise to establish a national oil company that will be a partner of the people and be part of the oil projects offshore. Should the government move in this direction, he advocated the need for proper capacity building. He said this cannot be done in Government Ministries and Institutions alone.
The Managing Director stressed that the capacity to address commercial aspects of the oil industry must not be overlooked. Elias said, “The basis of dealing with the oil companies should always be commercial because at the end of the day, we must ensure that we get as much money as practically possible for the people; and the government should have policies guiding spending.”
He concluded, “Guyana should start building knowledge for a NOC because when you start building capacity you make better deals with the international oil companies and you are able to better understand what they are doing.”

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