Govt releases energy MoU with T&T

Amidst concerns from sections of society that an agreement between Guyana and Trinidad and Tobago (T&T) would open the floodgates for foreign companies to take over the emerging oil and gas industry, the Government of Guyana attempted to ally those fears by releasing the signed Memorandum of Understanding (MoU) on Energy Sector Cooperation between the two countries.
Last week, the Georgetown Chamber of Commerce and Industry (GCCI) called on Government to hold off on signing the MoU with T&T, asking that its members be consulted first. In fact, GCCI President Deodat Indar said Guyanese businesses are already being sidestepped with contracts being awarded to foreign-based companies to benefit from the local oil sector and as such, the Chamber wants the local Private Sector to get its “piece of the pie.”
Against this backdrop, Government had promised to release the document and after the signing of the MoU by President David Granger and Trinidad and Tobago’s Prime Minister, Dr Keith Rowley on Wednesday at State House, made good on that commitment.
According to the document, under Article 6 titled “Labour Relations”, all personnel or representatives designated by any of the countries to participate in cooperation activities under the MoU shall be under the direction and supervision of that country and will continue to be governed by, and subject to, the terms and conditions of employment of that state.
“There shall not be any implied labour or contractual relationship between the personnel or representatives of a party and the other party or between personnel and representatives of the parties,” the agreement stated.
The MoU provides for the establishment of an executing committee, comprising of Ministers responsible for energy and related industries, to oversee the implementation of the agreement. The committee, in turn, will set a joint working group comprising a maximum of 10 representatives, of which each country will designate five members respectively within 30 days of the signing.
The executing committee will develop the guidelines and the policies of the joint working group. Among the responsibilities of the joint working group will be to identify and evaluate the feasibility of the projects and activities in pursuance of the objective of the MoU, and will advise on potential areas of cooperation between Guyana and Trinidad and Tobago in accordance with guidelines set by the executing committee.
It also states that in carrying out its functions, the working group will establish joint technical teams comprising representatives from the parties, and such other persons as either party may appoint; establish the Terms of Reference of the joint technical teams to advance the achievement of cooperation activities in accordance with the objective of MoU; determine the priority and specific content of the activities to be undertaken in fulfilment of the objective of this MoU; require the joint technical teams to report to the joint working group within three months of their creation, unless otherwise agreed; receive, consider and make recommendations in writing with supporting documentation to the executing committee on the matters referred for its determination and advice pursuant to Article 2 of this MoU; invite other persons to attend meetings at the request of either party, as required; and report to the Executing Committee established herein within 60 days of the receipt of a written report from joint technical teams.
The five-year agreement also provides for the joint working group to request the services of experts from the hydrocarbon industries of Guyana and Trinidad and Tobago, to advise on matters to be addressed in the process of implementation of this MoU.
With regards to expenses, each country will have to bear its own internal expenses related to any activity carried out under this MoU in accordance with its respective budgetary allocations. However, the executing committee will mutually agree in advance to the contracting of third parties and the distribution of costs related to any activity undertaken under this MoU.
The objective of the MoU on energy cooperation is to establish the process through which the two countries agree to work with each other in the development of the energy and energy related sectors of the parties with the aim of developing and promoting joint projects throughout the hydrocarbon value chain in accordance with the provisions hereof and without prejudice to their respective national legal systems.