15 Apr Interview with Malcolm Asin, General Manager, CARI-ERS
As offshore energy activity accelerates across the Caribbean and northern South America, emergency preparedness has become a critical pillar of responsible operations. How has CARI-ERS’ role evolved in recent years as offshore exploration and production expand in markets such as Suriname and Guyana?
We are a young consulting firm established in 2020, with our main office in Guyana. Recently, we expanded our operations by opening a subsidiary office in Suriname. With the recent developments in the oil and gas industry, particularly following the discovery of oil in both Suriname and Guyana, there has been a significant increase in interest and opportunities within the sector. We have taken steps to be part of this growth by submitting proposals and participating in tenders for offshore projects. We have worked with RSK Group to provide support on legislative requirements, environmental baseline studies and the Critical Habitat Assessment (CHA) for TotalEnergies’ Block 58 development and we’re looking to further deepen the relationship with those stakeholders.
CARI-ERS operates at the intersection of technical readiness, environmental protection and regulatory compliance, supporting low-probability but high-impact risk scenarios. What capabilities or operational strengths most distinguish CARI-ERS as a regional emergency response consultancy for international operators?
First of all, let me clarify that CARI-ERS is a firm that primarily specializes in environmental and social baseline studies, impact assessments and the management thereof, rather than regional emergency response. Our unique setup is that we work with local experts first. If we cannot find the expertise locally, we work with partners in Brazil, Australia, Europe and other parts of the world. This gives us a wide database of experts we can use for any project. We work closely with experienced, knowledgeable people and, depending on the project, we look at where we can find the right expertise.
CARI-ERS is deeply involved in planning, training and simulation exercises with operators and public authorities. How do these preparedness activities strengthen coordination between companies, governments and regulators before an incident ever occurs?
We have our own management system, with safety and environmental procedures in place. For each project, there are specific requirements we must meet. Before we participate, we make sure we comply with those requirements. If there is anything missing, we take the necessary steps to ensure we meet the regulations. If we are unsure about certain matters, we maintain good relationships with the National Environmental Authority (NMA), various ministries in Suriname and the private sector and we can always seek clarification or additional information. As mentioned before, we also work with international consultants.
With such a wide array of expertise, how do you divide this up under one roof?
CARI-ERS consists of three companies: Environ-mining (ENM), Hydrobiology and Draigana Consultancy N.V. If one company lacks certain expertise, the others provide support. We aim to meet the highest international standards as much as possible. Our strength lies mainly in the scientific and baseline side of operations. We focus on baseline studies, environmental and social impact studies and environmental impact assessments. We do have access to emergency response support, but that is not the core of what CARI-ERS does. Our main focus is on environmental and social baseline studies and impact assessments.
Our vision is not to have our own internal emergency response organization. Instead, we support those efforts before, during and after an incident. Before something happens, we help identify sensitive receptors. Whether it is deep water, coastal areas, rivers, or industrial zones, we can identify the sensitive areas. We can also carry out investigations during and after cleanup activities. We measure the success of the cleanup and monitor interactions with impacted communities, including fishery groups.
We also do long-term monitoring. For example, a few years ago, one of our partner companies handled a major dam break at a bauxite mine in Brazil, where the residue spilled into the sea, causing multiple fatalities. One of our sister companies managed the cleanup over several years and another sister company handled ongoing monitoring to see how the environment and local communities were affected and to track the recovery of the sea and surrounding areas after the cleanup efforts. That is where CARI-ERS mostly operates, not really as an emergency response organization.
We also have a network in Brazil and Colombia, where similar services are provided. We know that big players tend to stick with familiar companies for certain services. For example, it is difficult to compete with companies like SICPA or Halliburton for work with the major players because they prefer suppliers they already trust. We see the same in the environmental sector; for instance, TotalEnergies brought in LSK, a French company, for their overall environmental contract. Before oil and gas, many probably didn’t even know where Suriname was. Now, they take a few local consultants and gradually build it out. You start with smaller contracts and over time, you can expand.
One of the challenges in entering frontier markets is the lack of specialist knowledge on the ground. How much of your services can be done by local talent and how much depends on expats to fulfill the specialized roles?
