With petroleum poised to become an important industry for Guyana, Finance Minister Winston Jordan says more emphasis will be placed this year on preparing the country to meet the needs of the sector.
During his presentation on the 2016 national budget, Jordan noted that following earlier discoveries last year, ExxonMobil will undertake further exploratory drilling of its Liza well offshore Guyana.
Additionally, a Petroleum Prospecting Licence and Production Sharing Agreement have been signed recently with Tullow Guyana BV and Eco (Atlantic) Guyana Inc for a small concession called the Orinduik Block, just offshore of Guyana and close to ExxonMobil’s discovery, he said.
“Despite low oil prices, which are expected to continue through next year, all licensed operators remain committed and new venture interests are considered on a regular basis. These investments will bring fruitful rewards to the Guyanese people through increased revenues, employment and income, which will propel Guyana towards achieving national as well as sustainable development goals. The preparedness of Guyanese to respond to the needs of this growing sector is critical, and as such, much emphasis will be placed on capacity building during the year,” Jordan asserted.
Meanwhile, Jordan said that the bauxite sector underperformed in 2015, largely due to low commodity prices. He stated that as the bauxite industry continues to struggle with reorganisation and soft prices on the world market, production is expected to be maintained just at the 2015 level of 1,526,467 metric tonnes.
However, he said the mining and quarrying sub-sector is targeted to improve by 16.6 per cent, which will be driven by gold. Other mining (sand and stone) is targeted to improve by 4.4 per cent, with the predictable upsurge in construction activities.
“During 2016, the sector will continue to face challenges as commodity prices are expected to remain low. Work is presently underway to stimulate greater foreign and local investment in the forestry sector, especially in value added activities. Sustainable management of the forestry resources will continue through community training and capacity building, which will target over 400 persons.
The Government, through the Ministry of Natural Resources, will continue to work along with the international community to develop a comprehensive, equitable and sustainable international regime of compensation for the provision of climate amelioration services provided by Guyana,” Jordan added.
He also noted that government will finalise the framework for a Sovereign Wealth Fund in 2016.
