Black Immigrant Daily News

By Arlington Chesney

An integrated and holistically conceptualised oil and gas (petroleum) sector could assist in developing a transformed and modernised Guyana and regional agriculture and contribute to regional food security. It could thus again be a key driver in the sustainable development of CARICOM.

From the onset, I have strenuously articulated the need for a critical relationship between the windfall revenues of the oil and gas sector and food security in Guyana and all CARICOM. Initially, Guyana’s oil and gas revenues were promoted as a major catalyst for expanding and modernising its agricultural and rural sectors. This need was supported by the concept of “agriculture being more than food on the table” and its resultant “true”, expanded and major importance to sustainable national development. Further, these bonanza revenues were identified as critical to successful achievement of Guyana’s climate change adaptation measures, particularly for its socio-economically important low lying coastal and riverine areas, as part of its Low Carbon Development Strategy 2030. Ultimately, with the developed world’s failure at COP 27 to guarantee immediate inflows of funding required to address major climate change issues, the existential relationship between regional (Guyana, Suriname and Trinidad and Tobago [T&T]) oil and gas windfalls and its food security, in general, and the 25×2025 initiative, in particular, was expounded.

This article discusses how the components of the oil and gas sector (as opposed to their windfall revenues) could facilitate agriculture’s backward (inputs for primary commodities) and forward (elements for secondary commodities) linkages thus ensuring that the major components of the value chains of key agricultural commodities are substantially controlled regionally. Consequently, the concept “Agriculture is more than food on the table” could be operationalised.

Further, it identifies critical inputs for production of both primary and secondary agricultural commodities as compared to previous ones dealing with mostly primary production.

Ranken Energy Corporation, a respected 30+ year oil and gas Company, opines that, “with over 6000 products and counting, petroleum continues to be a requirement for all consumers”. Agriculture is one such key consumer.

Agriculture, the consumer, requires products from the downstream segment of the petroleum industry–refineries and Natural Gas Liquid [NGL] plants.

Some major agricultural products obtained from petroleum and associated natural gas include fertilisers, particularly ammonia-based, pesticides and antiseptics mainly for udder washes for dairy animals. Fertilisers, with annual regional imports approximating US$100m, is the largest single group.

The proposed modular refinery in Berbice, Guyana, should be conceptualised in its design and locality (a petroleum-based park) to definitively facilitate sustainable production of the above named commodities. The experiences in T&T are useful as Guyana’s production should complement that of T&T. Indeed, these countries, plus Suriname, will initially share the Caricom Market, and can significantly contribute to regional energy and food security: two of the three major developmental priorities of CARICOM Heads.

Also downstream, the petroleum industry, through the NGL plant, can produce hydrocarbons, including the gases methane, butane and ethane–all of which can help provide for residential and industrial needs.

In spite of public queries, the Guyana Government (National Budget, 2023) is committed to a Gas to Energy/Gas to Shore Project with a targeted electricity rate, substantially cheaper than the regional range of USD0.20-0.37/kWh and approximating that of a currently subsidised T&T rate of USD0.05/kWh (November 2022). Guyana and T&T will have very favourable electricity rates for producing (processed and frozen) secondary agricultural food commodities.

This integrated Programme should be included in the Draft Action Plan for Industrial Development in CARICOM to be presented to the Quasi Cabinet of Heads within its newest portfolio, Industrial Policy.

In 2021, the annual regional imports of secondary agricultural food (meat, fruits, vegetables, dairy, juices) commodities, plus, as necessary, inputs for their manufacture, approximated US$1.3b. Small quantities originated regionally, mainly from T&T with its cheaper electricity.

Also, the annual value of imported secondary agricultural food commodities is reported as increasing faster than that of food imports generally. This phenomenon is probably due to increasing preferences for convenience foods, with the accompanying increased Non-Communicable Diseases (NCDs) and concomitant curative costs.

In the spirit of the 25×2025 Food Security Initiative, Guyana and T&T can immediately gear up to access this major regional market (and subsequently that of the regional diaspora) for these commodities. However, this Programme, with supporting country projects, must critically now be based mainly on regional, as opposed to extra regional, sources of primary inputs. In the context of regional inclusiveness, all member states should be involved in producing these primary inputs.

