Fiscal elements for Petroleum Law being worked out

Fiscal elements for Petroleum Law being worked out – Dr. Bynoe

Feb 18, 2019 News

Energy Department Head, Dr. Mark Bynoe says that he has no difficulty with the recommendation of the international community on the need to insert as many fiscal elements into the primary legislation as opposed to leaving them to fall victim to negotiations.
Dr. Bynoe noted, however, that the elements which will go into the Petroleum Exploration and Production Act are still being worked out, since a licensing round of offshore blocks is scheduled for the first quarter of 2020. He said that the licensing round is likely to be subjected to an open bid process. And for this competitive bidding process, Dr. Bynoe noted that some terms would have to be left on the table for the companies to put forward the best bid. He listed one of these fiscal elements to be royalty.

Energy Department Head, Dr. Mark Bynoe

The official said that the licensing round would be for Block C which is known as “an ultra-deep” area.
Dr. Bynoe noted however, that he would not want to go forward with the licensing round with Guyana’s old laws. He insisted that the principle Act, being the Petroleum Exploration and Production Act, needs to be reviewed, with the necessary amendments passed by the National Assembly this year. He said that he has every intention to lobby for this.
Furthermore, Dr. Bynoe revealed that his Department is slated to complete a gap analysis of existing legislation. He said that this gap analysis and the reviewed principle Act will set a strong foundation of transparency and accountability for the licensing round that would follow. He said, too, that it will allow for the Department to draft any replacement or supplementary law that it might need for the sector.
In the meantime, the Energy Department Head said that he is working towards conducting a multi-client seismic survey for data packages to encourage greater interest in the continental shelf zone. He said that this survey will be subjected to a tendering process. (KIANA WILBURG)

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