Energy Diplomacy In CARICOM

by Riyad Insanally | Feb 4, 2023 |

This is just one example of the need for continuous vigilance regarding the demarcation of Guyana’s borders. President Ali’s action was commendable. One can only hope that the error had been spotted by Guyanese government officials and private sector representatives in the room and that they were lining up to make their objections known.

President Ali is clearly the chief spokesman at international forums for Guyana’s new-found status as a rapidly evolving energy producer. This is good given the need for the Head of State to be at the forefront of Guyana’s energy diplomacy. One therefore expects that he is ensuring he has at his disposal the expertise and support necessary to present the country’s energy policies and imperatives in the best possible way.

Energy Diplomacy

In August 2022, I was invited to deliver closing remarks at a ground-breaking course on Energy Diplomacy, organised by the Diplomatic Academy of the Caribbean, housed at the Institute of International Relations, at the St. Augustine Campus of The University of the West Indies.

Most participants came from T&T’s public and private sectors, with a sprinkling from other Caricom countries. There was only one participant from Guyana, who seemed to have signed up of her own accord. There was no one from the Ministry of Natural Resources or the Ministry of Foreign Affairs.

The virtual course focused on global energy governance and the dynamics of global energy politics, as well as on the importance of foreign policy and diplomacy in the quest for energy security. Unsurprisingly, there was also a focus on Guyana’s emergence as a petrostate, which has tremendous implications for Caricom. The course scope and structure, designed by Professor Anthony Bryan, were comprehensive and well-thought out. It was both timely and necessary and should serve as a template for future training in an area critical to Caricom’s economic development and security.

The Need for Energy Security

The need for energy security, not only in the Caribbean but across the world, has become more acute following Russia’s invasion of Ukraine and the disruption to the global energy market. Against this backdrop, the quest for new supplies and the prospects of new investments could be advantageous to the Caribbean in two respects:

1. 1. 1. the exploitation of hydrocarbons in Guyana, Suriname and T&T, and exploration in other parts of the region; and
      2. accelerating the transition to renewable energy.

For the Southern Caribbean, in particular, with huge reserves of high quality, sweet, light crude in Guyana and potentially Suriname, as well as abundant natural gas in T&T, the increased global demand for oil and gas is a good thing. As Western nations push for augmented production, there is an opportunity for Guyana and T&T to help alleviate supply concerns and increase their geopolitical influence. With a coordinated policy, these countries should be able to leverage their resources to position themselves better in their relations with the United States and the European Union (EU), in spite of the movement away from hydrocarbons to renewables.

On the other hand, even with Guyana’s impressively rising rates of oil production, most Caricom countries are heavily reliant on imported fossil fuels, so much so that increasingly volatile pricing can wreak havoc on their budgets. They furthermore have some of the highest average electricity costs in the Americas.

It will be some time yet before Guyana can play the role many hope it can play in anchoring regional energy security. But, with informed energy diplomacy, it can start manoeuvring to take advantage of the current global energy scenario to attract bilateral and multilateral support for capacity building, investments and technology transfers to support both the energy transition in the context of the Low Carbon Development Strategy (LCDS), as well as downstream development.

Energy Dependence is Energy Insecurity

Europe’s dependence on Russian energy has hitherto given Russia tremendous leverage in its relations with the EU. In the face of Russia’s weaponization of oil and gas, the EU is working to correct this strategic blunder. But the lesson is clear: energy dependence is bad; it is tantamount to energy insecurity. Recognising this reality, Caricom Heads at their July 2022 meeting in Suriname, devoted considerable time to energy security and agreed on the following:

1.  Approval of a paper on Economic Development and Energy Transition and Climate Change as the Community’s “overarching strategy in advancing energy security”;

1. 1. • Increased “focus and investment in energy security by utilising and harnessing hydrocarbon resources in the region towards reducing dependency on external resources and supplying the growing global needs arising out of the Russia-Ukraine conflict”;
      • The pursuit of “energy diversification and security through making use of significant assets in the Region with immediate existing capacity in LNG and fertiliser for agriculture”;
      • The development of the renewable energy sector “through building infrastructure to meet regional power generation needs”; and
      • Urging the United States to remove the sanctions on Venezuela to allow for countries in “the region to benefit from the PetroCaribe initiative and for progress on the exploitation of cross-border natural gas fields between Trinidad and Tobago and Venezuela”.

2.  The first four objectives make perfect sense in the current global energy context. They will, of course, require the deployment of appropriate resources – human, financial and technical – to ensure implementation.

T&T’s desire to exploit cross-border natural gas fields in the adjoining maritime area with Venezuela is also understandable. The announcement on January 24 that the US has approved the waiver of sanctions to allow T&T to develop the Dragon Field in Venezuelan waters has therefore been welcomed across the region.

One hopes, however, that it is not Caricom’s intention to put its eggs once more into the PetroCaribe basket, which would be a resurrection of not only energy dependence but also debt dependence.

Barbados and T&T never did sign on to PetroCaribe and Guyana only took 50% of its needs under PetroCaribe for strategic reasons, until the arrangement fell apart in 2015 when Venezuela began to raise the temperature over its claim to Guyana’s territory and maritime area.

If anything, those Caricom states that were party to PetroCaribe would do well to recall the precarious position they found themselves in after its collapse, especially with no guarantee that Venezuela will be able to become, in the short to medium term, a reliable supplier to the Caribbean.

Caricom needs to avoid dependence on PetroCaribe and, for that matter, any other arrangement that leads to greater energy insecurity. Indeed, it needs to become less dependent on expensive, imported fossil fuels. To do so, though, Caricom countries will need to find ways to move towards energy efficiency and a certain degree of self-sufficiency, in other words, energy security.

One possible avenue for achieving this is the US-Caribbean Partnership to Address the Climate Crisis 2030 (PACC2030) and its promise to promote the energy transition and energy resilience in the region. Although concrete details are scarce, with proper engagement and negotiation, assistance should be forthcoming to build capacity in individual countries and regionally, and to establish investment facilitation teams to unlock new financing for climate and clean energy projects in the Caribbean.

