THE Ministry of Natural Resources and the Environment continues to work towards creating a viable oil and gas sector, but to have a feasible sector, there must be policy that caters for its development. Yesterday, the ministry launched its upstream oil and gas policy at a national stakeholders’ forum at the Herdmanston Lodge, Georgetown.Giving a comprehensive overview of the policy, Dr. Epken Omonbude, Economic Adviser, Commonwealth Secretariat, pointed out that the draft of this policy was discussed on October 2013 and accepted by Cabinet around the same time in 2014.
Minister of Natural Resources and the Environment, Robert Persaud delivering his remarks to the gathering at the event
He noted that it is to ensure a transparent and effective upstream of oil and gas legislations and implementation in Guyana.
The strategy focuses on the broader picture of the upcoming sector, as this is the framework that provides the answers to what will and can be done, when and if oil is found in Guyana.
According to Minister of Natural Resources and the Environment, Robert Persaud, this is to prepare the country for the eventuality of a significant amount of oil being found, more so, for commercial purposes.
He said that “in 2011, when the ministry was established, (it) had a review of how …“we oversee, manage and plan for the eventual development of an oil and gas sector. We recognised that we needed to be prepared for the eventuality, and I want to be an optimist, not a blind optimist … not an unreasonable optimist … but (I see) the eventuality of a significant commercial oil and gas discovery in our country.” This strategy is a step in preparing the country for this eventuality.
The minister added that when they reviewed the existing framework and legislation, they tended to focus primarily on exploration and promotion of oil and did not efficiently deal with the issue of upstream.
He further noted that the reason for this is to prevent any consequences when this discovery is made, as a result of the country’s not being prepared for such a sector. He also pointed out that the ministry is working with a number of bilateral partners in order to improve other areas of this sector in “looking at how we can have the right environment, the right framework, the system, the right arrangement, that will do justice to the people of Guyana in terms of how we manage the sector going forward.”
Much emphasis is also being placed on human resources; the mining school has offered and will continue to offer some training programmes in gearing and preparing Guyanese to work in the oil and gas sector.
Dr. Epken Omonbude, Economic Adviser, Commonwealth Secretariat, presenting an overview of the Oil & Gas policy to the stakeholders at the forum
The minister also acknowledged the fact that numerous employees are currently overseas, pursuing advanced training, some with support from oil companies themselves. A lot of work has also been done on transparency.
Further, there are still some areas to be addressed, such as managing resources, in terms of what would accrue from the eventual development of such a sector, and ensuring its contribution to lasting prosperity, the minister pointed out.
This is to ensure that the sector be not only a viable one, but sustainable financially, and that it will take into account environmental, as well as social obligations.
This is the reason for developing a robust and forward-looking framework, such as this.
The minister also expressed gratitude to the Commonwealth Secretariat for aiding in this process.
Country Manager of Exploration and Production Guyana Ltd, Jeff Simon, was also given the opportunity to share some comments and suggestions on the policy, as the company Exxon Mobil will begin drilling for oil in March.
Prime Minister and Minister of Energy, Samuel Hinds, who was also at the ceremony, said that he was “very pleased that this day has come…. and by the end of this quarter, to have some deep drilling.” (GINA)