Guyana’s Vice President Dr. Bharrat Jagdeo has disclosed plans to commence a public consultation process for the draft Petroleum (Exploration and Production) Act, which will be unveiled by next week. The move will give Guyanese an opportunity to share their views and take part in the shaping of the proposed amendment to the country’s petroleum law.
“[On June 14], we started resuming work on government-related issues… We are hoping by Monday, the draft Petroleum Act will be put out for public consultation…” Jagdeo said.
Dr. Jagdeo’s announcement is particularly significant considering the impending offshore licensing round for oil blocks in the country. The government has committed to providing vital documents, including the model petroleum agreements and the amendment to the Petroleum (Exploration and Production) Act, to investors prior to the bidding deadline.
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The announcement followed a meeting with the Minister of Natural Resources and government staff. “We are hoping to finalise the Model [Production Sharing Agreement],” stated Dr. Jagdeo. Two versions of the PSA have been prepared for different blocks: deep water and shallow water. These drafts already incorporate the received comments and are now up for further policy review, he said.
However, the Vice President expressed concern over the opposition’s lack of input, suggesting they had not yet submitted any comments and seemed to be waiting until 2025, at the next general election, to do so.
One of the potential bidders, ExxonMobil, currently operates three blocks offshore Guyana, including the prolific Stabroek Block. ExxonMobil has stated it is awaiting the finalisation of the documents before deciding to participate in the licensing round.
Dr. Jagdeo recognized the delay in preparation of the key documents, attributing it partly to the recent local government elections. Nevertheless, he said the government intends to prioritise the issue immediately, and to ensure investors have ample time to review the documents before placing their bids.
The offshore licensing round has piqued interest on a global scale due to the remarkable oil discoveries in the Stabroek Block since 2015. As a part of its strategic drive to promote exploration beyond this block, Guyana has opened 14 blocks for auction, estimated to hold a whopping 25 billion oil-equivalent barrels.
