Guyana poised to become “Middle East” of the Caribbean

With 280,000 barrels of oil per day during the 70s and 80s, Trinidad and Tobago was called the “Saudi Arabia” of the Caribbean. But Guyana is going to hit 500,000 barrels of oil and even more by 2025.

With such production figures, this ethnically diverse nation is set to become the “Middle East” of the Caribbean.

But even with such a bedazzling picture of wealth and prosperity, Trinidadian Engineer, Richard Small, is urging the authorities here to begin meaningful dialogue on local content. According to Small, there is need for a serious conversation that will lead to locals being significantly employed and their services given priority in the oil industry.

Small made the comments yesterday at the launching of the Innov8 Business Expo which was held at the Marriott Hotel. There, Small delivered a 15-minute presentation on the oil industry from a technological perspective while incorporating important aspects of local content.

The Trinidadian said it is important for Guyana to take advantage of the glorious opportunity it has for maximizing local content. He noted that the nation would be wise in going this route as others have learnt the hard way that billions of dollars in oil revenue only last for a while.

In this regard, he pointed to Venezuela, which failed to maximize opportunities for transfer of skills and technology. By looking to maximize tax benefits, Small noted that such nations have nothing much to show for their oil money, except corruption and millions of dollars in expenditure.

Small asserted that Guyanese must seek to understand the technological aspect of the oil industry. He reminded that works are already taking place converting the oil tanker to a Floating Production Storage and Offloading vessel, called Liza Destiny. Small said, “This is going to be a metal island at sea. As you know, you now have two metal islands at sea which are drilling operations going after more oil for the Guyanese people. Those things rent at US$250,000 a day, at least.

“So the first thing to grab out of that conversation is that in the oil and gas industry, time is money…Having said that, you need to understand the role of technology.”

The Trinidadian Engineer noted that the ICT or technological environment of a drill ship is vastly different to that which exists in an office.

Small said, “Because the technology is different on a drill ship, the Liza Destiny or FPSO being constructed in Singapore or wherever, should have Guyanese nationals there. They should be involved in the engineering, design and fabrication. They should be involved in all aspects of the construction.” The engineer also noted that there are opportunities for investment by locals in the sector. He said that Guyanese entrepreneurs can begin to look at provision of drones, robotics, CCTV solutions, mobile computing, cyber security and safety systems for equipment and humans.

After several months of consultations, the Guyana’s Local Content Policy is still not completed. Dr Small noticed this shortcoming. According to Minister of Natural Resources, Raphael Trotman, there are still some finishing touches, which need to be added.

(Kaieteur News)