Dear Editor,
The Opposition submitted their initial view on the draft Petroleum Bill to the media, and have maintained that the timeframe for consultation is too short, and that they would not be submitting any commentary directly to the Government.
This is quite unfortunate on the part of the Opposition. However, having reviewed their preliminary views, it would appear that they do not quite understand the nature of the Bill, and what it should and should not address.
The Opposition argued that the Bill remains silent on crucial issues such as insurance and liability coverage. This omission, according to the Opposition, is particularly alarming, given the legal disputes that have arisen. The issue of insurance, financial assurance and liability coverage are fully covered under the Environmental Protection Act. Hence, the Petroleum Bill does not need to address such provisions, which are already catered for in another legislation.
Section 31 (1) – (5) of the EPA Act deals exclusively with financial assurance. And insofar as the Bill is concerned, sections 92 and 94 address “liability and indemnity” and “litigation against the State”, respectively.
With respect to the rules governing the auction process, this is a fair observation, but can be addressed in the regulation following enactment of the legislation.
The concern expressed about the Government spending directly from cost oil is not an issue for the Petroleum Bill. This is a fiscal matter, which is already provided for in the Production Sharing Agreement (PSA). The same can be said for the audits that the Opposition argued should be included in the Bill, which are already addressed in the PSA.
Lastly, the Opposition repeated a position by the Kaieteur News, that the Bill did not address the Petroleum Commission. As I explained in a previous letter, the functions of the Petroleum Commission will be of a regulatory nature, and therefore requires a separate piece of legislation.
Altogether, the preliminary criticisms by the Opposition lacked much substance. They have missed an opportunity to submit meaningful contributions to the Bill.
Yours sincerely,
Joel Bhagwandin
