Rule of law central to Guyana’s energy future – AG Nandlall

Attorney General and Minister of Legal Affairs, Anil Nandlall, on Thursday declared that the rule of law remains the foundation of Guyana’s rapidly expanding energy sector.

Addressing delegates on day three of the Guyana Energy Conference and Supply Chain Expo at the Guyana Marriott Hotel, Kingston, Georgetown, the attorney general stated that the country’s meteoric economic rise would not have been possible without a strong, modern legislative framework.

Minister Nandlall reminded delegates that when the government assumed office in August 2020, Guyana’s oil and gas sector lacked a modern legal framework.

At the time, the industry was governed by the outdated Petroleum Exploration and Production Act of 1986. Within a year, the administration enacted two cornerstone pieces of legislation: the Natural Resource Fund Act 2021 and the Local Content Act 2021.

“These became the foundational pillars of the industry,” he said.

The Natural Resource Fund Act established Guyana’s sovereign wealth fund, outlining clear rules for the receipt, management and withdrawal of oil revenues. Minister Nandlall emphasised that the law mandates parliamentary oversight, public reporting, and strict accountability mechanisms, including severe criminal penalties for breaches.

He noted that the International Monetary Fund has commended the transparency of the withdrawal formula embedded in the legislation.

Turning to the Local Content Act, the legal affairs minister described it as a proudly indigenous model, crafted after reviewing global examples but tailored specifically to Guyana’s unique economic and regional realities.

The act prioritises Guyanese nationals and companies in petroleum operations, defines strict ownership and employment thresholds to prevent “sham” companies, and establishes a Local Content Secretariat to maintain registers of eligible workers and businesses.

“We had to balance ambition with practicality,” AG Nandlall said, noting that rigid requirements could have disrupted investment and project delivery.

The legal affairs minister also highlighted the passage of the Petroleum Activities Act, governing the full lifecycle of petroleum operations, from exploration to decommissioning.

The act establishes clear licensing rules, modern production-sharing templates for future blocks, taxation provisions, and a decommissioning fund to ensure environmental liabilities are covered even after operators exit.

Complementing this framework is the Oil Pollution Prevention, Preparedness, Response and Responsibility Act, built on the principles of prevention, preparedness, response and polluter responsibility.

“This legislation embraces global standards and ensures that environmental protection is not an afterthought, but a central pillar,” he said.

Minister Nandlall underscored that Guyana’s legislative evolution extends beyond oil and gas. With more than 36,000 new businesses registered in 2025 alone, he said, commercial activity is expanding at unprecedented levels.

As a result, the Companies Act is undergoing a comprehensive overhaul to modernise corporate governance for a transformed economy.

Draft legislation is also advancing in areas such as environmental protection, waste management, trust law reform, electronic transactions, data protection, ports regulation and downstream gas development.

“Every major developmental plan you hear about has a legislative cradle,” he said. “Our framework is not static. It is constantly evaluated and refined to align with global best practices.”

The attorney general asserted that Guyana’s transformation, often compared internationally to the rapid rise of Gulf economies, rests squarely on legal certainty and institutional strength.

“None of this would have been possible without the rule of law and a strong regulatory framework grounded in law,” he said. “We have navigated complex and volatile waters, and we have done so safely.”

As Guyana continues its historic expansion, Minister Nandlall assured investors and citizens alike that the country’s legal infrastructure is designed to ensure transparency, accountability and long-term sustainability across its energy and supply chain ecosystem.