Urgent independent oversight of oil and gas sector needed – Ram

Sep 05, 2022 News

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…says Petroleum Commission still Guyana’s best option

By Zena Henry

Kaieteur News – The need for an independent, statutory agency that will have extensive regulatory and oversight powers and free from political influence in managing the affairs of Guyana’s lucrative oil and gas sector; the Petroleum Commission, is becoming even more important as Guyana remains unequipped to adequately govern its offshore resource, chartered accountant and attorney at law, Christopher Ram believes.

The outspoken professional, in an invited comment, weighed in on the importance of the Petroleum Commission in light of ongoing discussions and concerns that have clearly highlighted lapses within the system where the country is unable to efficiently conduct its oil and gas business. Ram told the Kaieteur News that it is necessary, and becomes more urgent by the day to have the commission since the danger of not having it is becoming more urgent by the minute. He explained that the Petroleum Commission is one of the key bodies necessary in the local petroleum industry to help Guyana reap the most it could from its oil and gas endowments, while ensuring the protection of its environment.

Ram told the newspaper that if the authorities were to set up a commission that is independent, “it would be free from political influence and it would have been able to take objective, professional independent positions within the broad policy framework of the government.” His view is that Guyana stands to lose big if it does not ensure the availability of independent experts, with a separate agenda to ensure the fine management of the industry.

“It does not do any society well when you have this very close, almost incestuous relationship where you hardly see independent decisions being taken. If you have an independent commission, you can have at your disposal strong expertise, and apart from their independence, the expertise that’s available is quite considerable,” Ram said.  He continued that even where the Natural Resource Ministry is concerned for instance, that “it’s unreasonable and inappropriate to expect a minister to be responsible for executive action when the minister sits in Cabinet to formulate policy.” A minister is not an executive position, Ram insisted. He said that the oil and gas sector is big industry and it would be a flawed comparison to compare his office, a department within the government with a statutory body with a broad mandate.  Ram, who is also a transparency advocate, reiterated what he believes to be a close relationship between political leaders and the oil companies operating here. By not having the independent commission in place, the said officials are the ones who will be negotiating and looking over the sector on Guyana’s behalf. Ram clarified therefore that the arrangement with a government minister overseeing things, is not necessarily how things should be done, “the minister is a policy issue man, he is not an executive issue person.”

Ram said he has asked Vice President Bharrat Jagdeo in the past about the establishment of the commission and has said it would be coming, “the trouble is, we don’t know when,” Ram submitted. He said that if the issue for the current government is to not have the body in place because it was in the developmental stage under that previous A Partnership for National Unity + Alliance For Change government, then they could call it something else, rather than to be denying the country this vital mode of safeguard. The lawyer said that at this stage of Guyana’s oil discovery and development, “it is very appropriate” to have the commission in place. He added too that it is “unfortunate” that the government keeps promising the commission with no move towards it.

The Petroleum Commission Bill was among three important legislations that were brought to parliament for approval or in its draft stage when the previous government left office. The Local Content Bill and the Natural Resource Fund Bill were both passed in Parliament, while no word is available on any move to establish and pass the Petroleum Commission Bill.

The Petroleum Commission and the other two legislations were the key pieces of law the current government said it would work on as soon as they got into office as they highlighted the importance of the tools to effectively monitor and manage Guyana’s nascent oil and gas industry. Last year, the Vice President said that body would be established in six months but was not. Earlier this year, he told this newspaper that the Commission would not prevent corruption in the oil sector but said the Commission was still on the cards.

Oil producing nations are known to have this type of organization which acts as a central location for all oil and gas information. The agency is usually made up of professionals and oil and gas experts covering various skills that would allow for the total oversight of the sector. It is said that the other government agencies such as the Environmental Protection Agency and the Natural Resource Ministry would maintain their functions but would have to work along with the independent body as part of interagency cooperation.

 

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