Dr. Jagdeo hails world-leading management of Guyana’s oil and gas sector

Despite criticisms of the People’s Progressive Party/Civic (PPP/C) Administration’s management of the oil and gas industry, Guyana’s oil and gas industry is said to be one of the best-managed sectors globally.

The country has made significant progress in this sector, which has been supported by various reports from reputable international financial institutions such as the International Monetary Fund (IMF).

At an end-of-year press conference, the General Secretary of the PPP, Dr Bharrat Jagdeo, highlighted several measures put in place by the government to ensure the effective management of the sector.

For instance, the government established a Local Content Act in 2021, which paved the way for hundreds of Guyanese to participate in the sector through employment and business ventures.

“Let me tell you the assessment of a lot of people including the oil and gas executives. When they come and see the levels of investment and participation of Guyanese, they don’t believe it,” the GS informed media operatives as he noted that the act is unprecedented for an emerging oil producer.

The government also reformed the Natural Resources Fund (NRF) to ensure transparency and accountability in its oversight and is a model in many parts of the world for transparency and oversight, the general secretary pointed out.

“We have a strong mechanism for the natural resources fund now,” he highlighted at the press conference.

Additionally, the Petroleum Activities Act of 1986 was updated, and in 2023, the Ministry of Natural Resources hosted an auction for its remaining oil blocks offshore Guyana. This move ensured that the first-come-first-serve model was set aside, giving other interested stakeholders a fair chance.

He added, “We’ve reformed our PSA; we’ve dealt with almost the whole industry. So, it’s a model management despite what you hear … it’s one of the better-managed industries in any part of the world. We have strengthened our environmental permits to a point where we are way ahead of the world in terms of ending flaring. So, great progress in that sector.”

Guyana also boasts as one of the first country in the world to enter into a major deal for the sale of its high-quality carbon credit to oil giant – Hess Corporation.