It is imperative that Guyana’s government ensure its developing oilfields fully benefit nationals and the country when exploitation begins in 2020. ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited’s success of seven oil finds in three years is no doubt driving the latest exploration optimism in Georgetown, with drilling started last week on another potential well, Longtail-1.
Drilling activity at this site is expected to last for three months in an undertaking that will see operations from Stena Carron Drill Ship along with about ten other vessels. Should exploration be successful at Longtail-1, it would add to the seven sites discovered so far.
Earlier this year, ExxonMobil Guyana discovered more oil in the Pacora-1 Well offshore. This site was the seventh major find by Exxon since May 2015. The Pacora-1 well discovery added to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep, Turbot, and Ranger-1 – an estimated total of more than 3.2 billion recoverable oil-equivalent barrels.
It has been noted the ongoing activity in this emerging industry is seeing more employment of Guyanese nationals and local companies. According to reports out of Georgetown, Guyanese nationals comprise 52 percent of ExxonMobil’s local workforce, while 227 Guyanese companies have serviced its oil and gas operations so far in 2018.
According to Exxon, 585 Guyanese were employed on the drill rigs, shore bases, and its affiliate office. The workers were hired from Exxon’s subcontracted companies, with JSL International, a registered Guyanese company, providing Guyanese staff for Noble Drilling.
Another site of Guyanese involvement is on the Noble Bob Douglas, which has been contracted to drill the production wells for First Oil in 2020. This drillship has 160 personnel on board of which 23 are Guyanese in positions of catering, roustabouts, clerks, logistics, and one doctor. Exxon claims it has also provided 61,000 training hours for workers; and in March this year the company hired three facilities engineer graduates, two from the University of Guyana, and one from the University of the West Indies.
Exxon is also training Guyanese nationals to fulfil key responsibilities in the field, including serving as a primary subsea engineering maintenance team, coordinating equipment strategy and operational issues, and being part of the company’s emergency response team.
While this is a good start to employing Guyanese nationals, it is important for Guyana’s government to ensure employment levels, and its concomitant skills sets, continue to rise as this new industry takes root in the national economy. Also, Guyana’s government should continue paying attention to the availability of industry experience available elsewhere, as was indicated last week in Trinidad and Tobago by the Chairman of its National Gas Company, Gerry Brooks.
According to Brooks, the oil discoveries in Guyana could be a game-changer for Trinidad and Tobago and its State-owned Petrotrin, which he noted could mean Guyana producing up to 500,000 barrels of oil per day by 2023.
“That would be a game-changer for Petrotrin and also a game-changer for Trinidad and Tobago. My message is that Guyana is shopping in Mexico. They have the help from the IMF. They're looking very closely at their reserves,” Brooks pointed out.
Trinidad and Tobago would be knocking on Guyana’s door, Brooks said, noting: “We have to go there in a very professional manner; in a very engaging manner; in a very thoughtful manner, if we are to engage Guyana.”
Brooks noted there are opportunities for Trinidad and Tobago to provide Guyana with expertise, and the opportunities are there to add value in Guyana. And while there are lots of international heavyweight interests courting Guyana, Trinidad and Tobago was already knocking on the door with an expectation it would sign a mutual cooperation agreement between both nations.
Guyana stands on the threshold of a vibrant future energy sector, which makes it imperative the government ensure this pivotal momentum returns maximum gains for nationals and the nation.