‘With hands on oil money, Govt. ditches promise to set up Petroleum Commission’ -Shurwayne Holder 

Jan 28, 2025 News

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Kaieteur News – May 2025 will mark 10 years since Guyana is without an updated legislative and regulatory framework that is essential for the protection of the oil industry against mismanagement and corruption.

One of the key regulatory architectures that remains in limbo is the Petroleum Commission Bill that would pave the way for the appointment of an independent regulator. At the beginning of its term, the People’s Progressive Party Government described the Commission as a priority. However, the Irfaan Ali led-administration is in their fifth year and is still to deliver on that promise.

On Monday, Shadow Oil and Gas Minister and Opposition Member of Parliament (MP), Shurwayne Holder, criticised Guyana’s chief policymaker on oil and gas, Vice President Bharrat Jagdeo and Minister of Natural Resources Vickram Bharrat for backpedalling on their promise to establish a Petroleum Commission.

Holder made these remarks during the ongoing budget debate in the National Assembly. He outlined that if elected as the next government, the APNU will use its comprehensive set of policies, strategies and principles to guide their management of the oil and gas sector.

The Opposition MP promised that within 90 days of taking Office, the PNCR/APNU Administration will put together a distinguished Advisory Team of professionals to advise the Government on the upstream, midstream, and downstream planning, development and administration of Guyana’s Oil & Gas sector.

Comfortable with hands on oil money

Switching his focus from what the Opposition plans to do, Holder highlighted what the People’s Progressive Party/ Civic (PPP/C) government failed to do. “The PPP has betrayed the trust of the Guyanese people on this matter. In opposition and even in the first few months after 2020, both the Minister of Natural Resources and Vice President promised to set up the Petroleum Commission, but after becoming comfortable and with hands on the oil money, they turned their back on the people,” he stated.

Further, he stated that the next PNCR/APNU Administration will review the existing drafts of the Petroleum Commission Legislation and restructure as necessary to finalise the establishment of the regulatory body.

PPP then

A Petroleum Commission is a regulatory body which is established by a government to oversee and manage the exploration, development, and production of petroleum resources within its jurisdiction. It ensures compliance with laws and regulations, manages licences and permits, and often plays a role in promoting sustainable and efficient utilization of petroleum resources.

The APNU+AFC Coalition government left behind a Draft Petroleum Commission Bill that was tabled on May 8, 2017, by then Minister of Natural Resources, Raphael Trotman. The PPP Government had promised to make necessary changed to the Bill to pave the way for the establishment of the Commission.

In August 2020, Vice President Jagdeo was reported as saying that the body would be set up in six months. Attorney General, Anil Nandlall had told the media in 2021, 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 which the new Government wanted.

Similarly, Natural Resources Minister Bharrat in March 2021 stated that within a matter of weeks, the independent regulator, which the government promised to establish for the oil sector would be in place. In fact, the Minister Bharrat was also quoted on the Guyana Basins Summit website as saying that the Commission is needed so it can “manage this emerging sector without political interference.”

In 2022, the Vice President reiterated Government’s plans to have the Commission in place.

PPP now

Vice President Jagdeo went from stating that the Commission would be set up within months to claiming that the Commission is not necessary.

At an August 2024 press conference, Jagdeo said, “There is no magic with a Petroleum Commission…There is no magic, we have given our agencies the tools to manage the sector.”

Minister Bharrat has also changed his tune.  He argued that the establishment of a Petroleum Commission at this time could slow down the rapid developments in the sector. The minister said, “The Petroleum Commission will basically be doing what we are doing at the Petroleum Unit at the Ministry of Natural Resources. I don’t think we will be doing anything different from what we are doing now.”

“A commission like that might be slower in decision-making than the policymakers making decision with regards to how we advance this sector taking into consideration that we have a limited timeframe and a closing window so we have to look at the advantages and disadvantages of everything,” Bharrat said.

 

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• Anil Nandlall, Bharrat Jagdeo, Irfaan Ali, Petroleum Commission, Vickram Bharrat

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