Ultimately, success will depend on how Caribbean governments develop and present a joint strategy in negotiations with the US, to take advantage of PACC2030’s potential.

Conclusion

The PACC 2030 negotiations, the follow-up to COP 27 and the pursuit of the Sustainable Development Goals, among other processes, will necessitate robust and well-coordinated energy diplomacy by Caricom. Achieving the transition to renewable energy and ensuring energy efficiency and energy security, as well as leveraging the Southern Caribbean’s energy resources, will require technocrats and diplomats capable of advancing the region’s energy interests, in a volatile and sometimes contradictory global environment.

The harmonising of regional policies and frameworks to achieve economies of scale will also be critical for success. This, arguably, is the future of energy diplomacy in the Caribbean.

As the emerging leader in the Caricom energy space, Guyana is poised to play a pivotal role in all this. The 2023 budget has allocated GY$45 billion (up from GY$33 billion in 2022) to the education sector and GY$500 million (approximately US$2.3 million) has been earmarked from a World Bank US$20 million loan for building institutional capacity for the management of the oil and gas sector in the Ministries of Natural Resources, Public Works and Finance, the Geology and Mines Commission, and the Environmental Protection Agency.

It is not clear how much of the Foreign Ministry’s allocation is to be spent on training Foreign Service Officers, but it is to be hoped that some of the funds in the budget destined for education and capacity building will be spent on training in energy diplomacy.

Guyana has all to play for. There is a definite need for a new cadre of diplomats and other public officials imbued with a deep understanding of the geopolitics of energy and equipped with the skills to navigate the interlocking worlds of climate change and energy security, and to negotiate in the best interests of Guyana and the region. Indeed, members of the private sector could also benefit from such training.

Dr Riyad Insanally, CCH was a career diplomat for 31 years and last served as Guyana’s Ambassador to the United States of America and Permanent Representative to the Organization of American States, from September 2016 to June 2021. He is a Senior Fellow at the Caribbean Initiative of the Atlantic Council’s Adrienne Arsht Latin America Center, in Washington, DC

Energy transition strategies

President Dr Mohamed Irfaan Ali told the TT Energy Conference in Port of Spain that conversation in relation to the end of fossil fuel that producers to should urge investments in the region, as polluting coal plants are resuming operations globally.

The region long associated with tourism and leisure, white sand beaches and blue seas, is known as an offshore haven for financial arrangements, the nominal location of intricate corporate structures devised for various purposes.

Without expert knowledge, few know the Caribbean continues to be a player in the energy market. Guyana, one of the world’s largest bauxite producers, hosting vast mineral reserves, does not have a strong global reputation for extractive industries. Recent confirmation of vast oil and gas reserves is relatively new.

The president suggests there have been hurdles to overcome in the process of gaining investor confidence, beyond the belief that we are witnessing the end days of oil and gas. We are near the end of this sector and we must, as a matter of necessity, prepare to develop alternative  industries in a transitionary period.

As TT grapples with conflicting imperatives in relation to medium to long-term economic development in 2023, Minister of Finance Colm Imbert assured the country that things would get better, reflecting bolstered revenues triggered by the petrochemical sector last year while the Prime Minister presented a more tempered outlook.

“There are difficult times ahead and you have to prepare for the difficult times,” he warned.

At the same event attended by Dr Ali, he noted a more mixed energy revenue picture. Both leaders must do more than speak about the difficult realities and plan a clear pathway to navigate this uncertain terrain that frees us of past economic models.

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Rowley sells T&T energy hub to global stakeholders

Feb 14 2023

As regional heads of government participated on the opening day of the International Energy Conference and Expo in Guyana , the Trinidad and Tobago Prime Minister cut the ribbon to officially open the Guyana Expo , alongside President Dr Irfaan Ali, Guyana Prime Minister Mark Phillips, St Vincent and the Grenadines Prime Minister Ralph Gonsalves and former Colombia President Ivan Duque.

PM Rowley marketed TT as the region’s best bet for a bright energy future.
“The regional energy landscape does not equip any single country to meet the energy security requirements of the region. A cooperative approach allows for shared risks and diversified perspectives, and will facilitate the development and execution of innovative solutions to the challenges associated with the energy demand for the region.”

Because of this, T&T had taken a deliberate policy to engage neighbours in the development of economic cooperation in the energy sector. This includes agreements with Bolivia, Venezuela, Barbados and Grenada, which will allow for the exploration of hydrocarbon resources in the shared maritime boundaries..

A Memorandum of Understanding with Guyana and Haiti have been signed. In today’s economic environment, T&T can help as, investments in enabling infrastructure and technology can be costly, even prohibitive.

“T&T has the energy infrastructure to monetise hydrocarbon resources produced by its Caribbean neighbours. The country possesses ten ammonia plants, seven methanol plants, four LNG plants, an iron and steel complex, which at peak performance utilised as feedstock four bcf of natural gas per day, and an oil refinery which processed up to 140,000 barrels of oil per day. Our current natural gas production averages 2.8 bcf per day and we are still exploring the market for a user for the oil refinery.”

This was not the first time Rowley promoted the mothballed Petrotrin Pointe-a-Pierre refinery. In his 25-minute speech , as he stated the refinery and its supporting infrastructure are available for “restart, upgrade and use on reasonable terms to any interested refiner or crude supplier. T&T, therefore, provides a viable option for those countries that wish to optimise the monetisation of their hydrocarbon resources without incurring substantial capital expenditure. The proposed Dragon Gas Project with the Bolivarian Government of Venezuela is an example of government-to-government co-operation in the monetising of natural gas resources. We are open to discussion with our other Caribbean neighbours on the monetisation of their hydrocarbon resources in T&T. We would also wish to assist you in developing programmes to meet the necessary training needs of your energy personnel. T&T possesses a number on non-governmental and government agencies that have been meeting the human resource development needs of the energy and industrial sectors of T&T, as well as emerging oil and gas economies.”

