If Guyana wants to ensure that its oil and gas eco-system is well managed, then it would be wise to quickly move towards the implementation of a robust regulator for the sector. Guyana would have made its first discovery in 2015 and started production last year in December. In the span of more than five years, the nation is nowhere close to having a robust regulatory system in place.
This was noted in a recent analysis by the Inter-American Development Bank (IDB). The document called, “Traversing a Slippery Slope: Guyana’s Oil Opportunity”, notes oil sector development will not be a success simply because clear policies, strategic or operations plans are in place.
The report notes that success is dependent on the organizational strength of the Department of Energy (DE) and the regulator or designated regulator body for the sector. It said that these have to be supported by other actors within the ecosystem. With emphasis on the DE and regulator, the IDB report said that Guyana must embrace and implement a “gold standard” business model that aligns robust governance and leadership, Human Resources talent, processes, and systems with business and project planning and management.
In other words, Guyana must move swiftly to develop a DE and regulator that are competent institutions capable of efficient, effective, and economic “gold standard” performance.
Pointing to another necessity to ensure good governance of the sector, the IDB report noted that Guyana must have a defined national integrated plan for its sector with clearly established Key Performance Indicators (KPIs) and timelines for achievement, supported by operational and funding plans to support implementation. It said that these plans will be used as the driver of the sector’s development.