Most people you see in joint ventures are drivers or cleaners, while social scientists, environmental scientists, safety specialists and hydrologists mostly come from abroad because the local workforce doesn’t have those skills. In Suriname, it’s a bit different. We have more local expertise, especially because of our long history and strength in mining. Here you can get more people to fill some of these shoes. For certain jobs, they ask for 10 or more years of offshore oil and gas experience. In Suriname, who has that? Almost nobody since this sector is brand new. The only options are Surinamese who have worked in Trinidad, the USA, or the Middle East. If you advertise for someone with five or more years of experience in oil and gas, you likely won’t find anyone locally, but you can develop that talent. It’s not too late for ministries to start building local capabilities.
As a company, we have our own knowledge base and are also looking for talent to bring in. The challenge is having enough work to keep people employed. You can invest in training someone, but if there isn’t work for them, they will leave. What is happening in Suriname is that the big companies pull in most of the available talent into the oil and gas sector. That is not necessarily a bad thing, but it does create some tension with the idea of local content. The strongest professionals often move to large companies like TotalEnergies and Halliburton because, for certain roles, they prefer to keep people in-house. As a result, local companies are always trying to catch up. You train and develop someone and then that person leaves. Then you must develop the next group. That is one of the main challenges. That is why we try to position ourselves carefully, so we can keep our people engaged and busy and reduce the temptation for them to move elsewhere.
For example, we decided not to enter Guyana just to comply with local content requirements. We do not believe it makes sense to hire a driver or cleaner simply to meet a quota. We are not actively pursuing oil and gas work in Guyana. Instead, we try to engage with the government and the EPA in Guyana. We have had several meetings with them about supporting policy development. Policies are not fixed, they continue to evolve. In Guyana, the local content rules require 51% Guyanese ownership and more than 50% Guyanese staff, with discussions of increasing that to 75%. In practice, this can be difficult to implement. Some companies hire people into low-level roles simply to meet the quota. We made a conscious decision not to approach it that way. Instead, we focus on other sectors. If there is a need for our expertise outside strict local content requirements, we are available. That is also why we engaged with the government to explore how we could support programs and policy development.
How receptive is the Suriname government to expatriates and the training of Surinamese people to learn the skills they need to be internationally competitive?
It is a learning process and Suriname should avoid making the same mistakes that Guyana experienced. Most of the current ministers come from the private sector and we know many of them personally. One of them comes from the state oil company. They are businesspeople, not career politicians. Because of that, we feel more confident working with some of these younger ministers who understand the field better.
Much of our current work is impact assessment and baseline studies. We are supporting two exploration companies with environmental and social groundwork. They are not yet in the full environmental assessment phase, but they need to establish that foundation. We are also supporting an energy company that is exploring green energy solutions. We have already completed an environmental and social impact assessment for a 2,500 acre biomass grass farm which was approved by NMA. In addition, we are active in the Suriname mining sector. Our regional strength is stronger in mining but we have significant global experience in the oil and gas sector. One of our partners in Australia has several offices in the region. They do significant work in the Pacific region but they also have an office in Brazil, including marine projects. They have strong in-house expertise. Beyond that, we can also access specialists from different parts of the world whenever needed. That is one of our strengths.
Many of our directors have worked globally in Africa, the Middle East, Australia, South East Asia, Europe and other regions, so we have built strong international networks. Because of that, we can bring in experts from different parts of the world when needed.
Do you also work in emergency response in case there is a disaster offshore and workers need to be evacuated?
We are not very active in emergency response at the moment, but maybe in the future. In Suriname, it is difficult for one local company to handle that alone. The investment is very high. Training just one person for offshore emergency response can cost between $25,000 and $30,000 and that is only for personnel, not equipment. One team may need five to seven people and you may need three teams. That quickly becomes a very large investment before even having a contract in place. In reality, no company in Suriname will spend that kind of money without secure work. On top of that, to participate in certain tenders, you may need a minimum insurance coverage of $2 million just to qualify. These are some of the practical challenges.
