The United Kingdom (UK) still has heightened investment interests in Guyana’s oil & gas sector says outgoing High Commissioner to Guyana Greg Quinn who hopes that this country maximises the support given to the sector from UK’s oil & gas capital, Aberdeen, in Scotland.
And as the Irfaan Ali government works to develop a sustainable and renewable economy from the proceeds of the oil & gas sector, he urged that there be realistic goals set along with sensible regulations instituted that would address the country’s needs.
On Monday last, when Quinn met with newly-appointed Minister of Foreign Affairs Hugh Todd, Downing Street expressed to Takuba Lodge, its hopes of developing a “twinning” relationship in the oil & gas sector, among other areas.
With a number of global businesses flocking here since the 2015 discovery of offshore oil & gas by ExxonMobil, including the UK’s own Tullow Oil, Quinn said that the High Commission has exponential interests in building business relationships using companies from the United Kingdom.
And with a plan for the fusing of Guyana and Aberdeen’s relationship put to the current government, he hopes this country makes good use of the support provided, not just in oil & gas but in the use of the revenues derived from the sector to build the country holistically.
Quinn recounted that when he first arrived in the country, only one or two businesses were contacting the High Commission about opportunities. Now, he said, they are seeing that same amount every day, with many of them from the oil & gas sector.
He spoke about Aberdeen and why the UK is keen on having a relationship with Georgetown and the wider region. He noted that Aberdeen has a lot of experience, both good and bad, in managing oil wealth and that there is a lot Guyana can learn.
The UK envoy believes that Guyana will learn about the importance of ensuring that oil wealth gets to the people in the region and “doesn’t just go into some central coffer somewhere to spend however the government decides,” adding that the people must hold their leadership accountable.
And while there was never a Sovereign Wealth Fund in the UK, it has since seen the importance of having one. Quinn noted that his country has since expressed regret at not establishing a sovereign wealth fund and pointed to Norway and the success they have enjoyed with theirs. “We didn’t put a sovereign wealth fund and we especially regret that…”
Fundamental lesson
But Quinn said that a fundamental lesson for all Guyanese would be the tempering of their expectations of the oil & gas sector as there will not be many direct jobs. However, they must hold their leadership accountable for the use of revenues from the sector to develop the infrastructure and other resources of this country, as there is where the bulk of the job opportunities will come from.
And when business partnerships are forged between the Brits and locals, High Commissioner Quinn said that locals must hold them to the standard in their own country and that of their work ethic globally, which he boasted is stellar.
“Whenever a British business comes in, in a particular area, it must come with a desire to build up local capacity and local skills. I am sure that they will ensure that local people and local businesses benefit from what they are doing, so it is a win-win for everyone,” he said.
“It will be all about enhancing the skills of people here and that they can do the jobs, which in the short term expats will have to do but in the long term locals will be able to do them.”
And while UK oil company, Tullow, has had discoveries but not the class of oil it had anticipated and now has to assess its future here, Quinn said that there are still a number of other UK companies that are here providing support to ExxonMobil. “Tullow has discovered commercial quantities of oil. It is not the light sweet oil that Exxon got in their block. They are assessing what they found here and how best to move forward but Tullow is not the only British Company. There are a lot of companies supporting what Exxon is doing.”
Although businesses are flocking to these shores, Quinn advises that local regulations be specific and realistic. “Any business wants to be very clear of what is expected of it and that is the regulations side and includes the local content. It wants to be clear on the regulation and what is expected but at the same time, that regulation to be fair and realistic.”
He reminded that experts are not developed overnight and that an appropriate local content policy must allow for locals to be trained in due course to assume the jobs of the expats. “I think if you have that clear regulation or policy on how you do it, then that is what any company wants to know,” he added.
That skills transfer he assured, will come from UK businesses and Aberdeen can help guide on how to achieve this.
Aberdeen, according to Quinn, could also assist in showing this country how to transition and diversify an oil economy since it too is going through a transition period in a move to renewable business. This is being done in recognition of the fact that oil is a finite resource. He pointed out that many of the skills acquired can be transferred to building and supporting a renewable industry.
He iterated that there were certain fundamentals that Aberdeen has picked up as it relates to what is needed to be done with the resources to benefit the people. He stressed the importance of spending wisely, from a city, as well as a national and regional perspective. He also mentioned an example of Aberdeen’s spending on agriculture, “A lot of their money went in to support agriculture… which is another booming industry and there
In March of last year, Lord Provost of Aberdeen Barney Crockett visited Guyana and set the tone for a budding relationship between the two sides with the signing of a “twinning of cities” Memorandum of Understanding.
His visit was reciprocated in August 2019 by some 15 Guyanese companies that participated in an oil & gas conference and exhibition in Aberdeen.
