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AFC Govt. will enact laws to release key oil and gas documents – Patterson
– to release policy on oil and gas soon
Kaieteur News – The Alliance For Change (AFC) will soon be releasing the party’s policy on oil and gas, a carefully crafted document to ensure prudent management of the sector.
AFC Chairman, David Patterson
Chairman of the party, David Patterson recently revealed that the first of about 18 policies seek to ensure there is transparency and sharing of information with the public. “We have 18 different policy statements and every week we will announce one. The first one is on transparency, accountability and access to information,” the former Minister of Public Infrastructure disclosed during an interview with Kaieteur News, on the sidelines of a Parliamentary Sitting.
Patterson added, “There will be time limits and it would be inscribed in law, so under an Alliance For Change government, no reporter has to ask for these information – they will be made public…so no longer can any politician say that information cannot be made available to the public.”
He highlighted that the Field Development Plans (FDPs) for the oil projects have not been released for the public to hold government and the operator of the Stabroek Block, ExxonMobil Guyana, to account on the exploitation of their oil resources.
Additionally, the former Minister noted that the agreements for the Gas-to-Energy project are still to be laid in the National Assembly despite repeated commitments by the administration. These documents, according to Patterson, contain key information that ought to be shared with citizens.
Kaieteur News understands that the AFC’s Oil and Gas policy will also feature the party’s stance on ring-fencing and waste water disposal, among several others. Patterson who was occupied with Parliamentary duties briefly committed that the first policy should be released on Friday.
Ring-fencing in the petroleum industry is a financial term which means that each oil project should pay for itself. In Guyana’s case, politicians have not ring-fenced the projects in the Stabroek Block. In this manner, the revenue generated by the three projects that are currently producing oil are used to pay for other projects which are now being developed. The lack of ring-fencing therefore shortens the profits available to be shared with Guyana. Each month, Exxon is allowed to deduct a whopping 75% of Guyana’s oil towards cost. The remaining 25% is split with the country as profits, with the country receiving an additional 2% as royalty – paid every quarter.
Guyana has often been urged by international experts to ring-fence the projects to ensure the country enjoy the early benefits from the sector.
The AFC previously voiced its support for the Stabroek Block projects to be ring-fenced, however its key Opposition partner, the People’s National Congress Reform (PNC/R) remains on the fence when it comes to a decision on the subject.
Leader of the PNC/R, Aubrey Norton had said while there may be benefits to ring-fencing, his party would still need to assess each project individually to determine whether it would go that route.
The two parties which previously collated and won the 2015 elections officially announced a split in January 2023, following varied positions on a number of issues. The two sides however agreed to remain cordial and engaged to tackle “PPP corruption”.
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