Introduction
Today’s column addresses the “cost-price relation”, likely to emerge as Guyana transforms its oil and gas “discovery” into an industrial success. To remind readers, this is the third of four features of Guyana’s “discovery” singled out for further amplification. The present column starts with cost and continues with price next week.
Clearly, at this early stage of my presentation, this can only be an indicative exercise. Exploration of the “discovery” is ongoing, and attempts to determine cost before production commences are definitely speculative. Consider also, present best estimates expect production and export to take place 5-7 years from now. Indeed, the “consortium” of multinational companies, exploring and developing the Guyana play, seems to be only at the early phase of appraisal, mobilization, feasibility and project financing.