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Oil and Transparency … Guyana must demand disclosure of everything related to subcontracts – Int’l Expert
By Kiana Wilburg
If Guyana is truly serious about transparency and accountability in the oil and gas sector, then there are a few basic principles it would strive to adhere to.
Director, Power and Money at Oxfam America, Ian Gary
According to Director of Power and Money at Oxfam America, Ian Gary, local authorities in their accountability efforts should strive to have an open and competitive bidding process for any new license as well as disclose all existing licenses, contracts and ancillary agreements.
Gary said, too, that Guyanese must demand the disclosure of the true “beneficial owners” of companies involved in the upstream industry as well as companies getting sub-contracts.
The Oxfam Director commented that sometimes, these are avenues for corruption. He said that this point is also crucial since “front companies” can be used by politicians to benefit from the sector.
The International Oil and Gas Consultant said that a law requiring all payments from companies to be disclosed to the public would also be a fundamental principle that the Government should look to implement. In this regard, he pointed out that the Ghana Petroleum Revenue Management Act is a good example for Guyana to take its cue from.
Gary also called for there to be open national budgets and good avenues for public participation on how the oil money is allocated and spent.
IMFAMOUS BRIDGING DEED
While the Government has released the Production Sharing Agreement (PSA) it has with USA oil giant, ExxonMobil, it is still to make public, key documents attached to the contract such as the Bridging Deed. The purpose of this Deed as stated in the contract is to replace the 1999 Agreement and the 1999 Petroleum Prospecting Licence.
Readers will recall that former President Janet Jagan had signed the 1999 Agreement in violation of the Petroleum Exploration and Production Act (the Act) to the extent that the company (Esso Exploration and Production Guyana Limited) was granted approximately 600 blocks instead of the 60 blocks permitted by law.
Local commentators have noted that the 1999 Agreement and Prospecting Licence appears to have been contained in a single package (the Bridging Deed) which includes a full description of the blocks and a map of the area allotted to the oil company. However, the 2016 Agreement merely states that Minister of Natural Resources, Raphael Trotman granted a Petroleum Prospecting Licence for an initial period of four years.
With the Bridging Deed not being published, local critics have said that the Government is operating in contradiction of the nation’s petroleum laws.
Section 16(2) of the Petroleum Exploration and Production Act states: “The Minister, shall, as soon as may be practicable after a licence has been granted, cause notice of that fact to be published in the Gazette stating the name of the licensee and the situation of the land in respect of which the licence has been granted.”
In spite of the aforementioned, Trotman is of the view that the Bridging Deed not being published is not an indication of anything sinister.
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