GNBS, GRA ensures checks and balances on first oil shipment.

DPI, Guyana, Tuesday, January 21, 2020

All the necessary checks and balances were conducted during the lifting process of Guyana’s first shipment of one million barrels of light crude; to ensure that the country’s interests were well protected.

This assurance came from the Department of Energy, as the MV Yannis set sail for markets in the United States.

According to the Department of Energy, the oil tanker successfully lifted Guyana’s first shipment of light crude, under the watchful eyes of the Guyana National Bureau of Standards, (GNBS), and the Guyana Revenue Authority, (GRA), who both scrutinized the process.

Jermaine Softley, Head Legal & Metrology at GNBS, explained the need for such scrutiny.

“It’s important for our royalties, it’s important for pricing and everything else. The Guyana Revenue Authority needs to charge the relevant taxes and duties and royalties as it relates to the crude that we are selling. So, like everything else accurate measurement is important, it’s really important to the system,” Softley stated.

The GNBS, operating under the Ministry of Business is a semi-autonomous governmental organisation responsible for standards and quality in Guyana. It is the only National Standards Body in the country.

When Guyana’s oil and gas industry came into being, there was a supplementary document which was Gazetted, giving the body the power under Section 18 of the Petroleum Act, to conduct checks and balances.

“In this particular case, our responsibility under this act is to ensure that the measuring devices are tested and remain accurate. Our responsibility in that regard – we will ensure these calibrations are done, we conduct the calibrations and verification under the Bureau. We do it for the verification of Petro companies, gas stations etc. In this regard, we witness the verification.” Softley explained.

While a third party, via an agreement between the lifter and buyer, performs the calibration, the GNBS must witness the process as the overseer on behalf of the government.

Lifts of crude are expected approximately every 10 to 12 days after the first lifting.

Oil revenues from this first venture are projected to be approximately $62.7 Billion (US$300M) in this first year and more than triple over the next five years.