The Alliance For Change (AFC) subscribes to the perspective that citizens should have a stake in the oil and gas sector. But this should only take place “when the time is right.” This was recently noted by AFC Leader, Raphael Trotman.
During an exclusive interview with the Guyana Standard, the Minister of Natural Resources said, “When I say we should have a stake in the sector when the time is right, I mean when we have the regulatory framework in place to ensure transparency and accountability. A National Oil Company is imperative, but its implementation can’t be immediate.”
Trotman said it is now up to the Department of Energy to advise President, David Granger on when that time has arrived.
Also speaking to this news site on the matter was former Energy Minister of Trinidad and Tobago, Kevin Ramnarine. The Trinidadian said that a National Oil Company would be important for Guyana’s future. He said however that the model for the state company would need careful analysis.
Ramnarine said, “It is important to define what that company does and to clearly state what its objectives are. For example, will the company directly participate in exploration and production activity or will it play a non-operating role where it holds equity in blocks on behalf of the state? There are two examples of these from Norway.”
He added, “One is Statoil (now called Equinor). This company participates directly in drilling and production. The other is Petoro. Norway has significant holdings in production licenses on the Norwegian continental shelf through the state’s direct financial interest (SDFI). These assets are managed by Petoro…”
The former Energy Minister said that going forward; Guyana can examine the aforementioned models, and select the one that would thrive in the existing environment.