Latest update January 17th, 2025 6:30 AM
Training fund from oil companies…Prioritise training for auditors, lawyers and geologists – Ramson Jr.
Government should invest some of the funds it acquires from the oil sector on the training of local auditors, lawyers and geologists a priority
This is the view of Attorney-at-Law and Oil and Gas academic, Charles Ramson Jr. who says that this money would come from funds that are set aside for training purposes.
For instance, in the Stabroek Production Sharing Agreement (PSA) with ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), and its partners, “the Contractor shall pay to a Government account for the Ministry responsible for Petroleum the amount of three hundred thousand United States dollars (US$300,000)” for training purposes.
Ramson, who has a Master’s Degree in Oil and Gas Management, said that an investment in local geologists to have them specialised in Petroleum Operations would give Government the opportunity to assess for itself, the quality of the oil. Petroleum geologists could interpret seismic information, locate the prospect area, and determine its viability through the appraisal process.
Attorney-at-Law, Charles Ramson Jr.
He said that, every time a discovery is made, the oil companies are brought back to the negotiating table. That’s where the lawyers come in.
Lawyers who are trained in oil and gas, Ramson said, serve to accurately translate Government’s wishes during negotiations with oil companies, to produce robust contracts. Further, the attorney said that such lawyers would be able to identify bottlenecks and loopholes in Guyana’s current Petroleum (Exploration and Production) Act, which inhibit the country’s ability to get the best value for the resource.
As for auditors, they are extremely important to ensure Guyana’s interests are well served. The Guyana Revenue Authority (GRA) is conducting an international search for oil and gas experts as the agency prepares for first oil next year. Guyana also expects to receive assistance from the International Monetary Fund (IMF) and the World Bank. There are concerns about Guyana losing revenue from inflated costs, which oil companies have to recover. Earlier this year, the IMF advised Government to get clear definitions of eligible costs and to conduct routine audits of to maximize revenue. Ramson suggested that Government take, perhaps 20, local accountants, and focus on building their capacity to scrutinise cost oil.
Ramson told Kaieteur News that countries that are successful in the oil sector have prioritised their investment on building the capacity of specialists with the expertise that help the country to reap maximum benefit from the sector. In this regard, these three career streams are pertinent.
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