With ESSO Exploration and Production Guyana Ltd. (EEPGL) close to exploration drilling, the company last evening launched its office here.
Speaking at a reception at the Pegasus Hotel, Minister of Natural Resources, Robert Persaud said that the government welcomed this developments by the ExxonMobil subsidiary.
In his remarks released by the Ministry, Persaud said the government recognized that the company has had an interest in the development of Guyana’s offshore hydrocarbon sector for a number of years.
He added that the government continues to reach out to a number of partners including the U.S. Geological Survey through the US Embassy in Guyana and the Canadian High Commission on a framework for the management of the sector in general.
Persaud said the new policy provides the Government with a strong platform for effective development and governance of exploration and developmental activities.
“Our National Upstream Oil and Gas Policy will be the first to be adumbrated to serve as a clear and detailed articulation of our objective of ensuring that we create an internationally competitive upstream oil and gas sector. It provides the basis for addressing this and other challenges, as well as responding to important government priorities and commitments.
“The vision of Guyana’s upstream oil and gas sector is of a strong, vibrant, and sustainable private sector-driven oil and gas industry which will contribute significantly to its socio-economic development. Whilst, the mission will be to facilitate the exploration for and production of petroleum for associated industry development, regulate and monitor petroleum operations to ensure legislative compliance and encourage the application of best practices in petroleum and associated industry operations”, Persaud asserted.
He also pointed to a number of bilateral programmes with the US and Canada, as well multilateral programmes with international organizations such as the United Nations Development Programme (UNDP) on issues critical to a sustainable oil and gas sector.
“The Government is confident that companies including ESSO Explora-tion and Production Guyana Ltd. will see this policy, as well as other initiatives, as laying the foundation well in advance of an oil and gas sector.
“In recognizing the investment of close to US$200 Million to be made by ExxonMobil, we also wish to encourage other companies with concessions to take bold and timely steps to advance their exploration programmes”, Persaud stated.
He also heralded earlier investments made by CGX Energy, Repsol Explora-tion, Anadarko Guyana Co., Takutu Oil and Gas and Nabi Oil and Gas Inc.
“Now that ESSO Explo-ration and Production Guyana Ltd. is close to exploration drilling, I have no doubt that due consideration is being given to issues of environmental and safety requirements and corporate social responsibilities”, Persaud asserted.
Persaud said it was also important that expectations be managed.
“This is a risky undertaking and the results cannot be predicted. Even when there is a significant commercial discovery, it will take several years for the development and production of our hydrocarbon”, he stated.
In July 1999, EEPGL had signed a production sharing contract (PSC) with the Government of Guyana. This PSC covered the Stabroek Block, which Exxon was awarded during 1998. The Stabroek Block, licensed to Exxon, consisted of 17 million acres off the edge of the continental shelf. This was the largest block in terms of acreage to be explored
Seismic work had commenced but had to be postponed because of the Guyana/Suriname maritime border dispute. The boundary dispute has since been resolved in the Permanent Court of Arbitration in accordance with the United Nations Convention on the Law of the Sea.
