Oil & gas sector must fuel inter-generational wealth for Guyanese – Ali

…as Saipem Guyana’s offshore construction facility opens

The opportunities that come with the oil and gas sector must go deep enough to fuel inter-generational wealth for Guyanese. This is according to President Dr Irfaan Ali, as he urged Guyanese to be bold in seizing opportunities when they become available.
During the opening ceremony for Saipem’s offshore construction facility on Water Street, Georgetown, on Saturday, the President stressed the importance of inter-generational wealth as an aspect of local content that must be created.
“I would like to see (inter) generational wealth being created. Not only jobs. How do we create a thousand new entrepreneurs? How do we create opportunity that has generational wealth? Old Guyana and old investors here, show us with limited resources how they would have gone about it. How do we give that opportunity for (inter) generational wealth creation?”

“And I’m not asking only for that opportunity in oil and gas. I’m saying to us Guyanese that that opportunity can only be created if we use the resources from this sector to open up and strengthen other aspects of the economy. Whether its agro-processing, mining, rental or owning hotels.”
According to the President, this is what the Local Content Policy makes quite clear and aims to provide to Guyana, by paving the way for Guyanese to receive work as long as they have the capacity. And he reiterated calls for the Private Sector to come together and consider joint ventures.
The Private Sector, the Head of State said, needs to come together, “build synergy. Build consortiums. Go after the opportunity so you give us something to fight for you for… we have to think bold. What are we doing, to ensure we go after some? So, the concept of (inter) generational wealth is important. How do we find opportunities for the creation of (inter) generational wealth?”
“Leveraging is another concept. This sector gives us an opportunity to leverage ourselves in many other areas. For example, the gas-to-shore project. It’s not only going to cut electricity costs by 50 per cent. It’s going to migrate manufacturing and industrial development to Guyana. That brings the whole fabrication industry with it.”
Saipem is an Italian-owned company that was awarded contracts by ExxonMobil to develop its Liza Phase 2 since 2018. The company is providing a number of services, including engineering and construction services.

Facility
In his address, Saipem’s President and Chief Executive Officer Giorgio Martelli spoke of the importance of the facility being opened. He explained that the facility will be fabricating subsea jumpers, which is piping that connects subsea installations.
“We believe in organic growth. We believe in a step by step (process). And this fabrication yard is giving us this chance, because we work in 60 countries. We’ve done a lot of oil and gas developments. And fabrication is the one we have chosen to drastically increase the level of contribution from the local industry,” he explained.
“We’ve basically been entrusted by ExxonMobil and we need to thank them for giving us such a big baton and we have to carry it… this fabrication yard will basically be pumping out eight jumpers every month in a limited sized facility. It’s a feat of organisation, skill, symmetry and planning.”
Back in May 2019, EEPGL was granted approval by the Environmental Protection Agency (EPA) to go ahead with its Liza Phase 2 Development offshore Guyana. The oil company had said that the project will have the capacity to produce 220,000 barrels of oil per day.
Exxon had also revealed that the Liza Phase 2 development was funded at the cost of some US$6 billion, including a lease capitalisation cost of approximately $1.6 billion, for the Liza Utility floating production, storage and offloading (FPSO) vessel.
For the Phase 2 Development, six drill centres are planned, along with approximately 30 wells – 15 production, nine water injection and six gas injection wells.