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. The Honourable Siobhan Coady, Minister of Natural Resources, signed the agreement on behalf of the Provincial Government in Guyana.
As part of the Way Forward on Oil and Gas, government committed to establishing Newfoundland and Labrador 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 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.
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 October 15 to 18.
The MOU is available in the backgrounder below.
Quotes “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. 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.” Honourable Siobhan Coady Minister of Natural Resources
“The Government of Newfoundland and Labrador is pleased to enter this Memorandum of Understanding with the Cooperative Republic of Guyana. We look forward to deepening economic cooperation between our two regions. By working together, we are supporting business opportunities in the oil and gas industry offshore Guyana and offshore Newfoundland and Labrador.” Honourable Christopher Mitchelmore Minister of Tourism, Culture, Industry and Innovation
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Agreement on Collaboration Between Government of the Cooperative Republic of Guyana and the Department of Natural Resources Government of the Province of Newfoundland and Labrador
WHEREAS the Government of the Cooperative Republic of Guyana (herein after referred to as Guyana) and the Government of Newfoundland and Labrador desire to enhance cooperation and collaboration in support of responsible oil and gas development opportunities;
WHEREAS the Government of Guyana is developing its oil and gas resources to maximize benefits for Guyana;
WHEREAS the Government of Newfoundland and Labrador supports an environmentally responsible, globally significant oil and gas industry offshore Newfoundland and Labrador, including a world-class supply chain;
WHEREAS Minister of Business of Guyana and Minister of the Department of Natural Resources in Newfoundland and Labrador (the Parties) commit to collaborate in support of business opportunities in the oil and gas industry offshore Guyana and offshore Newfoundland and Labrador, including supply chain development, joint ventures and exchanges, knowledge transfer, technology development, training, and health, safety and environment initiatives that may also benefit other sectors;
WHEREAS the Department of Natural Resources in Newfoundland and Labrador works in partnership with other departments and agencies of the Government of Newfoundland and Labrador, including the Department of Tourism, Culture, Industry and Innovation;
AND WHEREAS the Government of Newfoundland and Labrador and the Government of Guyana agree that there may be opportunities for further collaboration between the Government of Newfoundland and Labrador and the Government of Guyana in other sectors of the economy.
NOW THEREFORE the Parties agree to the following:
1. Oil and Gas Supply Chain Development
1.1 The Parties will facilitate economic cooperation and business opportunities in Guyana and in Newfoundland and Labrador, by organizing reciprocal visits to the other jurisdiction that include representatives of industry and government.
2. Joint Working Committee
2.1 The Parties agree to establish a Joint Working Committee to implement and oversee this Agreement. The Deputy Minister of Natural Resources, Newfoundland and Labrador, will serve as co-chair of the committee. The Deputy Minister will be supported by representatives from the Department of Natural Resources, the Department of Tourism, Culture, Industry and Innovation and other departments and agencies as appropriate. The Director of the Department of Energy, Guyana, will serve as co-chair of the committee. The Director will be supported by representatives from other departments and agencies as appropriate.
2.2 Co-chairs will endeavour to maintain open and quarterly communications with each other and with relevant industry groups and other non-governmental organizations, respecting this Agreement.
3. Work Plan
3.1 The Joint Working Committee will be responsible for the development and coordination of an annual work plan to be approved and overseen by the co-chairs.
3.2 Co-chairs will make reasonable efforts to develop and approve the first annual work plan within 30 days following signature of this Agreement. Co-chairs will make reasonable efforts to develop and approve subsequent annual work plans within 30 days following the anniversary date of execution of the Agreement.
3.3 An annual work plan may be amended as necessary with the mutual consent of the co-chairs.
3.4 Work plans will be guided by this Agreement but do not form part of this Agreement.
4.1 Co-chairs will provide an annual report to the Parties with respect to the status of the Agreement and progress made in the work plan.
4.2 Co-chairs agree to meet on an annual basis to review and assess the progress of initiatives taken pursuant to this Agreement and to discuss potential new areas of cooperation that could be reflected in the work plan referred to in the previous section.
4.3 Annual review meetings will alternate between Newfoundland and Labrador and Guyana.
5.1 Parties to this Agreement will continue to have the ability to independently determine and pursue their own domestic objectives or priorities. Collaboration under this Agreement and the work plan will be realized in accordance with the laws, regulations and policies of each jurisdiction.
5.2 Any matter involving the interpretation or implementation of this Agreement will be addressed by consultation between the Parties or their representatives.
5.3 Each party will be responsible for the costs of its own participation and involvement in this Agreement.
6. Commencement, Duration, Amendment and Termination
6.1 This Agreement comes into effect on the date it is signed by Parties.
6.2 This Agreement remains in effect for three years from the date of signing.
6.3 This Agreement may be amended or extended by the mutual written consent of the Parties.
6.4 Either of the Parties may terminate this Agreement by providing the other party with a written notice of termination. This Agreement will expire six months after a notice of termination is received.