Home' Trinidad and Tobago Guardian : March 29th 2018 Contents An internationally recognised econo-
mist is urging the Guyana government not
to invest in a local oil refinery noting that
refineries attract large amounts of capital
“The whole oil industry is going to
tether out in 2040. You might be left with
a great lump of technology off your shores
which has no use,” said Professor of Eco-
nomics and Public Policy at Oxford Uni-
versity, Sir Paul Collier.
Sir Paul, who was here participating in
a special high-level Cabinet caucus on the
development of the country’s oil and gas
industry, told reporters that the margin
on returns for refining oil is very small.
He also advised that the government
avoids subsidising gas because “that
way the society ends up drinking what it
should be accumulating”.
Sir Paul said he is confident that the
Guyana government will learn as the oil
and gas industry develops, what are the
best investments, taking into account the
unpredictability of the market.
Minister of State, Joseph Harmon has al-
ready stated that the government will take
on board all recommendations before
making any decision on the establishment
of an oil refinery.
“We have to take on board all of the
advice that is given and then at the ap-
propriate time the Minister (of Natural
Resources) will bring a memorandum to
Cabinet upon which we will cogitate and
make a decision that is in the best interest
of the people of Guyana,” Harmon said.
Last year, Pedro Haas, director of Ad-
visory Services at Hartree Partners, who
was tasked with carrying out a feasibility
study for an oil refinery in Guyana, said
that the cost to construct an oil refinery
would be in the vicinity of five billion US
dollars. The feasibility study found that it
would be too costly for the government to
invest in an oil refinery.
Further, Sir Paul suggested that the gov-
ernment examines the idea of establish-
ing a national oil company, not to conduct
off-shore drilling, but to operate as a mi-
nority equity partner to build expertise in
Thursday, March 29, 2018
urged not to
invest in oil refinery
expresses interest in
drilling offshore Guyana
Natural Resources Minister, Raphael Trotman,
has held talks with the senior vice president of
the Italian based oil and gas exploration company
that has expressed an interest in carrying out ex-
ploration offshore Guyana.
A government statement said Trotman met
Monday with Guido Zappala of ENI, considered
one of the world’s largest publicly owned oil and
gas companies, also known as supermajor.
It said that the company could be the “new kid
on the block”, if the David Granger government
gives the green light for it to carry out exploration
ENI operates in 79 countries and is currently
the world’s 11th largest industrial company with a
market capitalisation of Euro 68 billion (One Eu-
Trotman said that after the meeting the oil com-
pany had, since last year, expressed its interest to
“So, we had a long discussion with them about
their practices elsewhere, what they are looking
for. And obviously Guyana’s basin has become at-
tractive and they have assured us that they are
not worried about the current issue between Guy-
ana and Venezuela. They are prepared to pursue
and should there be any cause for concern they
Trotman said ENI, which is partly owned by the
Italian government, has an excellent track record
in terms of safety and good environmental prac-
tices. The company he said, has been lending its
support to other countries, helping to develop
their renewable energy capacity.
“Thirty per cent of the shares is owned by the
government. So, you actually have a company
that is undergirded by the government and is a
main driver of the economy of Italy,” he said.
Trotman said that he would be preparing a re-
port to present to President Granger for his con-
India’s Reliance sells Texas
shale assets for US$100m
Reliance Industries Ltd said on Tuesday its unit
would sell some of its shale assets in the United
States to privately held Sundance Energy Inc for
US$100 million, as the Indian oil-to-telecom con-
glomerate moves closer to exit US shale invest-
The sale includes Reliance’s interest in the as-
sets in the Eagle Ford shale in Texas, it said in a
US-based Pioneer Natural Resources Co, which
was a partner in the asset, also exited the blocks.
In November 2014, Reliance and Pioneer an-
nounced exiting their stake in shale oil and gas
transportation and distribution joint venture,
which analysts had said was a precursor to Reli-
ance’s move to exit US shale operations.
The deal, which is expected to close in the first
quarter of fiscal 2019, is the second such sale by
the Mukesh Ambani-backed Reliance in the United
In October, the Reliance sold a similar asset
block in the Marcellus shale region in northeast-
ern and central Pennsylvania.
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