Bids for company to review Guyana’s oil & gas framework under evaluation – AG

…says contract attracted considerable interest from int’l companies

Bids for the company that will eventually review and make recommendations for Guyana’s current legislative and policy framework for the oil and gas sector are currently being evaluated.

Attorney General (AG) Anil Nandlall has explained that the tender, which was put out by the National Procurement and Tender Administration Board (NPTAB), attracted considerable international interest.
“There is a public tender that went out to secure legal services for the oil and gas sector in terms of policy directives as well as legislation. I believe that tender is being evaluated. A lot of companies around the world responded. And once that contract is awarded, that will kickstart the process,” he disclosed.
“That company will (liaise) with the Ministry of Natural Resources and the Legal Affairs Ministry (regarding) all the oil and gas legislation, local content, Sovereign Wealth Fund, Natural Resource Fund, the environment, regulatory frameworks that have to be established,” the AG noted when asked about the possible scope of the company.
Oil exploration and production in Guyana has been governed for the longest while by the Petroleum (Exploration and Production) Act of 1986. Even though oil was discovered in 2015 under the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government, the only updated legislation they passed that was relevant to the sector was the Natural Resource Fund (NRF) Act.
Even this Act is scheduled for an overhaul by the current People’s Progressive Party (PPP) Government. It is expected that once the Natural Resource Fund Act, which stipulates that various committees must be established to provide oversight for the fund, is reviewed, it will be brought to the National Assembly by the current Government.
In keeping with its manifesto commitments, the Government has pledged to implement a number of measures to ensure accountable and transparent management of the country’s natural resources, including establishing an arm’s length Sovereign Wealth Fund insulated from political interference, and upholding the Santiago Principles of transparency and accountability, and the EITI.
The PPP Government has sought to make some changes to the Petroleum Act, however. Last month, an amendment to the Petroleum (Exploration and Production) Act was tabled, which would see the Government, through the Minister of Natural Resources, being given more oversight over how licensees in the oil and gas sector utilise the lands they have been allocated.
According to the Explanatory Memorandum of the amended bill, which was subsequently passed in the National Assembly, the amendment seeks to give the Government more control over the use of both public and private lands in the oil and gas sector.
The bill is seeking to amend Section 52 of the Petroleum (Exploration and Production) Act, Chapter 65:04, which deals with the restrictions in place on petroleum licensees. It specifically targets work done by a petroleum licensee in furtherance of its operations on State land, Government land, or land that is otherwise controlled or under the management of the Government of Guyana.
Based on the amendment, the Minister would have the power to grant permission to the licensee to land, install or operate any pipelines, fibre optic cable, or similar infrastructure on or through the said land. It would also empower the Minister to order the licensee to maintain, inspect, repair or renew such infrastructure.
The amendment comes ahead of several oil-based projects coming on stream, including Exxon’s US$900 million gas-to-shore project. The gas-to-shore project is a game-changing initiative that would see gas from the Liza Field offshore Guyana being pumped onshore to generate power.
The main objective of the initiative is to transport sufficient gas from the Stabroek Block’s petroleum operations to supply some 200-250 megawatts of energy to the national grid, leading to a significant reduction in electricity costs.