GEORGETOWN, Guyana, CMC – The Guyana government released a draft Petroleum Activities Bill for public consultation to replace the Petroleum (Exploration and Production) Act 1986. It is part of efforts to modernize the legal and regulatory framework related to the petroleum sector.
The Ministry of Natural Resources said the new legislation introduces significant improvements and safeguards related to safety, emergency response, cross-border unitisation, supervision, and monitoring requirements and authorizes the minister to prescribe regulations about critical administrative and operational aspects of exploration and production activities.
It also expands the scope of regulation to include storage and pipeline transportation aspects of the oil and gas sector. It empowers the government to regulate activities associated with the geological storage of carbon dioxide.
Exploring opportunities for potential CO2 storage sites will enable the government to develop petroleum resources while seeking to minimize their carbon footprint.
The authorities say the Bill is expected to be supplemented by a set of regulations that will follow in the coming months and provide the government with the necessary toolbox for responsible and efficient management of petroleum activities within the Guyanese economy.
The government will also ensure that the terms of the draft petroleum agreements released in association with the first offshore licensing round are aligned with the provisions of the Petroleum Activities Bill.
The draft Bill, available for public feedback for two weeks, is part of the efforts to improve the overall management and regulation of the petroleum industry through various policy and legislative programs.
The ministry said these programs included enacting the Local Content Act, establishing the Local Content Secretariat, and a new Natural Resource Fund (NRF) law to provide greater oversight and management of revenue flows.
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