PSC urges transparency, good governance in oil sector

GIPEX 2018 opening 

– President a no-show, Trotman fills in

As the first-ever oil summit and exhibition was launched on Wednesday, the Private Sector Commission (PSC) spared no effort in reminding Government of the need to be transparent in its work especially, as it relates to the oil and gas industry as it called for the establishment of a good governance system to oversee the sector.
In delivering his address, PSC Chairman Eddie Boyer urged that the Government ensure there were a well-managed Sovereign Wealth Fund and a transparent Petroleum Commission. Boyer said that the PSC has been paying keen attention to the sector and would play a large part in its development.

The PSC Head said his organisation would like to see stability of Guyana as a democracy “and our interest in the oil and gas sector maintained with clear frameworks of sector development, strong local content policy and a well-managed Sovereign Wealth Fund”.
Boyer declared, “The Guyanese business community, though inexperienced, is not sleeping. We are aware of the developments and we are educating and informing ourselves about this new sector to grasp every opportunity. We will continue to expand on that in the coming months.”
He also used the opportunity to encourage the several hundred delegates attending the conference, to see Guyana as an investment opportunity not only in oil and gas but in other critical sectors.
In her remarks, Guyana Office for Investment (GO-Invest) Chairperson Patricia Bacchus urged investors to cultivate strong business relations with the view of tapping into the oil and gas industry.
“This forum is also critical to the development of meaningful sector and cross-sector relationships, as it provides the opportunity for networking among those involved in oil and gas, and those involved in the provision of related products and services,” she explained.

Similarly, for participants, especially Guyanese participants interested in operating in this new sector, Bacchus said they would benefit from relevant expert presentations through which insight into the sector’s best practices could be gained and then subsequently manifested in the way business is done here.
While noting that Guyana has recorded stable macro-economic growth over the last eight years, she also pointed out that there has always been a dire need to diversify the economic base.
“The advent of the oil and gas sector is, therefore, regarded as a significant step in the country’s economic diversification efforts, and we hope that it is the springboard through which wider economic diversification can be facilitated,” she added.
The GO-Invest Chair said though Guyana, with its young economy, provided immense opportunities for investors, and she urged all the participants to view the gaps in the economic activities not as shortcomings but as opportunities. “GIPEX provides a forum through which the emerging oil and gas sector can be carefully explored, with a view to determining the various economic opportunities along the value chain, which are ripe for investment.”

No-show
Meanwhile, Natural Resources Minister Raphael Trotman delivered the keynote address although President David Granger was listed to deliver the address. Prior to that Foreign Affairs Minister Carl Greenidge gave brief remarks. While a few Cabinet Ministers were present, the President was notably absent.
No reason or explanation was given for the President’s absence at such an important national event, which was heavily promoted by the Government.
Trotman told the opening that while Guyana’s Gross Domestic Product (GDP) is relatively low, he also believes in the predictions made by leading global economists that there will be growth of 2000 per cent within two decades.
“At this juncture in our national development, being at a place where we will travel on a fast and furious trajectory, we don’t want simply to be known as an oil-producing nation, but rather as a country that took its resources and revenues – and used them to fashion and carve a nation that is geographically and strategically positioned to produce the food required for the 48 million people who are projected to live in the Caribbean by 2050 – just over 30 years from now. And that’s just the projected context.”
Trotman said the wave of investment in all kinds of sectors had already begun and the evidence was everywhere. “In boardrooms across the world, Guyana is the talking point as the place to be.
“My humble word of advice to local entrepreneurs is to be prepared for a level of investment and hive of business activity that is unprecedented. Upgrade your skills and knowledge, improve the standards of your business, form alliances and partnerships, get ready to compete with the best for they are already here on your doorstep.”
The inaugural Guyana International Petroleum Exhibition and Summit (GIPEX) has attracted local and international business executives and operators in the oil and gas and ancillary services sectors. These groups and individuals will have the chance not only to network and form alliances, but also to build capacity through the sharing of expertise and experiences as the country gears for oil production.
The 300-plus delegates and more than 100 companies have much to expect from the activities on the agenda for the balance of the summit. About 57 per cent of the companies that supported GIPEX 2018 are young Guyanese companies.