Guyana is not merely open for business, but open for sustainable business

Dec 31, 2021 Letters

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Dear Editor,

Kaieteur News – On December 9, 2021, the Guyana Chronicle published an article titled ‘Guyana Energy Chamber inks agreement with Ghana Petroleum Commission’. The article further stated that ‘THE Guyana Oil and Gas Energy Chamber (GOGEC), on Tuesday, signed a Memorandum of Understanding (MoU) with the Petroleum Commission of Ghana to initiate co-operation in the area of oil and gas.’
Additionally, the article indicated that, “The objective of this MoU is to provide a framework for co-operation, between the agency and the association, to facilitate a collaboration that will lead to an exchange of information and sharing of resources between the agency and association within the oil and gas sector.” Further the article stated that ‘The signatories to the document were President of GOGEC, Maniram Prashad, and Chief Executive Officer (CEO) of the Ghanaian Petroleum Commission, Egbert Faibille Jnr.’ It was also stated that, ‘Co-operation between the commission and GOGEC is also intended between the wider private sector representatives of Guyana and Ghana.’
According to the article, the three agreements, which were signed between the Governments of Ghana and Guyana; are ‘a Framework Agreement on co-operation between Guyana and Ghana, a MoU between the Ministry of Natural Resources of Guyana, and the Petroleum Commission of Ghana on co-operation in the petroleum sector, and a MoU on mutual co-operation in investment promotion between the Guyana Office for Investment (Go-Invest) and the Ghana Investment Promotion Center (GIPC)’.
While I have no difficulty with the agency engagements on the ‘Framework Agreement on co-operation between Guyana and Ghana’, the ‘MoU between the Ministry of Natural Resources of Guyana and the Petroleum Commission of Ghana on co-operation in the petroleum sector’, and the ‘MoU on mutual co-operation in investment promotion between the Guyana Office for Investment (Go-Invest) and the Ghana Investment Promotion Center (GIPC)’; I take issue with the MOU between the Guyana Oil and Gas Energy Chamber and the Ghana Petroleum Commission.
The issue is, that the oil and gas sector/energy sector is an extremely highly sensitive area; from a standpoint of economics, security, investment, marketing, etc., as such, it is important to note that the Ghana Petroleum Commission was established by an Act of Parliament – Act 821 of 2011, and regulates and manages the upstream petroleum sector, the GOGEC on the other hand, is a non-profit association of businesspeople that promotes trade, investment and knowledge transfers in Guyana’s energy sector. It should be noted that the Ghana Petroleum Commission has constitutional and parliamentary responsibilities to protect Ghana and the people of Ghana, the GOGEC on the other hand, has no constitutional obligations or parliamentary accountability responsibilities.
Another notable party that was absent in these agreements and as a signatory, is the Guyana Ministry of Foreign Affairs and International Cooperation. The Ministry of Foreign Affairs must not abdicate its responsibilities. The objective this specific MOU states that it will ‘provide a framework for co-operation, between the agency and the association, to facilitate a collaboration that will lead to an exchange of information and sharing of resources between the agency and association within the oil and gas sector.” I would recommend that this MOU reconsidered and be signed between an appropriate agency that is accountable to the Guyana Parliament, as in the case of the Ghana Petroleum Commission. Where is the Guyana Petroleum Commission? This ‘appropriate agency’ can then engage the GOGEC; and therefore, facilitate the intended process of collaboration. The GOGEC is, however, at liberty to sign a MOU with, for e.g., a Chamber of Commerce.
I would also encourage that foreign governments with an interest in Guyana’s oil and gas sector/energy sector should insist that agreements and MOUs be signed with counterpart government agencies in Guyana. If the signing agency for a foreign country is a constitutional agency with parliamentary accountability responsibilities, then our Ministry of Foreign Affairs and International Cooperation must ensure that signing agencies for Guyana has similar constitutional and parliamentary accountability responsibilities. In cases where this is not done, foreign government agencies should request same to ensure possible long-term validity of the agreements and MOUs. It should be noted that this is particular to the oil and gas industry at this point of the development of the sector in Guyana.
Further, a growing matter of concern is that while the Guyana government continues to insist it will not engage with the Leader of the Opposition or the Opposition and refuses to be transparent about information relative to the Guyanese oil and gas sector with its own citizens, one is astounded at the ease with which the government builds new relationships and shares information with foreigners with interests in the oil and gas sector. This behaviour by the Guyanese government is unacceptable, undemocratic, lacks transparency and disregards its responsibility to be accountable to the people of Guyana, as well as lacks respect for established institutional arrangements to facilitate good governance in the country.
It is important for foreigners seeking an interest in the Guyanese oil and gas industry to note that while their interests are welcomed, it should be noted that Guyana is not merely open for business but rather it is open for sustainable business.
Yours faithfully,
Audreyanna Thomas
Rule of Law Advisor/Advocate

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