In Suriname, insurance for a $2 million coverage can cost between $30,000 and $50,000. In Europe, the United States, or other regions, the same coverage may cost only $1,500 to $5,000. In Suriname, you pay tens of thousands just to qualify for a tender and you have not even started the work. These are some of the hurdles local companies face. Only a few large companies are financially strong enough to meet these requirements and guarantee the standards. A lot of preparation is required just to meet oil and gas standards, even before securing a contract. That is where the challenge lies.
In Guyana, many people did not know which certifications were required because there were limited training and awareness programs. Some fishermen even sold their boats to pay for training that was not properly certified. After completing the training, they still could not work offshore because they did not have Offshore Petroleum Industry Training Organisation certification, which is mandatory for offshore work and costs several thousand dollars. In Suriname, there is more awareness and companies better understand the requirements. However, it is still not a level playing field. Smaller companies cannot easily access loans to finance all these upfront costs. As a result, more established companies are in a stronger position. They can secure certifications and meet standards early, knowing smaller competitors may not be ready. These are some of the challenges in the sector.
Over time, larger companies may realize they cannot manage everything themselves. It makes more sense to focus on their core strengths and subcontract specialized companies for specific services, rather than trying to handle everything internally.
Recently, I attended a TotalEnergies awareness session where they invited interested parties. They explained the tender process, how procurement works and how companies can become suppliers. They also outlined the specific requirements in the oil and gas industry, compliance requirements and the HSSE programs they have in place. This was especially important for small companies, so they understand what is required to compete in the tender process. Companies need to be properly set up in their system first. It starts with the supplier portal, which is necessary to access information and participate in bids. It was an eye-opener. For example, one company entered a tender for waste management for one of the big players. Many of these large companies have a zero disposable waste policy. They want as little waste as possible to be disposed of. We carried out an inventory for them to identify who the local players are, who recycles, who reuses and what facilities are available. However, many of the smaller companies are not operating at the required standard. If that company wins the tender and asks us to help bring those facilities up to standard in environmental management systems, safety, ergonomics and hygiene, that will require serious investment.
One company wanted to get ahead, so they asked us what it would take. We provided a quotation. After seeing the amount, they thanked us, but the reality is that this is the level of investment required. At their current standard, they cannot deliver the service. It is simply not possible. Companies need to understand that if they want to benefit from the opportunities in oil and gas, they must be willing to invest. Certification alone under ISO standards can cost between $10,000 and $12,000 per certificate. That only covers the audit and the certificate itself. If a company wants multiple certifications, the cost can reach around $40,000 and the work hasn’t been done yet. That is why investors from the USA or elsewhere are important. They help small companies grow and compete.
Are local banks able to offer loans or otherwise provide financing to enable the sorts of investments needed to work in the oil and gas sector and be able to grow and compete against more established companies?
Just preparing the paperwork to create a bankable document can take up to a year. After submitting it, the bank may take another six months to respond. Even then, they may still say they are not sure if they can finance it. That is another difficulty. With local banks, if you want to borrow $60,000, they may require $100,000 in collateral just to lend you that amount. That makes it very hard for local companies to move quickly and invest when opportunities arise.
Locally for us, it’s simple. We know how it works. If you want $60,000, you need to put up $100,000 as collateral. If you don’t have that, you won’t get the loan. The system is challenging. For example, the Inter American Development Bank has a $400 million budget for private-public projects in Suriname, but the red tape is heavy. Very few private companies have ever gotten financing from them. Those that do usually have collateral and strong cash flows, which makes them low risk for the bank. The minimum loan cutoff is $5 million with these international banks. There is still work to do and some of these challenges are small but real. A local bank won’t lend without collateral. Even if you show them a strong business plan or projected earnings, they will still say, ‘I’ll give you 60% of the collateral you put up and that’s it.’ If you don’t have it, you don’t get anything.
