Anticipation is high and fingers are crossed about the discovery of oil when the first attempt is made within months to drill a well, offshore Guyana.
Despite its limited experience, President Bharrat Jagdeo remains confident of Guyana prospering as an oil and gas industry which he listed among the new growth poles for the future.
Tullow Oil, a London-based Company is expected to commence drilling in April, in the Guyana basin and has invested huge in the Jaguar Well through a joint venture with REPSOL, a leading international oil exploration company out of Spain.
The Tullow/REPSOL joint venture joins the list of reputable foreign companies racing for the search of oil offshore Guyana. Among them is CGX of Canada.
President Jagdeo said Guyana will be seeking as much advice as possible particularly in the area of development and monitoring of the oil and gas industry and will be turning to Trinidad and Tobago, its closest neighbour in the Caribbean Community (CARICOM) which has a wealth of expertise in this area.
The twin Island Republic is the Caribbean’s largest oil and natural gas producer providing 154 thousand barrels of crude oil per day. BHP Billiton and the state owned Petrotrin are the two largest crude oil producers.
It is anticipated that within the first five years of the impending industry in Guyana all the services and capacity will have to be imported and augmented by contractors and other local counterparts.
In June last year, President Jagdeo advanced discussions on food production, trade and investment ties with Trinidad and Tobago’s new Prime Minister Kamla Persad-Bissessar during a visit. The Guyanese Head of State told the Twin Island Republic’s Prime Minister that Guyana is open to advice should oil be found.
At the commissioning of the Diamond branch of Republic Bank, President Jagdeo said the spin off services that will be required from the industry call for much financing.
The industry is expected to influence an explosion of auxiliary services including in the tourism and hospitality sector and with Region Six being the area closest to the drilling point, an expanded East Canje reservoir scheme with a deep water harbour will be among several development plans earmarked.
Guyana is the second most attractive under-explored basin in the world with a potential of 15.2 billion barrels of oil, and were a discovery to be made, production targets would be estimated at 50 million barrels per year.
Additionally, Government would be receiving a cash flow of 53 percent, and the oil company 43 percent. It was also predicted that the impact on Guyana’s development would be phenomenal as 650 persons per year would gain employment. (GINA)