22 C
Georgetown
Saturday, April 17, 2021

38.5 billion earmarked for infrastructure development ahead of first oil

Must Read

T&T Energy Minister Franklin Khan passes away

Trinidad and Tobago’s Energy Minister Franklin Khan has died. Loop News said in an article on Saturday morning that...

Guyana must accept it has crucial skills shortage for oil sector; temper local content expectations – Greenidge

The reality facing Guyana, the world’s most envied deepwater exploration hotspot, is that it suffers from a crucial shortage...

Schlumberger one step closer to setting up US$750,000 storage, calibration facility in Guyana

Oilfield Services Company Schlumberger is one step closer to setting up a source storage and calibration facility in Guyana...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Guyana’s Finance Minister, Winston Jordan, announced on Monday that 38.5 billion Guyana dollars – around US$183M – has been earmarked for major infrastructure development works in the South American country ahead of first oil in 2020.

Mr. Jordan said this sum will also aid in the expansion and diversification of the non-petroleum assets. “…we have allocated $38.5 billion to expand and maintain the infrastructure, principally, in recognition of the emergence of oil and gas, as well as the expansion and diversification of our non-petroleum assets. It is our roads, bridges, ports, stellings, airports and aerodromes that will be assessed and expanded to catalyse the transformation that is no longer an illusion but, a reality brimming with hope,” he told the National Assembly in what is his 5th budget presented since the APNU+AFC coalition took up office in 2015.

Of the amount budgeted, 71.9 percent will be spent on upgrading or adding to the capital stock, while the remainder would go towards maintenance and repairs, he stated. “This sizeable allocation will result in improved movement of people and goods, both, nationally and internationally, enhanced resilience of coastal and riverain communities, and improved efficiency in services delivered to the citizenry of Guyana.”

Government will also be looking to fast-track the establishment of an Oil and Gas Unit within the Guyana revenue Authority (GRA) which will be tasked with ensuring that the appropriate revenues are paid to the state by petroleum-producers, in keeping with their respective production sharing agreements.

“Already, the Government has secured the support of international institutions to undertake capacity building initiatives in the GRA and other institutions, providing expert advice in several areas, including cost-oil audit and production sharing agreements,” the Finance Minister said.

The commencement of commercial oil production is slated for early 2020, using a floating production storage and offloading (FPSO) vessel that will produce around 120,000 barrels of oil per day at peak. Oil production is expected to rapidly increase as US oil major ExxonMobil, the operator in the Stabroek Block, move to develop multiple fields using at least five FPSOs that will see production expand to around 750,000 bpd.

- Advertisement -
- Advertisement -

OilNOW TV

Latest News

T&T Energy Minister Franklin Khan passes away

Trinidad and Tobago’s Energy Minister Franklin Khan has died. Loop News said in an article on Saturday morning that...

Guyana must accept it has crucial skills shortage for oil sector; temper local content expectations – Greenidge

The reality facing Guyana, the world’s most envied deepwater exploration hotspot, is that it suffers from a crucial shortage of skills required for the...

Schlumberger one step closer to setting up US$750,000 storage, calibration facility in Guyana

Oilfield Services Company Schlumberger is one step closer to setting up a source storage and calibration facility in Guyana to support the offshore exploration...

Frontera loans CGX US$19M to cover costs for Guyana projects

Frontera Energy Corporation has disclosed that it loaned its joint venture partner, CGX Energy Inc., US$19 million so that it would be able to...

Drilling company operating offshore Guyana completes major acquisition

Noble Corporation announced Friday the completion of its acquisition of Pacific Drilling Company LLC, effective on April 15, 2021. Noble said Pacific Drilling's high specification...

More Articles Like This