Guyana and Suriname yesterday agreed to pursue proposals to craft a joint strategy to develop natural gas reserves which also potentially aims at tapping into the lucrative Brazil market.
“In the area of Oil and Gas and recognizing that both countries will be key players in the oil and gas sector, we have decided that we’re going to collaborate and develop a ‘Joint Approach Strategy’, not only in the development of the industry itself, but in supporting the development of our human resources to meet the industry requirement”, President Irfaan Ali yesterday said at a joint press conference with Suriname President Chandrikapersad Santokhi.
Both presidents explain-ed that they have also decided on an initiative where they will invite the Presidents of Brazil and French Guiana’s governor, France, to be part of an energy summit to discuss the Arco Norte gas pipeline and electricity generation project. This project envisages the interconnection of the Guyana, Northern Bra-zil, Suriname, and French Guiana power systems.
“More specifically, recognising the potential of gas in Guyana and Suriname, we have decided that the working group will be established to come up with a joint gas strategy for both countries. But that strategy would be linked to the frontier development of both Guyana and Suriname. That includes infrastructure, industries, manufacturing, [and] natural resources; the bauxite industry on both sides will be part of that strategic outlook in developing opportunities and exploiting the great potential on both sides of the Corentyne River,” President Ali said.
“So, in essence, through the gas strategy, the ‘Joint Gas Strategy’; we will be working on a ‘Joint Development Strategy’ for the frontier that will support the development of both economies. As we have said, we are not in competition, but we are on a journey of cooperating with each other to maximize the benefits for our people. And in order to ensure that we do it successfully, we will have synergies in terms of infrastructure, and the use of infrastructure,” he added.
Ali explained that it was against that background that both countries are also examining, and have decided to create a local content platform that will support both sides, in terms of the opportunities that will come not only from this sector, but other areas in their economies.
The private sector organisations of Guyana and Suriname, according to the president, were critically involved in those discussions.
Ali was asked about the quantum of gas discovered in the Guyana-Suriname Basin by major international oil companies in recent years. He responded by explaining that it was Suriname’s state-owned oil company, Staatsolie which had compiled the data and that the country has it but that it would be used for “internal consumption” by the strategic group.
And still on the oil and gas sector, the president said that Suriname has offered to help Guyana train young personnel at Staatsolie. “Suriname was kind enough to offer with immediate effect, opportunities for our young people, our Guyanese people to be trained at Staatsolie on the job. As you know, they’re also advanced in the certification of key areas in the oil and gas sector, for example, welding, and we have identified this as an area in which they can help our human resource base to become certified to participate in this sector,” he stated.
It is unclear how the youths will be chosen, what the terms of the agreement are, and when they will leave for their neighbour to the east.
Both sides underscored that while they pursue oil and gas developments, that the environment will not be neglected as they plan to implement safety and mitigation measures as the petroleum sector is exploited.
“The issue of the environment is also a critical issue. We both recognise that in our development pathway there has to be a balance with the environment and of course, we have had good credentials in the area of the environment. We also recognise that we share similar conditions and opportunities, challenges too as it relates to the environment and climate change,” Ali remarked.
Further, he added, “To this end, we have agreed that we’re going to jointly approach the area of environment and climate change, to come up with a common strategy for both Guyana and Suriname especially in preparation for COP26 (climate conference) and also in exploring the possibility of merging our forest assets in the carbon credit market.”
Roadmap
Georgetown and Paramaribo, according to Ali, have selected Guyana’s Vice President Bharrat Jagdeo, to lead their discussions and to establish a roadmap on tackling climate change and the environment.
“Both Guyana and Suriname recognise that we have a valuable asset in Vice President Bharrat Jagdeo in this field of environment, and we’ve agreed that he would lead a delegation to Suriname before COP26 to look at the coordination of our strategies, and also to work with our counterparts in Suriname in coming up with a common strategy in dealing with climate change and the environment,” the President said.
The working group will ensure that both countries “have a joint analysis of threats, challenges and opportunities and we can come up with a joint strategy”.
And to criticisms of Guyana contributing to destroying the environment now that it is forging ahead with rapid oil exploration and production, Ali said that the key is striking a balance. He noted that under his presidency, this country will continue to play its part to ensure that the environment is preserved as his government is fully aware of the effects of climate change, not only impacting here, but in the region and around the world.
“We understand our responsibility, but we understand also that we have to find prosperity for our people. We have to find the balance in our creating prosperity for our people… and prosperity for our people is prosperity for the region as a whole,” he stressed.
Guyana’s Head of State contended that many targets have been set pertaining to climate change and there was also money the developed world sets aside for climate change, however, countries like Guyana are yet to see significant tangible benefits, despite having a stellar environmental record.
“The issues on climate change that are global, our credentials outmatch any one. We can say that in a net way, we are a positive story on the environment side…What do we do? We have this natural resource that is transformative for our people and to make other sectors competitive… we don’t have to hide from any discussion on the environment because our credentials on the environment is unquestionable…We are committed to and have always been to international best practices and targets,” he assured.
“But we are also aware of the changing nature of these targets. [As] developing countries in a developed world, we have to be pragmatic about the situation. We also have a commitment to make the lives of our people better; to bring prosperity to our people. And while we continue to commit to the protection of the environment and securing the environment… we have been at the receiving end of the inaction of climate change and the consequences,” he added.
