Petroleum Activities Bill

June 20, 2023

The Ministry of Natural Resources announced the release of the draft Petroleum Activities Bill for public consultation. The Petroleum Activities Bill replaces the Petroleum (Exploration and Production) Act 1986 and is part of government efforts to modernise the legal and regulatory framework related to the petroleum sector.

The Petroleum Activities Bill introduces significant improvements and safeguards related to safety, emergency response, cross-border unitisation, supervision, and monitoring requirements, and authorises the minister to prescribe regulations about key administrative and operational aspects of exploration and production activities.

It also expands the scope of regulation to include storage and pipeline transportation aspects of the oil and gas sector and empower the government to regulate activities associated with geological storage of carbon dioxide. Exploring opportunities for potential CO2 storage sites will enable the government to develop petroleum resources while seeking to minimise their carbon footprint.

The Bill is expected to be supplemented by regulations that will follow in the coming months and provide the government with the necessary toolbox for responsible and efficient management of petroleum activities within the economy.

The government will ensure that the terms of the draft petroleum agreements released in association with the first offshore licensing round are aligned with the provisions of the Petroleum Activities Bill.

The government has been continuously working to improve the overall management and regulation of the petroleum industry through various policy and legislative programmes. These included the enactment of the Local Content Act, the establishment of the Local Content Secretariat, and a new Natural Resource Fund (NRF) law aimed at providing greater oversight and management of revenue flows. Additionally, there have been new environmental permitting conditions and fees for the successive licences that have been issued, and the conducting of cost recovery audits covering the periods from 1999 to 2022.

The draft Bill, which would be available for public feedback for a period of two (2) weeks commencing from Tuesday, 20th June to Monday, 3rd July 2023, can be accessed on the following websites:

www.nre.gov.gy and www.petroluem.gov.gy. All comments should be sent via email to the Ministry of  Natural Resources Permanent Secretary at j.mckenzie@nre.gov.gy during the feedback period.

 

 

 

 

Guyana & EU sign EUR$4.6M agreement

for coastal mangrove restoration

June 15, 2023

Guyana and the EU signed an agreement to utilise part of a €4.6 million grant for a mangrove protection and restoration project along Guyana’s coast.

President Dr Irfaan Ali described the European Union as one of Guyana’s strongest partners in protecting its sea defences,

The signing ceremony was attended by Frans Timmermans, the First Vice-President of the European Commission (EC), who is on a two-day visit to Guyana, and Dr. Ashni Singh, Senior Minister with responsibility for Finance, signing on behalf of Guyana.

The project will involve the monitoring of mangroves, seedling planting, and the rehabilitation of existing mangrove forests. The project will be executed by the National Agriculture Research and Extension Institute (NAREI), in collaboration with the Ministry of Public Works (MoPW) and the sea defence authority.

At the signing ceremony, President Ali noted that with the length of Guyana’s coastal sea defence extending some 525 km, development and expansion of the mangroves play a very significant role in protecting areas along the coast.  The funding for the project will come through budget support.

“The European Union continues to play a key partner for us in budget support. You are also an important partner for us in democracy in governance issues but importantly, one of our strongest partners in terms of protecting our sea defences or a coastal line and ensuring that a country that is below sea level remains safe from its exposure to the sea. You are one of our strongest partners in this area.”

Expansion of mangrove is a proven concept for climate mitigation.
“Guyana forest covers 18 million hectares; over 200,000 hectares is coastal, covered in mangroves and suitable for the rejuvenation and expansion of mangroves. Mangroves store five times the carbon stock as other forest types, an important fact. Also…the mangroves are closely integrated into the bulk of the population, providing an important opportunity for livelihoods. All of these things can help in optimising the value of the mangrove.”

The project is part of the Memorandum of Understanding (MoU) on a forest partnership between the EU and Guyana, signed on the sidelines of COP 27 in Egypt last year.

Timmermans noted that the signing of the agreement marked the continued strengthening of the ties between Guyana and the EU.

“It is important that we strengthen our bilateral ties; that we look for ways to cooperate and one of the ways to cooperate is to help preserve this country’s natural riches which are almost without limits. I was able to witness some of it today. This partnership that we’ve just signed is so that we can support the efforts of Guyana to strengthen the position of mangroves. Mangroves are such a huge contribution to our fight against the climate crisis. They are a huge reserve of biodiversity. If you look at the extent of the mangroves in this country, it is a collective responsibility of humanity to maintain them. And I am just more than happy that we can be partners with Guyana in this effort.”