Opportunity could also be taken, with the support of the Caricom Regional Organisation for Standards and Quality (CROSQ), to develop regional standards for these commodities that aim to reduce the incidence of NCDs and its.

Some known critical factors to facilitate implementation of this Programme must be aggressively addressed with approved schedules for achieving agreed objectives and targets. Firstly, as articulated by Prime Minister Rowley, at the AgriInvestment Forum and Expo II, August, 2022, the traditional importers of these secondary food commodities must meaningfully “come on board” to this “new” paradigm. Secondly, the Non Tariff Barriers to Trade must be dismantled, starting on a commodity basis and, taking into consideration, the recent amendment to the Revised Treaty of Chaguaramas which allows for a “Group of the Willing” to proceed. Thirdly, intraregional transport for primary and secondary products, which is currently a “nightmare”, must be effectively operational. Fourthly, the Caricom Private Sector Organisation (CPSO) and the Caribbean Agribusiness Association (CABA) must come together and organise their members to meaningfully participate on a commodity basis.

This Programme, based on critical upstream and downstream activities within the regional petroleum industry, would allow CARICOM to significantly control key elements of the supply chain for the production of both primary and secondary food commodities. It also allows for the development of Regional Agricultural Corridors as proposed by CPSO. Further, it allows the gas producing territories to actively explore commercial production of nutraceuticals and, based on the region’s expansive flora and fauna diversity, herbal medicines.

Both the Guyanese refinery and NGL plant are projected to be operational by mid-2025. Consequently, it may be posited that it’s too early to initiate activities to ensure achievement of this reality. However, the CARICOM Medium/ Long Term Action Plan, for agricultural development towards food and nutrition security, identifies the need to resolve 11 major issues with 50+ subitems. These include:

-policy implementation to reduce regulatory barriers to address intra regional trade;

-support to development of improved food quality standards and best practices;

-incorporation of climate smart technology into agrifood systems; and

-supporting agricultural MSME growth in Agro industries and food processing.

These “soft issues”, plus the other generally “hard issues” previously mentioned, require time for completion.

Successful implementation of this upstream/downstream oil and gas initiative must be a Public/Private undertaking, led by the Caricom Ministerial Task Force (CMTF) as part of its Agri-Food Systems Agenda, with meaningful collaboration of CPSO and CABA. Because of agricultural development’s all-embracing and intertwining nature, the CMTF must also work very closely with the team preparing the draft Action Plan for Industrial Development and other regional groupings in trade, health, transport, security, etc.

This program, facilitated by the regional petroleum sector, could, in the medium term, contribute to an enhanced quality of life by operationalising an economically viable, a much less supply (source and chain) dependent and self-sustaining regional agricultural sector.

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Dr. H. Arlington Chesney is a leading Caribbean Agricultural professional who has served his country, the Caribbean and the hemisphere. He is a Professional Emeritus of IICA and in 2011, was awarded Guyana’s Golden Arrow of Achievement for his contribution to agricultural development in Guyana and the Caribbean.

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Black Immigrant Daily News

A New Era of Island Leadership: The influential negotiating bloc of small island developing States is now helmed by a Pacific country, after official handover by Antigua and Barbuda.

At a special Plenary meeting on Monday 30th January, 2023 featuring the official handover ceremony, the reigns of leadership of the Alliance of Small Island States (AOSIS) were handed over by the Caribbean island of Antigua and Barbuda, to the Pacific Island of Samoa.

This culminates four years of AOSIS Chairmanship within the Caribbean region, with Belize serving prior to Antigua. The regional rotation of Chairmanship ensures fully inclusive representation among all Caribbean, Pacific, African, Indian Ocean and South China Seas members.

AOSIS plays an integral role in international climate and sustainable development negotiations, and has been central to the advancement of small island developing States’ priorities. Significantly, AOSIS has been a key figure in the milestone achievement of a loss and damage fund establishment at the recent COP27 in November, 2023.

