The government on Tuesday signed an agreement with the local arm of the Extractive Industries Transparency Initiative (EITI), the global standard for the good governance of oil, gas and mineral resources, to provide full disclosure of the country’s first oil trades.
In order to prepare its first trade report on Guyana, GYEITI (Guyana EITI) would require information from key government agencies. As such, a Memorandum of Understanding (MoU) was signed to make this possible.
According to the EITI, “First Trade” speaks of a situation where a state (or a state-owned enterprise) sells from its oil, gas and mining sector, its share of physical resources.
The terms of such transactions are a matter of public interest and help to create a transparent and open market in which governments, companies and citizens can have confidence.
According to the MOU, information EITI needs for the completion of the First Trades in Oil Report include:
1. Name of the seller 2. Name of the buyer 3. Oil quality grade 4. Oil quantity 5. Date of sale 6. Revenues received 7. Official selling price 8. Payment date 9. Payment account 10. Type of state-owned oil sold e.g. profit oil 11. Contract number 12. Invoice number 13. Beneficial owners of buyer 14. Load port, terminal and depot among other details.
The MOU stated that the GYEITI will receive data and information on the oil and gas sector, including on Guyana’s first trades in oil from the Department of Energy, the Ministry of Finance, Guyana Geology & Mines Commission, the Petroleum Commission, Environmental Protection Agency, Guyana Revenue Authority, National Insurance Scheme, and other government agencies which are recipients of revenues from entities operating in the Oil & Gas sector as per EITI Requirements.
At a meeting Tuesday, GYEITI and the Department of Energy agreed that the two entities will collaborate and share relevant data and information, legally permissible, to support the ongoing effort to increase transparency and accountability in the extractive industries and contribute to improved governance of Guyana’s oil, gas, mineral and other natural resources.
According to the GYEITI, it is currently preparing for EITI validation, gathering data and information for the preparation of the Guyana’s 2nd EITI Report, implementing recommendations which emanated from the 1st Report, designing comprehensive communications strategy and executing a country-wide public awareness campaign to satisfy EITI Requirement.
Dr. Bynoe presented an update on the work of the Department of Energy (DE) which included a brief outline of the legislative framework for establishment and functioning of the DE and the special inter-institutional relationship for management of Guyana’s emerging and growing oil and gas industry.
He emphasized the importance for necessary capacity building for the DE and other related sector agencies.
The Head of the Department of Energy pledged full support to Guyana’s transparency initiatives in general and to the GYEITI in particular.
The Department of Energy promised to provide GYEITI all the data and information required by the EITI Standard, with full observance of the Laws of Guyana.
The Department of Energy and the GYEITI committed to continuing their collaboration to ensure that compliance, transparency and accountability are resident within the country’s burgeoning oil and gas sector for the benefit of the people of the Cooperative Republic of Guyana.
