In a thought-provoking keynote address titled, “The Winning Oil & Gas Industry Strategy”, at the 3rd Guyana Energy Conference and Supply Chain Expo, Mr. Adewale Tinubu, Group Chief Executive, Oando PLC, shared strategic insights into navigating the complexities of the oil and gas industry and provided a roadmap for success, emphasizing innovative approaches to ensure long-term sustainability and profitability.
The recently concluded conference, which held at the Guyana Marriott Hotel, Georgetown from February 19 – 22, with the theme, “Fueling Transformation and Modernization”, saw a diverse range of attendees from different regions, engaging in discussions on shaping the future of the energy sector while highlighting current investment opportunities and exploring developments to drive positive change and innovation.
Guyana’s oil industry has rapidly ascended to a unique position in the global energy terrain with the discovery of the offshore Stabroek Block, exceeding 9 billion barrels of oil equivalent. Since 2015, the country has become a notable player, echoing the trajectory of Nigeria’s oil industry in its early years. Both Guyana and Nigeria share the narrative of substantial offshore oil discoveries, marking economic opportunities that have significantly influenced their respective GDPs.
Mr. Tinubu’s address delved into the similarities of both country’s oil industries, positioning Oando as a key contributor to the discourse. As the Group Chief Executive of Oando, operating in Nigeria’s mature oil sector, Mr. Tinubu brought forth invaluable insights from a nation that has navigated similar challenges and opportunities over the years. This wealth of experience potentially serves as a blueprint for Guyana’s oil industry.
His comprehensive address covered a spectrum of challenges, ranging from the impact of COVID-19 and geopolitical tensions to inventory gaps and the evolving landscape of energy sources. Drawing from experiences in Nigeria, where crude oil theft and pipeline vandalization result in a daily decline of over 400,000 barrels, he emphasized the significance of taking a proactive approach to challenges such as operational security threats.
Addressing operational costs, infrastructure deficiencies, and regulatory frameworks, Mr. Tinubu’s insightful analysis provided a comprehensive overview of obstacles faced by the industry globally and Nigeria particularly, while emphasizing their relevance to Guyana’s fledgling industry. He underscored the need for strategic planning and international cooperation to effectively resolve these challenges.
Furthermore, the keynote highlighted crucial points essential to the development of the oil and gas sector in Guyana, including creating an enabling environment, establishing alternative financing institutions, and maximizing opportunities during peak oil prices. He stressed the importance of proactive investments in infrastructure ahead of demand and linked GDP growth as a lifeline for economic activities to thrive beyond the oil sector.
Whilst encouraging strategic partnerships, Adewale Tinubu cautioned against an over-reliance on international oil companies and advocated empowering national companies, aggressively ensuring skills transfer, and building a robust indigenous energy sector. Similarly, the need for policy reforms, national infrastructure development, and proactive planning for population growth were outlined as critical elements for success. He urged against subsidies, while also emphasizing the need for unifying foreign exchange rates and diversifying energy sources for long-term resilience.
The presentation concluded with a call to invest in people, recognizing them as an asset in driving the industry forward. The Guyana Energy Conference provided Oando with a unique platform to showcase its expertise and achievements as a leading indigenous energy company in Nigeria and Africa, bridging the gap with the Caribbean region. The conference successfully fostered open dialogue, promoting a collaborative cross-regional approach to overcoming obstacles and embracing sustainable practices in Guyana’s evolving energy sector.
