Director of the Department of Energy, Dr. Mark Bynoe, has said that the final draft of the Local Content Policy has been completed and will be presented to the Private Sector and other stakeholders in about two weeks’ time.

The Energy Director made this announcement, during a press briefing at the Ministry of the Presidency on Monday. Dr. Bynoe said in order to ensure that Guyana’s hydrocarbon resources continue to be managed in an effective and transparent manner, the Department is also currently setting up a local content compliance unit that will be mandated not only to validate the information is that is being provided by the companies within the industry, but to receive any potential concerns Guyanese contractors or supplies may have.
“The Department continues to seek to ensure that… the sector is managed in an effective and efficient manner and will spare no effort in ensuring that Guyanese are able to optimise the value from these resources,” Dr. Bynoe said.

The Energy Director noted that while reporting from companies is dynamic, the Department is taking steps to ensure that more comprehensive frequent reports are provided so that a thorough analysis can be made to ensure that persons across all the regions are benefiting. While there are no immediate plans to publicise these reports, he said, once there are no legal barriers preventing same, Department would have no difficulty in releasing the reports.

Meanwhile, there are currently more than 1,100 Guyanese working with Esso Exploration and Production Guyana Limited (EEPGL), representing about 50 per cent of the work force in the industry. Additionally, the EEPGL is working with the Council for Technical Vocational Education and Training (C-TVET) to implement two pilot projects aimed at building capacity within the technical institutions. Since 2015, the EEGPL and its sub-contractors have spent over $119M on Guyanese contractors and service-providers.

In this vein, the Department has hired a Commercial Specialist and a Crude Lifting and Marketing Specialist to build capacity and aid in the advancement of its mandate. While both posts are expected to be filled within three weeks, Dr. Bynoe said the Department continues to examine ways to source the relevant expertise using the established tender process through the National Procurement Tender Administration Board as well as receiving approval from the Cabinet.

Legislative framework
Meanwhile, the tender for an international oil and gas law firm is in its final stages of selection and is expected to be awarded during the early part of the fourth quarter of this year. “The consultant law firm will then commence consultation across institutions and the preparation of draft laws and regulations per submittal to the National Assembly. This is one of the deliverables under the World Bank Finance Guyana Petroleum Resource Governance and Management Project,” Dr. Bynoe said.

PSA
With regard to the Production Sharing Agreement (PSA), Dr. Bynoe said the Department now has a revised best practice PSA template and it is determined to ensure that there is balance as “there are certain elements of the basins [Guyana’s three exploration zones: the deep, ultra-deep and shallow continental shelf] that have now been de-risked so that allows Guyana to increase its negotiating position”. The Energy Director further noted that “we are keen on is striking the balance because the current best practice PSA if we are to implement that Guyana will get everything but it also must be attractive for investors to invest, So it is how you strike that deal balance so it is not a since it’s an art and so that’s what we are aiming for going forward.” In keeping with this, Dr. Bynoe said the Department continues to set a framework in place for the effective management of the country’s hydrocarbon resources even as it prepares for first oil. (Ministry of the Presidency)