Finance Minister Winston Jordan responding to potential investors in the presence of Guyana’s Ambassador to China, Bayney Karran at the 9th International Infrastructure and Construction Forum on Friday
Jordan tells Chinese investors at International Infrastructure and Construction Forum
FINANCE Minister Winston Jordan told China’s 9th International Infrastructure and Construction Forum that Guyana is opened for business.
Stating that Guyana sits in the middle of the most promising investment zone in the Northern Hemisphere, that is Latin America and the Caribbean, Minister Jordan said the country’s “golden treasures” have been upstaged recently by the discovery of massive hydrocarbon reserves, in excess of 3.7 billion barrels of recoverable oil.
As he addressed a special session of the forum held in Macao on Friday, the Finance Minister pointed out that ExxonMobil and its partners, Hess and CNOOC Nexen, forecast that first oil will be realised by the first quarter of 2020, initially at 120,000 barrels per day, with expected growth in production to over 500,000 barrels per day by 2025.
“With several other major global oil producers now rushing for a stake in our massive oil field reserves, some of whom are already exploring and drilling in areas contiguous to the current oil discovery, it is expected that we can be producing over one million barrels per day by 2030 and onwards,” said an optimistic Jordan.
ExxonMobil has also conservatively estimated over 50 million standard cubic feet of associated natural gas per day in the Lisa 1 oil well. Once these production forecasts remain constant over the next decade, Guyana can realise over US$300 million annually from 2020 and beyond to in excess of over US$1 billion annually by the end of the decade, in royalties and profit share from petroleum production and natural gas production, he noted.
He added that with this projected revenue stream, Guyana is poised to become perhaps the most endowed country, in terms of oil revenue per capita, in the world but emphasised the need for prudent investment.
“Ladies and gentlemen, to harness, develop and manage these resources and to create and realise the transformative opportunities that these revenue flows can bring to Guyana, we are actively seeking investors, individually or in partnership, as we consciously strategise to avoid the resource curse and Dutch Disease, which has befallen many emerging oil producing nations,” Minister Jordan explained.
Guyana, he pointed out, is developing a Green State Development Strategy that would act as a guide.
“This strategy articulates my government’s vision for sustainable green growth and emphasizes economic diversification of the economy for stability and sustainable growth, and promotes enhanced livelihoods so that our people can enjoy the Good Life, secured in peace, safety and prosperity,’ he noted.
A fixed 4-lane bridge connecting major commercial and industrial regions; a 400 Km super- highway linking Georgetown to Brazil, thereby creating an International Trade Corridor; and Agro-Industrial Parks that promote hemispheric and global food security, he said, are among catalytic investment opportunities that are designed to catapult Guyana from one of the poorest countries in the Caribbean to one of the richest in South America.
“Ladies and Gentlemen, as you have deduced by now, the main constraint to unleashing Guyana’s full potential is the ready availability of the requisite capital investment and investors. To address this challenge, our government is encouraging Foreign Direct Investment to establish linkages with our local private and public sectors, in order to bring the necessary financing, managerial expertise and cutting edge technology to jumpstart our developmental agenda,” he stated.
More than 40 representatives of China’s business community met with Minister of Finance, Winston Jordan at Guyana’s embassy in China, last Friday, to discuss opportunities for cooperation. They were particularly interested in Guysuco and the Public/Private Partnership Framework which was recently laid in Parliament.
Minister Jordan also made a call for investors to consider newer models of financing, particularly private investment financing as governments are facing the challenge of dwindling resources to finance infrastructural projects. The special session was arranged by Guyana’s Ambassador to China, Mr. Bayney Karran.
The 9th Infrastructure Investment and Construction Forum focussed on the promotion of more robust cooperation within the sector and particularly on China’s Belt and Road Initiative. China supports global infrastructure development.
The forum is an important platform for the exchange of knowledge and technological advances in global infrastructure development. It was attended by more than 1500 persons including businessmen, politicians and global infrastructure firms and financial institutions from Latin America, Europe, Africa and China.
Ref Link: https://guyanachronicle.com/2018/06/17/guyana-open-for-business
