Brazil ready to invest in Guyana’s oil and gas sector



Guyana’s South American neighbour Brazil is ready and willing to give a helping hand in the development of the oil and gas sector here, according to Guyana’s Ambassador to Brazil George Talbot.

The Ambassador said that the recent oil discoveries announced by United States oil company ExxonMobil offers a new frontier for collaboration.

According to the Ambassador, Guyana has already made it clear that is open to the Brazilian Investment. Brazil is said to be the 10th largest energy consumer in the world and the largest in South America. It is an important oil and gas producer in the region and the world’s second-largest ethanol fuel producer.

While the oil sector is new to Guyana, Ambassador Talbot said the question of oil cooperation between the two South American nations dates back to the 1980’s.  He said that the first arrangement bore little to no fruit, however, with the new developments in Guyana, the prospect of renewed relationship is very evident.

“We have clear indication of Brazilian interest and a clear signal from Guyana, about its readiness to have Brazil participate in the oil sector.”

According to Ambassador Talbot, Brazilian companies have experiences in the oil and gas sector including exploration in the deep sea.

“I think the experience of Brazil and the possibility of partnership with Brazil in the sector is on the front burner. We expect that there will be a mission field by Brazil during this year,” the Ambassador said.

The two countries will collaborate on, among other things, Local Content Policy. Ambassador Talbot said the Government is at the stage of developing the framework for the collaboration.

He explained that there are two broad areas that can be pursued through this collaboration – one is investment and engagement in the exploration of the available blocks, while the second involves capacity building and the transfer of knowledge, and exchange of experiences.

“In terms of exploration, the focus would be on Petrobras, which is the Brazilian entity which is focused in that area… but there is a second Brazilian agency that focuses more on the regulatory aspects; the National Petroleum Agency of Brazil which might be a key counterpart for providing lessons learnt Local Content.”

He said that is an area where Guyana should take inventory on the workings of the oil sector, especially since the country is discovering different facets including transportation, food, technical services, oil spill prevention and control among others. (Extracted and modified from the Department of Public Information)

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