Coverage of the International Energy Conference and Expo 2023.
February 17, 2023
By Kimberly Ramkhalawan
Guyana opened its doors to the International Energy Conference and Expo 2023 this week while at the same time welcoming it guests to come and invest.
But in his opening address, President Dr Mohamed Irfaan Ali says his country is in the position where it is critical that in the “next seven years, it builds characteristics and the broadness in scope to be viable, functional, resilient and sustainable in a world 2030 and beyond”. He took the time to speak out against who he described as being the ‘self-righteous’ who seemed to only focus on the minority players in carbon emissions while not taking thought toward those involved in coal and nuclear energy. Dr Ali says currently 25 percent of the world’s energy was coal, prompting the question as to how it was going to remove large percentage of coal producers, all while in the same breath sough to defend his country’s energy policy, saying if Guyana is to achieve net zero by 2050, there are a set of required actions which need investment.
The Guyana President said despite CARICOM committing to the target, it requires investment of US$11bn. He went further too with the question to his audience: “Where is the US$11bn coming from? Who is investing US$11bn…why can’t we answer these questions? We are in support and we are transiting to renewable, but where is the assessment?”
It was in this vein, he said that the “time is right for a world coalition to seek what they address to bring balance to the international debate around the issue of climate change, food security and energy security, as these remain the three main challenges that need to be confronted”.
Dr Ali says his country will continue to be an oil producing country which extracts its natural resources and converts it to the better development of its people.
While he also speaks from the position of having one of the best “environmental credentials in the world”, all which he says his nation has been naturally blessed with
The question is how does the balance of things allow them to realise the value they have, while sustaining it for the future. For this reason, the Guyanese president says finding creative ways in preserving this resource comes in strategic policies, and with the current voluntary Carbon credit market for the world is worth $300bn dollars per year, with Guyana’s price tag placed at $500m per year.
Looking at the agreements, Dr. Ali, says its value is actually US$2bn, but Guyana was able to secure US$750m worth in signed agreements for the next ten years, marking 40 percent of what the world currently has signed unto.
Dr Ali says Guyana conceived the idea of low carbon strategies, geared at earning revenue while presenting a global model on sustainability, prior to its oil boom. He says this was further solidified with the Low Carbon Development Strategy, LCDS, as a main actor in the platform of becoming a developed country, adding value while staying true to its principles and morals in preserving the land in light of climate change.
The country in which is now dubbed the fastest growing economy of the world, well on its way of becoming the Dubai of the West, saw it Natural Resources Minister Vickram Bharrat extend the invitation despite many raising concerns over its local content policy. In commencing his discussion and address at Day two of the forum, Bharrat says international investors should not be afraid of its policy, as it had an open door policy to investment and any investor entering the oil state, while at the same time sharing that its “local content legislation was in no way a hindrance to investment coming into Guyana”, as the country needed partners to develop our resource, as they could not do it alone”.
Guyana’s Local Content Act 2021 “provide for the implementation of local content obligations by persons engaged in petroleum operations and related activities”; while giving “priority to Guyanese nationals and companies in the procurement of goods and services in the value chain of the petroleum operations”.
Minister of Natural Resources, Vickram Bharrat discussing investment opportunities in Guyana on day two of the International Energy Conference and Expo 2023.
When asked whether he would be interested in taking up the offer put forward by TT PM Dr Keith Rowley on day one of the conference where Trinidad offered its defunct Petrotrin Refinery and its already existing infrastructure, Bharrat said Guyana was “looking to build our own refinery in country” adding, “we are trying to ensure that we are self-sufficient in terms of energy so that’s why we are moving towards setting up the refinery in country”.
Bharrat is reported to have local media outlets that the Guyana Government has already issued a Request for Proposals for a privately-owned 30,000-barrel-per-day oil refinery in East Berbice-Corentyne and the administration will soon make a decision from the nine proposals received, despite it needing about 15,000 barrels of oil per day and with growing energy demand, it is believed that this 30,000-barrel-per-day refinery will suffice. Nevertheless, the Natural Resources Minister shared that it was somewhat thinking of advancing natural gas cooperation with Trinidad and Tobago and Suriname, with the aim of monetizing that resource as well, as the twin island republic was one of the more expertise nation in gas production.
So far Guyana is already in train to having its shore base facility to assist in its offshore oil productions and is expected to receive its first vessel in December 2023.