$424.1M allocated for oil and gas preparations

first_img2019 Budget plans– millions set aside for capacity building, vehicles and scholarships A burning question has been what preparations Government would make for oil and gas in its penultimate budget? It turns out a total of $333.2 million in capital funds has been allocated by the Government for petroleum and energy management.The 2019 Budget estimates also detail that current expenditure, which among other things will go towards employment and other recurrent costs, was $90.9 million. Specifically, wages and salaries are expected to cost the Treasury $20.5 million.According to the budget estimates, however, only three positions are currently filled in the Department of Energy. In addition, the estimates show that all these employees are employed on a contractual basis.$43.3 million is earmarked for ‘other goods and services purchased’. Under this heading, $30.3 million will be spent on security services, while $5 million will be spent on training that includes scholarships. Under a heading named ‘other’, a sum of $12 million is earmarked.Meanwhile, $100 million is earmarked for building expenses; $200 million for institutional support for the oil and gas sector; $28 million for purchasing vehicles and the remainder for the purchase of furniture and equipment.Preparation for oilWith little over a year to go before first oil, Government has been criticised for the slow pace of preparation. For instance, critical measures like a national oil spill strategy; a constitutional agency to regulate the sector; a national oil company, a local content policy and a Sovereign Wealth Fund are either still in the planning stages or have only been discussed.This does not include several worrying fiscal indicators, which have caused audit firm Ram and McRae to project reduced earnings from first oil for Guyana if these trends are allowed to continue.One such trend is the Government’s fiscal deficit, a case where monies are sourced more from loans than from revenue. According to the firm in its Budget focus, Guyana risks less money going towards the Natural Resources Fund and more going towards making up for the deficit.“The danger of deficit financing is that all things being equal, oil revenues for the early years after first oil will simply go to bridging the deficit and little left for investments and savings,” the firm noted.At a recent event hosted by the Georgetown Chambers of Commerce and Industry (GCCI), Opposition Leader Bharrat Jagdeo had warned that earnings from oil and gas in the first few years may fall short of the “rosy picture” being painted by the Government.He had even posited that Government may not even get the chance to use the earnings from oil revenues as they see fit, on account of the debt racked up from domestic borrowing.Soon after this, however, Minister of State Joseph Harmon was quoted disputing this prognosis.last_img read more

Watford reportedly make £10m offer for Southampton midfielder

first_img ‘perfect fit” IN DEMAND Kevin De Bruyne ‘loves Man City and wants to keep winning’, reveals father Carroll explains why he wanted to fail Liverpool medical before £35m move Arsenal ace heading for January exit as German club ready bid for midfielder Ward-Prowse has created 19 goals in 167 Premier League games for Southampton heading off GOSSIP Top nine Premier League free transfers of the decade on his way Watford have made a £10million offer for James Ward-Prowse.Manager Javi Gracia has made a late move to add depth to his Hornets squad ahead of transfer deadline day by targeting the Southampton midfielder just days before the new Premier League season begins. fear 1 three-way race Chelsea confident of beating Man United and Liverpool to Sancho signing RANKED Real Madrid ‘offer’ Isco to Chelsea in bid to ‘make room’ for Tottenham star LIVING THE DREAM Signing imminent? Man United target ‘on flight’ to England for talks with club REAL DEAL Watford are at home to Brighton on Saturday and Gracia will now wait to see if Mark Hughes, his opposite number, is willing to do business for the 23-year-old who has spent his whole career at St Mary’s.Ward-Prowse started more than half of Saints’ games in the Premier League last season but, according to SunSport, the manager will decide whether he is needed for the new season.Competing with the academy graduate in Southampton’s midfield are Mario Lemina and Oriol Romeu, although the ex-England Under-21 captain can also play on the right flank. Man United ‘miss out’ on Minamino, West Ham scout Flamengo strikers, Auba wants out TRANSFER LATEST Man United joined by three other clubs in race for Erling Haaland Euro expert explains why Liverpool should be so excited about Minaminolast_img read more