…as President promises robust institutional, legal architecture to manage petroleum sector

By Lisa Hamilton

GUYANA is “open for business” and welcomes all investors interested in helping the country achieve its objective of becoming an oil-producing nation, which is consciously transitioning into a ‘green’ economy for sustainable development.

This was the central message to the over 600 delegates and some 200 oil and gas companies that attending the Second Annual Guyana International Petroleum Business Summit and Exhibition (GIPEX) at the Marriott Hotel on Wednesday. The three-day event is organised by UK-based Valiant Business Media in collaboration with the Department of Energy (DOE), Ministry of the Presidency and with support from Guyana Office for Investment (GO-Invest).

Several representatives from amongst these stakeholders participated in the opening ceremony. Addresses were delivered by President David Granger, Director, Department of Energy, Dr Mark Bynoe and representatives of ExxonMobil, GO-Invest and more. In a video message to the audience, President David Granger welcomed the participants, indicating that the summit and exhibition are testimony to the country’s interest in the developing petroleum industry. He said that despite Guyana’s exciting future in oil, its Green State Development Strategy (GSDS): Vision 2040 remains the country’s development roadmap for the next 20 years.

He told attendees that it is through the strategy that Guyanese will be guaranteed a good quality of life through low-carbon and resilient development; new economic opportunities; education; social protection; justice and political empowerment. This apart, he acknowledged that Guyana is developing a robust petroleum industry which will be used to strengthen the traditional pillars of the economy and impact other areas in need of improvement. “Guyana is being prudent about managing its incipient petroleum industry. It is seeking the best advice and assistance and adopting the best international industry practices. It will establish a robust institutional legal and regulatory architecture to manage this industry in a manner which will ensure transparency, and which will secure [the] best interests of the country and fair returns for investors and businesses,” the Guyanese leader said.

Newer forms of energy
Meanwhile, Dr Bynoe said that through rent-capture, knowledge transfers and technological advances, Guyana aims to transition to safer, reliable, more affordable, sustainable and newer forms of energy. Even as the wider industry is being challenged to develop creative solutions for renewable energy transitioning, the director of energy said that Guyana, as one of the newest entries into the industry, is best positioned to capitalise on the same.

He addressed too, the importance of the GSDS to Guyana and the world at large, stating: “We all need to work together to reduce our carbon footprint, inclusive of utilising such techniques as carbon-capture; utilisation and storage; minimising methane emissions during the production process of natural gas; and following extraction methods that are environmentally sustainable, socially palatable and economically viable.” Additionally, he assured attendees that Guyana will continue to seek out best practices in the industry, as it builds out its own regulatory framework.

The DoE is also conscious of other factors which will assure success, such as the completion of the revised legislative framework for the sector; a new product-sharing contract template; completion of 2D & 3D seismic surveys; finalisation of its local content policy; completion of its Natural Resource Fund framework; completion of its National Oil Spill Contingency Plan and building capacity.

Dr Bynoe said: “For us in Guyana, today marks the continuation of a journey where we learn to look through the eyes of others; to continue our shared experiences; and to extend a hand of friendship, while simultaneously seeking like-minded partners. For the first time, Guyana has an opportunity for true self-determination.”

Also addressing the large audience, Chief Executive Officer (CEO) of GO-Invest Owen Verwey said that GIPEX 2019 follows the successful Inaugural GIPEX 2018, which is evidence that the event has become a major landmark of the local oil and gas industry.

Verwey said that GIPEX will ultimately lead to the formulation of recommendations and feasible solutions which encourage investment, while opportunities exist for the transfer of advanced technology to the markets. He assured attendees that local businesses are looking forward to the interactions and possible joint ventures that can emerge to the benefit of both local and international parties.

“GO-Invest encourages the new ventures to consider the local content and local benefit in the business-development process. It is a great source of quickly acquiring local knowledge, avoiding the usual and unusual business development challenges, and will ensure the locals benefit from the economic success that is to come,” the CEO said.

“Guyana is open for business and GO-Invest is here to support your business-development activities that are within the realm of its mandate and capabilities.”

In the keynote address, Senior Vice-president of Upstream Oil and Gas Deep Water at ExxonMobil, Hunter Farris, said that it took 16 years, characterised by a number of challenges before Exxon and its partners could drill a successful well and efforts have already begun to pay off.

Some of the challenges he noted were border controversies to the west and east and the need for advancements in drilling technology, given the water-depth. However, he described the feeling of Exxon and all of Guyana in wait of ‘first oil’ as similar to graduating from university or arriving at the top of a mountain after a long journey.
He assured: “What I’d like to talk to you about today is that we are here to partner with Guyana and its people to develop its oil and gas resources in a responsible and mutually beneficial way; it’s a relationship for the long term and for decades to come.” In attendance too at GIPEX 2019 were Prime Minister and First Vice-President, Moses Nagamootoo; Ministers of Government; members of the National Assembly; members of the diplomatic corps and heads of ministries, departments and agencies. The Prime Minister, Dr Bynoe and other ministers and government representatives participated in a ribbon-cutting and official tour of the expo after the opening ceremony. There were some 100 companies on exhibition, ranging from start-ups to large companies set up in the large parking lot of the hotel.