Anambra Oil Magnate Plans Major Investment in Guyana

Anambra billionaire and oil magnate, Dr. Ernest Azudialu-Obiejesi, is poised to extend the reach of his leading enterprise, Nestoil, by venturing into Guyana’s burgeoning oil and gas sector. Recognized as South America’s rising oil and gas hub, Guyana has caught the attention of Dr. Azudialu-Obiejesi, the Chairman and CEO of Nestoil Group, Nigeria’s largest indigenous engineering, procurement, construction, and commissioning (EPCC) company since its inception in 1991.

During his four-day exploratory visit from June 9 to 12, 2024, which he discussed on this week’s episode of the Energy Perspectives Podcast, Dr. Azudialu-Obiejesi emphasized Guyana’s rapid development and immense potential within the oil and gas industry. He expressed admiration for the opportunities available, describing them as remarkable. According to him, Guyana is on a trajectory to become one of South America’s leading oil and gas hubs in the near future.

Dr. Azudialu-Obiejesi urged Guyana to prioritize local content in its evolving oil and gas sector, suggesting that valuable lessons could be drawn from Nigeria’s experiences. Highlighting Nestoil’s significant role in Nigeria’s local content advancement, he underscored the importance of integrating local businesses and workforce into the sector to foster sustainable economic growth and development. He emphasized that Nigeria’s achievements in local content have been substantial, largely due to effective legislation.

Furthermore, Dr. Azudialu-Obiejesi stressed that Guyana could benefit significantly from Nigeria’s experience, particularly regarding local content laws, funding for local participation, and comprehensive training programs designed to empower the local workforce. He emphasized the necessity for Guyana’s government to not only draft local content legislation but also to enforce it effectively. He cautioned that, without proper enforcement, the vast revenues flowing through Guyana could fail to benefit its populace meaningfully. Reflecting on Nigeria’s journey, he noted that local content laws, which came into force only after years of production, arrived too late to maximize early benefits.

As of April 2024, over 800 companies have been registered under Guyana’s Local Content Register, contributing to the creation of approximately 6,000 jobs. This robust legislation, enacted in 2021, has generated around US$1 billion in revenue, with an additional US$550 million anticipated in 2024. The Local Content Secretariat, part of the Natural Resources Ministry, plans to review and enhance the legislation, aiming to expand the sectors where companies must utilize Guyanese goods and services by adding 20 new services. The oil and gas sector is expected to employ over 1,600 more Guyanese within the next three years.

Dr. Azudialu-Obiejesi also highlighted the importance of ensuring that oil investments bolster the broader economy, including sectors such as tourism and technology. He commended the Guyanese government for creating a business-friendly environment that would attract further investment, positioning Guyana to emerge as a major player in the global oil and gas market. By learning from the experiences of other countries, he believes Guyana is well-placed to leverage its oil wealth for comprehensive economic development.