The National Assembly passed the new Petroleum Activities Bill early Thursday morning, paving the way for the smooth implementation of several of the government’s projects in the nascent oil and gas sector.
The Bill was piloted by Natural Resources Minister Vickram Bharrat; he described it as a “comprehensive” piece of legislation.
The new Bill, once enacted, will officially replace Guyana’s 1986 Petroleum (Exploration and Production) Act. And Bharrat said the new Bill facilitates several new developments in Guyana and forthcoming plans of the government.
For example, the government is hoping that an oil refinery will be established in Guyana to process some of the oil produced offshore. Bharrat said this Bill caters for that refinery.
It also caters for the storage and transportation of hydrocarbons, the implementation of the massive Wales Gas-to-Energy project and new geological and geophysical surveys offshore and onshore. The Bill also outlines stiff penalties for violations.
Though lawmakers on the government and opposition sides of the House agreed that a new Bill was needed to regulate the sector, Opposition Parliamentarians asked for the Bill to also pave the way for a Petroleum Commission that would manage the sector as opposed to a government minister.
Opposition Parliamentarian David Patterson, who proposed amendments to the Bill, was keen on having that Commission in place so that it could provide much-needed technical advice to the government.
Bharrat said the government will pursue that Commission, just not now.
“Amending it (the Petroleum Activities Bill) to have the Petroleum Commission now when there is no mechanism in place as to how we will establish that Commission, I don’t think that is something we can consider at this time.
“But Mr. Speaker, we as a government, we are committing that there will be a Petroleum Commission,” Minister Bharrat said.
The second reading of the Bill started just before midnight Thursday and lawmakers from both sides shared their views on it until 06:30 hrs Thursday. Importantly, this legislation was needed before the oil blocks auction.
The final extension for that oil blocks auction is September 12, 2023. And Vice President Dr. Bharrat Jagdeo said the government wanted this new legislation passed in the National Assembly before that time.
The government, Jagdeo said, also wanted the new model Production Sharing Agreements (commonly called the oil contracts) to be finalised before.
