New Petroleum Bill includes no requirement to notify public of oil block giveaways

Jun 26, 2023 News

Kaieteur News – The new Petroleum Activities Bill includes several new provisions to ensure effective regulation. Be that as it may, there is a clear absence of requirements to tell the owners of offshore oil blocks – the Guyanese people – when these concessions are being given away.

It therefore means that blocks can be issued or experience a change of hands without the public knowing that this occurred. The public also has no sure way of knowing when the operatorship of a block has changed. In the past, companies have sold shares in oil blocks without the public being notified by the government.

It is only when companies make announcements through press statements and investor reports that the media finds out and reports to the public.

Now that the Bill proposes to offer licensing in new different regards, this state of affairs will now also apply to the issuance of licences for carbon storage and pipeline licenses.

The provisions of the new Bill which speak to disclosures in The Official Gazette only refer to notifications made by the Minister in the lead-up to the awards.

The Minister has the authority to invite applications for exploration licenses through a notice published in the Gazette. The notice specifies the block or blocks for which applications are invited. The Minister can also specify the period within which applications must be made. Additionally, the Minister can specify the conditions that need to be fulfilled for submitting an application.

The Minister also has the power to require applicants for a license to fulfill certain obligations. Applicants may be required to publish details of their application in a manner specified in the notice. Applicants may also be required to provide details of their application to specific persons and in a manner specified in the notice.

The Minister is authorised to prescribe regulations or issue notices in the Gazette to determine certain aspects related to the awarding of licenses. These provisions include: the establishment of an account for the deposit of bonus bids until the Minister announces their decision on accepting or rejecting the bids; and the specification of award criteria. The latter can include the signature bonus, exploration work commitment, as well as other commercial, climate, or social investment considerations that the Minister deems appropriate.

While these provisions allow for some notifications, in the interest of investors, the absence of transparency provisions with respect to the award of blocks and changes in ownership can leave the door open for shady transactions.

The draft Bill is now available for public consultation and is available at the following websites: www.nre.gov.gy and www.petroleum.gov.gy. All comments should be sent via email to [email protected] during the period and by close of business on Monday, 3rd July 2023.

- The new Petroleum Activities, licensing in new different regards, Now that the Bill proposes, The Minister is authorised

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New Petroleum Bill includes no requirement to notify public of oil block giveaways

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