By Kesi Henry
GEORGETOWN, Guyana – With three Floating, Production, Storage and Offloading (FPSO) vessels operating in the Stabroek Block, a comprehensive Low Carbon Development Strategy (LCDS) 2030 unfolding countrywide, and efforts to revitalise and better monitor mining activities, the government is crafting a resilient economy.
From August 2023, concerted initiatives in the natural resources sector have reaped tremendous results in the spheres of low carbon development, oil and gas, as well as mining and logging.
Oil and Gas
The Petroleum Activities Bill was passed in the National Assembly on August 10, 2023, marking yet another significant milestone in the sector’s development.
That bill replaced the Petroleum (Exploration and Production) Act Cap. 65:04 and the Petroleum (Production) Act Cap 65:05, both passed in 1986.
This act has intensified regulation on the exploration, production, storage, and transportation of petroleum in Guyana. The act also greenlights the construction of an oil refinery in Guyana.
“These are some of the safeguards, some of the mechanisms that we put in place to manage the sector, because we know that this sector is important and must be managed properly, otherwise we can go down the road like many other oil producing countries,” minister of natural resources, Vickram Bharrat said during his defence of the bill in the National Assembly.
The government has also been keen on exploring avenues for the monetisation of natural gas to trigger sustainable economic growth.
In October 2023, the ministry of natural resources initiated a public consultation for Guyana’s gas monetisation strategy.
This strategy will provide an expansive roadmap for the utilisation of the country’s oil and gas resources, and includes the government’s plan to generate cheaper electricity.
The draft strategy lists various monetisation options, such as using natural gas for power generation and producing methanol, liquefied natural gas (LNG), ammonia/urea, and blue ammonia/hydrogen.
By leveraging its gas resources, Guyana aims to power industrial development and reduce reliance on fossil fuels.
Concurrently, the government is also implementing measures to promote local participation in the oil sector.
This dual-pronged strategy seeks to maximise the economic benefits of Guyana’s natural resources, while fostering a more equitable distribution of wealth within the nation.
In September 2023, Guyana also concluded its 2022 licensing round, offering 14 oil blocks within its shallow and deep-waters.
During bidding, eight blocks were shortlisted and six companies, including a women-owned local business, Sispro Inc, have been awarded licences to explore for oil.
Yet another milestone was achieved in the oil and gas sector with the opening of the $2.6 billion world-class Guyana Technical Training College Inc (GTTCI) Facility Simulator (FacTor) at Port Mourant, Corentyne, Berbice.
The facility is the realisation of a partnership between the government of Guyana and the Stabroek Block coventurers – ExxonMobil Guyana Limited, Hess Corporation, and China National Offshore Oil Corporation (CNOOC).
The facility hosts oil and gas training, equipping the participants with the relevant competencies and skills to execute their roles offshore. So far, the first batch of 24 students graduated from this facility in July.
A campus that can house 150 students and administrative offices will also be built to complement the training facility.
Guyana energy conference and supply chain expo 2024
Thousands of delegates were engaged in scintillating discussions and presentations surrounding the future of energy and opportunities for expanded partnerships in the industry, at the 2024 Guyana Energy Conference and Supply Chain Expo, held in February.
Themed, ‘Fueling Transformation and Modernisation,’ the mega event attracted participation from more than 21 countries, with close to 200 exhibitors, and 30 sponsors.
Guyana utilised this platform to showcase its potential within the industry and is expected to bring in an even greater pool of policymakers, experts, with over 5,000 delegates expected for the 2025 edition.
A similar summit was also held in April of this year, spotlighting the Local Content Legislation, focusing on crucial areas like supply chain development, procurement best practices, employment opportunities for Guyanese, and essential skills training.
Low carbon development strategy
Guyana has emerged as a global leader in forest conservation, demonstrating a steadfast commitment to preserving its vast and pristine ecosystems. The country’s Low Carbon Development Strategy (LCDS) 2030 prioritises environmental protection, while fostering sustainable economic growth.
Through initiatives like the expansion of protected areas, investments in renewable energy sources, and the establishment of biodiversity centres, Guyana is safeguarding its invaluable rainforests, rich biodiversity, and unique wildlife.
This dedication benefits Guyana and contributes significantly to global fight against deforestation and climate change.
In November of 2023, Guyana’s efforts for forest conservation received a further boost with the signing of an aide-mémoire with the European Union (EU) under its Voluntary Partnership Agreement (VPA).
The agreement provides for additional funding for the action plan, increasing resources from €2.5 million to €3.8 million.
The opening of a new research station in Moruca, Region One, also complimented these forest conservation efforts.
The Moruca and Waini Research and Monitoring Station enables real-time monitoring and research of marine ecosystems, and will house several key bodies, including the Environmental Protection Agency (EPA), the Guyana Forestry Commission (GFC), and the World Wildlife Fund (WWF).
The country’s National Forest Certification System (GNFCS) has also received international endorsement.
This means that all forest management and chain-of-custody certificates issued by the GNFCS are now considered equal to those from the Programme for the Endorsement of Forest Certification (PEFC), the international certification body.
Mining
The government’s efforts at revitalising the mining sector are also gaining traction.
Since August 2023, 150 mining blocks have been awarded in Bartica, Region Seven, while another 200 have been distributed in Region Eight, through lottery exercises spearheaded by the Guyana Geology and Mines Commission (GGMC), and the ministry.
Not just the increase of mineral output the government is trying to achieve, but the disruption and elimination of illegal mining and gold smuggling.
The government has established a taskforce to monitor the gold industry and make assessments of gold declarations.
The group, which comprises the attorney general, the minister responsible for finance, Commissioner-General of the Guyana Revenue Authority (GRA), head of the Financial Intelligence Unit (FIU), governor of the central bank and representatives of the Guyana Gold Board, has already found loopholes in the existing regulations and has begun remedial work.
During a recent press conference, vice-president, Dr Bharrat Jagdeo said concerted efforts have enabled local authorities to pinpoint new tactics being used by gold smugglers.
“We are starting to get deep into the issue, there is a team now that is identifying the people that are taking the gold out,” Dr Jagdeo said.
Source: DPI