That is why companies are very careful with spending. Take emergency response, for example. You may need to spend $2 million on people, equipment and everything else. In Suriname, that requires $3 million in collateral. If you don’t have it, companies start cutting corners. They may skip some requirements or take lower certifications and then they risk losing the contract. This happens because the system here makes it hard to fully comply. A policy on paper is easy, but in practice, it’s different. In Guyana, foreign companies had to give 51% of earnings to a local partner. If I charged $300 a day, I would still charge $300 for my work. The local partner takes 50 percent, which adds another $300. That makes the service $600. This is why prices go up. Foreign companies won’t work for less because they have to share revenue with local partners. That is the real impact of local content laws and why services become much more expensive. Some businesspeople don’t want strict local content rules because they know what will happen. You’ll have people who just speculate, sit back while someone else does the work and make money without actually contributing. That drives up prices and hurts the business. That is why the government plays an important role. It starts with contracts and negotiations. Local content is important, but you also need to invest in capacity building to bring local people up to that level. That is usually missing. They focus on investors and foreign companies, but not enough on developing local talent.
You don’t have to force it, but your systems and basics need to be strong, especially with regards to the education system. If you employ someone and provide good conditions, they are likely to stay. Systems can work, but the whole structure needs to be in place. Simply implementing a law won’t solve the problem by itself.
Looking ahead, offshore development in the region is expected to continue scaling in complexity and intensity. How is CARI-ERS preparing for the next phase of growth and what role do you see the organization playing in safeguarding the region’s energy future?
For CARI-ERS, the goal is to get more exposure in Suriname, Guyana and the Caribbean. Right now, our focus is on Suriname and Guyana, with plans to expand to the Caribbean and globally. In the oil and gas industry, it is currently difficult to participate in tenders. We need to work on meeting the requirements to be able to secure those contracts. One big advantage we have now as an environmental and social consultancy is the new environmental law and the strengthened National Environmental Authority. They now have the power to enforce regulations. In the past, they could only advise companies.
This opens opportunities for consultancy companies like ours because the authority doesn’t have enough staff or knowledge to enforce everything. They now need external support and the law actually stabilizes this process. When they enforce regulations, according to the new Environmental Framework Act the client pays for the services. The government wants a lot, but funding has always been a problem. This approach will work because companies will cover the cost. Recently, we worked on a project where the authority did some enforcement and hired us to support it. This approach creates interesting opportunities for us in Suriname beyond the private sector.
On the public sector side, we want to develop work on policy and enforcement. The key is to avoid conflicts of interest. We must never work for both a client and the government on the same issue. If an environmental authority asks us to do work for them while we have a client involved, we have to decline. We have to be conscious about maintaining independence and integrity at all times. That is what we want to grow into in the coming years. We also focus on areas like climate change, adaptation and carbon credits. We have people in-house who specialize in these fields and can provide support.
Every project adds a new layer. For example, this week we saw a delivery and got a report showing the carbon footprint of that delivery. These considerations fit into the government’s plans for mining, agriculture, urban development and tourism. We are seeking partnerships for strategic and special projects across multiple industries. Rather than focusing on just one sector, we aim to diversify and engage in opportunities across various sectors to create balances and sustainable growth. We also do conservation and mine closure projects and have worked on many types of projects. We can bring in specialists from around the world in different fields. This is the next phase for us going forward.
What is your final message for the readers of Foreign Policy
Suriname is a beautiful and promising country, with warm, resilient and hardworking people who are eager to grow and collaborate. As a developing nation, we are continuously learning and building capacity and we welcome partnerships with investors and experts who can contribute knowledge, innovation and long-term commitment.
Historically, Suriname was one of the most thriving agricultural economies in the region in the late 1800s and early 1900s. Over time, gold and mining became major economic drivers and today new opportunities are emerging, particularly in oil and gas. At the same time, traditional industries such as wood processing and ceramics, once strong contributors to the local economy, were impacted by the internal war and now present meaningful opportunities for revitalization and self-sufficiency.
There is also significant potential across tourism, agriculture, technology, mining, renewable energy and oil and gas. Rural areas especially offer untapped opportunities for sustainable and inclusive development. Suriname’s diversity, natural resources and strategic position provide flexibility and long-term growth potential. There is still much to build and we are open to collaboration, investment and partnerships that will help shape a resilient and prosperous future for our beautiful country.
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