As Guyana continues to develop its bourgeoning oil and gas industry, Ghanaian President Nana Akufo-Addo has cautioned that regardless of its attractiveness, no energy initiative is worth pursuing if majority of the stakeholders will be disenfranchised.
He made the remarks today at the opening of the 2022 International Energy Conference and Expo hosted by Guyana from February 15 to 18.
In his remarks, President Akufo-Addo reflected on the Ghanaian experience in the oil and gas industry and offered Guyana several advices for dealing with its own petroleum sector, particularly as it relates to striking a balance between pursuing social and economic prosperity and protecting the environment; and creating opportunities for locals and benefits to international investors.
“No energy project therefore, no matter how high the return on its value, is worth it, if the interest of some or majority of the stakeholders are not properly represented and they’re left impoverished and dissatisfied,” the Ghanaian President remarked.
In this regard, he urged Guyanese authorities to continue to ensure the proper management of oil revenues including to ensure there is equity in its spending; ensure the petroleum sector remains a significant contributor to the budget and nationwide industrial development; and lay the basis for continued development of the petroleum sector to ensure the Guyanese basin remains attractive to investors.
Additionally, he encouraged that Guyana pursue ambitious resource management policies, ensure the petroleum sector becomes a cutting-edge industry with strong focus on health, safety and environment; encourage investments along the supply chain through incentivisation and practical regulations; and maximise the benefits of producing wealth from oil and gas by using local resources and services, people, companies and finance in all facets of the value chain.
“Retain the benefits within the country,” the Ghanaian President said.
He further urged that the country promotes capacity building in its technical and vocational educational institutions, and, develop a diverse electricity generation mix through the creation of renewable energy sources.
“The time has come for all of us to work together to build stronger nations for the benefits of our people,” the Ghanaian President said.
In Ghana, the petroleum sector has since 2003 experienced significant growth, particularly since the discovery of oil in commercial quantities in the Jubilee fields in 2007.
Some of the major oil and gas activities are done by IOCs such as Tullow Ghana, Cosmos Energy, ENI, ExxonMobil and Hess Ghana Limited. Their sub-contractors include Schlumberger, Baker Hughes, Weatherford, Ocean Rig and Technip. Since Ghana’s first commercial oil lifting took place, over 4.7 million barrels of crude oil have been produced, at an average of 80,000 barrels per day.
In December 2021, Guyana several agreements intended to further cement relations with Ghana. The three agreements signed include a Framework Agreement on Cooperation between the Government of the Co-operative Republic of Guyana and Government of the Republic of Ghana; a Memorandum of Understanding between the Ministry of Natural Resources of the Cooperative Republic of Guyana and the Petroleum Commission, Ghana, on Cooperation in the Petroleum Sector of the Cooperative Republic of Guyana; and a Memorandum of Understanding on Mutual Cooperation In Investment Promotion Between Guyana Office For Investment and Ghana Investment Promotion Centre.
Guyana and Ghana officially established diplomatic relations on May 14, 1979.
Guyana has already put robust legislative frameworks in place to properly manage the oil and gas sector, inclusive of a strong Local Content Legislation and the Natural Resource Fund Bill which puts the systems in place to transparently manage the nation’s oil wealth.
