Django posted:

Jul 27, 2016  Source

The Government of Guyana has been forced to accelerate its preparations for oil production. This was noted during a recent interview with Minister of Natural Resources, Raphael Trotman.
The Minister said that Exxon Mobil’s confirmation of Guyana’s oil reserve has sparked excitement from both the government and the oil company.
“This tells us that we have to accelerate our preparations,” said Trotman.
The Minister admitted that there is much that needs to be done as part of the preparation process. This is both with regards to legislative measures and other transparency measures that need to be implemented.
Trotman said that over the last year, “we have been trying to understand what we have and how to manage it, but we now need to move at a faster pace.”
As he referenced moves that have already been made in this regard, Trotman mentioned his recent visit to Uganda, saying that “this was part of the preparation process.”
Trotman was accompanied by Minister of Finance Winston Jordan on that trip. It was basically a study mission. The two wanted to observe Uganda’s preparation for oil – the pumping of which is to begin in two years—2018.
Talking about more preparations Trotman said that last week he hosted two oil and gas experts who advised the government and will be lending advice over the next few months. The experts met with various persons and agencies involved.
Trotman also indicated that later this year, he will be taking legislation to the National Assembly. Among the Bills to be taken to the House is one that will govern the Sovereign Wealth Fund.
A Sovereign Wealth Fund is a government-owned investment fund. It has been set up by many countries with oil wealth, and there are several models to choose from.
Trotman also indicated that President David Granger will soon address the nation to speak about the confirmation of Guyana’s oil reserve.
Exxon made its announcement at the end of June.
Trotman said that His Excellency will soon put everything into a national context.
“I can only give you the resource aspect of it, but I think the President is going to bring everything together in terms of what it means for the economy, social issues and so on.

This Sovereign Wealth fund sound like another fancy name for NACIL, I wonder who would be the PNC Branhinton...Carib bai here is yuh chance for the milk and honey..... 

The Sovereign wealth fund makes complete sense. It is a being used by countries such as Norway and provides the citizens with loads of financial and social benefits that the rest of Europe does not enjoy. Libya also had a sovereign wealth fund, which paid for loads of things that made Libya so attractive for workers from neigbouring countries. If ours is properly managed and executed it will transform the country.

Oil approaching $40 a barrel. 

Uganda oil is land based. Guyana oil is deep sea, so more expensive to contract.  

And in any case most of the benefits will go to Trinidad.  We don't have harbors, nor do we have oil refineries, or miscellaneous services that the oil industry will need.  I understand that there are already scores of Trinis in Guyana, and even the helicopter services are being secured from there.

Granger needs to cease thinking that oil will be his nirvana.  What plans does he have, aside from oil.  NONE it appears!

Mr.T posted:

made Libya so attractive for workers from neigbouring countries.

As in Niger, northern Nigeria, Chad, Burkina Faso, and Mali.  Some of the poorest places on the planet.

Guyana's Oil is 15k feet deep.  at such depth, cost of extraction is approx 38 - 40 DPB.  Unless oil is in tha 60 DPB range on a sustained basis, the value proposition for both Exxon and the GoG is questionable.  The Saudis are perfectly happy with oil at 40 for a while to drive the US frackers out of business!

Now for all you Big Corp haters who cuss Corporate welfare, what if the USG offers a tax holiday for new fields developed, would that not be good for the USA and places like Guyana??

Marketwatch.com. July 27, 2016

Oil futures fell to their lowest levels in more than three months Wednesday after U.S. government data revealed the first weekly climb in domestic-crude inventories in 10 weeks, along with a surprise increase in gasoline stockpiles and a rise in total crude production.

The U.S. Energy Information Administration early Wednesday reported that domestic crude supplies rose by 1.7 million barrels for the week ended July 22. That was contrary to the 2.6 million-barrel decline expected by analysts polled by S&P Global Platts. The American Petroleum Institute late Tuesday reported a fall of 827,000 barrels.

“With a surprising build in U.S. crude oil inventories today along with builds in Cushing, Okla., we expect prices to trade below some key technical numbers,” said Macaluso. The EIA showed a rise of 1.1 million barrels for stocks of crude oil at the storage hub.

If the economy improves significantly from oil revenues you can expect many Indians to return to Guyana. Indians own alot of properties and when they sell the buyer is almost 90% of times Indian. The Amerindians have taken most of the agricultural market share away from Black Bush Polder in Demerara. Laluni has become the New Black Bush Polder under the Jagdeo gov't.