Local Private Sector must tap into massive opportunities in oil and gas – GOGEC President

On the heels of Guyana signing one of its largest investment deals ever in the US$9 billion Payara Development Project, Guyana Oil and Gas Energy Chamber (GOGEC) President Manniram Prashad is urging the local Private Sector to tap into the massive opportunities that will come on stream as the oil and gas sector further developed here.

“The onus now is on … the Guyana Private Sector to grasp these massive opportunities that are and will soon be available,” Prashad said in a statement on Thursday.
The GOGEC President congratulated the Guyana Government and ExxonMobil on the signing of the Petroleum Permit for the Payara Project, which paves the way forward. Payara is the third project in the Stabroek Block and is expected to produce up to 220,000 barrels of oil per day after start-up in 2024, via the Prosperity Floating Production, Storage and Offloading (FPSO) vessel.
“During this period and up to 2024, there will be significant increase in the demand for goods and services to sustain this level of operation which will have at least 10 Drill Centres that will be used to establish 41 wells which will include 20 production and 21 injection wells. Guyana needs to position itself to gain a significant portion of this US$9 billion investment that relates to the provision of goods and services,” Prashad asserted.
Only recently, Natural Resources Minister Vickram Bharrat disclosed that Guyana was expected to benefit from some $7.4 trillion for the 20-year lifespan of the Payara Development Project.
To this end, the GOGEC Head is now urging the Local Content Policy Committee to step up and establish a favourable Local Content Policy so that Guyanese businesses can benefit from this massive investment.
The new People’s Progressive Party/Civic (PPP/C) Government has established a Local Content Advisory Panel to undertake a review of all existing initiatives and policies relating to local content in the petroleum sector and to provide guidance for the development of Guyana’s Local Content Policy and legislation. The Panel is expected to submit a report and recommendations by November 2020.
Meanwhile, Prashad also called for the Government to create an environment that would encourage local direct investment.
“GOGEC is also calling on the Government of Guyana to fast-track all pending requests and applications for land and concessions from established and legitimate local businesses that want to establish new or expand existing facilities to provide services directly and indirectly for the oil and gas sector,” Prashad stated.
The GOGEC President also lauded the Guyana Government, particularly the natural resources team, for expeditiously reviewing the Payara Project submission as well as addressing the environmental and other concerns in favour of Guyana.
Prashad specifically highlighted that the revised agreement would bring a halt to lengthy flaring of gas and the discharge of produced water into the Atlantic Ocean.
With the revised agreement, ExxonMobil will have to pay the Guyana Government for the gas that it flares for prolonged periods. Additionally, any flaring will have to be done with permission from the Guyana Environmental Protection Agency (EPA). Further, the revised agreement creates the avenue for more transparency and accountability as it relates to the costs build-up.