Oil will bring opportunities, development – Govt to Lindeners

residents of Linden and the surrounding Region 10 (Upper Demerara-Berbice) communities were treated to promises that with the future revenues from oil, benefits such as a road from Linden to Lethem and construction of bridges and ports will be some of the benefits they will receive.

Natural Resources Minister Raphael Trotman, was at the time speaking during a meeting with stakeholders at the Mackenzie High School earlier in the week. He was accompanied by several Ministry officials.

He also told them of the impending construction of a local supply base, which will cater for the wells being drilled. He said Government is looking at sites between Essequibo and Berbice. It is understood that a feasibility study, as well as social and environmental impact assessments still have to be done on the site previously mentioned, Crab Island.

The construction of the base, he noted, will create many spin-off jobs for caterers, truck drivers, labourers, machine operators and more. He emphasised that Government will do all that it can to ensure that Guyanese benefit as much as possible from the oil and gas revenues.

Last year, the Natural Resources Ministry signed a contract with SBM Offshore NV for a Floating Production, Storage and Offloading (FPSO) facility to be constructed. This is with an eye to 2020, when Guyana is likely to commence oil production. It had been announced that it would be constructed this year.

The onshore facility is expected to supply components to the offshore production vessel. At a recent oil and gas meeting with Minister Trotman, Director of oil and gas at Ernst and Young, Christ Pateman said the supply base must consist of components including the maintenance fabrications, warehousing, spares, housing, and spares handling among others.

Speaking about the progress of Guyana’s burgeoning oil sector, Trotman promised that there would be a strong focus on developing infrastructure. He cited a few “stand out” projects.

“One of them is a road from Lethem to Linden; second is the bridging of the Essequibo River at Kurupukari, and we also have to have a port more than likely somewhere in the Essequibo River,” Trotman said.

“We anticipate that we will have a major hydro-power project and perhaps one other to supplement the major project. We would like to ensure that two and 300 years from now, Guyanese can benefit from this revenue, and that we don’t try to spend it all in 20 or 25 years.”

Trotman also said that the Sovereign Wealth Fund would provide for budgetary support.

“For example, you declare a $200 billion budget for a year and there has been a flood or some other situation you did not anticipate, you may be able to enter the fund and to bring you back to the $200 billion.”

Trotman reminded the residents that oil is a non-renewable resource, hence there is need to be careful when spending what income will be earned from the sector. He stated that Government will spend a lot on social programmes such as healthcare and education, promising that Guyanese “will all have the best health care that is available in any part of the world.”

Speaking on the environment, the Minister noted that this will also be catered for.

“The Environmental Protection Act does provide for an Environmental Trust Fund so we are going to ensure that a percentage of the revenue goes into that fund each year, and lastly, we want to ensure that every region gets a percentage; regions and citizens will be guaranteed by law a percentage of the revenue, so it should not matter who is in Government or who is the President or Minister.”