How will Guyana benefit from oil revenue?

first_imgDear Editor,It seems to me that our luck just keeps getting better. Exxon’s increased estimate of Guyana’s oil reserves raised the total figure by 25 per cent. That puts us at a remarkable reserve amount of more than four billion barrels of oil.Exxon’s explanation of the breakdown of activities is even more promising. Liza Phase 1 is in the process of development and will produce up to 120,000 barrels of oil per day. Liza Phase 2 will be even larger, up to 220,000 barrels of oil per day, and is expected to start up in 2022. Exxon also conducted a well test on Liza-5 to explore the northern part of the field.Then there’s the Payara discovery, just above the Liza field, which has given Exxon a reason to start a third development phase, which could be brought forward some time next year. Additionally, there have been other discoveries in the Turbot and Longtail areas which could yield a fourth development.This means that in addition to huge reserves, our assets are diversified. Guyana could potentially have a total of five active developments in the near future, and with that amount of production will come a broad mix of field operators and providers bringing jobs, investment, and infrastructure. Which brings us to the real question: what does this announcement mean for Guyana and how will this benefit Guyanese?We all know that there are many ways in which Guyana could benefit from revenues and investment. Obviously, the increased reserve estimates mean even higher revenues for Guyana. Energy analysts estimate that Guyana’s Government take could reach US$15 billion annually by around 2030. This figure could be even higher if more discoveries are made. A more immediate effect, though, is Guyana going to see a massive uptick in foreign direct investment, benefiting numerous industries across all of Guyana.The urgent question is how will we use this blessing? We will have enough money to finally start critical infrastructure projects. We could improve healthcare access for many citizens. We can focus on education and ensure that Guyanese are getting the skills necessary to turn oil revenues into a lasting foundation for a diverse and sustainable economy. We can also implement the Green State Development Plan, bringing renewable energy production to all regions of Guyana.What we need now, with oil and elections looming, is a clear course of action. We have the potential to make an immediate improvement for Guyanese today. But more than that, we have an opportunity to provide a very bright future for our children. We cannot let that pass by.Sincerely,Clement Smithlast_img read more

Cocopa ‘Go Slow’ Turns Violent

first_imgA month long ‘go slow’ at the Cocopa Rubber Plantation on Friday April 1 turned violent after aggrieved workers blocked the main road leading to Saclapea from Ganta, preventing vehicles from plying their regular route.The action forced an ambulance transporting a patient from the Bahn Refugee Camp to Ganta to divert to another route through Karnplay to Ganta.Officers of the Liberia National Police Emergency Response Unit (ERU) who arrived on the scene tried to disburse the crowd but the situation went out of hand and the police resorted to the use of tear gas. During the confusion, three police officers sustained injuries resulting from stones thrown at them from the crowd.The workers allegedly broke into the main warehouse at the plantation, as well as the only clinic, and looted everything there. When confronted, their spokesman denied that they were involved in the looting. He said they embarked on a peaceful go-slow but when the police arrived and began to use tear gas, the crowd lost it, leading to the looting and disorderly conduct. The Plant’s Operation Manager, Benjamin Saye, and senior staff members of the various departments have since moved to Ganta. Eleven persons, including two women were arrested and brought to Ganta for questioning, but they were later released after Acting Ganta City Mayor Ben Dokpa, upon the instruction of the Supt. Zuagele, stood their bonds. Meanwhile, the situation at the plantation is now calm. Police officers are presently on the plantation to protect other facilities that were not tampered with, the County Police Commander told the Daily Observer.The management is set to pay the workers their arrears today, April 4, as well as recruit a minimum number of workers that it can maintain, Mr. Saye said. The go–slow at the plantation began a month ago, when teachers, nurses and even security officers decided to stop all operations until salary arrears were paid.The workers meanwhile threatened to close the highway linking Ganta and Saclapea if the government failed to address their plight.The management was forced to hire a Community Watch Forum to take control of the facilities until the disturbance was ended.Many of the citizens of Nimba have expressed disappointment in the workers’ action when there was a process already underway to pay them. “Although, we’re in sympathy with the Cocopa workers for the delay in getting their salaries, we’re not in support of taking the law into their own hands,” said an eyewitness at the scene.He added “They were going to get their arrears so they shouldn’t have gone on the rampage.”The recent saga began when the government of Liberia took the plantation from the previous owner, LIBCO due to bad labor practices in 2013.Since then the workers have continued to complain about delays in receiving their wages and monthly rice supply.Recently, the present management, Nimba Rubber Incorporated, issued a distribution of rice to the aggrieved workers to ease the tension while working on the payment of salary arrears which was supposed to start on April 2.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more