Latest update February 6th, 2025 7:27 AM
Draft oil law to be tabled in National Assembly on August 3
Kaieteur News – Vice President, Dr. Bharrat Jagdeo has assured that the draft Petroleum Activities Bill 2023 which replaces the Petroleum (Exploration and Production) Act 1986 will be tabled in the National Assembly on August 3, 2023.
During a press conference on Thursday, he recalled that the passage of the new legislation was one of the conditions the administration said would be in place before authorities accepted bid submissions for the country’s maiden oil blocks auction. That licensing round will include 11 shallow water blocks and three deepwater concessions.
The Ministry of Natural Resources announced on Wednesday that the deadline for accepting bid submissions was pushed back, notably for a fourth time to September 12. Jagdeo confirmed that this would be the final extension of the timeline as the government is hopeful of passing the new law before Parliament heads into recess on August 10. He also noted that the finalized versions of the new Production Sharing Agreements for the deepwater and shallow water concessions will also be made public.
Vice President, Dr. Bharrat Jagdeo
Importantly, the Petroleum Activities Bill 2023 proposes to vest the Natural Resources Minister with sweeping powers over the hydrocarbon industry.
According to the draft document, the minister would be empowered to administer the licensing of petroleum exploration, production, and storage and transportation operations; cooperate with the relevant government agencies regarding environmental and safety aspects of petroleum operations; and oversee the conduct of petroleum operations to ensure compliance with the new law, and the terms of the respective licences and petroleum agreements.
The minister is also proposed to have the power to inspect petroleum operations, seek corrective action and impose sanctions for non-compliance, develop terms of reference and qualification criteria for the grant of exploration and production rights, and grant geological storage licences for natural gas and long-term storage of carbon dioxide.
It was further noted that a company or licensee needs the written approval of the minister, to directly or indirectly assign any of the rights under a licence or petroleum agreement, whether in whole or in part, to a third party or an affiliate.
The minister would also have the power to require the licensee to market abroad on competitive terms all or part of the government’s share of crude oil subject to commercial terms established under the petroleum agreement.
The minister may even require the holders of a petroleum production licence to supply crude oil in the domestic market when the needs of the domestic market exceed the Government’s entitlement from all crude oil production in the country.
He may also exercise any other powers required for the management of petroleum resources and operations carried out under this Act.
Importantly, it is noted in the document that the minister may delegate any of the powers related to administration of petroleum resources and supervision and inspection of petroleum operations to a department, agency or government body under his administrative authority.
Kaieteur News understands that the minister may make regulations for the purpose of giving effect to provisions of the Act, and in particular, but without limiting the general power, may make regulations for the execution of all works related to exploration for and production of petroleum; conservation and prevention of the waste of petroleum or other natural resources; the form and contents of, and conditions with respect to, an application for the grant or renewal of licence; and the methods to be used for the measurement of petroleum, water and other substances from a well.
Regulations can also be implemented to address safety and welfare standards, and the health and safety of persons employed in or in connection with exploration, production or conveyance of petroleum, transportation, storage and treatment of petroleum via pipeline underground storage of natural gas, underground storage and transportation of carbon dioxide, and any other matter that may be, or is required to be, prescribed by the minister.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Land, taxes and penalties
Peeping Tom… Kaieteur News-The American humorist Will Rogers once remarked that the best investment on earth is earth... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
