An onshore oil and gas facility which will see the investment of US$500m and the creation of 600 jobs is to be built at Crab Island, Berbice.
This disclosure was made by Minister of Natural Resources, Raphael Trotman yesterday at an end-of-year press conference where he also disclosed that a raft of legislation for the industry has been given the green light by Cabinet.
In early September 2016, the Ministry had announced its intention to set up an onshore oil and gas logistics and supplies facility with the aim of optimising opportunities in the area of petroleum exploration and production. Guyana’s offshore well is expected to see production in five years.
Trotman said that interviews with a number of local and international interested parties were held at the end of October and early November, 2016.
He said that Cabinet has since given its ‘no objection’ to the establishment of an onshore industrial site in the area of Crab Island, Berbice. It will be forged through the joint efforts of the Ministries of Natural Resources, Public Infrastructure and Business.
Construction will start next year and the investments from the private sector, and government’s infrastructural work and support will be equivalent to US$500,000,000, which will lead to the creation of approximately 600 direct jobs. Trotman disclosed that Cabinet on Wednesday approved the Ministry’s plans and projects, which includes its policy and legislative agenda comprising: 1) The Upstream Oil and Gas Policy, Revised Petroleum Act and Regulations, 3) Local Content Policy and Regulations, 4) Petroleum Commission Bill, 5) Petroleum Taxation and Fiscal Legislation, Health, Safety and Environment (HSE) Regulations and a Bill to provide for Sovereign Wealth/ Generational Savings, Stabilization, Infrastructural Social Welfare and Citizens Participation Fund. Of these pieces, the draft Petroleum Commission Bill was shared in early December with stakeholders. To ensure that the benefits accrued from the natural resources sector reach every Guyanese for generations to come, the Government is developing a framework for a Sovereign Wealth Fund in 2017.
The draft framework for this fund will now be presented to the National Assembly in early 2017.
Much emphasis, Trotman said, will be placed on capacity building during 2017, as well as the creation of the Petroleum Commission. As such, the Petroleum Commission’s Bill has been drafted and is ready to be tabled in Parliament. The Bill has been circulated to a wide range of stakeholders including, civil society, the private sector and the parliamentary opposition.
The Bill paves the way for the creation of the Petroleum Commission which will become the regulatory body for the oil and gas sector.
Trotman added that the government intends to keep stakeholders, including the parliamentary opposition, and the populace, informed about every stage of the development of the Oil and Gas Sector. As such, the Government will in late January 2017 embark on a nationwide and Diaspora three-month outreach programme to enlighten citizens on various aspects of the evolving oil and gas industry.
