Vice President, Dr. Bharrat Jagdeo has once again clarified that authorities will not be rushing to establish a Petroleum Commission, especially when the country is still in the process of capacity building. The official made this comment during a press engagement on Thursday at the Office of the President.
“So, the Petroleum Commission will happen, but it will, it will happen at a time when we have some level of capacity and maturity in the sector,” he stated.
Dr. Jagdeo acknowledged that there are varied models for managing the oil and gas sector in different countries, one of which includes the use of a commission. While expressing the long-term goal of establishing such an independent regulatory body, he highlighted that the government is focused on ongoing reforms, requiring extensive Cabinet input and policymaking.
The objective, he says, is to swiftly implement a framework that achieves the necessary functions without compromising effectiveness.
The Vice President also emphasized the successful management of the sector thus far, citing significant changes with the promulgation of the Petroleum Activities Law which replaced the 1986 Petroleum Exploration and Production Law. He also noted that authorities are drafting safety and environmental regulations to support the new law. He said these regulations, along with a modernized legislative framework, aim to enhance the scope for regulation.
Addressing the Natural Resources Fund (NRF) and Local Content Law, Jagdeo pointed to their success in boosting employment and financial stability in the oil and gas sector. Approximately 6,000 people are now employed, thanks to the Local Content Law. The Vice President also highlighted other achievements such as the maiden auction of Guyana’s oil blocks in 2022 and deliberate reforms in the Production Sharing Agreement (PSA).
Expressing satisfaction with the current framework, Jagdeo maintained that a Petroleum Commission will come at the appropriate time.
