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For Guyana to prosper with its oIl politicians must be replaced with a competent Petroleum Commission – T&T specialist
Kaieteur News – The management of a nation’s petroleum industry should not be entrusted to a Minister, the former Head of Maintenance and Reliability at British Petroleum (BP) Trinidad and Tobago, Kuarlal Rampersad has warned Guyana.
Former Head of Maintenance and Reliability at BP Trinidad and Tobago, Kuarlal Rampersad
In an interview with Kaieteur News, Rampersad who worked just over three decades for BP weighed in on the critical need for the oil and gas sector to be managed by experts, rather than what he described as “political appointees”.
He said, “I don’t know why these ministers want to be the God-father of everything, make the decision for everything and at the end of the day, if you look what’s happening world-wide, all these ministers corrupt. They jailing them and there’s no big secret about it so we need to get a group of experts to manage the sector and appoint a head so even if elections come and go that person will remain there as the head and continue.”
Rampersad was adamant that no politician should be making any decision regarding Exxon and how the resources are allocated. In fact, the expert suggested that the nation’s prosperity with its oil resource is dependent on the establishment of a competent Petroleum Commission.
He cautioned, “It’s very, very dangerous and I can say that loud and clear. It’s very dangerous to put those things in the hands of a minister because let’s say, he is there for five years, he will try to be as corrupt as possible and when he leaves and go, that’s it. Nobody can hold him accountable but with a permanent head of the commission, that person will seek to have continuous development of the business.”
The T&T specialist was keen to note that the Director of the Commission must be a public servant to stand guard of the nation’s resources rather than a political appointee, such as a Minister.
Guyana is now approaching its fifth anniversary since the commencement of oil production offshore in the Stabroek Block.
The nation has however failed to establish a competent Petroleum Commission for the prudent management of the sector. This Commission would comprise experts such as trained negotiators, engineers and other key specialists to ensure prudent governance of the nascent oil and gas sector.
Minister empowered
In August 2023, the National Assembly approved the Petroleum Activities Act which repealed the outdated 1986 legislation. Notably the new law arms the Minister of Natural Resources with sweeping powers over the hydrocarbon industry.
According to the legislation, the minister is 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 also has the power to inspect petroleum operations, seek corrective action and imposes 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.
Furthermore, 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. These are just a few of the powers granted to the Minister under the legislation.
For his part, Natural Resources Minister, Vickram Bharrat explained that the establishment of a Petroleum Commission now will slow down the progress and development of Guyana’s oil and gas sector.
“A commission like that might be slower in decision-making than the policymakers making decision with regards to how we advance this sector taking into consideration that we have a limited timeframe and a closing window so we have to look at the advantages and disadvantages of everything,” he noted.
Bharrat also pointed out that the Commission would carry out the exact functions being conducted by the Ministry’s Petroleum Unit.
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