Gov’t advances modern governance framework for oil, gas sector

THE Government of Guyana is moving forward with plans to enhance governance and institutional capacity in the country’s growing oil and gas industry, according to Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh.

During the Budget 2026 presentation on Monday, Dr Singh stated that the administration is working to create a modern and credible governance system for the oil and gas sector.

He said that this effort involves updating laws and regulations, strengthening key institutions, and continuously developing technical skills within the public sector.

In the past five years, the government has launched a wide-ranging legislative reform effort to align the petroleum sector with international standards.

This includes enacting the Natural Resource Fund (NRF) Act and the Local Content Act (LCA) in 2021, the Petroleum Activities Act (PAA) in 2023 – which replaced the 1986 Petroleum Act – and the Oil Pollution Prevention, Preparedness, Response and Responsibility Act (OPPPRRA) in 2025 to address environmental risks and emergency protocols.

“These Acts lay the foundation for a modern legal framework to govern the sector,” Dr Singh told the National Assembly.

He added that the government plans to update the First Schedule of the Local Content Act this year to expand the range of goods and services eligible under local content rules.

Moreover, the review of regulations under the Petroleum Activities Act is progressing, incorporating lessons from the Hammerhead Petroleum Production Licensing process.

The minister noted that the additional work being carried out should result in the finalisation and implementation of the regulations by 2026.

The commencement order for the OPPPRRA is also expected to be issued this year, allowing for full implementation and the rollout of coordinated compliance and enforcement measures.

Dr Singh emphasised the administration’s commitment to developing human capital within the petroleum governance framework.

In 2025, government agencies took part in targeted training sessions led by industry experts in areas such as market analytics, cost estimation, and scenario modelling.

“The government will keep providing these capacity-building opportunities,” he said, stressing that strengthening local skills is crucial for managing the petroleum economy effectively.