Opinion
- Editorial- Commentary
STCIC:
Exploiting new
opportunities in… Guyana & Suriname
The settlement of the maritime boundary dispute between Guyana and Suriname last
month has given an important boost to the development of the hydrocarbon sector
in both countries.
In order to take advantage of new business opportunities
created by the development of the sector, the STCIC
will be conducting an Energy Services Trade Mission
to both countries in late October and early November
2007.
Approximately
20 T&T service companies will
take part in the mission which is scheduled to
be in Guyana on October 21 to 24 and in Suriname
from October 31 to November 3.
Given
the free movement of skilled people, goods and
capital and the rights of establishment provisions
under the Caricom Single Market and Economy (CSME),
T&T energy service companies are uniquely positioned
to take advantage of business opportunities created
by the anticipated surge in exploration, and hopefully
oil production, in both countries.
Opportunities
At present, neither Guyana nor Suriname have well
developed energy sectors. However, the Guyana and
Suriname off-shore area is widely considered to
contain a number of excellent exploration prospects.
According to a study of the Guyana and Suriname
Basin conducted by the US Geological Service in
June 2000, the basin could account for estimated
15.2 billion barrels of oil and 42 trillion cubic
feet of gas.
The prospectively of the hydrocarbon sector is
reflected in the interest in the area from a number
of big name multinationals, such as Exxon and Repsol,
and some independent oil and gas exploration companies.
Exploration of available acreage has, however,
been hampered until now by the uncertainty over
the maritime boundary between the two nations.
With the settlement of this dispute and the positive
indications from both nations that they both respect
the outcome of the tribunal and are committed to
working co-operatively prospects for further exploration
and development now look very positive.
Suriname
has an existing small oil production sector from
a number of on-shore fields by the
state-owned Staatsolie, accounting for about 12,000
barrels a day production. There is also a small
refinery. The Surinamese minister with responsibility
for the energy sector, Gregory Rusland, is a regular
attendee and presenter at the STCIC’s annual
T&T Petroleum Conference.
The
development of the mining sector in Suriname,
the mainstay of the economy, is reliant upon further
development of competitive sources of energy and
Suriname has also seen the development of significant
hydro-electricity generation capacity. In some
cases, the engineering and project management skills
of T&T energy service sector companies may
well be transferable into the mineral and mining
sectors and this represents another potential opportunity
for local companies.
Guyana has not to date seen any significant development
in its hydrocarbon sector. Nevertheless, Guyana
is widely regarded as being the primary beneficiary
of the maritime boundary tribunal decision and
active exploration work, especially by CGX Energy,
is set to recommence in the immediate future.
CGX
Energy is a small Canadian based oil and gas
exploration company specifically set-up to explore
opportunities in the Guyana-Suriname basin. In
2000 CXG Energy were drilling the Eagle prospect
in the disputed border area under a Guyanese issued
licence, when they were forced to leave the area
by the Surinamese navy, resulting in the tribunal
hearings recently concluded. The vast majority
of CXG’s licence acreage, including the Eagle
prospect, was awarded to Guyana in the tribunal
decision.
According to a CXG press release they now plan
further 3D seismic work, prior to recommencing
exploration drilling.
Promotion of energy
service exports
The
up-coming trade mission to Guyana and to Suriname
forms part of the STCIC’s thrust to promote
the export of energy services from T&T.
As
Rampersad Motilal, the president of the STCIC,
noted in his address to last month’s STCIC
annual general meeting, the energy services sector
is one of the most competitive sectors of the T&T
economy and an area in which we should look to
promote exports. It should be noted that the domestic
energy services market has always been open to
international competition and that local firms
in the sector have, therefore, always had to compete
with the leading global service companies in order
to gain business.
Some local firms are already successful in export
markets, and the STCIC has advocated that Government
assistance should be placed behind the sector to
encourage the expansion of these exports in the
future.
Ministry of Trade support
While
some STCIC members companies in the energy services
sector did take part in last years trade
mission to the Dominican Republic, the up-coming
mission to Guyana and Suriname represents the first
targeted out-going energy services trade mission
from T&T. We are pleased to report that the
Ministry of Trade and Industry has kindly agreed
to assist the mission and is providing some funding
support for the mission, specifically sponsoring
networking events in both target markets.
This support is much appreciated and is significant
in that it represents a new willingness from the
Ministry of Trade and Industry to support the energy
services sector, traditionally seen as being outside
of their jurisdiction.
The STCIC has worked very closely with the Ministry
of Trade and Industry over the past year on the
issue of the energy services sector.
As a result, the energy services sector has received
considerable attention in international trade negotiations,
for the first time, and we are now seeing active
support from the trade promotion arm of the ministry.
This support bodes well for future development
of the energy services sector both at home and
in export markets.
Further information on the trade mission to Guyana
and Suriname is available on the STCIC Web site
(www.sticic.org) or by e-mailing trademission@stcic.org
STCIC is
Trinidad's South Chamber of Commerce and Industry-STCIC
(deven@southchamber.org).
Petroleumworld not necessarily share
these views.
Editor's
Note: This article was first publish in The
Trinidad Guardian, Thursday 4th October, 2007
. Petroleumworld
reprint this article in the interest
of our readers.
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Petroleumworld
10/07/07
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