The custodians of the new-found wealth offshore Guyana were today recipients of a stern warning from the Chief Executive Officer (CEO) of the African Energy Consortium Ltd., and Senior Vice-President of the Freddie Jordan Oil Company Ltd., Kwame Jantuah.
The official, during his presentation today at Guyana International Petroleum Business Summit and Exhibition (GIPEX), warned that the objectives of International Oil Companies (IOCs) matter more than developing personal friendships.
“The IOCs have personal interests and no personal friends. But don’t blame them because they have shareholders to answer considering the kind of investment required. In deepwater drilling, one well can cost US$100m and they can hit a dry well with nothing,” he said.
Jantuah advised that Guyana should seek equitable partnerships with IOCs and drive home its demands. This, he said, can be achieved by having professional negotiators and specialized oil and gas lawyers lead the discussion on Guyana’s interest.
But that was not the only cautionary remark made by the energy executive. He advised industry heads to be wary of corruption.
The official also warned that expectations must be kept to a “minimum” because there are “so many factors that can influence production, the oil price being one of them, [and] the benchmark price you set for your budgets. ”
Jantuah also advisedGuyanese leaders to think “long-term” when it comes to economic planning. He added that one day, Guyana will be classed as a mature oil and gas producer and hopefully, by then, local companies will be seen producing not only in Guyana but around the world to the benefit of all.
“Let’s make this happen,” he urged those in attendance.