Guyana elected to UN Security Council

June 7, 2023

President, Dr. Irfaan Ali affirms that GUYANA will assume positon with utmost seriousness, dedication

GUYANA was elected as a non-permanent member of the United Nations Security Council (UNSC) following the presentation of its candidature during the elections. Following the elections, President, Dr Irfaan Ali said that the country is honoured and humbled by the confidence expressed by the international community in electing the country to such an important position of responsibility on the global stage. Guyana received 191 votes. Guyana has now been accorded the opportunity to serve on the Security Council, which, under the UN Charter, is charged with the responsibility for the maintenance of international peace and security.

“It is a responsibility that we will assume with utmost seriousness and dedication, mindful of the complex and challenging times in which we live.”

The theme for Guyana’s candidacy was “Partnering for Peace and Prosperity,” which serves as a guide to Guyana’s approach to service on the Security Council.

“We intend to be a constructive and engaged partner with the members of the council and the wider international community in the search for solutions to the myriad of momentous challenges that beset our human family.”

He expressed gratitude to UN member states for support of Guyana’s candidature and to the team at the Ministry of Foreign Affairs and International Cooperation, the Permanent Representative to the UN and the permanent mission advancing Guyana’s candidature and securing the result.

Minister of Foreign Affairs and International Cooperation, Hugh Todd, affirmed that Guyana’s tenure will be guided by a firm adherence to the rule of international law and the charter of the UN.

“Our engagement as a council member will be aimed at contributing constructively to the mandates and to enhancing the well-being of our world’s people.”

While the international security landscape is extremely complex and threats to global security are rising, Guyana will work with all council members and the UN to address these issues. Guyana will bring its strengths and experiences to the work of the council to make a meaningful contribution to the lives of those impacted by its work.

Meanwhile, the Opposition, said: “The international security landscape presents complex challenges that require concerted global efforts to address. We in the APNU+AFC believe in managing these challenges through the rule of international law and constructive dialogue among nations. Guyana’s appointment to the Security Council provides us with an opportunity to advocate for these principles and contribute meaningfully to the Council’s work. We express our gratitude to our dedicated Foreign Service personnel for their efforts in this regard as well as to the international community for their support throughout Guyana’s bid for this prestigious seat.”

Guyana was elected along with Algeria, the Republic of Korea, Sierra Leone, and Slovenia.

 

 

 

Local content policy benefits

May 21, 2023

ExxonMobil Guyana announced new data on spending in the local economy and the latest employment figures for the oil and gas industry. Combined spending amounted to GY$83 billion (US$400 million) locally in 2022, with over 1,500 Guyanese businesses, and over 5,000 Guyanese workers employed by the company and its contractors. The number of Guyanese workers offshore continues to grow, with over 1,300 committed to supporting operations and making up about 48 per cent of the total offshore workforce.

“We believe that the true measure of our success lies not only in the barrels produced but also in the positive impact we create for our people and the communities in which we operate. By prioritising local talent, partnerships, and investments, we aim to cultivate a thriving and sustainable environment that benefits everyone,” President of ExxonMobil Guyana, Alistair Routledge said.

The past year was a prime example of the impact that strong but achievable local content policies can have on the economy. It is expected that with more Guyanese training in the crucial skills needed for the oil and gas sector, the overall number and percentage of Guyanese employed will continue to grow—especially in more technical and higher-level roles.

In December 2021, the Government of Guyana passed the Local Content Act. The law ensures that companies operating in the country hire a certain percentage of local workers and use a certain percentage of local goods and services.

Since then, it has published several related guidelines designed to maximise the participation of Guyanese companies wherever they have the skills and capacity to get involved. That starts with services such as office space rental, janitorial services, laundry and catering services, pest control services, insurance services, supply of food and accounting services and extends through long-term involvement in highly skilled subsectors like subsea installation, geophysical analysis, marine welding and engineering.

Recently, ExxonMobil Guyana received its letter of approval from the Ministry of Natural Resources for its 2023 Local Content Annual Plan and the Certificate of Compliance for its 2022 plan. The 2023 plan indicates that the company plans to execute more projects and continue to accelerate the development of local content in Guyana this year. This annual strategic plan will build upon last year’s growth and progress in the industry and the workforce as the company aims to integrate more Guyanese into the process.

The impact of the local content policy was complimented by a rapid expansion of training opportunities and certification programmes for local companies early on through the industry-funded Centre for Local Business Development (CLBD). This initiative has received praise regionally and locally and continues to expand. The CLBD was operational in Guyana before the first oil, helping companies align their operations with the services that would be needed in Guyana’s oil and gas sector.