As new Chair, Samoa Prime Minister the Honourable Fiam? Naomi Mata?afa vowed to continue the excellent work of the previous Chairs, particularly by amplifying marginalized voices and advocating for the Alliance’s interests on the global stage and to secure global commitments and agreement.

She outlined the Chair’s new vision, which will focus on Climate Change, Sustainable Development, and the Ocean, including issues such as food security, energy, ocean’s health, and more ambition on finance to support the achievement of agreed targets under the SDGs, the Paris Agreement and the SAMOA Pathway.

“For 2023, we will continue the work to advance our collective interests in climate change especially with respect to climate financing and the achievement of the 50/50 split between mitigation and adaptation,” Prime Minister Fiam? said. “We will continue to keep the Loss and Damage flame burning and inject urgency into our efforts aimed at concluding BBNJ negotiations.”

“Sustainable development is a key strategic priority. Economic recovery is an enormous challenge and responsibility. To this end, the importance and effective implementation of the Multidimensional Vulnerability Index (MVI) cannot be over-emphasized. The MVI is a tool to assist SIDS in addressing the economic recovery challenge, especially in relation to access to concessional financing, debt regime sustainability and ODA eligibility and effectiveness. AOSIS has been at the forefront of this strategic process, and we must now over the coming 12 months complete what remains to be done.”

“Ocean is the lifeblood for most of our countries. But whilst its sustainable use provides a core pathway towards our future development and livelihoods, like the climate emergency, we must also urgently address the associated risks.” Prime Minister Fiam? highlighted the ocean-climate nexus, plastic pollution negotiations, the Blue Economy, and the Global Biodiversity Framework as key issues.

In his congratulatory address, Prime Minister Gaston Browne of Antigua and Barbuda noted he was placing the Chairmanship in most capable hands, and that his country looked forward to working with the new AOSIS Chair in preparation for the 4th UN International Conference for SIDS in 2024.

Representing the Prime Minister, Ambassador Fatumanava-o-Upolu III Dr. Pa’olelei Luteru emphasized that the AOSIS Chair would accelerate advocacy for concrete outcomes to ensure not just the survival, but the prosperity of small island developing States.

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Black Immigrant Daily News

Haitians in the United States are facing enormous pressure to help family and friends under a U.S. migration program announced this month that may help some people escape Haiti’s escalating violence but is also putting strain on the nation’s diaspora.

Giubert St Fort, a South Florida resident from Haiti said he was inundated with calls almost immediately after the Biden administration said on Jan. 5 it was opening a new legal pathway for migrants from four countries, including Haiti who had U.S. sponsors.

“Things are very tense because everyone is expecting a call from someone,” said St Fort, 59, a social worker who is already sponsoring members of his family.

“Many people unfortunately are not in a position to sponsor family members or friends back home, but they are receiving calls nonstop.”

Haitians living in the United States, many of whom are struggling to make ends meet, say they are being sought out by everyone from immediate family members to distant acquaintances or neighbors they haven’t spoken with in years, community advocates and immigration lawyers said.

Desperation to leave has grown in Haiti amid a political crisis and a spike in violence that most recently has included a wave of killings of policemen, triggering protests by angry officers who attacked the residence of interim Prime Minister Ariel Henry.

U.S. President Joe Biden, a Democrat, has struggled with a record number of migrants crossing the U.S.-Mexico border including the arrival of more than 10,000 Haitians to southern Texas in September 2021. Many of asylum-seekers deported back to Haiti or rapidly expelled, despite objections from human rights groups and a U.S. career diplomat who said doing so was “inhumane.”

In response, Biden expanded pandemic-era restrictions put in place by his Republican predecessor former President Donald Trump to rapidly expel migrants from Cuba, Haiti, Nicaragua and Venezuela to Mexico. At the same his administration opened up the possibility for up to 30,000 migrants from those same countries to enter via air per month by applying for humanitarian “parole.”

‘UNDUE STRESS’

The parole program is aimed at encouraging migrants to safely travel to the United States instead of braving boats or grueling land journeys through Central America to the border. U.S. officials say illegal crossings by the four nationalities have already dropped dramatically.

