Still no word on formation of Petroleum Commission

Sep 16, 2022 News

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Kaieteur News – The idea of establishing a Petroleum Commission to manage the lucrative oil and gas sector seems still in the works for the People’s Progressive Party Government.

When this body will be formed however, remains unknown. The Petroleum Commission, for some, is an important entity that has specific roles regarding the development and management of the oil and gas industry.

The People’s Progressive Party Government in 2020 described the Commission as a priority, with Vice President Bharrat Jagdeo reported as saying in August of that year, that the body would be set up in six months. Earlier this year, the Vice President reiterated Government’s plans to have the Commission in place.

Attorney General, Anil Nandlall had told the media last year that the Natural Resource Ministry’s legal department, along with the Chief Parliamentary Counsel attached to his office, were working on the document to facilitate the change the new Government wanted. There has since been no announcement of the Commission, despite the existence of draft Bill which was left behind by the previous Government. Minster of Natural Resources, Vickram Bharrat has promised the Kaieteur News that it would ‘look into the matter’ and provide a response.

Former Finance Minister, Winston Jordan, in recent comments has accused the Government of “backsliding” on a number of important measures and policies necessary for the development of the oil sector. He pointed to the Petroleum Commission as one of those important institutions. He said that for the previous Government, Local Content, the Natural Resource Fund (NRF), and the Petroleum Commission, were the most important aspects of the oil industry that needed to be developed early in the sector.

He said that the current Government would have adopted the last Governments NRF and Local Content Bill and passed it with minor changes, while completely dismissing the Commission whose job is oversight and management of the oil sector. Had the Petroleum Commission been a priority for the current Government, Jordan said they would have established it by now, given that the other Bills were already passed by the new administration.

Former Environmental Protection Agency (EPA) CEO, Dr. Vincent Adams told the Kaieteur News Wednesday that the Petroleum Commission could be useful to Guyana given the current handling of the oil sector. Adams explained that under the David Granger administration, he was asked to contribute to the discussion surrounding the development of the Commission. He said at the time, there were so many agencies that had authority to function within a particular aspect of the oil and gas sector that he felt that the Commission was not necessary.

“I asked the question, how the Commission would function with the Department of Energy (DoE), the Guyana Geology and Mines Commission.” Adams said that agencies such as the EPA were mandatory but believed that the Department of Energy (DoE) and the GGMC had to be removed from the equation so that they would not clash. As such, Adams said he did not believe the Commission was necessary unless the other agencies were removed.

With the DoE no longer a key agency within the Government, Adams said that the Commission may now be able to be utilised. The DoE, under the Granger administration, was housed at the Ministry of the Presidency and had the task of managing and developing the hydrocarbon industry. At Office of the President, Vice President Jagdeo represents Government’s policy development of the industry, while the other state agencies carry out their designated functions.

Jagdeo had acknowledged that an independent regulator for the oil and gas sector, that being the Petroleum Commission, is critical to any Government’s regulatory architecture, but had said too that the absence of such a body in Guyana does not mean that the sector is in danger. He said too that the establishment or presence of the Commission was not “a safeguard” against corruption and that it simply ensures that all payments for the sector are properly accounted for, that key financial documents are not hidden and licences that are awarded are made public something he said the Government already does.

The Petroleum Commission is tasked however with the direct management of the oil and gas sector and is supposed to play a key role in the accumulation, use and dissemination of oil and gas information and advice Government on the sector. Most importantly, the Commission is supposed to be a central body for the oil and gas sector, and independent in the execution of its functions.

The Vice President and other Government officials have insisted that they don’t intend to miss the short window in which the world plans to transition from fossil fuel to clean energy, and so it will develop the hydrocarbons as quickly as possible. This is despite certain measures, laws and policies deemed to be necessary not being in place or adhered to. When asked about some of these shortcomings, Jagdeo has often said that if the Government were to listen to some naysayers, nothing would get done.

 

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