Guyana should set up National Oil Company to penetrate veils of distrust

Dec 24, 2021 News

…create more win-win opportunities –former Staatsolie Boss

Kaieteur News – If Guyanese authorities are desirous of strengthening the State’s oversight as well as its position as leader of its oil industry, then a National Oil Company (NOC) is the way to go, says former Head of Suriname’s NOC, Staatsolie, Mr. Rudolf Elias.

Former Head of Staatsolie, Rudolf Elias

During a recent interview on Kaieteur Radio, Elias said, “I think the most important thing that Guyana should do is it should open a National Oil Company. This is not because I was the Chief Executive Officer of one but I worked there for so long and I saw the power and knowledge it afforded Suriname.”
Elias also shared his belief that a NOC would allow Guyana ample opportunities to attract its brightest minds in the Diaspora and have them serve under one roof. In streamlining universities to train persons to address gaps in the exploration, development and production cycles of the industry, Elias said this would also fortify the knowledge base needed for the NOC.
“So if you combine all this knowledge, suddenly, you will see that you have a very solid foundation,” expressed the former CEO.
He shared as well, that in having a NOC, it allows Guyana to participate in the day-to-day activities of the block. He said, in other words Guyana would essentially have a seat at the table with ExxonMobil and all other oil companies operating in its basin and would therefore have a firsthand view of how they work.
“If you understand better how they work, you would also understand better how you can approach them and how you can get the best out of what you have as a country. With participation in your own oil fields, you don’t only get knowledge from the oil companies from across the world but you now also get knowledge of the oil industry in your own country. So now you know exactly what the costs are and what the benefits are because you are participating.”
He added, “So every penny that is spent you know, every contract that goes out you have to pre-approve together with your partners so you understand a lot better what is going on and when you understand each other a lot better you make better marriages…you can make better contracts. Also for Guyana, there is no distrust anymore and you can create more win-win situations.”
He stressed that the foregoing, and more, are all possible benefits when a country has a National Oil Company.