Revised Petroleum Act part of ‘steep ramp-up of learning’ in Guyana’s oil management

Guyana is among the world’s newest oil producers and Vice President Dr. Bharrat Jagdeo believes that the country still has much to learn and do to adequately manage the nascent sector.

With a focus on doing just that, he said that amendments to the country’s 1986 Petroleum Act should be in effect by March 2023.

Those amendments- alongside others- are expected to strengthen and modernise the management of the oil sector. Much-needed regulatory provisions are also expected.

“We recognize that we would have to have a steep ramp up of learning, and we’d have to adjust.

“There will be a number of policy-making issues that will haunt us until we have a settled regime because we are new to this business,” the Vice President acknowledged during a recent online engagement.

Guyana struck oil in 2015 and started producing oil in 2019. In the two years the new administration has been in office, Dr. Jagdeo posited that much institutional strengthening has been done.

He boasted of the government’s “game changing” Local Content law which provides a much-needed carve out for Guyanese seeking to profit directly from the oil and gas industry and other spinoff sectors.

He also contended that the country has a new and improved Natural Resource Fund Act, governing the oil wealth fund. The country’s move to an auction of oil blocks later this month is another major step forward, Dr. Jagdeo opined.

“I believe with the pace here, we have kept protecting the national interest and I am talking about the period when we have accountability for- that is from 2020 to 2022,” he said.

While the government eyes improving the governance framework, the Vice President also highlighted that efforts are underway to develop a new Production Sharing Agreement (PSA) that could see Guyana getting better financial terms and safety guarantees in new oil deals.