Guyana – ‘not a one hit wonder” following another major oil find
Guyana’s fragile economy could be on the verge of taking off with the yet another world-class oil discovery in waters just off the coast of the South American nation.
Guyana, is the only English speaking country on the northeastern shoulder of the South American continent and players in the energy sector around the world are keeping close watch on the latest developments.
Last week, news emerged that the ExxonMobil affiliate – Esso Exploration and Production Guyana Limited, encountered more than 95 feet of high quality, oil bearing sandstone reservoirs that was drilled to 18,080 feet in over 6,000 feet of water.
In welcoming this latest discovery, Natural Resources Minister Raphael Trotman said this only confirms that Guyana is more than a “one hit wonder” and the country remains on target for oil production in 2020.
The oil was discovered in the Payara field, about 10 miles northwest of the 2015 Liza discovery and is the second oil discovery offshore Guyana.
“I believe that we can confirm that the basin is an active one that shows potential for more discoveries,” said Trotman, adding that “Whether they would be very large or not is a matter that we need to wait to see, but I think we can now say that we’re heading into an oil and gas industry.”
He said this new discovery, will change the worldview on Guyana.
Meanwhile, the government is now working on establishing a Petroleum Directorate that will come on stream during the first quarter of 2017.
According to Trotman, the Directorate will follow international models, which separate policy development from regulation monitoring.
The government has allocated GUY$200.7 million in this year’s budget for petroleum.
The oil and gas sector is new to Guyana and President David Granger is taking all the necessary precautions.
According to Granger, now, more than ever, his country has to move swiftly to protect itself against the persistent claims of neighbouring Venezuela.
Granger says Guyana must protect its wealth and ensure that investors in the budding oil industry are secure with their investment.
But Guyana will not be entering into unchartered waters on her own. The country will have the support of its oil rich neighbor – Trinidad and Tobago.
During a visit to Guyana last year, Trinidad and Tobago’s Energy Minister Nicole Olivierre said both countries will enter into a formal agreement for technical assistance in the development of the oil and gas sector.