As an emerging major oil and gas producing region, leaders have a window of opportunity to take a proactive approach to leveraging their collective knowledge and expertise to optimise new opportunities going forward.

“Linking the energy and industrial transformations to a collaborative economic strategy would ensure that the region makes the most out of its abundant oil and gas resources. We must use our energy resources for the benefit of our people, to build resilience and scale in our economies and to create energy security for the region.”

Growing geopolitical and regional influence

February 12, 2023

Energy professionals, companies, foreign dignitaries and Heads of State will discuss the important concerns affecting the energy sector, climate change and best practices to maximise the benefits of local-content development in Guyana and the region at the second annual International Energy Conference and Expo on February 14 to 17 in Georgetown. Guyana is uniquely positioned as an emerging producer and its impact on the region and globe does not go unnoticed. The petrostate continued to show strong growth in key areas, which bode extremely well for all sectors of its economy, not only oil and gas.

Rystad Energy published a landmark report concluding that government revenue from domestic production was on track to surpass the $1 billion mark in 2022, and accelerate to US $7.5 billion annually by 2030. In fact, Guyana exceeded expectations, banking US$1.24 billion from oil revenues and royalties in 2022.

Rystad reported that Guyana had a “stellar” 2022, in reference to the record ten new discoveries, which highlights the fact that Guyana leads in offshore discoveries globally since 2015, with the discovery of nearly 11 billion barrels of oil equivalent accounting for 18 per cent of discovered resources and 32 per cent of discovered oil. Guyana singlehandedly accounts for 18 of the top 30 largest offshore oil discoveries globally since 2015.

On a regional level, Guyana achieved a new role as a major energy producer. Guyana’s success was a major theme at last year’s second annual Suriname Energy, Oil and Gas Summit that brought together regional energy powerhouses and key speakers to discuss the state of Suriname’s energy economy.

Suriname had a small amount of onshore oil production since 1982 and Trinidad produced oil and gas for over a century. In the short period that Guyana has been an energy producer, it has implemented policies and legislation that Suriname is considering, such as local-content law. Guyana’s production and revenues surpassed those of Suriname by orders of magnitude and far outpaced Trinidad’s declining output.

Rapid expansion of training opportunities and certification programmes for local companies, through the industry-funded Centre for Local Business Development (CLBD), was an initiative that received praise regionally and locally. The CLBD was operational before First Oil, helping companies align operations with the services that needed in the oil-and-gas sector.

These are exciting times for Guyana, as foreign and domestic investments flow into its economy. On his visit to India President Ali met India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri.

The trip culminated with an agreement for “government-to-government cooperation across the entire spectrum of the oil & gas sector”.

Ali encouraged Indian firms to participate in an upcoming oil-block auction, demonstrating Guyana’s seriousness about international best practices around transparency and competitiveness for auctions.

At this week’s conference, for Guyana has much to look forward to 2022 was a milestone year when new production doubled revenues and a historic budget included billions of Guyanese dollars in oil earnings.

The 2023 national budget will be further impacted by oil, with almost 30 per cent of expenditure funded by oil revenues. G$84 billion is earmarked for the health sector, G$94.4 billion for education, and over G$54 billion for new housing and the upgrading of existing schemes.

Through the successful performance of the oil-and-gas industry last year, increased spending was also allocated to projects such as gas-to-energy.

The construction of the integrated Natural Gas Liquids (NGL) Plant, and the 300-megawatt (MW) combined-cycle gas turbine (CCGT) power plant is expected to receive critical funding this year, with a budgetary allocation exceeding G$43 billion. The project will help to diversify Guyana’s energy mix and significantly reduce the cost of electricity for citizens.

Guyana has arrived! Rystad analysts found that Guyana is on track to be the fourth largest offshore oil producer in the world by 2035, outpacing the U.S., Norway and Mexico. This second annual international energy conference is another opportunity to showcase to the world just how far Guyana has come and how much further it can go.

 

Regional ‘agri-tech’ campus

President Ali and Prime Minister Rowley at NAREI

Jan 27, 2023
By Vishani Ragobeer

Guyana will build a new regional agriculture technology campus as part of plans to leverage technology to increase food production.

Commemorating India’s Republic Day, during a presentation on growing Guyana/ India relations, President Ali said that Guyana can learn from the example and best practices of the South-Asian nation which established itself as a dominant agriculture powerhouse.

After his one-week visit to India, President Ali said that out of talks between Guyanese stakeholders and those in Bengaluru ( Bangalore) on tapping into their technological developments, emerged a plan to create a new technology centre to support local and regional food production plants.

“They will be working with us in building out a regional agri- tech campus here that will support our regional food hub.”

Technology and research will help grow more “high value” crops. Alongside other efforts to boost local and regional food security, Indian support will allow the agricultural sector to become more competitive and resilient.

“The region that is growing the fastest in terms of food insecurity and the most food insecure region is going to be Latin America and the Caribbean.

“We cannot wait until a full-blown crisis hits us. We have to create a policy environment and ecosystem to help us withstand this and there is where India, as a bilateral partner, presents a remarkable opportunity,” he said, explaining the impetus underpinning the deepening India relationship in agriculture.

Regional chamber: Dragon cannot save businesses

Chairman of the Confederation of Regional Business Chambers, Vivek Charranm expressed concern over the future of TT business despite the news of an exemption to access and produce Venezuelan gas from the Dragon Gas field.

Charran said while the exemption will bring much needed revenue and natural gas content to TT, it could still take years before the nation would realise any benefits. In the meantime, TT should not wait on revenue from the Dragon field but try to raise the level of economic activity in the country before businesses and the State, are overwhelmed by debts and increased costs.

While some economists would say the suggestion would be counter-intuitive in a time of heavy inflation, it would be necessary to build businesses still recovering from the economic and global shocks that came with covid19 as well as the current challenges arising from the Ukraine war.

