Developmental partners such as the Commonwealth Secretariat, the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank (IDB), are assisting Guyana with a review of its legal and regulatory frameworks for the oil and gas sector.
In fact, preliminary drafts of key legislation have been prepared and an in-depth review of the legal and regulatory frameworks is currently on-going, according to a report seen by this news agency.
The Guyana Standard understands that the Government’s review with the help of the various international partners will address critical issues such as oil revenue management, licensing, contract models specifically for the Production Sharing Agreement, local content, and Health, Safety, and Environmental and Social (HSES) management.
At present, the oil and gas sector activities in Guyana are subject inter alia to the Petroleum (Production) Act of 1938, the Petroleum (Exploration and Production, E&P) Act, Cap. 65:10 of 1986 and related Regulations of 1986 and the Upstream Legal Requirements for Petroleum (2004).
These instruments, along with the Guyana Geology and Mines Commission Act, the Mining Act, the Environmental Protection Act, the Occupational Safety and Health Act, and the Model Production Sharing Agreement (1986), among others, are outdated.
The development partners have noted that these instruments need to be updated to a view towards maximizing benefits to the country and affected communities; managing the technical, environmental, social, and financial risks linked to the sector; and building capacity to engage effectively with investors.