Guyana not being relegated to status of ‘rent collector’; country seeking big gains from oil resources – Ramnarine
Kevin Ramnarine, former Minister of Energy and Energy Affairs of Trinidad and Tobago.
Guyana’s steadfast drive for local participation in its oil and gas sector is being lauded by former Trinidad and Tobago Minister of Energy, Kevin Ramnarine.
Though private sector leaders of the two Caribbean Community (CARICOM) nations have been at odds in recent times, regarding aspects of Guyana’s Local Content Policy, Ramnarine praised the new oil producing nation for its value capture stance on not being just a “rent collector” – only raking in royalties and taxes from International Oil Companies (IOCs) operating offshore.
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“The undertaking of high-value activities in the host country by companies owned and controlled by nationals is another way to capture the value and, in this regard, the Guyanese Government has taken a firm stance that it will not be relegated to the status of rent collector,” the former Energy Minister wrote in a recent column.
Guyana’s push for local participation in high-value activities in its oil sector, according to Ramnarine, is already beginning to bear fruit and will bring more successes ahead.
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“And any visible sign of success is the provision of shore base services by Guyanese companies,” he pointed out.
Leading in this regard is the Guyana Shore Base Inc. (GYBSI) a consortium of companies mostly controlled by Guyanese. It is currently the country’s premier shore base, supplying a range of integrated services to the oil sector.
Over the years, GYSBI has enhanced its capacity and expanded its services. This has contributed to ExxonMobil – the operator of the country’s prolific Stabroek Block – moving all supply work from Trinidad to Guyana.
The supply chain capacity in Guyana has been growing exponentially over the years and with the new Local Content law in place, local businesses have been readying themselves to reap the benefits – forming consortia and undergoing the training needed to supply the sector with quality service.
Additionally, the state-of-the-art Port of Vreed-en-Hoop, a facility operated by a majority-controlled local consortium, is being constructed on the west bank corridor. Already, a major contract has been signed between Exxon and the Vreed-en-Hoop Shore Base Inc., operating at the facility.
Guyana’s Local Content Act contains 40 areas with targets to ensure that local businesses are given first preference to participate in the country’s oil wealth. These services include the supply of goods and the provision of services like food supply, insurance, accounting, and legal services.