“Economists will tell us that we need to reduce spending in the economy but the problem is that businesses are still suffering from the debts they carried coming out of covid19. We are still dealing with inflation. In the US and in Europe central banks are clamping down interest rates which means countries entering recession. In the US, it may not be that bad but reports are that Europe is facing recession.

Which begs the question if the large countries go into recession how will that affect us? Then what is the situation with the Ukraine in terms of shortages in things like wheat and what repercussions it would have on food and inflation?”

Businesses also worry about the looming property tax and the increase in electricity rates and the effects on expenditures for them. Charran said that while there was a spike in commercial activity after covid19 restrictions were lifted, activity has lulled. Businesses advancing at this time would be fête promoters and those in the entertainment industries.

“This is their time and we are very happy for them, but generally everyone else, other than pharmacies and supermarkets, have not been doing well.”

By the time TT begins to get revenue from Dragon gas wells, the national debt may be more than it is now.

“So the government would itself owe a lot for the loans and they would have to be repaid in US dollars. So the reality is that when we look at the influx of revenues coming in from Dragon Field, where is that going to go? Would we see an increase in the supply of the US dollars, would it go into the right places? Will we see it creating more jobs? There are a lot of hurdles to be navigated and we still don’t know what is going to happen so if the business community is going to plan ahead and say what is our plan going to be in the next three years, before Dragon Gas comes in, what are we going to do? Are we going to sit and do nothing or are we going to try to grow. If we are finding a way to grow, then the electricity bill and the level of property tax is going to be important.”

He suggested that more focus be placed on the growth of the SME sector as they make up the bulk of businesses in TT and collectively would employ the most people.

While Charran predicted that it would be between four to seven years before TT would see any revenue from the Dragon Field, former minister of energy Kevin Ramnarine suggested it would take about four years and a lot would have to be done before then for that timeline to be met.

Minister reveals investment opportunities in Guyana

January 24, 2023

Senior Finance Minister Dr. Ashni Singh of Guyana today participated in a breakfast engagement with over 60 Jamaican investors where discussions centred on how Guyana and Jamaica can improve growth in trade and investment between the countries.

The engagement provided an opportunity for the forging of closer ties between Guyana’s and Jamaica’s private sector and for accelerating the deepening of investment and trade.

The Trade Mission was led by Jamaica’s Minister of Industry, Investment and Commerce, Senator Aubyn Hill while Minister Singh was accompanied by Minister of Public Works Bishop Juan Edghill and Minister of Tourism, Industry and Commerce Oneidge Walrond.

The Jamaican Trade Mission to Guyana stems from an earlier trade mission to Guyana in October 2022 when the Jamaican Minister and team explored export and investment opportunities here. Jamaica’s Ministry of Industry, Investment and Commerce, Jamaica Promotions Corporation, the Guyana Office for Investment (GO-Invest), the Georgetown Chamber of Commerce and Industry, and the Guyana Manufacturing & Services Association partnered to make the missions possible.

Dr. Singh alluded to Guyana’s continuing economic growth and noted that the country will continue to be a major centre of strong economic growth well into the medium term.

Current production of about 350,000 barrels of oil per day will escalate to over one million barrels per day by the year 2027. Government recognizes the importance of a strong diversified economic base and, since the early days of oil production, placed a high level of focus on the non-oil economy which has since been progressing, as he outlined its growth since 2020 when the People’s Progressive Party/Civic -re-entered office.

“This (oil sector) has triggered a wave of activity necessary for the production of oil”.

Minister Singh noted that in addition to all the major work taking place in the public sector, ‘we currently have an unprecedented build out of infrastructure on the private side. There isn’t a sector that has not been visited by positive spill overs as a result of the growth in the oil and gas sector. If you take training, the demand for skilled personnel right now, there is an unmet demand for skilled labour. We are of course, on the part of the Government responding by providing as much training as we possibly can but I make the point really to say too that even in the training and human capacity development space there is a huge surge in demand,” Dr. Singh told the enthusiastic Jamaican Mission.

Minister Edghill, addressing the team, outlined a large number of the infrastructure projects ongoing in the country as well as those in the pipeline including the New Demerara Harbour Bridge, the Bridge across the Berbice River, the Deep-Water Harbour in the Berbice River, the Linden to Lethem Road and the Ogle to Timehri Road among others.

‘In the quest of modernizing Guyana, we also want to transform Guyana. We want to move Guyana from being just a primary producer of raw materials. We would really like to come into the value added stream. Our biggest challenge has been the cost of electricity and as a result of that we have a transformational, major project that we’ve undertaken,” Minister Edhill explained as he alluded to Guyana’s Gas to Shore Project.

“There is great room for private sector involvement in this modernizing and transforming that is taking place and our flagship which is second to none in the Region in terms of housing development,” Minister Edghill claimed as he referenced Government’s massive housing drive.

Minister Walrond told the Mission about Guyana’s unique tourism product including its rich and diverse culture, its lush forests, flora and fauna, mountains, waterfalls and abundant rivers. She referred to attractiiuons they can visit in Guyana, the international hotel brands under construction and major events in Guyana in terms of entertainment and the facilities to accommodate the influx of visitors ..

“These are just some of the opportunities and initiatives happening in different parts of the country. I want to thank you for your interest in Guyana. The fact that you are here and the fact that you are interested, we appreciate it and we hope that you don’t leave here without a project or two to take back to your Boards. I have just listed a few.”

The Trade Mission will be in Guyana until January 28 and presents an excellent opportunity for Guyanese and Jamaican companies to forge closer ties and for expansion of the Jamaican business presence and relations . Guyana is considered currently as one of the premier investment destinations in the world with attractive opportunities in the oil and gas sector, infrastructure and requisite support services. There are avenues for investment and expansion in the non-oil extractives, such as gold, agriculture, tourism and hospitality, ICT and energy.

 

 

CDB and World Bank Agree

to Collaboration on Caribbean Development

February 8, 2023

Barbados, February 8, 2023:    The Caribbean Development Bank (CDB) and the World Bank charted a path for closer collaboration to drive the Caribbean’s development agenda during a joint working session on February 2 and 3 in Jamaica. Multi-sectoral teams from the institutions examined avenues for deeper cooperation to enhance development outcomes for Caribbean countries.

