{"id":22422,"date":"2018-12-07T16:18:27","date_gmt":"2018-12-07T20:18:27","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=22422"},"modified":"2018-12-07T16:18:28","modified_gmt":"2018-12-07T20:18:28","slug":"guyana-us-diplomat-says-guyanese-not-fully-aware-of-impact-of-oil-discoveries","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/guyana-us-diplomat-says-guyanese-not-fully-aware-of-impact-of-oil-discoveries\/","title":{"rendered":"GUYANA-US diplomat says Guyanese not fully aware of impact of oil discoveries"},"content":{"rendered":"
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The United States Ambassador to Guyana, Perry Holloway, Friday said citizens of this Caribbean Community (CARICOM) country are still not fully aware of the positive implications of the oil discoveries in recent years.<\/p>

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Earlier this week, the US based oil giant, Exxon Mobil Corporation announced it made a fifth new oil discovery after drilling the Turbot-1 well offshore Guyana.<\/p>\n\n\n\n

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Outgoing United States Ambassador to Guyana, Perry Holloway.<\/figcaption><\/figure>\n\n\n\n

Turbot is ExxonMobil\u2019s latest discovery to date in Guyana, adding to previous discoveries at Liza, Payara, Snoek and Liza Deep.<\/p>

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\u201cThe results from this latest well further illustrate the tremendous potential we see from our exploration activities offshore Guyana,\u201d said Steve Greenlee, president of ExxonMobil Exploration Company.<\/p>

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Guyana intends to begin commercial production of oil and gas in 2020 and speaking on a radio programme here, Holloway said that the influence of the oil industry on Guyana\u2019s economy \u201cis growing every few months.<\/p>\n\n\n\n

\u201cYou saw Exxon Mobil make another announcement so you now you up to more than five million barrels of confirmed reserves (which) puts you in the neighbourhood of number 15 in the world.<\/p>

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\u201cNumber 15 in the world and I repeat that and I still leave Guyana thinking \u2026I have been the little guy with the finger in the dyke since three years ago saying this is bigger than anyone realises,\u201d the outgoing US diplomat told radio listeners.<\/p>\n\n\n\n

\u201cPeople are beginning to wake up, people do realise it because you see things happening in the economy right now, but people still don\u2019t realise how big this is,\u201d he added.<\/p>

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Holloway said the announcement on Thursday that the Inter-American Development Bank (IDB) is providing a loan of US$11.6 million to Guyana for among other things, drafting a model contract for future Production Sharing Agreements (PSAs), should be welcomed.<\/p>

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\u201cThe World Bank is coming in with a big grant as well and Guyana needs a lot of assistance. It is a small country, it has never done oil before, so it will need assistance and in an ideal world the assistance will come in, it will provide the training to Guyanese so that in five or 10 years you don\u2019t need the assistance, bur tight now Guyana needs the assistance\u201d.<\/p>\n\n\n\n

Under the 2016 agreement with ExxonMobil, the coalition Government here signed for a two per cent royalty and 50\/50 share on every barrel of oil. However, Guyana\u2019s share of the 50\/50 is dependent on ExxonMobil recovering it expenses first.<\/p>\n\n\n\n

The government says it will be strengthening its newly established Department of Energy to handle these and other issues and the IDB said that the loan will prepare Guyana for its transition towards becoming a major oil and gas producing state.<\/p>\n\n\n\n

\u201cRelying upon a $11.64M policy-based loan from the Inter-American Development Bank (IDB), this project is designed to support the strengthening and the sustainability of the energy sector in Guyana by contributing to the institutional development of oil and gas governance and the development of cleaner energy sources for electricity generation,\u201d IDB said.<\/p>\n\n\n\n

It said that the specific objectives of this loan programme are first, to develop a management and planning framework for Guyana\u2019s oil and gas sector; and second, to contribute towards the development of a policy framework so that Guyana may diversify its electricity generation matrix using cleaner or renewable sources.<\/p>\n\n\n\n

According to the IDB, Guyana\u2019s new energy scenario, which will likely yield significant revenues for the government, represents a transformative shift in Guyana\u2019s development trajectory.<\/p>\n\n\n\n

\u201cIt embodies a crucial and unprecedented opportunity for economic growth and sustainable development. The conversion of short-term oil wealth into long-term well-being, hinges on the capacity of the Guyanese Government to adequately manage this new sector and enact productivity-enhancing reforms,\u201d the IDB said, stressing that if handled well, it can boost the overall standard of living for the country. However, there is considerable work to be done so that Guyana can enjoy the benefits of its recent \u2013 and potential \u2013 oil and gas wealth.<\/p>\n\n\n\n

\u201cToo often resource-rich countries have become or remained poor as a result of inadequate resource management. Hence, there is an urgent need to improve the governance of Guyana\u2019s oil and gas sector ahead of the start of production in 2020.\u201d<\/p>\n\n\n\n

Holloway said that since the first oil well was discovered in 2015 to Guyana going into commercial production by 2020, \u201cthat will be about the fastest oil that deep that \u2026has ever been produced in the world.<\/p>\n\n\n\n

\u201cSo this is moving very very fast and again number 15 in the world in terms of reserves that\u2019s an incredible number,\u201d he added.<\/p>\n

\"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

The United States Ambassador to Guyana, Perry Holloway, Friday said citizens of this Caribbean Community (CARICOM) country are still not fully aware of the positive implications of the oil discoveries in recent years. Earlier this week, the US based oil giant, Exxon Mobil Corporation announced it made a fifth new oil discovery after drilling the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-22422","post","type-post","status-publish","format-standard","hentry","category-regional"],"yoast_head":"\nGUYANA-US diplomat says Guyanese not fully aware of impact of oil discoveries - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/guyana-us-diplomat-says-guyanese-not-fully-aware-of-impact-of-oil-discoveries\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GUYANA-US diplomat says Guyanese not fully aware of impact of oil discoveries\" \/>\n<meta property=\"og:description\" content=\"The United States Ambassador to Guyana, Perry Holloway, Friday said citizens of this Caribbean Community (CARICOM) country are still not fully aware of the positive implications of the oil discoveries in recent years. 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