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Guyana’s oil minister yet to hold a single press conference to address critical matters
Three years in…
Kaieteur News – While civil society groups and the political Opposition have continuously underscored the need for transparency and accountability to be the hallmarks of the multi-billion dollar oil and gas sector, Minister of Natural Resources, Vickram Bharrat, continues to stay miles away from a press conference podium.
For three years, Guyanese have been waiting for such a forum, for the delivery of insights, updates, and explanations about the nation’s oil and gas dealings directly from the person entrusted with the management of this pivotal sector. Instead, the man who is charged with the day-to-day management of the sector has kept quiet, leaving the heavy lifting to be done by Vice President, Bharrat Jagdeo who said he is only charged with oversight on policy.
Natural Resources Minister, Vickram Bharrat
Guyana, which boasts one of the fastest-growing economies globally, owes much of its recent prosperity to the boom in oil within the massive Stabroek Block operated by an ExxonMobil-led consortium. With this newfound wealth comes a responsibility to keep citizens informed and involved. Minister Bharrat’s press conference is therefore not just expected. Industry stakeholders say it is imperative to ensure citizens are informed about the government’s handling of key critical issues.
- Relinquishment Clauses and Contract Administration: Over the past years, there have been ambiguities surrounding oil companies’ adherence to relinquishment clauses in their exploration contracts. Relinquishment, as it pertains to the oil sector, is a provision that allows for a company to return a portion of an oil block after an agreed time of conducting exploration works. Such a provision is considered fundamental to ensuring that oil companies are not sitting idly on portions of blocks which could be returned to the State and later utilized by authorities via an auction. Bharrat’s Ministry has yet to say how it is handling relinquishment of portions of oil blocks.
- Report on progress of Local Content Act: Instituted in 2021, the Local Content Act has been operational for close to two years now. A report on its performance, its impact, and future prospects, is due for Parliament. The Ministry has notably put out numbers on the performance of the Act, which had been called into question. But the Ministry gave no explanation/response.
- Clarity on enforcement of Petroleum Activities Act: With the recent passing of the Petroleum Activities Act and the forthcoming auction of 14 oil blocks, eight of which received offers, there is an undeniable public interest in understanding the government’s roadmap for regulation. Concerns loom about the administration of new blocks, especially in light of past challenges and the fact, the nation faces a shortage of technical skills for the oil industry.
- Introduction to the Petroleum Unit: An entity as significant as the Petroleum Unit, managing a multi-billion-dollar industry, has not been formally introduced to the public. Industry stakeholders have said this lack of introduction raises questions about transparency and the government’s commitment to open governance.
- Addressing the Petroleum Management Programme Website: The current state of the website is far from satisfactory. With outdated data, missing information, and a questionable user interface, it hardly seems fitting for a country with Guyana’s burgeoning economic status.
While Vice President, Dr. Bharrat Jagdeo, explores a number of issues within the oil and gas sector in his weekly press conferences, his broad mandate means he cannot delve deep into specific issues relating to the sector. Moreover, from his own admission, Dr. Jagdeo has said his insights are based on reports from the Ministry of Natural Resources.
Industry observers therefore believe that the Natural Resources Minister as well as its Petroleum Unit has a duty to inform the nation on their day-to-day management of the sector over the last three years.
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