Guyana’s Vice President, Dr. Bharrat Jagdeo, has announced that the country’s new Petroleum Activities Bill will be presented to Parliament on August 3, 2023. The proposed legislation is set to establish a contemporary regulatory framework for the country’s rapidly expanding oil and gas sector.
Dr. Jagdeo anticipates that the bill will be passed before Parliament goes into recess on August 10, thus fulfilling one of the key prerequisites for the conclusion of the country’s offshore licensing round.
“We anticipate that the legislation will be passed before the recess. So, we’ll have a finalised PSA (Production Sharing Agreement) and also the new Petroleum Activities Law, which were the two preconditions that we set ourselves before we conclude the bid round,” said the Vice President. “So, both would be ready and that would give enough time to the potential bidders to submit their bids.”
The Petroleum Activities Bill 2023 was developed after extensive consultation, with the Ministry of Natural Resources seeking to align the country’s legal and regulatory framework with international standards. The legislation’s expected approval will signal a significant milestone in Guyana’s efforts to modernise and professionalise its oil and gas industry, thus building investor confidence.
In conjunction with the new bill, the Ministry of Natural Resources has extended the deadline for bid submissions in the Guyana 2022 Offshore Licensing Round to September 12, 2023. This extension allows potential investors ample time to assimilate the changes that will come with the new legislation and to submit comprehensive bids.
Guyana has emerged as a promising frontier in the oil and gas industry, as a result of significant oil discoveries in the Stabroek Block since 2015. The Guyanese government is keen to capitalise on the global interest generated by these findings. With 14 blocks open for auction, the nation is eager to promote exploration beyond the lucrative Stabroek Block, opening up opportunities for a diverse range of potential investors.