The areas reviewed included:

1. 1. 1. Sustainable Development,
      2. Infrastructure,
      3. Energy,
      4. Human Development,
      5. Private Sector Engagement  and
      6. Regional Cooperation.

The discussions covered areas of

1. 1. 1. current focus,
      2. active projects and initiatives,
      3. lessons learned and
      4. best practices.

The two-day session concluded with agreements on next steps to adequately meet the development needs of Caribbean countries. Identified areas of emphasis including

1. 1. 1. tourism,
      2. renewable energy,
      3. digitization,
      4. capacity building and
      5. education.

“Having solidified links between the CDB and World Bank teams, I’m sure of our mutual commitment to roll our sleeves up and continue working toward the best outcomes possible for the people of the Caribbean. Desired economic and social advancements are most effectively accomplished through the power of partnerships”, said Ms. Lilia Burunciuc, World Bank’s Country Director for the Caribbean.

Mr. Isaac Solomon, CDB Vice President, Operations said “The Caribbean’s needs are extensive and the key to covering more ground is collaboration and cooperation between institutions that are facilitating the region’s sustainable development agenda. We will see better results from alignment and having had the discussions we will now take action to move on from here.”

CDB and the World Bank have enjoyed a longstanding partnership with recent collaborations centred on bolstering public procurement in the Caribbean.

Joint initiatives have included the establishment of a procurement training centre, the conducting of joint procurement assessments and a coordinated and on-going procurement reform program across CDB’s Borrowing Member Countries in the Organisation of Eastern Caribbean States.

Contact:
Camille Taylor, Head, Corporate Communications
Office: (246) 539-1912 | Mobile: (246) 266-5639
Email: camille.taylor@caribank.org

Caricom and CSME

Jan 23 2023

A journey back in time: 1989 Grand Anse in Grenada to rekindle the enthusiasm and promise of the then leaders of Caricom to establish and have functioning, the Single Market and Economy.

It was the ideal, and remains so for the 15-member regional grouping to combine individual resources, human and material, to achieve the best possibilities for the seven to eight million citizens of the region.

Yet, 34 years later the President of the Caribbean Development Bank, Dr. Hyginus “Gene” Leon urges regional states to finish and implement the elements of the CSME left outstanding.

“Given the region’s experience over the 2020-2022 period, now is the time for us to re-imagine regional co-operation and integration. And what this can mean for us as Caribbean citizens,” said the president of the regional bank with responsibility to fund development projects in member states.

As conceived by the founding economists and early leaders of the regional integration movement, with commitment of Mr. William Demas, Sir Shridath Ramphal, prime ministers Michael Manley, A.N.R. Robinson, Owen Arthur, John Compton and their colleague prime ministers, the CSME was established to amalgamate resources of the region to create value-added products to replace imports and to build an export platform.

“I therefore call for a renewed commitment to advance the implementation of the Caricom Single Market and Economy through the increase of marketing access for goods and services and people providing opportunities providing economies of scale,” said the CDB President at the Bank’s annual news conference.

Conclusion of the outstanding elements of the CSME such as free movement of skills and capital across member states “will offer greater employment and business opportunities and provide a platform for increased innovation and digitilisation.”

He identified the liquidation of the regional airline, LIAT in 2020, as leaving air transport in the Eastern Caribbean in crisis. From 500 weekly flights in 2019 to 50 in 2022 has been one result of LIAT’s demise. The CDB president advised regional leaders to “reform air transportation environment,” desperately needed to transform economies of member states.

As a result of LIAT’s demise , “80 percent of the food now consumed by citizens and our guests is imported; leaving the region open to food insecurity into the future.”

Once again, Caricom is being presented for take off by a member state having the financial capacity, and on this occasion, the geographical and material base to spur meaningful development. Guyana now has the potential to unlock its physical environment, finance development projects across the region and engage member states to produce goods and services for internal consumption and export.

This is not about charity, but rather a means of harmonizing the resources of capital, land, skills, internal and external trade and developing products to achieve what the Single Market and Economy envisioned . In its own interest, Guyana has to be careful of merely covering the landscape with malls for the consumption of foreign goods. New leadership impetus is desperately needed to revive the possibilities of Caricom

TT signs agreement for better integration

TT Prime Minister Rowley signed two Caricom agreements allowing for further implementation of the Caricom Single Market and Economy. He signed the Protocol to Amend Article 32 of the Revised Treaty and the Protocol for Enhanced Co-operation after TT and Jamaica signed a memorandum of understanding in August following a visit by Jamaica Prime Minister Andrew Holness to mark TT diamond jubilee of independence and the passage of the Caribbean Community Skilled Nationals (Amendment) Bill, 2022. Rowley signed the treaties on the final day of the Regular Meeting of the Caricom Heads of Government in Nassau, Bahamas.

During the morning plenary, HoGs received updates on the Bridgetown Initiative for the Reform of the Global Financial Architecture and Climate Change/Climate Finance.

Rowley held bilateral discussions with Moon-Kyu Bang, Minister of Office for Government Policy and Co-ordination of the Republic of Korea which , focused on identifying areas for enhanced co-operation in education and training, maritime and sustainable energy.  Ambassador Dongil Oh, and Minister of Foreign, Caricom Affairs, Dr Amery Browne and Minister of Energy Stuart Young attended the bilateral meeting.

Ukraine President Volodymyr Zelenskyy, urged Caricom HoGs to vote at the upcoming UN convention to to support Ukraine against Russia’s invasion. He thanked them for being on the side of law and for their efforts to bring stability to the region and the world.

“Next week we will present at the UN General Assembly a resolution on a comprehensive, just, and sustainable peace in Ukraine, and hence the restoration of the full force of the international rules-based order. Your votes matter.”

