Greater Toronto
By Arti Panday
Following the discovery of oil off the coast of Guyana, just 200 kms from Georgetown in the Stabroek block, businesses from around the globe are now paying close attention to how the country will proceed with its new-found resource.
Guyana’s Minister of Natural Resources, Raphael Trotman, travelled to Toronto for a four-day trip to brief Guyanese expatriates living in the GTA about the discovery and the government’s plans for assessment and extraction of the “high quality crude oil.”
“We have to train Guyanese and [for] Guyanese abroad we are prepared to [integrate those] who wish to come back,” Trotman said as he began his presentation.
In May of 2015, ExxonMobil and their partners made the discovery of the crude oil. Since then, two appraisal wells were drilled and in November 2016, ExxonMobil confirmed commerciality of the well. The Liza Well is the first well on the Stabroek block and one that contains the high-quality, oil-bearing sandstone reservoirs.
In December 2016, ExxonMobil awarded a contract to SBM Offshore to build the Floating Production Storage and Offloading Vessel (FPSO) that will be used to extract the oil from the Liza Well. The vessel, the Liza Destiny, is currently being retrofitted in Singapore.
Since the major find, the government of Guyana has been working to ensure that this natural resource is handled appropriately. The Ministry of Natural Resources is currently in the process of establishing the Petroleum Commission of Guyana (PCG) a group that will manage the activities of the emerging oil and gas sector.
“The money and the jobs will come from other attending services,” Trotman explained, after noting that the development of the Liza Well will only create around 300 new positions. “We will need geological scientists, mechanical engineers, people to service boats and vessels, accountants to do the auditing and economists to help government to plan.”
One of the government’s first orders of business is to identify and commission an expert consulting firm to conduct an assessment to determine the effects the extraction might have and to review ExxonMobil’s development plan. This assessment will explore concerns that the region could face negative effects, such as earthquakes, that some places in the United States continue to experience due to fracking, another form of oil extraction.
Trotman noted that four firms have been identified and the government is hoping to make a selection later this month. This team will devise a development plan before the government issues a production license. The planning and preparatory process is expected to take three years with production projected for mid 2020. The possibility of an on-shore logistics base located on Crab Island, at the mouth of the Berbice River, is also being explored at this time. It would serve as a port for ships to refuel and restock supplies.
According to the minister, the discovery of the resource has led to neighbouring countries’ interest in partnering with Guyana to help in the process. Trotman mentioned that business people from Trinidad and Tobago have already approached government with an offer to set up refineries for the millions of barrels of oil set to be extracted. Right now, there is an estimated 800 million to 1.4 billion barrels of oil located in the Stabroek block.
Addressing a question from the audience about the possibility that Guyana might be left even poorer following this oil extraction, like Nigeria, the Minister Trotman said, “We have invited Norway to give us some guidance because Norway is on the other end of the spectrum. Norway is a country that is recognized as being the best in terms of the manner in which research is managed, in terms of transparency, accountability, anti-corruption and so forth.”
Trotman did not make it clear how the funds from the oil extraction project will be divided and how much profit Guyana stands to make from this new venture.
The High Commissioner for Guyana in Canada, Clarissa Sabita Reihl, travelled from Ottawa for the event and expressed hope for the country upon this discovery while noting the importance of having qualified professionals remain in the country to aid in its development.
“We are hoping for a big boost for our economy with the find of oil… but we can’t begin to develop resources without our best resource – our human resource,” Reihl stated. “For generations, we have sat on this potential and we are on the verge of reaping this potential.”
Following the evening’s presentation, attendees had an opportunity to speak to the minister directly and voice their concerns, which Trotman vowed to extend directly to President Granger and relevant subject ministers upon his return to Guyana.
Following the discovery of oil off the coast of Guyana, just 200 kms from Georgetown in the Stabroek block, businesses from around the globe are now paying close attention to how the country will proceed with its new-found resource.
Guyana’s Minister of Natural Resources, Raphael Trotman, travelled to Toronto for a four-day trip to brief Guyanese expatriates living in the GTA about the discovery and the government’s plans for assessment and extraction of the “high quality crude oil.”
“We have to train Guyanese and [for] Guyanese abroad we are prepared to [integrate those] who wish to come back,” Trotman said as he began his presentation.
In May of 2015, ExxonMobil and their partners made the discovery of the crude oil. Since then, two appraisal wells were drilled and in November 2016, ExxonMobil confirmed commerciality of the well. The Liza Well is the first well on the Stabroek block and one that contains the high-quality, oil-bearing sandstone reservoirs.
In December 2016, ExxonMobil awarded a contract to SBM Offshore to build the Floating Production Storage and Offloading Vessel (FPSO) that will be used to extract the oil from the Liza Well. The vessel, the Liza Destiny, is currently being retrofitted in Singapore.
Since the major find, the government of Guyana has been working to ensure that this natural resource is handled appropriately. The Ministry of Natural Resources is currently in the process of establishing the Petroleum Commission of Guyana (PCG) a group that will manage the activities of the emerging oil and gas sector.
“The money and the jobs will come from other attending services,” Trotman explained, after noting that the development of the Liza Well will only create around 300 new positions. “We will need geological scientists, mechanical engineers, people to service boats and vessels, accountants to do the auditing and economists to help government to plan.”
One of the government’s first orders of business is to identify and commission an expert consulting firm to conduct an assessment to determine the effects the extraction might have and to review ExxonMobil’s development plan. This assessment will explore concerns that the region could face negative effects, such as earthquakes, that some places in the United States continue to experience due to fracking, another form of oil extraction.
Trotman noted that four firms have been identified and the government is hoping to make a selection later this month. This team will devise a development plan before the government issues a production license. The planning and preparatory process is expected to take three years with production projected for mid 2020. The possibility of an on-shore logistics base located on Crab Island, at the mouth of the Berbice River, is also being explored at this time. It would serve as a port for ships to refuel and restock supplies.
According to the minister, the discovery of the resource has led to neighbouring countries’ interest in partnering with Guyana to help in the process. Trotman mentioned that business people from Trinidad and Tobago have already approached government with an offer to set up refineries for the millions of barrels of oil set to be extracted. Right now, there is an estimated 800 million to 1.4 billion barrels of oil located in the Stabroek block.
Addressing a question from the audience about the possibility that Guyana might be left even poorer following this oil extraction, like Nigeria, the Minister Trotman said, “We have invited Norway to give us some guidance because Norway is on the other end of the spectrum. Norway is a country that is recognized as being the best in terms of the manner in which research is managed, in terms of transparency, accountability, anti-corruption and so forth.”
Trotman did not make it clear how the funds from the oil extraction project will be divided and how much profit Guyana stands to make from this new venture.
The High Commissioner for Guyana in Canada, Clarissa Sabita Reihl, travelled from Ottawa for the event and expressed hope for the country upon this discovery while noting the importance of having qualified professionals remain in the country to aid in its development.
“We are hoping for a big boost for our economy with the find of oil… but we can’t begin to develop resources without our best resource – our human resource,” Reihl stated. “For generations, we have sat on this potential and we are on the verge of reaping this potential.”
Following the evening’s presentation, attendees had an opportunity to speak to the minister directly and voice their concerns, which Trotman vowed to extend directly to President Granger and relevant subject ministers upon his return to Guyana.
