THE government received immense feedback from the public during the consultation period for the new draft Production Sharing Agreement (PSA), which outlines the fiscal and other terms of all future agreements with contractors in the oil-and-gas sector.

Released early last month, the new PSA underwent a 14-day consultation period, during which time persons sent feedback on the drafts to the Minister of Natural Resources.

In an invited comment on the sidelines of an event at the Pegasus Suites on Tuesday, Vice-President Bharrat Jagdeo said that the government saw robust feedback on the document.

“We’ve had quite a few comments from a large number of people,” Mr. Jagdeo said.

Although noting that the government will not be extending the consultation period, the Vice-President said that the government is, nonetheless, amenable to assessing any late submissions that comes in.

“If somebody sends in a comment as we’re finalizing, and it makes sense, we’re not going to ignore it,” the Vice-President said.

With discussions on a new PSA having been circulating for some years now, the Vice-President noted that the two-week consultation period was more than sufficient.

“This matter has been in the public domain for the last five years; people are saying that two weeks are not enough, when they knew we were going to put out a draft PSA. It’s a five-year issue; five years we’ve had a debate on what needs to be adjusted. I think it’s just another one of those things that people call for more time; that they really don’t want to put in the technical effort and work,” Mr. Jagdeo said.

The new PSA has been imminent for some years now, given the widespread criticism of the 2016 PSA that was orchestrated by the A Partnership for National Unity+Alliance For Change (APNU+AFC) coalition when it was in government.

Based on the draft PSA, Guyana would receive better terms, and more benefits when compared to the contentious 2016 PSA; these include an increased royalty rate from two per cent to 10 per cent, corporate tax of 10 per cent; and a cap on cost oil of 65 per cent.

The agreement also includes better provisions for the signing bonus, relinquishment terms, activities related to the abandonment of the block, and an increase in the training fee.

The new PSA will be used by the government in signing on to contractors who are awarded blocks in Guyana’s ongoing auction. Guyana is currently auctioning off three deep-water and 11 shallow-water blocks.

There is a separate agreement for the deep-water and shallow-water areas. The model petroleum agreements will be followed by an overhaul of the 1986 Petroleum Act and Regulations.

Guyana is among 65 countries that launched auctions of oil blocks, and as such the government has worked along with international consultant, IHS Markit Consulting, to offer the best terms that will see the country remaining competitive while also getting a fair deal.