The Government of Guyana has ramped up its efforts to strengthen capacity across all government agencies, particularly in sectors related to the oil and gas industry. According to the 2024 mid-year report released by the Ministry of Finance, all key government agencies participated in extensive training programmes focused on crude marketing, economic modelling, and cost benchmarking. These areas are critical for understanding and maximizing the economic benefits of the oil and gas sector.
Cost benchmarking is a strategic process where a regulator, in this instance, compares costs against industry standards or best practices. In the context of the oil and gas industry, it involves analyzing operational expenses to ensure that costs are in line with global standards, thereby optimizing profitability and competitiveness.
Economic modelling is another critical area where government officials have received training. This involves creating abstract representations of economic processes to predict future financial outcomes, helping policymakers make informed decisions. In the oil and gas sector, economic models can forecast revenues, expenses, and profitability under various market conditions.
As for training in crude marketing, this equips officials with the knowledge needed to navigate the complex global oil market effectively. It involves understanding pricing mechanisms, contract negotiations, and market dynamics to maximize revenue from crude oil sales.
In a move to further enhance analytical capabilities, the government procured the QUE$TOR software following the training sessions. QUE$TOR is a leading cost-estimation tool used in the oil and gas industry to model field development costs and operations. It enables agencies to examine cost and revenue statements as well as field development plans (FDP) and work programmes submitted by oil companies.
Overall, the ministry noted that these capacity-building efforts reflect the government’s commitment to transparent and efficient management of Guyana’s natural resources. By investing in training and modern tools, the government aims to ensure that the benefits of the oil and gas industry are fully realized for the country’s development.
