Guyana to ask Japan to fund economic studies based on “Oil and Gas Master Plan”

Last Updated on Sunday, 4 March 2018, 7:19 by Denis Chabrol

Guyana plans to ask Japan to fund a set of  economic studies on how best the country’s hydrocarbon resources should be utilised, after reviewing an “Oil and Gas Master Plan” that has been developed by two major Japanese companies.

“We will probably, within the next fortnight respond to them saying that we have looked at the report and now that we are ready to go forward, we would like them to fund the preparation of detailed economic feasibility studies for each of the projects and then we will see what they come up with,” acting Prime Minister and Minister of Foreign Affairs, Carl Greenidge is quoted as saying in a statement issued by the Ministry of the Presidency.

The Master Plan, which was developed by Mitsubishi Corporation and Chiyoda Corporation,  in collaboration the government of Japan, has several key features.

Government explained that the plan has as key objectives the development of Guyana’s domestic oil industry, the creation of a balance in the domestic usage and exportation of products from indigenous oil and gas, the harmonisation of the industry in keeping with Guyana’s ‘green’ development agenda and the quantifying of the economic feasibility of the plans.

The report was presented on Friday to President David Granger at a meeting at State House.  Present at the meeting were Minister of Foreign Affairs, Mr. Carl Greenidge, who is also performing the duties of Prime Minister and Minister of Natural Resources, Mr. Raphael Trotman, along with the delegation from Japan, headed by Mr. Takeo Suzuki, Acting Head of the Strategic Business Planning Section, Chiyoda Corporation. Following that engagement, Minister Greenidge, in an invited comment, said that Government will carefully review the proposal so that a decision can be made on the way forward.

“This is the final report presented. They have had discussions with Finance, Public Infrastructure and Natural Resources. It remains now for us to conclude our examination of that final report and then to respond to the Government of Japan,” Greenidge said.

The Government of Japan is funding the technical work, which also includes the creation of a roadmap towards balancing Guyana’s oil and gas future with its ‘green’ development agenda.

Guyana took up an offer for Japan’s International Department of Trade and Industry and the central government  to fund technical work by Mitsubishi, one of the world’s largest corporations together with Chiyoda, which works on projects.

The Acting Prime Minister said the Japanese have examined the amount of oil and gas that Guyana has, the plan by  ExxonMobil, CNOC and Hess, world prices and renewable energy plans to determine “how best to move forward with the produce that will be landed in 2020.”