Middle East

Guyana is an oil investment

Guyana President Irfaan Ali argued on Tuesday that his country’s right to develop the oil industry for residents, claiming that local goods and service requirements were not intended to thwart foreign investment. Defended.

The series of discoveries off the coast is on the verge of transforming a small South American country into an oil powerhouse. International producers, led by Exxon Mobil Corp, have discovered more than 10 billion barrels of recoverable oil and gas ready to reshape a poor country with less than 800,000 people.

“We welcome Exxon. We welcome investment,” Ali said at the launch of the week-long Energy Council. “To benefit people, we need to incorporate regional growth and productivity gains into our systems.”

There is a growing call on the government to secure the concrete interests of its citizens. In one example, authorities are considering exploring new areas for state-owned oil companies, rather than holding auctions to attract outside investors.

In a turbulent session of parliament in December, a bill was passed requiring 5% to 100% of the content of energy projects to come from activities by local contractors and licensees.

More development

Darren Woods, CEO of Exxon, said Guyana has potential, as oil companies pursue new offshore regions and use gas from offshore fields to develop the country’s electricity supply. Showed interest in.

Exxon-led Hess-CNOOC consortium could expand oil production to 1 million barrels per day by the end of the decade, Woods said of oil services companies Baker Hughes, SBM Offshore and TechnipFMC. Speaking to a group that includes executives from.

“Additional exploration could offer more development opportunities elsewhere in the offshore basin,” Woods said.

Exxon’s separate gas-to-electricity project with the government could lower the country’s electricity costs, he said.

At the end of last year, Exxon outlined a land supply base that is expected to expand employment and boost local production, starting with a fourth production unit. This project has the potential to bring the total investment in Guyana to $ 30 billion.

Political hurdle

Energy projects often take longer to develop than the government’s term, and a change of government can lead to confusion, said Johan Sydney, project manager at Hope Energy Development, which develops 25 MW wind energy projects in the country. Says. He is backed by the World Bank.

“Many projects will end when the government changes,” Sido said. “We encountered bureaucratic formalism. We are in a government plan, but we don’t know when it will move forward,” he added.

“Everyone is involved. The community is very small and (and) you are always two steps away from politicians,” Sidow said.

(Report by Sabrina Valle, Written by Marianna Paraga, Edited by Margherita Choi)


Related:

https://www.oedigital.com/news/494364-guyana-pledges-to-balance-oil-investment-with-residents-economic-welfare Guyana is an oil investment

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