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Rapid growth requires strong institutions to manage transformation – EU Ambassador
Kaieteur News- The European Union (EU) Ambassador to Guyana, René Van Nes, has underscored the need for strong institutions to effectively manage the country’s rapid economic transformation.
Since the discovery of significant oil and gas reserves offshore in 2015, Guyana has experienced an unprecedented economic transformation. The country’s Gross Domestic Product (GDP) has skyrocketed, due to oil production, which has attracted foreign investment.
Speaking on the Energy Perspectives Podcast, Ambassador Van Nes commended Guyana’s progress while highlighting areas requiring focus to ensure long-term growth.
“Guyana’s investment climate benefits from its vast natural resources oil, gas, forests, and biodiversity,” the Ambassador noted.
He added that the government has a clear plan, such as the Low Carbon Development Strategy (LCDS) and has shown strong leadership in translating these plans into action.
However, he underscored that there are challenges.
“Rapid growth requires strong institutions to manage this transformation effectively. Building solid institutions is crucial to sustaining long-term growth,” Van Nes stated.
He continued, “The government is making significant efforts to strengthen these systems, ensuring the country is prepared for future opportunities.”
European Union (EU) Ambassador to Guyana, René Van Nes
Guyana is now one of the world’s fastest-growing economies and is set to become a key player in the global energy market. Oil is being produced from the Stabroek Block, which covers an area of approximately 6.6 million acres. It is estimated to hold 11.6 billion barrels of oil.
American oil giant, ExxonMobil is the operator of the block and is partnered with Hess and CNOOC to develop the Stabroek Block resources. The first three projects – Liza Phase 1, Liza Phase 2 and Payara are averaging more than 650,000 barrels of oil per day (bpd) in production. The ExxonMobil-led consortium has plans in place to grow production capacity to more than 1.3 million bpd by the end of 2027, when they anticipate having all six projects up and running offshore. This will include the addition of the Yellowtail, Uaru and Whiptail projects.
During the interview, Ambassador Van Nes was asked about the European market’s role in purchasing Guyana’s oil and gas since the industry’s emergence.
The Ambassador confirmed that Guyana sells its oil on the spot market, meaning there are no long-term contracts, which makes tracking buyers more difficult.
He said, “However, in 2023, about half of Guyana’s oil was bought by the European Union. This interest stems partly from Europe’s efforts to reduce dependency on Russian oil and gas. Guyana, as a trusted supplier, has become an attractive source for European buyers.”
(Rapid growth requires strong institutions to manage transformation – EU Ambassador)
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