Legislation, regulatory measures to strengthen oil and gas industry

The government’s upcoming parliamentary agenda will include legislative and regulatory measures aligned with its broader plans for the oil and gas industry, particularly in areas that advance Guyanese participation and sustainable sector growth.

Vice President Dr Bharrat Jagdeo made this statement in response to a question on the government’s legislative priorities for the petroleum sector.

He told reporters at a press conference that while two key pieces of legislation, the Petroleum Activities Act and the Oil Pollution Prevention, Preparedness, Response and Responsibility Bill, have already been passed, work is now focused on completing the accompanying regulations that will operationalise those laws.

He said that any further legislative changes would be guided by the government’s development agenda, especially as it relates to the growth of the gas sector and the drive to monetise and democratise opportunities for Guyanese. This includes expanding access to fertiliser, cooking gas, and creating conditions for local ownership in downstream companies.

“If we need legislative changes to facilitate the growth of the gas sector, that will be done,” he said. Such efforts would ensure the sector’s benefits reach more citizens.

Dr Jagdeo also pointed to ongoing work to strengthen the Local Content Act of 2021, noting his disagreement with recent comments by ExxonMobil Guyana’s President, suggesting no amendments were necessary.

“We believe it has to be changed,” he asserted, emphasising that discussions at the upcoming oil and gas conference will help determine whether updates are needed through regulations or amendments to the core Act.

According to VP Jagdeo, the government’s legislative and regulatory actions will therefore remain “agenda-driven”, targeted at supporting key national objectives such as greater local participation, value-added development, and sustainable management of Guyana’s petroleum resources.

In its previous term, the People’s Progressive Party/Civic (PPP/C) Administration enacted amendments to several pieces of legislation that strengthened the management of the burgeoning oil and gas industry.

These include the landmark Local Content Act, which increased opportunities for Guyanese businesses, the Natural Resources Fund (NRF) Amendment Act and the Petroleum Activities Amendment Act.

To ensure Guyana’s environment is rigorously protected, the government also passed the Oil Pollution Prevention, Preparedness, Response and Responsibility Bill.

The forward-looking bill also aligns with Guyana’s Low Carbon Development Strategy (LCDS) 2030, a comprehensive document that places environmental protection.