Oil deal with T&T will not replace PetroCaribe agreement – Minister of State

Georgetown: The oil and gas arrangement with Trinidad and Tobago, will in no way replace the PetroCaribe deal Guyana has with neighbouring Venezuela, but is instead being used as an alternative to cushion the effect of untimely delivery from Venezuela.
Minister of State Joseph Harmon confirmed that fuel was purchased from the twin-island republic, noting that Government needed to have an alternative in place to ensure that there is never a shortage of petrol in Guyana. He related that only a few weeks ago, the vessel sent to Venezuela for fuel encountered some difficulties in getting the fuel on time.
“We do not feel that this arranangement will put in jeopardy the users of petrol in the country, in fact it is the Government’s commitment to ensure that there is a regular and reliable supply of fuel to drive the industry in Guyana,” Harmon said.
Harmon further related that Government will do all that is necessary to ensure that the wheels of industry continue to turn. Guyana, through the PetroCaribe arrangement, has been receiving oil from neighbouring Venezuela in exchange for rice. While the arrangement between Guyana and the Spanish-speaking nation will still continue, Harmon said the Trinidad and Tobago is the standby arrangement.
He said the arrangement with Trinidad is feasible and the terms favourable, noting that Trinidad is very much aware of Guyana’s commitment to the PetroCaribe deal out of Venezuela. He noted too that the financial arrangement in the deal is no less favourable than that of Venezuela.
Government, in July had begun pursuing a commitment made by Trinidad and Tobago’s Prime Minister Kamla Persad-Bissessar to assist Guyana in the oil and gas sector.
Governance Minster Raphael Trotman had said the offer would be explored at two levels – one was the supply of oil and lubricants to Guyana to see if there could be favourable terms and concession from the twin-island republic for the supply; and the other is for the actual assistance in the development of the oil sector itself, in terms of exploration, agreements and being able to interface with the investors who come.
Prime Minister Persad-Bissessar made the promise to Guyana’s President in July, when she met with him on the sidelines of the 36th (Caribbean Community) Caricom Heads of Government meeting in Barbados.
Trinidad and Tobago is one of the wealthiest and most developed nations in the Caribbean and is also the leading Caribbean producer of oil and gas. Oil and gas account for about 40 per cent of the Gross Domestic Product and 80 per cent of exports. It has transitioned from an oil-based economy to a natural gas-based economy. In 2007, natural gas production averaged four billion cubic feet per day. Should Guyana receive the promised support from the twin-island republic, it could closely follow behind as oil has been found in Guyana’s waters.