House passes amended oil law to ensure lawful acquisition of private land for fibre optic cable, US$900M gas-to-energy project

Aug 10, 2021 News

Kaieteur News – The National Assembly yesterday passed the Petroleum (Exploration and Production) (Amendment) Bill 2021 which will ensure that private lands acquired for the laying of a fibre optic cable as well as the establishment of the US$900M gas-to-energy project, are done so lawfully and that there is fair compensation for citizens.

Minister of Natural Resources, Vickram Bharrat.

Leading the debate during the sitting that was held at the Arthur Chung Conference Centre (ACCC) was Natural Resources Minister, Vickram Bharrat. He noted that the Amendment Bill is intended to enhance Section 52 of the Principle Act to ensure government has oversight in the acquisition of the lands to realise key projects in the oil sector.
In addition, he said subsection (2) of the Act was amended to provide that a landowner or lawful occupier’s consent might either be given unconditionally or subject to such conditions as are specified in the instrument of consent. Bharrat said these additions allow for a degree of transparency and accountability not accommodated by the previous provisions.
He further noted that the Bill addresses matters concerning the landing, installation and operation of pipelines or submarine, fibre optic or terrestrial cables or similar infrastructure by licencees for, or in connection with, prospecting or production operations, in relation to State land, Government land, land wholly owned by State entities or in which any controlling interest is vested in the State and any land identified by law or on a plan drawn and approved in accordance with any law for reserves. The Minister said this is necessary to better accommodate onshore development with its entire accompanying heavy infrastructural works.
The Minister was keen to note that this amendment would apply to existing licencee operations such as those being led by ExxonMobil as well as those who may come to shore for future development.

Attorney General and Minister of Legal Affairs, Anil Nandlall.

Once the fibre optic cable is laid, Bharrat said it would allow the government to have real time monitoring of production offshore on all Floating, Production, Storage and Offloading (FPSOS) vessels as well as the exploration activities by drill ships. As for the US$900M gas-to-energy project, he said it would allow for Guyana to realise its dream of having cheaper electricity, an effective and efficient value-added industry, and in the next few years, a thriving petro-chemicals sector.
Other speakers during yesterday’s debate included the Opposition’s Annette Ferguson, David Patterson, Sherwayne Holder and Devin Swears. On the government’s side, the line up entailed Senior Minister with responsibility for Finance, Dr. Ashni Singh; Public Works Minister, Bishop Juan Edghill; and Attorney General and Minister of Legal Affairs, Anil Nandlall.
During his presentation to the House, Nandlall underscored that the PPP/C Government did not hastily produce the Amendment Bill. He said it represents six months of hard work by himself and the Parliamentary Counsel. Due to the failure of the previous administration to properly prepare the legislative framework that is needed for an oil producing State, Nandlall said the government is now under tremenduous pressure to produce same as the oil is pumping.
Nandlall said, “We worked tirelessly to come up with a mechanism that would protect private property in this country…the purpose of the Bill is to take away from the licencee (such as ExxonMobil), absolute power (in acquiring lands for projects); to ensure private property is respected and ensure compulsory acquisition once done, is done lawfully; to ensure the sanctity attached in the Constitution to private property is revered. And to ensure when the issue of compensation arises it would be done in accordance with the law…”
He said too that the Bill in its amended form ensures that as far as possible, the pipeline runs along State lands to have the least amount of interference with private property. Following this explanation, Nandlall asked that the Bill receive the House’s blessings for a smooth passage.
The debate was then concluded by Minister Bharrat, following which, the House resolved itself into a committee to consider the clauses of the amendment. The Bill was then put to a vote and received the government’s full support. It now awaits the President’s assent.

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