Govt tables amendments to Petroleum Act in National Assembly

– amendments to increase State oversight on land used in oil & gas sector

A proposed amendment has been made to the Petroleum (Exploration and Production) Act that will 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, the amendment seeks to give the Government more control over the use of both public and private lands in the oil and gas sector.
During Tuesday’s sitting of the National Assembly, Minister of Natural Resources Vickram Bharrat brought the amendment to the House, where it was read for the first time. The Explanatory Memorandum of the bill indicates that the amendment aims to strengthen private proprietary constitutional rights.
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 amendments also speak to the granting of consent to the Minister and a petroleum licensee for use of land by the private owners or lawful occupiers of said land, in aid of petroleum operations.
“Overall, the amendment of Section 52 ensures that the Government has oversight over the exercise of the licensee’s rights over private land. Accordingly, the amendment further strengthens and protects private proprietary interests as enshrined in Article 142 of the Constitution of Guyana.”
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 will 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.
President Dr Irfaan Ali had previously said the gas-to-shore pipeline, which will land at La Jalousie on the West Coast of Demerara (WCD), would lead to “big industrial development taking place there that is linked to not only power generation and a power plant.” He also said the investment on the Demerara River’s shoreside would create massive opportunities and a trickle-down effect.