‘Extractive Industries’ holds first meeting on data collection-For preparation of First Trade in Oil Report

‘Extractive Industries’ holds first meeting on data collection–For preparation of First Trade in Oil Report

Feb 06, 2020 News

As a new oil producing country which also is a member of the Extractive
Industries Transparency Initiative (EITI), Guyana is required to adhere to the requirement in the EITI 2019 Standard which speaks to First Trades in Oil.
To this end, the Department of Energy (DE) and Guyana Extractive Industries Transparency Initiative (GYEITI) held their first meeting on the collection of data and information for the preparation of Guyana’s first trades in oil report.
The meeting which was held on Tuesday, January 28, 2020 saw a discussion on the requirements by all of the key players for the completion of this report.
The meeting between GYEITI and DE agreed that the two entities will collaborate and share relevant data and information, legally permissible, to support the ongoing effort to increase transparency and accountability in the extractive industries and contribute to improved governance of Guyana’s Oil, Gas, Mineral and other Natural Resources.
The GYEITI will receive data and information on the oil and gas sector, including
on Guyana’s first trades in oil from the Department of Energy (DE), the Ministry of Finance, Guyana Geology & Mines Commission (GGMC), the Petroleum Commission, Environmental Protection Agency (EPA), Guyana Revenue Authority(GRA), National Insurance Scheme (NIS), and other Government agencies which are recipients of revenues from entities operating in the Oil & Gas sector as per EITI requirements.
During the meeting, the National Coordinator of the GYEITI, Dr. Rudy Jadoopat, gave an overview of Guyana’s participation in the initiative. He outlined the progress that has been made.
He briefly described aspects of the GYEITI Work Plan accomplishments during the preparation of Guyana’s first ever EITI Report.
Dr. Jadoopat provided a status update on the GYEITI MSG- approved ‘Action Plan’ for the implementation of the recommendations of the country’s 1st EITI Report.
GYEITI is currently preparing for EITI Validation, gathering data and information for the preparation of the Guyana’s 2nd EITI Report, implementing recommendations which emanated from the first Report, designing comprehensive communications strategy and executing a countrywide public awareness campaign to satisfy EITI Requirement 7.
Meanwhile, Dr. Mark Bynoe presented an update on the work of the Energy Department, which included a brief outline of the legislative framework for establishment and functioning of the DE and the special inter-institutional relationship for management of Guyana’s emerging and growing oil and gas industry.
Dr. Bynoe emphasised the importance of necessary capacity building for the DE and other related sector agencies.
The Head of the DE pledged full support to Guyana’s transparency initiatives in general and to the GYEITI in particular.
The Department of Energy promised to provide GYEITI all the data and information required by the EITI Standard, with full observance of the Laws of
Guyana.
In addition, Dr. Jadoopat presented Dr. Bynoe with a copy of EITI Standard 2019, EITI Guidance Note 26 – Reporting on First Trades in Oil and a copy of EITI publication ‘Transparency in the First Trade’, authored by Pietro Poretti, June 2019.
Information required for the completion of the First Trades in Oil Report includes name of the seller, name of the buyer, oil quality grade, oil quantity, date of sale, revenues received, official selling price, payment date, payment account, type of state-owned oil sold e.g. profit oil, contract number, invoice number, beneficial owners of buyer, and load port, terminal and depot among other details.
According to the EITI, “First Trade” speaks of a situation where a state (or a
state-owned enterprise) sells from its oil, gas and mining sector, its share of physical resources, usually to commodity trading companies.
The terms of such transactions are a matter of public interest and help to create a transparent and open market in which governments, companies and citizens can have confidence.

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