–document available for public consultation
IN order to ensure that Guyana’s oil and sector is managed effectively in accordance with modern practices and in the best interest of Guyanese, the government has introduced the draft Petroleum Activities Bill, which is available for public consultations.
The Ministry of Natural Resources announced the release of the Bill in a press release on Monday evening.
According to the ministry: “The Petroleum Activities Bill replaces the Petroleum (Exploration and Production) Act 1986 and is part of efforts by the government to modernise the legal and regulatory framework related to the petroleum sector.”
The Petroleum Activities Bill introduces major improvements and security, encompassing safety, emergency response, cross-border unitisation, supervision and monitoring requirements.
It also empowers the minister to issue regulations governing important administrative and operational aspects of exploration and production activities.
The draft Bill also expands the framework of regulation to encompass storage and pipeline transportation components of the oil and gas sector, and authorises the government to regulate activities connected with geological storage of carbon dioxide.
Further, it will enable the government to develop petroleum resources while aiming to minimise their carbon footprint because of the existing opportunities for potential CO2 storage sites.
The Bill is anticipated to be strengthened by a set of regulations that will appear in the following months, and give the government the tools it needs to regulate the petroleum activities inside the Guyanese economy responsibly and effectively.
The press release said that the government will also ensure that the terms of the draft petroleum agreements released in association with the first offshore licensing round are aligned with the provisions of the Petroleum Activities Bill.
“The government has been continuously working to improve the overall management and regulation of the petroleum industry through various policy and legislative programmes.
“These programmes included the enactment of the Local Content Act, the establishment of the Local Content Secretariat and a new Natural Resource Fund (NRF) law aimed at providing greater oversight and management of revenue flows,” the release stated.
Additionally, for the licenses that were awarded since 1999, there have been new environmental permitting requirements, taxes, and cost recovery audits that encompass the years from 1999 to 2022.
It was also stated that: “The draft Bill, which would be available for public feedback for a period of two weeks commencing from Tuesday, June 20 to Monday, July 3, 2023, can be accessed on the following websites: www.nre.gov.gy and www.petroluem.gov.gy.
All comments should be sent via email to the Ministry of Natural Resources’ Permanent Secretary at jmckenzie@nre.gov.gy during the feedback period.”
