Page 9 - LatAmOil Week 38 2022

LatAmOil GUYANA LatAmOil

As such, Guyanese citizens require more knowl- does not own a single share in the company or
edge of exactly what the agreement involves, he in the project. As a result, he stated, it does not
declared. have the authority to approve EEPGL’s expenses
“The government doesn’t run the company and other day-to-day operations.
[EEPGL]. The company raises money [for the He also noted that Guyana’s government
project]. It had to raise $20bn to invest in the does have the right to examine EEPGL’s activ-
four FPSOs [to be installed at the four oilfields ities via two audit processes – one governed
approved thus far for development],” he said. by the company’s contract and another under
“They’re investing this money in their FPSOs. the auspices of the Guyana Revenue Authority
They’re making expenditures, paying back what (GRA). When assessing EEPGL’s expenditures,
they borrowed, and then they’re paying a share he added, the government must compare its
in royalty and profit oil to the government,” he activities to industry standards and can only flag
explained. activities that are considered excessive or out of
Jagdeo went on to say that the government the ordinary. ™

Guyana’s VP expects new oil and

gas law to be passed by next March

GUYANA’S government has begun the pro- Petroleum (Exploration and Production) Act.
cess of updating the country’s existing oil and However, he offered an example of the inad-
gas law and hopes to adopt a new version in the equacies of the current legislation by pointing
near future, Vice President Bharrat Jagdeo said out that an amendment had been necessary to
last week. optimise the Gas-to-Energy (GTE) project.
The South American state’s hydrocarbon In August 2021, he explained, members of
industry is currently governed by the Petro- Guyana’s Parliament were asked to vote on a
leum (Exploration and Production) Act, a bill minor amendment to the Petroleum (Explora-
adopted in 1986 that covers the exploration, tion and Production) Act that concerned land
development, conservation and management use provisions for the onshore portion of the
of oil and gas reserves in Guyana’s exclusive GTE pipeline. The project’s sponsors were look-
economic zone (EEZ). The government is now ing to enable the laying of fibre-optic cables as
revising this legislation, as the discovery of doz- well as steel pipe along the route of the pipeline
ens of offshore oilfields in the offshore zone since in order to improve connectivity and commu-
2015 has made clear that it is no longer adequate. nications between ExxonMobil’s onshore and
According to Jagdeo, Georgetown is on offshore facilities, and they had to obtain legal
track to complete the revision process soon and authorisation before doing so.
will then submit a draft version of the updated The new oil and gas law will complement
Petroleum Law to Parliament for debate and other legislation governing activity in the hydro-
discussion. The government hopes to see a new carbon sector, including the law governing the
law passed and in place by March of next year, country’s Natural Resource Fund (NRF) and
OilNOW.gy quoted him as saying. the law governing local content. Both of these
The vice president did not comment on the laws were passed by Guyana’s Parliament in late
changes that were being made to the existing December. ™

Jagdeo says the government has begun the process of revising the existing oil law (Photo: DPI.gov.gy)

Week 38 21•September•2022 www. NEWSBASE .com P9