Archaic petroleum law among four legislations - Ministry’s brief identified for review

While the Government ofGuyanahasbeenpushing ExxonMobil Guyana to accelerate its exploration and production of the country’s oil and gas resources, the country has been operating with archaic petroleumlaws.

Intherecentlypublished Ministry of Natural Resources brief, the Petroleum (Production) Act Petroleum (Exploration and Production, E&P) Act was listed among four legislations that were identified for review and enhancement.

It was stated that the Government seeks to modernise its legal and regulatory framework as it relates to the petroleum sectortoaddressissuessuch as oil revenue management, licensing, Production Sharing Agreement models, local content, and Health, Safety, Environmental and S e c u r i t y ( H S E S ) management.

According to the ministry’s brief, the result would be maximising the economic benefits to the c o u n t r y, i m p r o v e management of the technical, environmental, social and financial risks linked to the sector and building capacity to engage effectivelywithinvestors.

The other legislations to be reviewed and enhanced includetheGuyanaGeology andMinesCommissionAct, the Mining Act and the Environmental Protection ActOccupationalSafetyand Health Act. Also mentioned was the Upstream Legal RequirementsforPetroleum and a Model Production SharingAgreement. Former Finance Minister, Winston Jordan last year warned that, “Accelerated production in the absence of modernised laws and the strengthening of institutions is what I would consider a fatal flaw in the management of the sector.Iseewhytheywant Continuedonpage15