Tuesday, May 30, 2023

Guyana, OPEC’s 3rd biggest oil producer furthering investment talks

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Guyana’s Vice President, Dr. Bharrat Jagdeo, is currently in the United Arab Emirates (UAE)—the third biggest oil producer in the Organisation of Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq—where he is engaging senior government officials and investors.

OilNOW understands that matters of cooperation and investments were discussed during his meeting with His Highness Sheikh Ahmed Dalmook Al Maktoum.

A government release also noted that Dr. Jagdeo met with H.E. Reem Ebrahim Al Hashimy, Minister of State for International Cooperation where several issues were discussed. This included strengthening the role and interest of the South in the Global Multilateral System and Climate Change negotiations. Such discussions are regarded as particularly important and in keeping with Guyana’s push to take real action on climate change, especially outside of what is being undertaken at COP27 where several big emitters have been a no-show.

In addition to the foregoing talks, a bilateral agreement on Cyber Security was also formalised between Guyana and the UAE.

Other high-level meetings were also held with Dubai Ports (DP) World and Abu Dhabi National Oil Company (ADNOC) on areas of mutual interest and cooperation.

Vice President Dr. Bharrat Jagdeo in one of several meetings with United Arab Emirates officials

Talks with ADNOC are indeed critical since the State-owned oil company is considered the heart of the UAE’s oil industry and stands as one of the world’s largest oil companies by production. As of 2021, the company has an oil production capacity exceeding 4 million b/d with plans to increase to 5 million b/d by 2030. ADNOC, which is also engaged in all phases of the oil industry, has a complex and intricate holding company structure involving equity links with large Western oil enterprises.

ADNOC is also one of the few oil companies in the world to make a substantial investment to increase oil production amid growing pressure to reduce output due to climate change. The company has since reasoned that such investments in oil and gas are necessary since they continue to power the world economy. It also noted that such investments will help to prevent future price shocks in natural gas and oil caused by premature cuts in investment.

The Guyana government has indicated that it has set aside offshore blocks for government-to-government partnerships, which may be a point of discussion for Guyana and ADNOC.

Dr. Jagdeo is accompanied by the Minister within the Ministry of Public Works, Deodat Indar, and National Information and Communications Technology (ICT) Advisor, Daryl Akeung.  They are expected to have further engagements in UAE over the next few days.

It should be noted that these talks are in keeping with sentiments expressed in March by President Dr. Mohamed Irfaan Ali to the effect that his government intends to use the examples of countries such as the United Arab Emirates to enhance and develop Guyana’s investment climate.

Will Guyana become the next United Arab Emirates? Only time will tell | OilNOW

The President made this statement during a panel discussion in Dubai at the Global Business Forum LATAM (Latin America) under the theme ‘Lessons in diversification and partnership’ at the Dubai Exhibition Centre.

The Head of State emphasised that the UAE has taught the world how to utilise oil revenues to diversify its economy and ensure that there is a system of equality, improved governance services and state-of-the-art infrastructure. He had said this is exactly what he wants Guyana to achieve. Ali said he wants his country to use the oil resources to build an economy that is resilient, broad, and well-diversified.

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