–contends that politicians only think elections to elections
It has been more than two years since the coalition administration took up office and there are serious concerns about the lack of capacity to effectively understand the emerging oil and gas sector, especially as oil production is expected to start in another two years.
Dr. Jan Mangal, Petroleum Advisor to President David Granger, underscored the lack of capacity when he discussed the numerous issues circulating that Guyana should extend into oil refinery and should establish a national oil company.
“Guyana has almost zero capacity now for dealing with oil and gas,” Dr. Mangal said during a presentation at the University of Guyana last Wednesday.
He stated that there are basic things that needed to get done, including the passage of the Petroleum Commission Bill, Sovereign Wealth Fund and a regulatory framework.
“We need technical people in the Ministry of Natural Resources, in GRA (Guyana Revenue Authority), Ministry of Finance and they are not appearing. It’s been over two years now go look at the Ministry of Natural Resources how many foreign technical experts are in there. Zero,” Dr. Mangal concluded.
Dr. Mangal’s public statements have so far suggested that the 2% royalty in the Production Sharing Agreement (PSA) between ExxonMobil and the Government is not the international norm.
He has also stated that ExxonMobil not paying taxes is also not the international norm.
“I am one person. I am one advisor. Guyana can’t rely on one person. Guyana needs to go and pull in a bunch of experts into Government. My intention when I started was to build a team up, but unfortunately resources were not available. We still aim to do that,” Dr. Mangal noted.
In the absence of experts, Dr. Mangal has warned that politicians should not be involved in the management of the oil and gas sector.
He stated that politicians think elections to elections. He stated that if Guyana takes the path of civil servants managing the industry then changes in Government will not impact the oil industry.
“If politicians are managing your industry, then come election time the industry is going to come to a standstill and six months after the elections, there won’t be anyone working in the industry,” Mangal stated.
Dr. Mangal is a Guyanese who has spent 18 years in the industry, 13 of them with Chevron working on major oil and gas projects in the United States, West Africa and Asia. He noted that contracts should always be reviewed as new information becomes available.
Dr. Jan Mangal has said that the PSA can be renegotiated.
Oct 16, 2018By Sean Devers in Trinidad In association with Regal, Vnet, Noble House Seafoods & Cascadia Hotel In murky conditions and played before virtually empty stands, Guyana Jaguars, led by a 79-run...
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