Bank of Montreal advises Guyana on oil, gas industry

The Bank of Montreal is the latest international organisation to provide assistance for the development of Guyana’s oil and gas industry. The Bank delivered a presentation on the possible financial impacts of the promising industry to members of the subcommittee on oil and gas and stakeholder Ministers on Wednesday at the Marriott Hotel, Georgetown.

According to Natural Resources Minister Raphael Trotman, the Bank of Montreal had reached out to Guyana because, “Guyana’s find of oil is considered one of the best in the world right now.”

“The Bank of Montreal had reached out to Guyana about two months ago asking to be able to give a presentation on the financial side of the oil and gas industry, the ups and downs of the market, financial services that are available,” Trotman said.

This year, ExxonMobil’s Liza-2 offshore exploration found high propensity sandstone reservoirs that could produce more than 1.4 billion barrels of recoverable high quality oil. It is estimated that within the next five to seven years Guyana could begin producing this oil. Since the discovery, several other organisations and countries, including the US and Norway have offered their assistance to Guyana towards the development of an effective oil and gas industry.

Trotman, who has oversight responsibility for the natural resources sector, said a number of initiatives will be unfolding. “Next month we’re going to be having a workshop on the financial part of it and so developments are taking place, we are working in finalising legislation and honing our efforts,” the Minister said.

According to Trotman, the Government is also working to ensure that when the industry comes on board, it honours its social responsibility. “The Ministry is also developing a corporate social responsibility programme which will look at leadership and mentoring for youth so that the idea is to prepare and present a next generation of leaders for Guyana,” Minister Trotman said.

Guyana has been receiving sustained international attention from huge companies, especially in the oil sector. The US Geological Survey said in 2000 that the Guyana-Suriname Basin has the second largest unexplored oil potential in the world after Greenland. Guyana first struck oil in the 1980s in the Takutu Basin and there is much optimism that oil will be found in commercial quantities. ExxonMobil has joined other investors such as CGX Energy, Repsol, Anadarko Guyana Co, and Nabi Oil and Gas in exploring oil in Guyana’s offshore Atlantic basin.