Natural Resources Ministry defends track record in oil sector

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When the Irfaan Ali-led administration assumed office in 2020, it audited the management infrastructure for the country’s multi-billion-dollar petroleum sector, only to discover a deplorable state of affairs, given the abysmal leadership of the APNU+AFC administration. Fundamental regulatory and legislative tasks languished for years, leaving the country lagging in its preparedness to manage the sector. After correcting many of the grave missteps made by the APNU+AFC, that party now dares to stand on a clearly dizzying moral high ground, to lecture the government on what constitutes ‘effective contract management’.

It is appalling that the very party that sought to steal an entire nation through blatant attempts to rig the 2020 General and Regional Elections results, now preaches about the tenets of good governance and contract administration.

In response to recent falsehoods by the opposition about the government’s stellar track record, the Ministry of Natural Resources presents its response, herein, with a comprehensive list of the Granger-led government’s infractions in the management of this sector, and the slew of steps taken by the current administration to correct same.

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Before the APNU+AFC Opposition ventures to heap coals on the continuous improvements the government is making in the petroleum sector, it must first answer for its record. It is tone-deaf for the Opposition to say that the government is not administering the Stabroek Block contract as it should. It demonstrates a fundamental misunderstanding of the issue. Effective contract administration involves rigorous monitoring and oversight of offshore operations to ensure compliance with the agreement’s terms, and utilization of the terms to secure benefits for the people of Guyana.

In fact, the APNU+AFC administration faced years of public outcry to institute a Local Content Act and audit ExxonMobil’s costs. These are arguably two of the most critical contract administration needs, but they were ignored. Today, Guyana’s petroleum sector is governed by a modern legal framework, improved contracts, and environmental stringency.

The PPP/C administration has made substantial progress in rectifying the governance deficiencies inherited from the APNU+AFC era. These efforts have not only stabilized the sector but also positioned it for more sustainable and inclusive growth. The PPP/C government has continued to provide ongoing vigilance, adaptation, and community engagement which are crucial to ensure that the petroleum sector serves as a catalyst for broad-based economic development in Guyana.