–Canadian lawyer commends gov’t for adopting global best practices to govern oil sector

THE incorporation of global best practices to govern the development of the country’s petroleum industry is a move in the right direction.

This is according to Canadian lawyer and former politician, Ms Alison Redford, QC, who said Thursday that while the government is working quickly on the management of the sector, they have enough time on their hands to create and identify the regulators.

One of the guest speakers at the inaugural Guyana international Petroleum Business Summit and Exhibition (GIPEX) held at the Guyana Marriott, Redford, among whose forte is constitutional and legal reform, said she believes 25 years is good enough time for politicians to determine how they wish to develop their country, based on the natural resources at their disposal, and as such it is of utmost importance to lay down the rules which will govern the sector.

“As long as companies understand the rules, they will find a way to make the rules work and fit into their business model,” she said. And while on the subject of the roles of governments, industry and civil society, she said that everyone needs to understand the rules.

She said that once those rules are laid out properly, there will be discussions such as those ongoing here in Guyana as regards the expectations of how companies can assist the local economy, royalty payments, local content requirements and environmental issues.
“Until those rules are clear,” she said, “there will be confusion and debate.”

‘TREMENDOUS PRESSURE’
And where political leaders are concerned, Redford said there will always be “tremendous pressure”, once the conversation surrounds new oil money and what benefits it can bring regarding the provision of services for the development of communities.
According to her, “immediately, people who may not understand a lot about that commercial relationship, begin to ask questions about the financial terms of that agreement.”

Redford, who is widely regarded at home in Alberta as the first ever female premier in the province’s history and the eighth woman to serve as a premier in the history of Canada, told her GIPEX audience that after looking at the petroleum legislation that has been put forward by the Guyanese government, she is happy that a number of elements contemplated for are being regulated by the imminent petroleum commission.

She also noted the significance of industry and civil society’s reliance on the regulator in protecting the resource and the community, as she expressed hope that the petroleum legislation would be passed.

Last May, Minister of Natural Resources, Raphael Trotman tabled the Petroleum Commission Bill which makes provision for the establishment of a Petroleum Commission to serve as a regulatory agency for Guyana’s oil and gas industry.

In December 2017, and in light of criticisms that the Bill makes provision for too much government control, government announced that it will revisit the legislation with the aim of ensuring that there is transparency and inclusivity.

At the time, Minister Trotman told the National Assembly, “Government has chosen to pause the implementation of the Petroleum Commission Bill so that we can receive all fit and proper proposals that may be out there.”

Redford noted Thursday that the passage of the legislation provides all stakeholders with a framework in which they can operate, and that its absence can lead to confusion as to who is responsible for enforcing the rules.

IMPORTANCE OF PARTNERSHIP
During her presentation, Redford also noted the importance of partnership by relevant stakeholders, in that if there is no partnership between government, industry and community, then there would be no trust for economic development to occur.

Redford stressed that while at the moment, everyone in Guyana is focused on ExxonMobil’s plans for the country, “others will come when they understand that there are clear rules and framework in place.”

Redford said sessions such as those ongoing over the past three days at GIPEX 2018 are valuable, noting that they are “so helpful in terms of promoting dialogues and transparency in the development of the industry.”

Lauding the work of the authorities in pushing for the development of the sector, Redford said, “It’s incredible to see how much has developed and how quickly Guyana is responding to it. And while there may be daily challenges faced by the authorities, clearly, over a year I can see you are moving beyond those challenges.”