Latest update November 5th, 2024 1:00 AM
Govt. seems visionless on oil and gas sector – Dr. Hinds
When it comes to the oil and gas sector, Executive Member of the Working People’s Alliance (WPA), Dr. David Hinds is concerned that the Coalition Government does not have a vision for the sector.
WPA Executive member, Dr. David Hinds
In the absence of a plan for spending and protecting the wealth to come from the oil resources, the political commentator said that the government can leave gaping holes for corruption to seep in.
Dr. Hinds said that since coming to office, the government has failed to bring any new piece of legislation for oil and gas or any that relates to anticorruption. He said, too, that the nation is yet to see a clear policy or plan of action as it relates to protecting the country from large-scale corruption, a scourge that usually accompanies massive oil and gas wealth.
Also in agreement with Dr. Hinds is Chartered Accountant and Oil and Gas Academic, Chris Ram. In his recent writings, the lawyer chided the government for having not amended one iota of the outdated petroleum laws of Guyana. He noted that since coming to office, the Coalition administration failed to appoint a Chief Inspector who is the key technical petroleum officer specified in the laws of Guyana; failed to enforce the local content requirements of the petroleum laws; and failed to consider any alternatives to the Production Sharing Agreement.
In addition to this, Ram said that the government has failed to articulate a Petroleum Policy including a depletion policy, natural gas, domestic supply and the pricing of petroleum products; hid the signing bonus and continues to deprive the citizens of the country of access to key documents.
CHATHAM HOUSE VIEWS
According to Chatham House, Guyana needs to figure out its national vision before oil starts pumping. It said that local authorities need to decide if it will prioritize revenue maximization to increase public funds for specific development targets; or, use petroleum produced for industrialization or development and in-country value addition.
Chatham House noted that without a clear vision or priorities at hand, Guyana can end up like many nations, which try to make profits while responding to every whim of the citizenry.
In this regard, it noted that nations have made the mistake of introducing fuel subsidies to provide cheap petrol to citizens. It warned that many countries such as Nigeria have paid for this as it locks governments into growing domestic fuel consumption trends, which are difficult to reverse.
As it relates to the environment, the London-based entity said that Guyana would also be faced with difficult decisions. In this regard, Chatham House reminded that Guyana committed to a green growth agenda but there are questions now about how that agenda will sit with the country becoming an oil producer.
It stressed that the risk of environmental incidents also rises with petroleum activities. Chatham House said that Guyana will have to decide if it will prioritize “investor-confidence” in observing indistinct contract terms on environmental protection; or, enforce stringent laws that will secure its green growth success.
Going forward, Chatham House noted that Guyana’s national vision should be driven by values, which can inspire the efforts to develop the sector and the economy. It opined that these might include technical competence and professionalism, transparency and good governance.
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