With a far way to go, World Bank to help Guyana improve transparency in oil sector

Jul 16, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – In an effort to enhance transparency and build capacity within Guyana’s oil and gas sector, the World Bank is partnering with the Guyanese government on a strategic development project. However, the venture faces a challenging journey ahead, given the government’s past record of secretive management practices and a lack of comprehensive understanding of the oil sector among the populace.

The project includes the development of a comprehensive Stakeholder Engagement and Communication Strategy.

The strategy, currently in the draft phase, is intended to strengthen sector communications, boost transparency, and promote proactive engagement with stakeholders on issues linked to the oil and gas industry.

As of June 2023, terms of reference were prepared to support the Government of Guyana, and particularly the Ministry of Natural Resources and the Department of Public Information (DPI) with the development of the Strategy to engage effectively and sustainably with key stakeholders on issues related to the oil and gas sector and to enhance transparency, proactivity and effectiveness in sector communications. The intention is for procurement to be launched in early July 2023, for a firm to spearhead the formulation of the strategy.

The project is part of the Petroleum Resources Governance and Management Project, being funded with a US$20 million loan. The full programme aims to fortify the country’s legal and institutional frameworks, bolstering the ability of key institutions to effectively manage the oil and gas sector.

The project is coming amidst criticisms of the government’s historical approach to managing the oil sector, including allegations of secrecy and refusals to disclose critical documents. Many of the disclosures that are made, often follow months of persistent criticism and calls for openness. These circumstances have impeded transparency advocates from holding the government accountable and have created an environment of despondency.

A recent example of the government’s lack of transparency is seen in the proposed Petroleum Activities Bill by the People’s Progressive Party Civic (PPP/C) administration. The Bill, which would grant extensive powers to the Minister of Natural Resources, has been criticized for failing to address transparency concerns raised by civil society and the media over the past seven years.

Notably, the government has consistently refused to provide public access to reports outlining the costs presented by ExxonMobil, and how swiftly these costs are being recouped. This lack of disclosure leaves the public and the press in the dark about when Guyana’s share of production and revenues will increase.

Another significant hurdle is the general public’s limited understanding of the oil sector. Hence, it is crucial for the government, through its communication mechanisms, to constantly invest resources in enhancing public comprehension of the oil and gas sector.

Despite these issues, some advancements have been made. Contracts have been published, and regular disclosures of receipts of oil revenues into the Natural Resource Fund (NRF) and oil production data have been made.

The World Bank’s intervention is a vital step toward addressing these ongoing challenges. However, for substantial change to take effect, these efforts must be met with an unwavering commitment to transparency and public engagement from the government.

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oil, promote, sector, Transparency, World Bank

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