FORMER Energy Minister of Trinidad and Tobago, Kevin Ramnarine says it is important that checks and balances are systematically designed for the oil and gas sector in a developing country with few qualified personnel.

This opinion was shared during a meeting Wednesday night at Caricom General Insurance Company Inc., Ruimzeight Gardens, Ruimzeight, West Coast Demerara, with stakeholders of the Region Three Chamber of Commerce and Industry.

In attendance also were Georgetown Chamber of Commerce and Industry (GCCI) President Deodat Indar and Vice President Nicholas Boyer. The event was a consultation on the oil and gas sector and the Petroleum Commission Bill.

Ramnarine underscored that Guyana has a once in a lifetime opportunity to get it right and to create a tremendously prosperous future.

He said, “If you don’t get it right from the start at the foundation it will be difficult to change the course and getting it right means always doing what is in the national interest.”

EXCELLENT STEP
The national interest must always win, Ramnarine pointed out, and the implementation of a Petroleum Commission tasked with monitoring and regulating the efficient and environmentally responsible exploration, development and production of petroleum in Guyana is an excellent step in the right direction.

However, he noted that based on the pieces of legislation in draft mode, there are many hiccups that can be ironed out, one being the amount of power given to the Minister in charge of the sector and the extension of the life of the board beyond one year.

He explained that not only will the Minister have the power to select the members of the Petroleum Commission, but he can also select and appoint the members of the Board, along with its secretary. In fact, the Minister can even disrupt the work of the Commission as he pleases.

According to the draft legislation, the Chairperson shall be appointed by the Minister while the Deputy Chairperson may also be appointed by the Minister.

Ramnarine who served as a Minister in the twin-island republic for over four years said based on the draft legislation the Board will also be directed by the Minister. The Minister can also perform the functions of the Board of Directors if one is not appointed. He can even assume the Chairmanship in the absence of a Chairman.

“There needs to be a clause that stated that the board should be fully functional within 90 days,” he noted

Nevertheless, he said the draft legislation calls for the Board of Directors to include one person from the parliamentary opposition and one from civil society or academia, which is a positive step.

“I would suggest that the Board have a representative of the Environmental Protection Agency. This is what obtains in the Ghana Commission. The Board should include the Commissioner of Lands and Surveys and a cross-section of society and decisions should not be made only by simple majority,” Ramnarine explained

Further, he believes that while there is provision for one individual to be recommended from civil society and/or academia to sit on the Board, he believes that there should be individuals from both areas.

He continued: “The Parliament should establish a Joint Select Committee on Oil and Gas. And importantly, the Commission should report annually to this Committee and it should be televised as is done in Trinidad and Tobago and the USA.”

Ramnarine explained to the stakeholders that while credibility, intellectual capacity, resourcing and public trust in the Commission are paramount, public trust in the Commission, as well as earning respect from international oil companies and openness and transparency, are also key elements to its success.

The Petroleum Commission Bill was laid in the National Assembly by Natural Resources Minister Raphael Trotman during the last session. The Bill is now before the Special Select Committee.

The parliamentary Opposition had criticised the Bill, stating that it gives the Minister too much power, and in its current form it will not allow for the creation of an independent agency that would be able to carry out its mandate in a fair, transparent, non-discriminatory manner.

Without the Board, the Minister would be granted the power to discharge the functions of the Board.

Meanwhile, GCCI President Indar said that many are concerned about how the common man will benefit from the wealth that will be derived from the oil production and how Guyanese businesses can play its role.

As such, he decided to embark on a countrywide sensitisation campaign to bring cognisance to local businesses and to the several Chambers of Commerce across Guyana, informing each one how its members can get involved.

Indar and team have hosted sessions in Georgetown, Linden, Berbice and West Coast Demerara. His main advice to the business people was to get their businesses legally registered and documented.

“If a Guyanese company can do something, let them do it; once you have the capacity, you should be given a chance.”

Indar underscored that on Exxon’s website entrepreneurs can benefit through its local content policy.

“They have business like catering, disposal of waste, supplying them with stuff like slings, food, water, labour, furniture for their office. They need places to rent, all of these things they need. Exxon does not do anything for themselves; everything is based on contract,” he observed.

He said all one needs to do is simply apply on Exxon’s website and attend training. Once you are registered on the website, Exxon automatically informs the applicant about any future training along their line of interest.

Training, he said, is available to the various categories of local suppliers so as to educate them about the company’s requirements in terms of both quality and quantity.