The United States is in the process of working on a proposed Energy Governance and Capacity Initiative (EGCI) for countries on the verge of becoming oil and gas producers for the next decade.
Guyana is on the list of such countries and today Coordinator for International Energy Affairs of the US Department of State David Goldwyn met President Bharrat Jagdeo at State House to discuss the proposal which will include the provision of technical assistance to empower countries to wisely manage resources and revenue generated from oil and gas.
President Bharrat Jagdeo sharing a light moment with Coordinator for International Energy Affairs of the US Department of State David Goldwyn, Senior Advisor Paul Hueper and Charge d Affaires of the US Embassy Karen Williams
Goldwyn is leading the effort which involves bringing together the U.S.
Government’s top experts along with their unmatched global expertise on oil and gas sector management within a formalized and integrated technical assistance programme focused on the energy sector In an invited comment Goldwyn said “many countries who are oil and gas producers have suffered some of the challenges of the resource curse and in our country (US) we learned a great deal of how to manage the resources both physical and financial. We are here not to prescribe a particular model but to see if there are ways that we can help the government.”
Assessments by the US geological survey on the Guyana basin reveal that the potential for oil discovery is very high given that the location is the second most prospective under explored area worldwide.
Were an oil discovery to be made in the Basin, production targets would be estimated at 50 million barrels per year which would be equivalent to 140,000 barrels per day. Additionally Government would be receiving a cash flow of 53 percent, and the oil company 43 percent.
Goldwyn said the probability of finds once drilling begins is high and thus believes that management interventions are one of the necessities.
“It’s never too early to start preparing for managing that (oil and gas resources)…that is, having the Government’s capacity to manage, make sure that the reservoirs are done correctly, the costs are audited and that the flows when they come don’t upset the country’s foreign exchange rate or balance of payment and that Guyana has great capacity.”
CGX Energy Incorporated, the Canadian-based oil and gas exploration company that is at present in pursuit of petroleum discovery in the Guyana Basin had announced its readiness this year to commence drilling.
The company was given the green light to commence operations uninterrupted, after Guyana in 2007 won the Maritime Arbitration Award, following a long maritime border issue with neighbouring Suriname.
Since then the CGX Energy Incorporated has done a significant degree of work.
During today’s meetings Goldwyn was accompanied by Senior Advisor of International Energy Affairs Paul Hueper and Charge d’ Affaires of the US Embassy Karen Williams who moments before had met Prime Minister Samuel Hinds at his Wight’s Lane office.
Prime Minister Samuel Hinds in a meeting with Coordinator for International Energy Affairs (IEA) of the US Department of State David Goldwyn (left from PM) other IEA representatives Charge d Affaires of the US Embassy Karen Williams, and representatives from the GGMC, GEA and GPL
Chief Executive Officer (CEO) of the Guyana Power and Light (GPL) Bharrat Dindyal, CEO of the Guyana Energy Agency (GEA) Mahendra Sharma and Manager of the Petroleum Division of the Guyana Geology and Mines Commission (GGMC) Noel Dennison were also present at that meeting.
Goldwyn was appointed by US Secretary of State Hillary Clinton, in August 2009. He formerly served as President of the Goldwyn International Strategies (GIS) an international energy consulting firm that was a leading adviser on extractive industry transparency.
Through GIS Goldwyn advised Nigeria’s Extractive Industries Transparency Initiative (EITI) on its groundbreaking implementation programme, “Drilling Down: The Civil Society Guide to Extractive Industry Revenues and the EITI.”
He also served as Chairman of the Global Energy and Environment Initiative at Johns Hopkins University School of Advanced International Studies and Senior Associate in the Energy Programme at the Centre for Strategic and International Studies (CSIS).