The government of Guyana is still accepting comments on the draft new model Production Sharing Agreements (PSAs) released for public consultation last month. Although the deadline has passed, Vice President (VP), Dr. Bharrat Jagdeo confirmed during today’s press conference that the government is “taking every comment seriously” and will “not ignore people’s comments.”
The Ministry of Natural Resources released the draft new model PSAs on March 14, and the government opened the document for public consultation, allowing the general public and various stakeholders to offer suggestions and voice their concerns. However, some opposition members heavily criticized the short timeline for consultation and called for a proper review in parliament. Speaking to this, Jagdeo noted that the complaints were “just laziness on their (the opposition’s) part”. He further stated that the opposition is yet to submit its comments on the document and expressed uncertainty regarding when it will ever be done.
Despite the criticism, Vice President Jagdeo emphasized that the government is committed to securing more benefits for Guyana from the fiscal side. He said, “We’re taking every comment seriously, because the oil and gas companies also have given comments. And remember, we want to ensure two things. That we remain- we get more benefits for Guyana from the fiscal side, more business flowing to Guyanese companies and individuals that’s through the local content law. We want a PSA that can properly regulate the sector from a safety perspective, and from an environmental perspective.”
Furthermore, the he stated that as it drafted the new model PSAs the government kept in mind, it aim to attract investments, and as the investment dollar is shrinking due to global companies trying to move away from upstream activities, it is keen on keeping a positive momentum going in Guyana. He also noted that this momentum is not limited to the oil and gas companies but the overall economy.
Based on the government’s published indicative schedule for the 2022 Guyana Licensing Round, the PSA should be finalised by this month’s end.