 

 

 

Clarion call for unity

 Feb 16 2023

Now is the time for Caribbean, Latin American and African countries to tackle global issues as a united front, TT Energy Minister Stuart Young told a Regional Collaboration panel at the energy conference in Guyana .

“The time is now. This is the opportunity for Caricom to properly collaborate. If we don’t learn from the recent examples coming out of COVID cast your mind back to how difficult it was to get face masks, ventilators and vaccine. “ Young said.

Apart from the difficulties during the pandemic, Young said the war in Ukraine led some countries to return to coal after previously decrying hydrocarbons as bad for the environment. The region has the expertise and ability to work together.

“If they had the hydrocarbons they would be developing it so this is the opportunity now for us as Caricom to take the lead, to stand up with our resources but we must work together. Now is the time for Caricom to come together Suriname, Guyana, T&T with the existing hydrocarbon resources with the potential of other provinces but if we miss the opportunity now as Caricom I don’t know when it will come again, there were serious wake-up calls.”

“At the end of the day when other countries are in crisis they do what is best for them now is the time for us to provide the energy security, in my view, not only for the region because we have the resources for the region but I call on Latin America to join with us and also let’s not forget our brothers and sisters on the African continent who for many, many centuries too have been exploited and have the hydrocarbon resources,” Young said.

“So my simple call, the time is now we must take control of our own destinies we have the intellectual capacity and ability we have the experience and we have the hydrocarbon resources.
“The rest of the world it is time that they respect us and they work with us as we develop this not only for our own respective people, not only for the region, but for the wider energy security and the wake-up call has come.”

Guyana and Suriname are on an excellent trajectory for development.

“There is opportunity in learning from those who made mistakes before because we didn’t get it all right and then when you start to see a province declining you learn a lot more of what can come.
“If we are all sitting at a table collaborating have the vision that you have Suriname, Guyana, T&T, Barbados and Grenada sitting at the same table opposite those who want to work with us to develop our resources the strength we would have as opposed to playing off provinces against each other and jurisdictions against each other there are massive opportunities natural gas is going to be around to stay.”

Foreign Secretary Ministry of Foreign Affairs of Guyana Robert Persaud proposed establishment of a regional collaboration policy as Caricom is celebrating 50 years this year.

“It is a very exciting time to talk about regional collaboration it is good for the future and I do hope that coming out of these types of conversations we will see not only action but a much more dedicated policy focus in this regard.
“Perhaps the time has come for us to have a regional collaboration policy be it on energy but while energy will be the main topic addressing some of the other sub-issues.”

Persaud said a coordinated approach will allow the region to capitalise on the opportunities that are before us.

Young advised the conversation to go beyond a policy.

“Let us move it beyond a policy I think we have to implement the dreams we have now to make it a reality.
“By the time we develop a policy we have lost time and opportunity we have the intellectual capacity we sit down and work it out quickly and we move to implementation.”

For the first time Caricom leaders pull in the same direction collaborating in constant communication.

“The time is now and we must not miss this opportunity now because I don’t know when next it will come around energy security and food security are the two biggest issues facing the world right now and Caricom has the opportunity to participate in both,” he said.

Large land masses of Suriname and Guyana can assist in the region’s approach to food security.

“The energy security for the small islands they cannot do it on their own because, at the end of the day, renewables, everything, comes at a cost and a price.

“There is certainly not sufficient population in those small islands to make the renewable projects cross the line from a financial point of view but if they pull together and utilise their resources together they can get that type of energy security and the time is now for us to do this because the rest of the world has shown us that in times of crises, they will look after themselves and forget about us,. So if you all don’t want to take that lesson on board we do it at our own disadvantage. It is up to us let’s just get it done.”

Also on the panel were Wazim Mohamed Mowla , associate director and Caribbean lead of the Atlantic Council and Dr Thackwray Driver the CEO of the T&T Energy Chamber.

 

 

Energy ministers : regional collaboration is key

Jan 22 2023

Guyana’s Natural Resources Minister, Vickram Bharrat said Guyana is currently experiencing the “most exciting period” in its history with oil production anticipated to reach over one million barrels a day in the next four years.

“Presently we are producing on average 380,000 barrels per day. Our third FPSO (Floating production storage and offloading) -Prosperity-, should be in Guyana waters in my estimation mid-2023 for start-up and production late third or early fourth quarter this year and with that third FPSO it will take production to a minimum of 560,000 barrels a day.

“We have already signed a fourth production license that is Yellow Tail, that is under construction and that should be here in 2025 and that will take us up to, in my estimation, close 900,000 a barrel a day in 2025,” Bharrat said.

When Dr Ashni Singh, the Senior Minister for Finance, delivered Guyana’s budget statement he stated that the country’s oil and gas sector is estimated to have expanded by 124.8 per cent last year with a total of 101.4 million barrels of oil produced, compared with 42.7 million in 2021.

This performance was attributed to the commencement of production on the country’s second FPSO vessel–Liza Unity– early last year.

Last year the Liza Destiny FPSO produced crude oil at an average rate of approximately 128,000 barrels per day, compared with 117,000 in 2021, and the Liza Unity FPSO produced at an average rate of about 169,000 bpd, reaching a peak monthly rate of just over 233,000 bpd in December.

Last year, Guyana’s Natural Resource Fund received US$1,099.1 million in oil profit, US$510.2 million from Liza Destiny and US$588.9 million from Liza Unity.

The Natural Resource Fund (NRF) was established, by the Natural Resource Fund Act 2019, to manage the natural resource wealth of Guyana “for the present and future benefit of the people and for the sustainable development of the country.”

“We are currently reviewing the fifth development the Uaru development for approval.”

It is anticipated that this platform will produce another 250,000 bpd following start-up in 2027.  These will enable Guyana to generate just over one million bpd.

This bright future will not be limited to for Guyana . Regional integration is at the top of the agenda for Guyana.  T&T, has a major part to play in that integration.

Guyana’s commitment to the region can be seen as president Dr Irfaan Ali will in person address the opening ceremony on the first day of the T&T Energy Conference tomorrow.  The theme of the conference is “Navigating a Complex Energy Future”.

