Guyana News Updates – September 26, 2022
OIL DORADO? A DREAM OR NIGHTMARE FOR GUYANA
THURSDAY 29TH SEPTEMBER 18.00 UK
GUYANA HIGH COMMISSION
PALACE COURT BAYSWATER
– John Mair – 07785 378156
Guyana Basins Summit
October 4-6, 2022
US Department of Commerce Caribbean Trade Mission & Conference
October 23-28, 2022
Caribbean Investment Forum
November 8-11, 2022
President to check status on first audit of oil and gas sector: Stabroek News
President Irfaan Ali has promised to check on the status of Guyana’s first audit of the oil and gas sector which was conducted by the United Kingdom-based HIS Markit on the US$460 million pre-contract costs. “I have to follow up where this is and will definitely communicate,” Ali responded when asked for an update on the report that has been completed more than a year ago. In the face of concerns that his administration has only paid lip service to transparency in its stewardship of the oil and gas sector, Ali had in August of this year, said that government is building a dedicated website to publish all available information.
Govt. says no slowing down of gas-to-shore project: Kaieteur News
– Minister Vickram Bharrat assures landowners concerns will be addressed
Even as landowners in Region Three fume over the presence of a natural gas pipeline on their properties- causing disruption and fear- the Minister of Natural Resources, Vickram Bharrat is confident that Government’s plans to develop the Gas-to-Energy (GTE) project will not be deterred by concerned citizens. At the sidelines of a meeting, hosted on Friday at the West Demerara Secondary School where landowners that will be affected by the pipeline were engaged, Minister Bharrat told this publication that he does not foresee any hiccups along the land acquisition process.
With return of coal-fired power, natural gas more important now than ever: OilNOW
Russia’s war on Ukraine has forced the return of coal-fired power projects, enabling European countries to weather the energy storm as the Putin-led administration chokes its natural gas supply. And with winter on the way, this seems like the most viable option. This return to coal-fired power, however, underscores the vital importance of natural gas in the global energy transition. It is filling the role as a bridge fuel to allow for renewable energy sources to come into play.
Government to compensate property owners who will be displaced by Gas-to-Energy project – Attorney General: OilNOW
A government delegation led by Guyana’s Attorney General, Mohabir Anil Nandlall, on Friday met with residents of several Region Three communities through which the upcoming Gas-to-Energy infrastructure will be built. These communities include Nouvelle Flanders and Wales, the legal affairs Minister said on Facebook. The meeting, which was held at the West Demerara Secondary School, explored the matter of compensation for those proprietors who will be displaced by the project.
Govt in talks with residents to acquire properties to facilitate laying of gas-to-shore pipeline – Guyana Times
Dredging of Guyana’s main river port for creation of two-way channel to begin soon, official says: OilNOW
As oil and gas activities ramp up offshore Guyana, so does marine traffic traversing the country’s main channel – the Demerara River – and the government is working to ensure it can facilitate the rapid change. At present, the Demerara channel can only facilitate marine traffic in one direction at any given time; plans are now advancing to ensure it can facilitate two. According to Guyana’s Minister of Public Works, Juan Edghill, the first step is already completed – wreckage removal.
Guyana business group lobbying for law that would recognise contracts as collateral for loans: OilNOW
President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker said the organisation is lobbying the Guyana government to pursue the type of legislative changes that would allow new companies to use their contracts as a means of securing loans. Given discussions that were had, Tucker said the administration has signalled its interest to get the proverbial ball rolling on this matter.
Should Guyana apply a windfall tax like the UK did? (Part 1): Guyana Chronicle
— If not, why not?
The fiscal regime applied to the oil and gas sector in the United Kingdom prior to the introduction of the windfall tax (energy profits levy) in May 2022, comprised of three elements, namely (1) ring fence corporation tax (RFCT), (2) petroleum revenue tax (PRT), and (3) supplementary charge (SC). It is normal practice universally for petroleum producing countries to design a separate fiscal regime specifically for the oil and gas industry that is usually different from the mainstream fiscal regime applied to companies operating in other sectors.
Auditor General mum on requested withdrawal of “clean audit” declaration for NRF: Stabroek News
In addition to staying silent on withdrawing statements on the “clean audit” declaration he made about the National Resource Fund (NRF), the Auditor General has also not clarified a number of issues relating to the 2012 Kares contract for building the $661 million Kato School, Former Auditor General, Anand Goolsarran says… The group stated that the taxes paid by the Natural Resources Minister were not properly accounted for in the financial statements. It referred to Article 15(4) of the 2016 Petroleum Agreement that requires ‘the appropriate portion of the Government’s share of Profit Oil.
Addendum to oil agreement: Stabroek News (Editorial)
While more voices are needed, the yeoman’s work being done by members of civil society in relation to the travesties in the oil and gas sector must be strongly applauded. The most recent example of this was the unearthing by commentator Christopher Ram of a 26th of April 2019 addendum to the abominable June 27th 2016 Production Sharing Agreement (PSA). That addendum made it explicit that the paltry 2% royalty provided for to the State could not be reclaimed from Guyana’s share of profit oil by ExxonMobil and its partners.
Financial reporting and audit of the Natural Resource Fund: Stabroek News (Columnist) Accountability Watch by Anand Goolsarran
Guyana’s President Dr. Irfaan Ali told the 77th session of the United Nations General Assembly currently under way that fossil fuels are a necessary means of energy while the world transitions to more sustainable means; and the fossil fuel industry should not be penalized or treated unfairly as the world moves away from that sector… In Guyana, one recalls a top government official urging ExxonMobil and other companies operating in the oil and gas industry to explore and extract as much crude oil as possible in the shortest period of time before the deadline set by the Paris Accord on Climate Change reaches for switching to renewable sources of energy.
Putting oil and gas employees on contract allowing employers to ditch responsibilities – GAWU: Kaieteur News
With very little representation of oil and gas workers in the sector, labour rights stakeholders continue to highlight the woes of local employees, with specific reference now being made toward petroleum staffers being placed on contracts, and how employers are able to circumvent their responsibility them. In an invited comment the Guyana Agricultural and General Workers Union (GAWU) expressed their concern over the current approach to petroleum workers, who in many instances, have pointed out cases of mistreatment and non -compliance with labour laws by their employers.
Local Content Law…Police can be called in to probe false declarations by oil companies – AG: Kaieteur News
Attorney General and Legal Affairs Minister, Anil Nandlall, S.C has defended Guyana’s Local Content Legislation, insisting that crimes related to the Act can be probed by the Guyana Police Force (GPF). Nandlall in an exclusive interview with this publication was at the time responding to an article published by this newspaper on Friday where a New-York based Attorney-at-Law, Dr. Vivian Williams, pointed out some of the loopholes he believes can hinder its effectiveness.
MARAD working with Chile to improve security at ports – News Room Guyana
Guyana now one step closer in securing a CLE Law School | INews Guyana
Micro, small & medium businesses to benefit from forum on exportation to US market – Guyana Times
Catfish exports to US: “The ball is still in Guyana’s court”- American Ambassador