GUYANA will be establishing a national oil company soon, Minister of Natural Resources, Raphael Trotman, announced Friday.

Minister Trotman said his administration is currently “examining the various models” for the oil company as part of plans to be realised this year. The minister explained that the company will have responsibility for Guyana’s commercial interest in the sector.
Additionally, when established, the company would be able to issue shares as is done in companies such as Banks DIH Limited. “Ordinary, normal Guyanese could access (the shares); also those who have the means to go beyond,” Minister Trotman said.
Speaking to reporters after updating the Parliamentary Sectoral Committee on natural resources, Trotman explained that the government has received several pieces of advice on the establishment of the company.

“I believe we have received advice saying yes, some no, some hold back, but I believe we are going to get a national oil company,” he said, noting that the varying proposed models are being keenly examined, and as such, he is not in a position to state how the company would be structured.

His statement followed questions from the Committee’s chair, Odinga Lumumba as to whether consideration is being given to local content being extended beyond “giving jobs or shipping stuff to a rig”.

“In essence, I am saying that Guyanese people, to me, are tired of the approach on the table right now,” Lumumba said.

According to the World Bank, National Oil Companies account for more than 75 per cent of global oil production, and as of 2010 controlled 90 per cent of proven oil reserves in the world.

Last year, the establishment of a national oil company was being proposed by several experts, including former Trinidadian Minister of Energy, Kevin Ramnarine. Ramnarine had suggested the establishment of a state company, but urged that it should be insulated from political interference.

The oil company would serve to manage Guyana’s significant oil find. While speaking at an oil and gas forum here last January, Ramnarine said, “This Company’s board and management must be insulated from politics as is the case with Statoil (Norway), because if it is not, you will get a call to hire somebody’s nephew.”

Such a move would not be unique to Guyana, the former Trinidad and Tobago Minister of Energy said while pointing to his own personal experience in his home country.
Meanwhile, as part of its plan this year, Guyana is working with the Government of Mexico to establish a Scientific Institute, while efforts are being made to establish an offshore logistics base, which will support oil operations and local industries, as well as the establishment of the Department of Energy.

On the legislative front, efforts are being made to have the National Upstream Oil & Gas Policy ready, along with the National Local Content Policy, which will soon be taken for the second round of consultations.

The Petroleum (Exploration & Production) Act is currently being revised, and the Petroleum Commission of Guyana Bill is scheduled to be returned to the National Assembly before August 2018.

Additionally, subsidiary legislation for Occupational Health and Safety and Environmental Protection is being drafted, and the Natural Resources Fund Bill, which is currently in an advanced draft form, is being reviewed. The Petroleum Taxation and other fiscal legislation are also being developed.