Government is hoping that within a week the technical teams reviewing the evaluation of plans for the development of ExxonMobil’s Payara oil field will have submitted a licence agreement to the Office of the President.
“We have reached a stage where we have a draft licence agreement…the technical and legal team from the energy department is engaging the technical team from ExxonMobil…there are a number of issues at the technical and legal level that has to be worked out but hopefully in the next couple of days we can have most of those issues ironed out at that level and then we will engage Exxon,” Minister of Natural Resources Vickram Bharrat told Stabroek News yesterday.
According to Bharrat the current review team is solely comprised of technical persons including international consultant Canadian Queen’s Counsel Alison Redford but once their work is completed it will be forwarded to his office then to Vice President Bharrat Jagdeo and President Irfaan Ali.
A licence will be granted “after the President is satisfied.”
“If he’s not satisfied the technical team will go back and do another draft,” he explained. Government announced last month that a review of the Payara Field Development Plans was initiated by the Department of Energy, which contracted Bayphase Oil and Gas Consultants at a sum of US$386,830 in December 27, 2019. “There was a first contract extension (no cost) to July 27, 2020 and a second contract extension to September 27, 2020 with a revised contract sum of US$429,382 which represents an 11 percent increase. This review by Bayphase Oil and Gas Consultants will be completed shortly,” it explained.
The ministry added that the new PPP/C government has decided to review the work already undertaken by the Department of Energy so that the interest of all Guyanese is protected and in keeping with international transparency and accountability standards prior to approval being given.
“It will be important to have a team of technical experts to assess progress to date and to assist the Ministry, where necessary to successfully conclude the permitting exercise. This will require coordination on ensuring that regulations are complied with and that they can be enforced. This will include environmental standards and reservoir management which is about managing how resources are developed to ensure that the interests of the people of Guyana and their resources are developed in a sustainable and responsible manner to the benefit of the country,” they explained.
