AFC promises sweeping changes to oil sector

Aug 14, 2025 News

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…to renegotiate contract, establish petroleum commission, ring-fence projects if elected to office

Kaieteur News – The Alliance For Change (AFC) has vowed sweeping changes to the lopsided, ExxonMobil contract if it gets into government after the September 1 elections promising to establish a National Petroleum Commission and pursue renegotiation and ring-fencing provisions.

With General and Regional Elections less than three weeks away, the party has released its oil and gas policy to the media, outlining its plans for the sector, highlighting that the aim is sovereignty, where Guyana must be in control of and benefit from its oil sector. It must be noted that it was AFC founder, Raphael Trotman who was the Minister of Natural Resources at the time when the coalition signed the 2016 Production Sharing Agreement (PSA) with ExxonMobil.

The 2016 PSA stipulates that the Minister responsible for petroleum must pay the equivalent of the companies’ income tax to the Guyana Revenue Authority (GRA) on their behalf. Under the agreement, up to 75 per cent of oil production is used to recover costs, the remaining 25 per cent is considered profit and is split equally between Guyana and the consortium, giving each 12.5 per cent. However, the consortium pays a 2 per cent royalty from its share to Guyana. From Guyana’s 14.5 per cent total take, the government must pay the oil companies’ taxes.

The AFC said that it will be looking to achieve transparency, with full disclosure of all the agreements within the sector, revenue flows, environmental plans and approvals. Another aspect of the AFC’s promise is accountability, where industry operators will have to comply with all laws, best practices, and will be facing consequences for violations.

The AFC said too that environmental protection will be prioritised, along with the building of the country’s local capacity and long-term national planning, to ensure there is equity and every citizen benefits. “Within 30 days of assuming office, we will initiate renegotiation of the Stabroek Block Production Sharing Agreement (PSA), including transitioning to a new model that ensures Guyana receives its fair and proportional share of oil revenues. Introduce ring-fencing provisions to ensure cost recovery is limited to each project, guaranteeing faster revenue flows to Guyana,” the policy says.

Some 30 days after this which would be a total of 60 days in office, the AFC is looking to create something that the current administration claims there is no need for, a National Petroleum Commission (NPC), an independent and professional regulatory body which will have oversight over exploration, production and compliance.

An AFC government will, “ensure the NPC is staffed with qualified professionals, insulated from political influence, and mandated to oversee contracts, compliance, safety, and environmental protection.”

No flaring

In an effort to protect the environment at all costs the party said they will reinstate the prohibition on routine gas flaring which releases over 200 pollutants, and ban the discharge of toxic, hot, chemically laced produced water into the ocean, while enforcing all safe operating limits as outlined in the Environmental Impact Assessments (EIA).

There is also the promise to, “Uphold Justice Sandil Kissoon’s ruling: Oil companies and all affiliates must have full liability coverage for oil spills. Require continuous financial proof of insurance or bonds from operators to cover potential catastrophic incidents. Impose mandatory 24/7 monitoring and emergency response capability.”

In order to have strong capable oversight, the AFC has proposed rebuilding the specialised Petroleum Oversight Unit at the Environmental Protection Agency (EPA) and will also seek to reinstate World Bank-supported capacity-building initiatives for EPA, GRA, and other regulatory bodies. In addition, there will be the training and retaining of petroleum professionals, which ensure that there is on-site oversight of all offshore operations. In the area of waste management, the AFC has promised the re-establishment of a “cradle-to-grave hazardous waste management system. Construct state-of-the-art landfills to safely handle toxic, radioactive, and chemical waste. Introduce strong monitoring and auditing mechanisms for waste handling and disposal.”

Furthermore, the AFC is looking to have the Natural Resource Fund (NRF) undergo a reformation that would guarantee several things including independence, technical competence, public participation, and equitable distribution. It is also committing to making public the quarterly reports on revenues, expenditures and investment performances, and also require the oversight of parliament and civil society on how the funds are withdrawn and invested.

In order to ensure that there is absolute transparency and the public has access to information, the party is promising to “Mandate publication of all contracts, permits, licenses, agreements, EIAs, and feasibility studies within seven days of approval. Develop a publicly accessible digital portal for all industry-related documents. Institute a culture of open government in the extractive sector.”

It will also look to, “Require rigorous feasibility studies and independent Environmental and Social Impact Assessments (ESIAs) before approval of major oil and gas projects. Insist on detailed project management plans, performance benchmarks, and regular audits. Engage global experts to vet mega projects prior to implementation.”

Steps will also be taken to strengthen Guyana’s legal safeguards against contracts that are exploitative and corporate abuses. Hence cooperative agreements will be signed with international oversight bodies like the Extractive Industries Transparency Initiative (EITI), which will aid in the maintaining of robust legal representation to defend Guyana’s interests in arbitration and disputes.

An AFC government will, “require all operators to maintain full oil spill contingency plans reviewed bi-annually. Stockpile oil spill response equipment in strategic coastal and offshore zones. Conduct quarterly simulations and emergency drills with EPA, Civil Defence Commission, and international partners. Impose strict penalties for delayed or negligent responses.”

The AFC said with all of these measures in place will ensure that Guyana’s oil boom which presents a once-in-a-lifetime opportunity, will not become a burden but with clear policies, strong institutions, environmental safeguards, and people-centered leadership, the oil wealth can build a Guyana that is safe, prosperous, and just for every citizen.

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• ExxonMobil contract, Flaring, oil sector, Petroleum Commission, renegotiate, ring-fence

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