Stakeholders addressing offshore oil, gas exploration, risk mitigation
The United States (US) Department of Interior through the US Embassy in Guyana is hosting a three-day workshop for stakeholders in the energy and mining industries to address energy governance and capacity. Special attention will be paid to managing the early phases of offshore oil and gas exploration and environmental risk mitigation.
This is the third workshop of its kind with the first being held in 2011.
In recognition of Guyana being at the exploration stage of petroleum development and its challenges, Minister of Natural Resources and the Environment, Robert Persaud stated that, “it is useful that we work with countries such as the United States who have had, as one would say, mixed experiences in dealing with the challenges with the development of natural resources.”
United States Ambassador to Guyana Mr. Brent Hardt delivering remarks at an Oil and Gas seminar organised by the US Embassy at Cara Lodge
The workshop is being held under the theme “Managing the Early Phases of Offshore Oil and Gas” at the Cara Lodge.
“If we look at our laws – we have tried to draw on the best practices of other countries, and we have reviewed other regulations they have had in place so in our context we are not starting from zero, we are starting from a system where it has been tested in a way whereby we have benefited from a lot of local and external expertise and engagements with the companies themselves,” the Minister pointed out.
He emphasised that the thrust as captured in the Low Carbon Development Strategy (LCDS) is that, “we will not sacrifice the environment on the altar of prosperity, but rather we see mutual co-existence. We believe in Guyana, with the political commitment, and the will of the Guyanese people that we can have that level of harmony, that balance that is so necessary, and drawing from the experiences and the road travelled by others, we believe that we can do a better job … we can set and develop a model in which we can develop our extractive industry as a whole, and at the same time continuing to position ourselves as a leader in terms of environmental stewardship and management.”
Minister of Natural Resources and the Environment Robert Persaud speaking to stakeholders of the energy and mining sector at the Oil and Gas seminar held at Cara Lodge
While there have been increased activities in the extractive industries, these are not without challenges. Guyana has still been able to meet international bench marks one being its commitment with the Kingdom of Norway.
“We have just qualified for the third tranche because we have achieved our environmental targets as set out and at the same time we’ve been able to develop and make new use of our natural resources,” Minister Persaud said.
He noted that many of the participants are quite familiar with Guyana’s drive to develop its petroleum potential. “We are aware of the fact that the United States geological survey would have ranked us as having the second highest source in terms of potential for hydro-carbon resources, looking at the deposit just above 16 billion barrels reserve,” he said.
The Minister recognised that this revelation has excited a lot of people in Guyana and several companies have also responded well to Guyana’s potential. Minister Persaud noted that those companies have expressed interest in engaging exploration with the ultimate aim of developing Guyana’s petroleum potential.
The Minister explained that there are three particular areas based on the geological work done and where there is tremendous interest – off-shore and near-shore resources and also in the Takutu Basin. “In all three areas we have a number of prospecting licences which have been issued and in some of those areas we are in fact running out of blocks … we do not have enough to meet the demand or the interest that have been shown in engaging in those work,” Minister Persaud posited.
With regards to environmental risk mitigation, the Minister noted that the workshop is timely since the participants would be able to reflect on 2012 where there was actual drilling taking place at the Eagle and Jaguar wells. The latter had to be aborted because of risk factors such as high pressure.
Participants at the Oil and Gas seminar at Cara Lodge
Minister Persaud disclosed that REPSOL has applied to restart efforts in repositioning its rig. The company was drilling at the Jaguar well. He added that boats are also carrying out seismic studies.
In his presentation, US Ambassador, Brent Hardt acknowledged that “Guyana’s looming transition to an energy producing nation could offer a critical and transformative juncture in Guyana’s history.”
He recalled that the US had also met a similar historical moment over century ago when, in the 19th century, it extended itself from coast to coast while most of the country remained wild or underdeveloped. The Ambassador was referring to the American gold rush of 1849 which spurred large migration as word of abundant gold strikes drew fortune seekers from across the continent to California, and the search for gold.
He emphasised that Guyana is standing at a key stage in its history, as it surveys promising extraction opportunities, phenomenal timber resources and mineral wealth including gold, diamond, bauxite and manganese while striving to preserve resources for the future and to develop a programme of sustainable growth.
“This resource wealth is now on the verge of being significantly enhanced by the possibility of oil discovery and the likelihood of Guyana transitioning to an energy producing nation,” Ambassador Hardt said.
Having recognised Guyana’s natural beauty and the wilderness, the Ambassador stressed the importance for the country to not only utilise its abundance of natural resources wisely, but also to take steps to ensure it cherishes them, protects the vast water supplies for which Guyana takes its name and preserves the unique rainforests that provide incredible wood.
“Guyana has shown through its Low Carbon Development Strategy (LCDS) that this is a challenge it takes seriously… and its on-going efforts to replace mercury in mining will mark another key step to meeting the challenge,” the Ambassador pointed out.