Guyana Government Plans To Construct Multi-million Onshore Oil And Gas Facility At Crab Island

GEORGETOWN, Guyana, March 29, 2017 (CMC) – The Guyana government says it plans to construct an onshore oil and gas facility at Crab Island, that will cater for the expansion of exploration and subsequent production of oil in Guyana.

The government said that it will be investing US$500 million to construct the onshore facility on Crab Island, which is located in the mouth of the Berbice River, during the course of this year. The facility will serve as a logistics and supply base to the offshore production.

The Guyana Lands and Survey has been advertising leasehold interest in close vicinity to the Island.

The facility is expected to create some 600 jobs that the government said could bring significant relief to residents of Berbice, who continue to complain about lack of employment.

It said the supply base could consist of components, which include maintenance, fabrication, warehousing, spares, housing, and spares handling among others.

Technical skills such as welding are job opportunities that will be made available when the facility is functional, but opportunities will also be made available during construction.

Natural Resources Minister, Raphael Trotman, said, last year, that jobs which will be created through the establishment of the onshore supply base facility will enable and enhance the labour force.

Trotman, giving reasons for choosing Crab Island for the new facility, said that the current traffic congestion along Water Street, in the capital city of Georgetown, makes that location unsuitable as an onshore base.

“Water Street will be used… for production in the early years and it is expected that as production increases and more activity come, we will migrate to Crab Island,” he added.

Earlier this month, oil producing giant, ExxonMobil, advertised for onshore service providers. At least two companies with port facilities along Water Street, have been shortlisted.

But Trotman pointed out, “everyone is thinking in terms of Exxon’s operations only, but suffice to say, we can’t find ourselves thinking of one discovery and one company.”

ExxonMobil and its partners discovered significant hydrocarbon reserves in the Liza Field. The oil find was officially declared to be of commercial quantities last year. The company has presented to the government and stakeholders its development plans for the Liza field with the projected year 2020 for oil production.

Additionally, there are several other companies that were issued licences to explore Guyana’s deep waters. Those companies include Repsol, Tullow Oil, CGX, JHI, Eco Atlantic and Ratio Oil.

“At some point in time, all will be looking to reengage, and so the idea is to find an available piece of land or property which can accommodate all the operations,” Trotman said.