14-days not enough to review new oil contracts

Mar 17, 2023 News

---

…Environmentalist says timeframe breaches numerous Intl. obligations

Kaieteur News – The Guyana Government through the Ministry of Natural Resources recently released to the public two new draft Production Sharing Agreements (PSA)—oil contracts—that would govern the development of oil blocks outside of the Stabroek Block.

The two weeks, or 14-day period allocated by the administration for notice, comments and general public input, is in of itself, prohibitive and would only undermine the purpose of releasing the information for commentary by the citizenry.

The position was recently articulated by Environmentalist, Simone Mangal-Joly, in a letter to the substantive minister, Vickram Bharrat, copied to Rosalinda Rasul, Head, Diaspora and Remigration Unit, Ministry of Foreign Affairs and shared with the media.

In that letter, the Mangal-Joly outlined that while it’s commendable that Government has released the draft Model Petroleum Agreement for comments, “unlike government officials, citizens are not paid employees of the state and can only read such documents during their after work hours.” To this end, she posited that 14 days, “is also prohibitive when it comes to procuring qualified specialists to provide advice so that citizens and civil society organisations can make informed representation to government.”

Additionally, she said that the allocated two weeks-time period, “cannot possibly allow the Government to fulfill Guyana’s commitments under the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the International Labour Organisation Convention 69 (ILO69) for Free Prior and Informed Consent (FPIC) of indigenous peoples.”

As such, she has since recommended that an effective effort would firstly provide reasonable time for the public to engage with the material and for appropriate levels of participation. Secondly, “outline a clear procedure for how feedback will be received and made transparently available for all to see,” she further said.

Mangal – Joly has since also called for a clearly outlined mechanism that will be used to report on how public feedback was addressed in the development of the final model agreement. As it stands, Mangal-Joly observes that the current 14-day period “does not meet requirements for an effective public consultation process” and as such suggested that government may wish to, “extend this period to 45 days.”

This is in order to engage and prepare the National Toshao’s Council to actively review the draft and provide feedback from their communities; and identify the mechanism for receiving public feedback, making comments publicly available, and reporting on how these comments were addressed in arriving at the final model agreement.

She suggested too, making use of digital platforms would enhance access for indigenous and non-indigenous communities across the country, and participation of the diaspora community, whom the Government has repeatedly asked to participate in building Guyana into a more prosperous country.

Additionally, she noted that the Diaspora as a critical stakeholder that plays a pivotal role in financing social development and social safety nets through family remittances, “and has carried a major burden of compensating for lacklustre development policies and poor distribution of economic gains for decades”,should press government to make good on its stated interest in engaging the Diaspora.

In making the announcement recently, it was noted that the draft Model Petroleum Agreements embodies rigorous research and analysis by the ministry’s internal team, and external consultants on all topics relevant to a modern petroleum agreement for Guyana.

“The process involved a comprehensive assessment of the current petroleum agreement and the identification of best practices relevant to every contractual aspect of a modern agreement grounded in the Guyana context.”

According to the ministry, in order to ensure new investments are governed by a comprehensive framework of international best practices, the Model Petroleum Agreements will be followed by an overhaul of the 1986 Petroleum Act and Regulations.

Referencing the two weeks, time period allocated for public input, it was noted that feedback on the draft model agreements should be addressed to the Minister of Natural Resources and sent to [email protected] with the Permanent Secretary copied, [email protected].

As the administration finalizes the new PSA, it was noted too that this is being done also, in preparation for the upcoming Licensing Round Schedule and will reflect the new timeline for the publication of the finalised Terms and Guidelines, Model Petroleum Agreement and process of bidding — all adjusted to facilitate maximum participation from global interest.

According to the Ministry, official Expressions of Interest (EOI) have been received for all fourteen blocks for tender in the upcoming Licensing Round, demonstrating global interest in Guyana’s shallow and deepwater offshore acreage.

“The Model Petroleum Agreements represent the People’s Progressive Party Civic (PPPC) Government’s commitment to its manifesto promise of establishing a model PSA, guided by industry standards and best practices.”

Buttressing its position, the Ministry also noted that at the core of the changes, “are aimed at maximising the socio-economic benefits for our nation without disincentivising foreign investors in the sector.”

---

• Environmentalist, Free Prior and Informed Consent (FPIC), International Labour Organisation Convention 69 (ILO69), National Toshaos Council, Simone Mangal-Joly, United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)

---