GEORGETOWN, Guyana, October 16, 2018 (CMC) – The government of Newfoundland and Labrador and the government of the Cooperative Republic of Guyana have entered into a Memorandum of Understanding (MOU) to further their respective oil and gas industries.
Newfoundland and Labrador’s Minister of Natural Resources, Siobhan Coady, signed the agreement, today, on behalf of the Canadian provincial government and Guyana’s Minister of Business, Dominic Gaskin, for the English-speaking South American country.
The MOU will allow both governments to work, collaboratively, in support of opportunities in the oil and gas industry, including knowledge transfer, technology development, training, health, safety and environment initiatives, supply chain development, joint ventures and exchanges that may also benefit other sectors.
“We are pleased to move forward with this Memorandum of Understanding with the Cooperative Republic of Guyana. Both Newfoundland and Labrador and Guyana offer outstanding prospectivity and opportunity, said Natural Resources Minister Coady.
“Establishing a government to government relationship will allow us to share experiences and knowledge of the oil and gas industry and lead to a relationship that will benefit the economies of both regions.”
The Guyana government said that the agreement will allow for an exchange of information and experiences, concerning the emerging oil and gas sectors, an industry that Newfoundland has been developing for the past 20 years.
“It is important for Guyana, that we do develop long term relations and partnerships with partner governments. As we explore the oil and gas sector, with which we are not too familiar, I think it becomes all the more important, that we benefit from the experiences of those who have done this before,” said Business Minister Gaskin.
Coady said through the MoU Guyana stands to benefit from a wealth of knowledge, with which to consider, when developing the oil and gas sector.
“We are here, today, to work with you and give you the experiences that we have, so that you can build and grow your opportunity here in Guyana. We look forward to seeing the growth and development of the oil and gas industry,” she added.
As part of Newfoundland and Labrador’s Way Forward on Oil and Gas project, the government committed to establishing the province as a global leader in the oil and gas industry. The agreement with Guyana supports the Advance 2030 principle of collaboration and will position the partners to maximize future opportunities in the industry.
Through the MOU, Newfoundland and Labrador is positioned to provide expertise and experience to Guyana as it develops its offshore industry.
The province has been producing oil for 20 years and currently has five producing fields, more than 650 leads and prospects, a world-class seismic program with more than 20 basins mapped, and an established supply chain.
Guyana has recently discovered an estimated four billion barrels of recoverable oil equivalent resources in deep water. Oil production is expected to begin in 2020, with an estimated production of 500,000 barrels per day by 2025.
The MoU will also facilitate economic cooperation and business opportunities in Guyana and in Newfoundland and Labrador, by organizing reciprocal visits.
Moreover, a Joint Working Committee, to implement and oversee the Agreement, will be established and Gordon McIntosh, Deputy Minister of Natural Resources for Newfoundland and Labrador, and the Director of Guyana’s Department of Energy, Dr. Mark Bynoe, will serve as co-Chairs of the committee.
The co-Chairs are required to maintain open and quarterly communications with each other and with relevant industry groups and other non-governmental organizations.
Additionally, an annual work plan is to be developed by the Joint Working Committee and be approved by the co-Chairs, within 30 days after the signing of the MoU. The annual work plan may be amended as deemed necessary with the mutual consent of the co-Chairs.
According to the MoU, the co-Chairs will provide an annual report to their respective governments on the status of the agreement and progress made in the work plan. They will also agree to meet, on an annual basis, to review and assess the progress of initiatives, taken pursuant to the MoU, and to discuss potential new areas of cooperation that could be reflected in the work plan.
Annual review meetings will alternate between Newfoundland and Labrador and Guyana.
The agreement also states that the parties have the ability to independently determine and pursue their own domestic objectives or priorities.
“Collaboration under this agreement and the work plan will be realised, in accordance with the laws, regulations and policies of each jurisdiction,” it added.
In addition to the MOU signing, Minister Coady is attending activities, related to a trade mission from the province’s offshore oil and gas industry, happening in Guyana,.
A 50-member delegation from Newfoundland and Labrador is in Guyana on a four-day trade mission — from October 15 to 18 — which is being facilitated by the Guyana Office for Investment (GOINVEST).