The People’s National Congress Reform (PNCR)/A Partnership for National Unity (APNU) today released a 20-point plan for the oil and gas industry.
A statement from the grouping follows:
PNCR/APNU’S POLICIES, STRATEGIES AND PRINCIPLES FOR THE DEVELOPMENT OF THE OIL AND GAS SECTOR
Below, we outline the comprehensive set of policies, strategies and principles that will guide our management of the oil and gas sector as the next government.
1. Within 90 days of taking Office, the PNCR/APNU Administration will constitute a distinguished Advisory Team (AT) of professionals with specialties including business, contracts, law, economics, auditing, engineering, geology, and renewable energy, to advise the Government on the upstream, midstream, and downstream planning, development and administration of Guyana’s Oil & Gas (O&G) sector.
2. We will review the existing drafts of the Petroleum Commission Legislation and restructure as necessary to finalise the establishment of an independent/autonomous Petroleum Commission equipped with the highest caliber fit-for-purpose professionals, to manage the O&G sector from application for licenses through auction, exploration, production, sales, refining, and gas utilisation for energy conversion.
3. To eradicate corruption and unethical conduct by Government and contractor officials, we will institute an independent Inspector General’s (IG) Office with a 24/7 anonymous hotline to involve the public in reporting any knowledge or appearance of corruption. The IG Office will be adequately resourced and vested with the authority to conduct independent investigations and, where necessary, recommend prosecutions.
4. We will immediately reinstate the Coalition Government’s requirements for full liability coverage: this includes the appropriate insurance, as well as, a parent company guarantee to cover the full cost of an oil spill; prohibition of gas flaring except in special cases of start-up, emergency and maintenance in compliance with the Environmental Impact Assessment (EIA); re-injection of the very hot, toxic and oil laced water, in accordance with international standards and the World Bank. We will implement the World Bank’s Plan for an O&G Unit at the EPA comprising skilled and experienced O&G professionals to provide adequate oversight.
5. Will inculcate the safety and environmental protection culture that safety and stewardship of the environment take paramountcy over production and profits, and there must be accountability for any violation of this rule.
6. We will complete an in-depth analysis of (1) projected estimates of the annual O&G production profile through the life of the fields; and (2) corresponding estimates of projected government revenues which will inform the Government’s annual budgetary allocations and out-years strategic planning. There will also be a regular review of the movement of oil prices in the short, medium, and long term.
7. To ensure economic sustainability during and after the O&G era, we will make the building of capacity in the education sector our highest priority in the investment of O&G revenues, including the equitable distribution of wealth to local areas of the regions in the form of capacity building, projects, and job creation to avoid the oil curse syndrome.
8. We will conduct a national skills audit for all sectors of the economy, including O&G. This will identify the needed categories, competencies, and skills along with the strategies for the training and development that will include on-the-job, off-the-job and classroom training provided by the international contractors. We would establish a consortium comprising the University of Guyana (UG), the Government Technical Institutes, and other training institutions to also facilitate the training needs identified in the skills gap analysis.
9. We will develop a directory of registered diaspora O&G professionals and businesses. The aim is to ensure an active and organized utilisation of their skills through partnering, and advising, with provision for preferential consideration in the procurement process.
10. Considering the vastly changed conditions since the signing of the 2016 Stabroek Block Production Sharing Agreement (PSA) and consistent with Article 32.1 of the PSA, we will complete a top-to-bottom review of the PSA and then engage the Stabroek Block Partners, to maximize the benefits of the oil resources to the people of Guyana while ensuring a fair share of profit for Stabroek Block Partners. The review will include, but not be limited to ring-fencing of projects, oil tax regime, environmental responsibilities, decommissioning, transparency, the timely reporting of information, regulatory oversight and real-time monitoring, auditing, local content, shared management and decision-making in operations in the oil and gas sector.
11. We will conduct feasibility studies to determine the viability of creating a National Oil Company (NOC) and/or a local refinery.
12. We will complete the Cradle to Grave Management Plan commenced by the Coalition, for the management of the millions of tons of hazardous & non-hazardous wastes generated by the O&G industry and the rest of the country, to ensure that treatment, storage, and disposal (TSD) of these wastes are done in accordance with safe and environmentally sound international standards and practices. This will include completion of site evaluations and selections, and designs of state-of-the-art landfills to guarantee adequate treatment, storage and disposal (TSD) currently unavailable in Guyana.
13. We will undertake a complete review of the Stabroek Block PSA, and we will also complete a similar review of the contractual regime of the other blocks.
14. Taking into account that the existing 1996 Environmental Protection Agency (EPA) Act was legislated 19 years before O&G discovery and hence, did not consider specific O&G regulations and other unforeseen industrial activities, we will complete a holistic review of the EPA Act with recommended amendments for legislative approval to ensure safe and environmentally sound oversight to comport with Guyana’s new and foreseeable development.
15. For full transparency, we will institute a publication of information protocol ensuring that all information including, but not limited to contracts, agreements, contractor quarterly reports, new discoveries, updated reserves, and production data be made accessible to the public conveniently and timely.
16. We will complete a feasibility study to evaluate the most economical and environmentally viable options for utilizing the produced gas as an energy resource for Guyana, including the use of ISO Containers for the transportation of Natural gas to shore.
17. We will conduct a review of the Natural Resource Fund (NRF) and restructure it as necessary to ensure its independence, prudent management, and the fulfillment of its mandate.
18. In order to stimulate the local economy and gain skills and international competitiveness in the supply of goods and services, we will institute a local content policy that ensures equitable participation of local businesses by requiring the Contractor to maximise expenditures on local goods and services.
19. We will govern and manage the oil and gas sector in the best interest of the people of Guyana and in accordance with the rule of law.
20. We will utilise the resources of the O&G sector to craft a foreign policy which will facilitate the integration of the O&G Sector into a strong national economy that can help to protect the territorial integrity and sovereignty of the nation.
