GYEITI not in receipt of any info on Shell deal – National Coordinator

Guyana’s oil sale

While the Department of Energy has referred media enquiries on Guyana’s oil sale agreement with Shell to the Guyana Extractive Industries Transparency Initiative (GYEITI), that entity is yet to receive a report on the transaction.

This was confirmed when Guyana Times made contact with GYEITI National Coordinator, Dr Rudy Jadoopat. Jadoopat noted, however, that they had an upcoming meeting with the Department.
“We haven’t received any information as yet. We have a meeting with the Department of Energy. And they have agreed to collaborate with us and provide the necessary information so that we can prepare the EITI reporting for public disclosure.

“But as of now, no specific information has been provided to us. But there’s an agreement in place to collaborate as quickly as possible to provide the information. He did promise to provide the information. But no information has been received as yet,” Jadoopat further explained.
Back in December, it was revealed that Guyana’s first three lifts of one million barrels of oil each will be sold to Shell. Shell was chosen ahead of companies like Exxon, CNOOC, Hess and BP, all of which bid for the oil. But since the oil would be sold on the spot market, there have been questions as to whether Guyana would earn less money for the oil.
During a press conference on Monday, when Department of Energy Director, Dr Mark Bynoe was asked by the media what price has been agreed on for the oil, Bynoe referred the media to the GYEITI.
“First of all, we cannot discuss prices here. As it is, we’ve been on record as indicating that we will be working with the EITI, which has specific guidelines on reporting on first trades. And that’s how the Department will ultimately conduct its business,” Dr Bynoe informed the media.
Dr Bynoe said that EITI was being engaged when it comes to reporting on financial transactions in Guyana’s oil sector, and the Department was committed to working with the Initiative. Guyana, he further explained, will get its first oil lift next week. Dr Bynoe then laid out the methodology for processing these funds.
“The department has established a working relationship with the EITI and has committed to providing the GYEITI with all the data and information required by the EITI standard, with full observance of the laws of Guyana. We have committed to continuing our collaboration to ensure that compliance, transparency, and accountability are resident within (Guyana’s) oil and gas sector,” he said.

EITI
The EITI is a global standard to promote the open and accountable management of oil, gas, and mineral resources. Under the EITI standard, companies publish what they pay to Governments, and Governments publish what they receive in an annual EITI country report.
In many countries, most of the revenues from natural resources accrued at subnational levels are not derived from company payments to Local Government entities, but from transfers to the Central Government.
Depending on the revenue distribution frameworks in place, these transfers can be a considerably larger source of revenue for subnational entities than taxes and fees collected at local levels. The revised EITI standard requires that such transfers are reported where mandated by law and where material.

Where companies are legally or contractually required to make social contributions, these must be disclosed, under EITI standards. Where countries collect significant revenues from the transportation of oil, gas and minerals, such as pipelines, the Government will also be required to disclose the revenues received.
The requirement to publish annual activity reports is not limited to compliant countries, the EITI said. It is foreseen that countries will report on progress with meeting the EITI requirements as well as on efforts to achieve the objectives set out in their work plans.
Validation is procured and managed by the EITI’s International Secretariat rather than by implementing countries. Countries undertake validation more frequently, with compliant countries being revalidated every three years as opposed to every five years under the old rule.
Oil was discovered in commercial quantities in Guyana in 2015, after which Guyana applied and was approved to join EITI. This was done with the understanding that Guyana’s first EITI Report must be published within the next 18 months and the country will be required to commence validation within two and a half years. Guyana’s first report was submitted to the International Secretariat in April 2019.