“President Ali has placed a lot of importance, and emphasis on the Caribbean and regional integration and we have seen that since he took over as president. And every time he speaks, he speaks about development not only for Guyana but for the region and we see our Caricom sister countries as important to us in this developmental process especially since T&T is close to us, Barbados is close to us, Suriname is close to us and there are synergies among us too now especially now that Guyana is an oil producing country and there is a lot that we can learn from T&T as well too.”

“We know that a lot of T&T companies have already been established in Guyana, either by themselves or partnering with Guyanese here so we have a lot of Trinidadians bringing their skillset and their expertise to Guyana to help develop the oil and gas sector here too, so we don’t see the resources in Guyana as being resources to develop Guyana only but we know that the resources can be beneficial for the entire Caribbean community and president Ali has mentioned that he is demonstrating that in the way he is going about doing business basically in Caricom and in Guyana.”.

Bharrat sees it as “building a better partnership and forging more integration by and among our countries. I want to wish all the people of T&T well at the Energy Conference and I hope that we will have a return visit,.”

Guyana will be hosting its Energy Conference next month and Dr Keith Rowley and Suriname’s President Chandrikapersad Santokhi are listed as speakers .

“I know that we have had a lot in common over the years, we have had a good relationship with T&T and Guyana over the years we have a lot of Guyanese living in T&T and we will like to build on that relationship and find ways of working together for all of our people.”

Energy Minister Stuart Young lauded the benefits of regional collaboration with respect to energy.  His goal in attending the the Energy Conference tomorrow is two-fold.

“We have been working on the regional relationship with Guyana and Suriname. T&T, Guyana and Suriname in my humble opinion have to lead the way for energy security in the Caricom with potential in Barbados, they have found some gas in Grenada that T&T has already signed an MOU for. We have to lead that conversation and I think we will be stronger, that is T&T, Guyana and Suriname, working together on the global platform .”

T&T has had significant experience dealing with multinationals.  Young has spent time since 2016 renegotiating with multinationals to the benefit of the people of T&T.

“The relationship on the governmental level between T&T and Guyana is extremely strong. President Ali is constantly in conversation, and communication with Prime Minister Rowley and we have developed an excellent relationship with president Ali and his Cabinet members so there is a very close relationship there, one of the closest that I have seen in my transactions in the Caricom over the last few years and there is mutual respect and we are here to help in whatever way we can and we will work with them.”

The government wants to assure all stakeholders, that it is committed to continuing to work with them for the development of this province.

“We are a mature province which means we have been exploiting oil for over 100 years and gas for decades. It depletes so there are fewer reserves and it becomes more and more difficult to find to produce, to monetise but we as a government have shown by our track record. When you ask the stakeholders, we are prepared to sit down to work out terms that are beneficial to both sides, the people of T&T, as well as we understand that every multinational has to produce returns and profit but we are not going to give away our resources and we will work with them to continue exploration and production and that is the messaging that I want to come out in the energy conference.”

In separate articles, Young tells how he feels about his performance since being named Energy Minister in April 2021, and Bharrat tells how Guyana has dealt with becoming one of the latest powerhouses in hydrocarbons while the world transitions to cleaner energy

 

 

UWI staff protest over wage talks

Feb 17 2023

UWI Director of Student Services Dr Deidre Charles, left, Principal Professor Rose-Marie Belle Antoine, and UWIDEF chairman Dr Sterling Frost met informally during the UWI All-inclusive fete in January.

Next month’s exams at The University of the West Indies’ St Augustine could be in jeopardy, after the West Indies Group University Teachers (WIGUT), the union representing lecturers and academic staff, has begun pulling back their services over stalled salary negotiations, WIGUT said 800 affected staff members are taking matters into their own hands.

President of the union, Dr Indira Rampersad, explained that in 2019, a proposal was submitted for the commencement of negotiations. Several meetings were held since then and amendments were made to the proposal. However, negotiation has not moved forward.

“WIGUT members – that is a group of academic, senior, administrative and professional staff – have not had an increase in salary since 2014.”

They were told that the campus senior management submitted the proposal and has also written to Chief Personnel Officer Dr Daryl Dindial. However, the management has not received any responses.

“They did assure us that they did submit and that they have been following. The members told us it was not robust enough. We have a new principal and she assured us that she’s been doing what she has to do. But we have not received a remit, which is an offer,” Dr Rampersad said.

During a protest at the St Augustine campus, WIGUT members were assured by Campus Principal Professor Rose-Marie Belle Antoine that a remit will be made.

“The Principal, being the primary agent on the campus, and her team are the ones we negotiate against. However, the Principal and her team do not pay salaries.

“The salaries are paid by the Government and the Chief Personal Officer is the one in charge of providing that remit. So, it’s a peculiar situation because the senior management members are also members of WIGUT. But it has worked in the past,” Dr Rampersad noted.

Unless an offer is put on the table, then the frustrations of the staff will be felt in the classrooms.

“Nine years we waited, and we didn’t get anything. If they don’t get a remit right now, then our collective action is going to escalate throughout February, March and April until we get a remit. And we can very well see campus operations come to a hold,” Dr Rampersad warned.

Asked what members are planning to do, she said, “Exam papers are due in March and uploading the grades are usually due in May. We hope it wouldn’t go so far because we have a vested interested in the university and our students”.

Effective immediately, there will be no uploading of coursework marks to UWI’s Banner system and no submission of coursework grades to students. While coursework may be marked, students will only be informed of their “Pass” or “Fail” if they request it. The union declared the week of February 13-17 “Red Week,” where staff wore red. During that week, members were advised to “withdraw enthusiasm” and performed only duties related to teaching and delivery of classes. This included not attending any meetings or other ascribed responsibilities.

Dr Rampersad said with an over 30 per cent increase in the cost of living, they are done listening to “a stuck record.” Staff had been considering leaving the profession, as it was no longer financially sustaining them.

