22 C
Georgetown
Saturday, April 17, 2021

Robust systems must be in place before touching oil money – President Ali

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.

Newly elected President of Guyana, Dr. Irfaan Ali, says he will be looking to ensure that robust systems are in place for the management of oil revenue so that benefits to current and future generations are maximized even before his government looks to draw down from the resources being accrued in the Federal Reserve Bank of New York.

“First of all, we have to put the mechanism in place. We have to ensure we have robust laws. We have to have robust management systems,” the President said in an interview with local online news service News Room. “We have to have the right governance structure before we think about touching the resources and we have to have that Sovereign Wealth Fund well thought out, one that acts in the immediate needs of our country while at the same time safeguarding the future generations.”

The bill for the Sovereign Wealth Fund, known in Guyana as the Natural Resources Fund, was passed in the country’s National Assembly in January 2019. Since that time, an account has been set up in the United States to receive the proceeds of oil sales and royalty, which to date exceed US$98 million.

President Ali said it is important that the wealth fund reflects the urgent needs of Guyana and operates in a way that safeguards resources for the future, emphasizing that, “political overreach must be removed” in terms of the fund itself and management of the sector.

The new Guyanese head of state said development of an investment and policy pathway that takes the entire oil and gas industry into account with emphasis on developing local capacity will be a top priority of the new administration.

“We can’t develop a pathway for the oil and gas sector without also simultaneously developing a pathway for our private sector to enhance themselves and our private sector to restructure themselves to be part of that pathway,” President Ali stated.

Guyana became an oil producer in December 2019. Output is expected to exceed 1 million barrels per day by the end of the decade, potentially making it the third largest oil producer in Latin America and the Caribbean and the largest oil producing country per capita in the world.

- 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