AS it works vigorously to modernise Guyana’s existing oil legislation for the benefit of all citizens, the government is aiming to publish a draft of the new Petroleum Bill by Monday for public consultations.

This disclosure was made by the General Secretary of the governing People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, during a press conference held on Thursday at Freedom House.

“By Monday, we are hoping that the draft Petroleum Act will be put out for public consultation,” he said, before revealing that he has already met with Natural Resources Minister, Vickram Bharrat and his staff with regards to releasing the draft bill within the stipulated timeframe.

Earlier this year, Attorney-General and Minister of Legal Affairs, Anil Nandlall S.C.,
said that while Guyana has a Petroleum Exploration and Production Act which was enacted in the 1980s, the government is working on a new petroleum production bill.

The previous act, he had explained, was enacted when the country was not a petroleum producer and since Guyana has moved successfully into that sector, the current piece of legislation has become outmoded and cannot be a proper regulatory framework for the current sector.

“We have recognised that a long time ago, and we are working on a brand-new bill that will take into account and will address the modern realities of Guyana as an oil and gas producer. So, that is in the pipeline and that will be made public shortly,” he had emphasised.

During his press conference, Jagdeo disclosed that the Production Sharing Agreements (PSAs) are also being finalised.

“The PSAs, we have two models incorporating all the comments before us already, both for deep water and shallow water because they’re two different models,” he said, adding that only one policy review is left to be done.
Jagdeo also used the opportunity to highlight the non-participation of the A Partnership for National Unity (APNU) in the consultation process.

“We’re hoping that even in the late stage, the Opposition could have still sent in their views. They have not sent in anything,” he said, noting that this sort of behaviour is a norm for APNU regardless of whether the issue is of national importance or not.

Earlier this year, the government had released the draft model petroleum agreements which outlined more benefits for Guyana, including a royalty rate increased 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 agreements included 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 agreements also covered fiscal and other terms under which the government will sign on to contractors who are awarded blocks, which Guyana will auction. Guyana is auctioning off three deep-water and 11 shallow-water blocks.

Moreover, in April, the government received immense feedback from the public during the consultation period for a new draft PSA which outlines the fiscal and other terms of all future agreements with contractors in the oil-and-gas sector.