Acting Student Guild President Kyle Bisnath said, “We are aware of the economic situation the country is in and the effects it has on both students as well as teachers. However, the Guild will continue to advocate for quality education at the university. Teachers, as well as the UWI administration, are urged to have comprehensive discussions and resolve the pay raise issue quickly, as the students are the ones that would be most affected.”

 

 

 

Guyana job opportunities

January 21, 2023

MINISTER of Foreign Affairs and International Co-operation Hugh Todd, said that there are a number of work opportunities in Guyana for CARICOM nationals.

“Guyana has been blessed and the stars are now aligned.”

Guyana’s ability to rebound from the tough election period in 2020, created more acceptance from the rest of the community. Agriculture is a major sector.

“The president has made it very clear that the diversification of the sector is what will drive sustainability. There is a lot of emphasis on oil. Oil is a finite resource, yes attracting a lot of attention globally but we want to ensure diversification of sectors that we have already,”

In all the sectors of Guyana, there are opportunities for Caribbean nationals.

“You know the Caribbean Certificate which allows for free movement of skills and people, any national within the region can apply for jobs here in Guyana and there is a vast number of jobs within the sectors as well as the service sector because we want to push our eco-tourism product.”

Guyana has a growing service sector and the Region is predominantly driven by services.

“…especially tourism, so I think there is a lot of space and opportunity for persons within the tourism sector to now bring some of their skills to Guyana because we need more people.”

If a CARICOM national has a certificate in vocational skills, a bachelor’s degree, an associate’s degree, a master’s, or even a Ph.D., they can apply for the certificate and the process is “seamless”.

“[Persons] can apply for a certificate through Ministry of Foreign Affairs. When you enter the port…you are able to find work… and become part of the labour market.”

 

 

 

Suriname

Sapakara well offshore indicates over 200-MMbbl resource

Offshore staff  Feb. 9, 2023

Drilling and testing operations have finished on the second appraisal well on the Sapaka South discovery in Block 58 offshore Suriname, operated by TotalEnergies.

Courtesy APA Corp.’s “Third-Quarter 2022” presentation

HOUSTON — Drilling and testing operations have finished on the second appraisal well on the Sapaka South discovery in Block 58 offshore Suriname, operated by TotalEnergies.

According to partner APA Corp., the Sapakara South-2 (SPS-2), which is 4.6 km (3 miles) south of the Sapakara South-1 (SPS-1) appraisal well, delivered about 36 m (118 ft) of net oil pay from a good-quality Campano-Maastrichtian reservoir.

Data from the flow test and subsequent pressure buildup suggest an incremental connected resource with more than 200 MMbbl in place.

APA CEO and President John J. Christann said the results were in line with pre-drill expectations, confirming the geological, geophysical and reservoir models.

The partners have switched their focus to two appraisal wells on the Krabdagu discovery, 17 km (11 miles) east of Sapakara. Krabdagu-2 is drilling, while a second rig should spud Krabdagu-3 later this month.

02.09.2023

APA announces second successful flow test at Sapakara South

09 Feb 2023

APA Corporation announced the successful drilling and flow testing of the Sapakara South-2 (SPS-2) appraisal well, the second appraisal well to test the previously announced discovery. The well is located 4.6 kms (3 miles) south of the Sapakara South-1 (SPS-1) appraisal well.

SPS-2 encountered approx. 36 meters (118 feet) of net oil pay in high-quality Campano-Maastrichtian reservoir. Data collected from the flow test and subsequent pressure build-up indicated incremental connected resource of more than 200 million barrels (MMbbls) of oil in place.

‘Results from the SPS-2 drilling and flow tests are consistent with our pre-drill expectations, confirm our geologic, geophysical, and reservoir models, and, importantly, add substantial resources towards a potential development,’ said John J. Christmann IV, APA’s CEO and president.

Rig activity is ongoing and focused on drilling two appraisal wells at the Krabdagu discovery, which is located approx. 17 kms (11 miles) east of Sapakara. Krabdagu-2 is currently drilling; APA anticipates Krabdagu-3 will spud in February with a second drilling rig.

APA Suriname holds a 50% working interest in Block 58; TotalEnergies is the operator and holds the remaining 50% working interest.

Source: APA Corp

 

 

TotalEnergies racks up ‘substantial resources’ for potential oil development

February 9, 2023, by Melisa Cavcic

French energy giant TotalEnergies and its partner APA Corporation have completed the drilling and a flow test at an appraisal well in Block 58 offshore Suriname, encountering oil and adding additional resource potential towards establishing a black oil development hub.

APA Corporation, announced the drilling and flow test results from the Sapakara South-2 (SPS-2) appraisal well, the second appraisal well to test the previously announced discovery on 8 February 2023. This well is located approximately 4.6 kilometres or 3 miles south of the Sapakara South-1 (SPS-1) appraisal well.

John J. Christmann IV, APA’s CEO and president, remarked: “Results from the SPS-2 drilling and flow tests are consistent with our pre-drill expectations, confirm our geologic, geophysical, and reservoir models, and, importantly, add substantial resources towards a potential development.”

According to APA Corporation, the SPS-2 encountered approximately 36 metres or 118 feet of net oil pay in a high-quality Campano-Maastrichtian reservoir. The firm says that the data collected from the flow test and subsequent pressure build-up indicated incremental connected resources of more than 200 million barrels (MMbbls) of oil in place.

The appraisal well was drilled with the Maersk Valiant (now called Noble Valiant) drillship. The 2013-built Noble Valiant is a high-specification 7th-generation drillship with integrated managed pressure drilling capability. The drillship has been operating for TotalEnergies offshore Suriname since March 2021.

APA claims that rig activity is ongoing and focused on drilling two appraisal wells at the Krabdagu discovery, which is located approximately 17 kilometres or 11 miles east of Sapakara. While Krabdagu-2 is currently being drilled, the company anticipates Krabdagu-3 to spud in February with a second drilling rig.

TotalEnergies is the operator of Block 58 with a 50 per cent working interest while APA, as its partner, holds the remaining 50 per cent interest.