22 C
Georgetown
Monday, April 12, 2021

Guyana plans to revise PSA model to ensure nation gets fair share of resource wealth – Finance Minister

Must Read

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic...

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

The Guyana Government has announced a revision of the way it conducts business with Oil and Gas Exploration Companies, through its use of Production Sharing Agreements (PSA).

The announcement was made on Monday as Minister of Finance, Winston Jordan, presented his Budget for 2018 under the theme “the Road to a Good Life Continues,” in the National Assembly, Georgetown.

PSAs

The Finance Minister in providing an overview of the sector, recalled that the ‘world class’ discoveries by US Oil Giant ExxonMobil has in fact de-risked the Guyana basin and as such there is now greater interest in the unallocated offshore blocks.

According to Mr. Jordan, “it is imperative that we safeguard the rights of our nation to a fair share of resource wealth…To do so, we must revise the existing template of the Production Sharing Agreement to be more accommodating to changing commodity prices while maintaining a level of progressivity that is responsive to profitability.”

Guyana will push for higher royalties, greater profits in future negotiations – Trotman

The Finance Minister used the occasion to announce too that an oil and gas unit will also be established within the Guyana Revenue Authority (GRA).

That unit, he said, “will benefit from extensive training in revenue administration within the context of PSAs.”

According to the Finance Minister, “the prudent management of these revenues, in addition to a well-thought out development plan, will help to guard against the resource curse.”

He was adamant, “while we strengthen our ability to negotiate more equitable PSAs, key Government agencies within the recently established Inter-Ministerial Technical Committee on petroleum will continue to coordinate capacity building and interactions with the industry.”

SWF

According to Mr. Jordan, the committee‘s agenda in the immediate future will focus on coordinating capacity building, information sharing, as well as providing input into the development of a legal and institutional framework to support the sovereign wealth fund (SWF).

He said the development of a rules-based SWF is critical to ensuring that “our resource revenues are responsibly managed within a transparent framework that promotes the highest levels of accountability.”

He cautioned however “it must be noted that the SWF will not just serve for investment, but also to save for future generations and to stabilize the economy in times of global economic instability.”

Mr. Jordan as such informed that during next year Government will be publishing a green paper to apprise the House on the proposal for the SWF and to “seek feedback for further refinement, and to stimulate a national discussion to ensure that all citizens understand the benefits to be had and the perils we must guard against in the collection and management of our oil resources.”

Petroleum Commission

He recalled too that in addition to the establishment of the SWF, in 2018, the Petroleum Commission will be operationalized after the anticipated passage of the Petroleum Commission Bill.

That Commission will be tasked with the monitoring and regulation of this new and emerging sector, with a mandate to ensure that the exploration, development and production of petroleum are done in an efficient, safe, effective and environmentally responsible manner.

“While we continue to build capacity for effectively managing and regulating the oil and gas sector, we will ensure that systems and regulations are in place to properly and transparently account for, and manage oil revenues,” he said.

 

OilNOW TV

Latest News

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic and International Studies says a...

Total, CNOOC enter agreements with Uganda and Tanzania for $3.5 billion pipeline

(Reuters) -Uganda, Tanzania and oil firms Total and CNOOC on Sunday signed agreements that will kickstart the construction of a $3.5 billion crude pipeline...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura Deep-1 well in Trinidad and...

Exxon’s Greater Guyana Initiative brings Zoom Rooms project to University of Guyana

The University of Guyana (UG) on Saturday launched its Zoom Rooms project which it says lays down the first building blocks for its blended-learning...

More Articles Like This