A senior administration official said last week that about 1,700 people from Cuba, Haiti and Nicaragua have arrived in the United States through the program in recent weeks, with thousands more approved for travel.

But finding willing sponsors is proving difficult for many Haitians as many immigrants already in the United States are concerned they won’t be able to provide for others with the rising cost of living and soaring rents, advocates and attorneys said.

Tammy Rae, an American lawyer who works in Haiti, gave a radio interview to describe the humanitarian parole program and was later flooded by calls from people seeking a sponsor.

She said her clients have described being expected to sponsor entire extended families and in some cases face threats.

“It’s true that this is a program that will unite families,” said Rae. “I would say it’s also a program that will place undue stress on families and cause family divisions.”

The Department of Homeland Security, which administers the program, did not respond to a request for comment.

Guerline Jozef, executive director of non-profit immigration advocacy group Haitian Bridge Alliance, which is helping Haitians find sponsors, described the dilemma.

“People will say ‘I have more than one cousin I would like to sponsor, I’m only able to sponsor one of them,’” Jozef said. “And that creates a major issue because how do you choose which one to sponsor?” She is also opposed to the expulsions of Haitians and other migrants arriving at the southwest border, many who are seeking U.S. asylum.

Jozef said immigrant advocates have long fought for measures such as humanitarian parole, but said the program should not be attached to systematic deportation or expulsion of immigrants seeking asylum.

“Unfortunately, it is attached to a lot of bad policies. It is being used to literally deter people from seeking protection at the U.S-Mexico border.”

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Black Immigrant Daily News

The regulator of the island’s financial services has obtained a court order preventing the official of the investment firm Stocks and Securities Limited (SSL) which is under fraud investigation, from winding up the company.

Finance Minister Dr Nigel Clarke said the Financial Services Commission (FSC) was granted the order as it sought to prevent an attempt by members of SSL who had applied to the Companies Office of Jamaica for a members’ voluntary winding up around January 16.

He said that prior to the application, the FSC had put the company under temporary management, using its powers under the Financial Services Commission Act.

“To effect its temporary management, the FSC went to court to prevent the company from going through the process of winding up itself,” Clarke explained.

The court order restrains SSL, the purported Trustee of SSL, and directors of SSL from: disposing of, dealing with assets and liabilities in SSL’s name or its clients’ name; withdrawing, transferring or otherwise dissipating any funds from accounts in its name wherever held.

It also restrains the embattled firm from interfering with the acts of servants or agents of the FSC and temporary manager; winding up or dissolving the company and liquidating the assets.

The FSC also wants to stop any SSL official from reorganising the company or its operations, whether it be in any document form or organisation of its members, or the assets and liabilities.

Government has already announced that the Federal Bureau of Investigation (FBI) in the United States will assist local investigators in their probe into the alleged multibillion fraud at SSL that has affected several clients including eight-time Olympic champion Usain Bolt who is said to have lost more than US$12 million.

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Black Immigrant Daily News

The US oil and energy company, Hess, Wednesday announced a “significant new oil discovery” at Fangtooth SE-1, one year after the original Fangtooth-1 discovery.

Hess, the 30 percent joint venture partner in the Stabroek Block, said the Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs, adding to the Stabroek Block’s gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent. The company said the recent discovery “has the potential to underpin a future oil development.”

The Ministry of Natural Resources said it has noted the information and is currently working with Exxon who is completing the analysis so as to make the information available.

Hess is a co-venturer with a 30 per cent stake in the Stabroek Block. Esso Exploration Production Guyana Limited (EEPGL), ExxonMobil’s local subsidiary, is the operator in the block, and has a 45 per cent stake. The other partner is China National Offshore Oil Corporation.

Hess has also reported significant earnings in the fourth quarter of 2022- a large sharing drawn from the production in Guyana.

Earlier this week, the company said it would increase spending on capital projects this year by US$1 billion, to US$3.7 billion, mostly for its Guyana’s and North Dakota’s Bakken shale field projects.

EEPGL plans to start production in the Payara Field in late 2023 or early 2024 to add 220 000 barrels per day.

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