Over GY$180 billion (US$900 million) has been spent with local businesses since first oil in 2015. As long as development continues, that thriving sector of the economy should only continue to grow. Guyana is already doing the work to avoid some of the pitfalls of other emerging oil and gas producing countries and local content is high atop that list.

Guyanese individuals and businesses are in a prime position to continue supporting this thriving industry, while being equipped with the skills to make the country into a globally competitive energy centre.

GUYANA REMAINS A “BRITISH” COUNTRY

 Consumer Concerns, PAT DIAL, May 21, 2023

In early May, Prince Charles and his consort Lady Camilla were crowned King and Queen of the United Kingdom.

In Guyana, until the beginning of the 1970’s, such an event would have evoked widespread and sustained coverage in the media and the population would have been moved with a spirit of patriotism while enjoying the unique and magnificent medieval ceremonial of the coronation.

From the beginning of the 1970’s and for a generation thereafter, Guyana was governed by an authoritarian regime which did its utmost to devalue and diminish our strong ties with Britain where, in a spirit of isolationism its cultural and economic ties began to fall into desuetude.

Now divorced from the European Union, Britain has again begun to resuscitate economic ties with former colonies including Guyana. Within the last two years, it became easier to visit Britain with the easing of visa restrictions; the establishment of a Guyana/Britain Chamber of Commerce and the visits of several Trade Missions with high level discussions taking place.

Last November, the Guyana Foreign Minister Hugh Todd and the British Trade Commissioner for Latin America and the Caribbean Mr. Jonathan Knott signed a partnership agreement and several British companies have began partnering with Guyanese companies.

At the event held by the High Commissioner Jane Miller to celebrate the coronation of King Charles III, an occasion was presented for her to sum up this trend of the developing economic relationships between Britain and Guyana:

“The signing of a government to government partnership arrangement meant the UK will work alongside the Government of Guyana and the Private Sector to deliver fairer, faster and greener economic growth to the country. . . We continue to advocate and support countries that will bring to Guyana efficiency, transparency, quality and innovation and those that want long term relationships with Guyana’s development.”

Hon. Gail Taixeira, Minister of Parliamentary Affairs and representing the Government of Guyana responded:

“Guyana considers the UK as a development partner and believe our ties will strengthen as Guyana collaborates with the UK to address some of the more urgent issues such as climate change, investment and trade opportunities, fair trade relations between and among countries, particularly small and developing countries…”

The resuscitation of close economic relations between Britain and Guyana is very welcome but we should not lose sight of the fact that such would operate on a common civilized and cultural substructure.

As a member of the Anglosphere, which includes Canada, Australia and New Zealand, we share similar values and worldview with Britain itself. To try to describe the characteristics of this cultural substructure could not be done in a short article; we shall therefore remind our readers of a few of them.

First, there is the English Language. English opens up to Guyanese a treasury of ancient and modern learning and knowledge of finance and wealth. It allows for communication with the countries of the world since in all countries educated persons know the language and ease of travel. English is the language of the Sea and of IT.

English Common Law is probably the greatest system of Law with universal applicability ever devised by Man. It is a system which brings fairness, justice, humanity, protection of the poor and powerless and secures Democracy.

Guyana and Britain share the Common Law and Guyanese could seek redress and protection from the Law in the Commonwealth countries and the United States.

Since the Industrial Revolution, Britain has always been a great innovator in the Arts and Sciences and this was especially so in the 19th century. Examples are the invention of the railways, a main agent in the economic development of United States and Argentina and other countries; the discovery of vaccines which have eliminated the scourge of Smallpox from the world and continued to save the lives of millions of people from infectious diseases such as cholera and tuberculosis.

In Sport Britain had laid down the rules and structures of international events, the most known being Football whose name most foreign languages have retained in acknowledgement of its British origin. In all this effulgence, Guyana, being a British country, shared.

In Guyana, British institutions and culture could be found everywhere. Parliament and the system of law still operate from British buildings – the Parliament or Public Building and the Victoria Law Courts and the Georgetown Magistrates Court. British names proliferate in the names of people and places.

Most importantly, Guyana and Britain share the same thought process.

Now that relations between Guyana and Britain have awakened from their somnolence, the momentum should be maintained. Economic relations are again on the rails but cultural and civilized relations must be resuscitated to the benefit of both countries. A comprehensive plan of this has to be worked out and the elements of this should include:

1. Support for the University of Guyana by supplying teaching staff for the Oil and Gas Department, for the English Faculty and the Law School to be established next year;
2. grant of scholarships for Journalism and Diplomacy;
3. and that Guyana be included in the itinerary of British artistes, exhibitions, etc. touring South America.