Ramotar says Guyana’s economy must be broad-based

President Donald Ramotar on Monday warned that if oil is discovered in Guyana it should not become the main economic base of the country, saying that there needs to be a balancing of sectors and resources if the country is to prosper.

The president made these remarks while addressing participants of the first oil and gas training session held at Regency Suites, Hadfield Street on Monday. Minexco Petroleum is sponsoring the event.

In a release, the company said that the training is designed to assist the Natural Resources and Environment Ministry and related government agencies in Guyana to manage the demands that are being made on them, as a consequence of increased upstream oil and gas activity offshore Guyana.

According to the firm, speakers at the opening session recognised the well-established roots of co-operation between the government of Guyana and Minexco, with Minexco acknowledging the substantial support it has received from the government.

Guyana is currently the focus of increasing interest from oil companies following the recent drilling of a number of exploration wells offshore Guyana and French Guiana.

These exploratory wells have raised expectations that potential reserves will be similar to those offshore West Africa.

Minexco Petroleum is part of the Minexco Inc Group, a growing and diverse natural resource conglomerate, with interests in South America and West Africa.

The Minexco Group, through its wholly-owned subsidiary Minexco Minerals, has been investing in the mining sector in Guyana since 2010.

Meanwhile, addressing the gathering Ramotar said over the past years Guyana’s economy has been based on three commodities: rice, sugar, and bauxite. He warned that as the country remains optimistic that oil is discovered, never again should the economy be based upon one resource. “We should try to do our best to ensure that we do not fall into that situation where we are totally and absolutely dependent on oil,” he said.

The president noted that while the cost for oil on the world market is high, it may not remain that way, and stated that at no point should Guyana depend on the booming nature of the sector and take for granted that it will be sustained for eternity. “We know that the price of oil could also fall…,” he stressed.

He added that there are huge possibilities available in the manufacturing, processing and agricultural sectors, while pointing out that there needs to be “good balance and coordination”, so that all local sectors can grow and “not one grow at the expense of the others”.

That aside, the president noted that over the past few years Guyana has attracted much attention in the area of mining and a number of agreements have been signed.

Mining has contributed significantly to the Gross Domestic Product (GDP) of the country and has maintained its number one ranking. The country has gained much experience over those years and has acquired some of the best technical persons in the field, Ramotar added.

However, he was quick to point out that there is a greater need for skills training in that sector. With the mining industry booming, particularly the resuscitation of manganese mining in the North West District (NWD), he is “optimistic” that Guyana will be regarded as one of the major oil producing countries in the world”.

Training long overdue

“There is much optimism that we will discover oil in our area and hopefully in the not- too-distant future,” the president said, noting the training course is “long overdue” as Guyana should have been preparing for such prospects. “However, better late than never and I hope our people make maximum use of them (the training).”

To maximise the country’s full potential through the benefits that may derive from the new horizons that have presented themselves, the president believes that training is critical. He noted that the oil industry is one of the largest and most competitive industries, so it is imperative that “we can stand up and compete and be able to represent ourselves fully in this area”.

Valuable

Meanwhile, Natural Resources and Environment Minister Robert Persaud said government is satisfied with the swift manner in which the training programme was put together by the company.

He said the first phase of the training programme will see technicians within the Guyana Geology and Mines Commission (GGMC) and related government agencies receiving training. Other programmes will see other stakeholders being trained.

He described the programme as “valuable”, noting that it has begun at “a very opportune time.” Persaud said that programmes, such as the current one that will last five days, will fall under the auspices of the Guyana Mining School when it is launched in September.

The minister said it is critical for there to be the creation of synergies so as to develop local capacity by “growing, developing and nurturing locals who can manage and undertake the great potentials that we know we have in the oil and gas sector”. The minister added that training is only one component of government’s initiatives to ensure that the sector gets off to a good start.

“We started to engage a number of international entities and multilateral institutions,” he stated.

He pointed to the first report of the Commonwealth Secretariat on Guyana’s petroleum sector reform that spoke to legislation, regulations, institutions and the fiscal regime, coupled with what needs to be done for the country to come up to an identified level to “properly manage and make use of the opportunities” that will present themselves in the near future. Persaud noted that government will “continue to partner and work with these companies to fulfil our national objectives.”