Industry: Energy Region: South America Price: US $20 million Method of transaction: Equity investment
Project objectives: To support the strengthening of the legal and institutional framework and the capacity of key institutions to manage the oil and gas sector in Guyana.
Project details:
Component A: Strengthening the legal framework and stakeholder participation. This component is designed to support the updating of Guyana's legal and regulatory framework for governance and oversight of the oil and gas industry, and to support stakeholder engagement and transparency.
Subcomponent A1: Updating the legal and regulatory framework for the oil and gas industry. The legal and regulatory framework for the industry needs to be updated and an in-depth review of the existing legal and regulatory framework and the generation of draft legislation and regulations is required. The main objective of this sub-component is to support further work on strengthening laws and regulations where necessary, including :(a) the Guyana Petroleum Commission Act; (b) Oil tax and financial regulations; (c) The content of local laws and regulations; (d) Regulations on environmental protection and pollution control for petroleum; (e) Regulations on health and safety in petroleum. Establish a comprehensive legal and regulatory framework for Guyana's oil and gas sector in line with international standard practices.
Sub-component A2: Support stakeholder engagement and improve transparency. This sub-component will support increased transparency and disclosure in the extractive sector, managing expectations, and improving social accountability. This includes :(a) supporting the implementation of the EITI. The project will support Guyana in deepening the EITI process and coverage, including supporting or preparing and distributing EITI reports. (b) Stakeholder engagement. With IDB's support, the project will help GCRG implement a communications strategy aimed at engaging all relevant stakeholders in the oil and gas industry.
Component B: Capacity-building of key institutions. The project aims to build institutional capacity and acquire third-party expertise to enhance the Government's ability to effectively manage the oil and gas sector in the Cooperative Republic of Guyana.
Subcomponent B1: Support the technical needs of major oil and gas organizations. At present Guyana does not have the human resources needed to address this problem. Urgent technology needs of key organizations responsible for the oil and gas industry. This sub-component will support DE, GGMC, Ministry of Finance, GRA, AGC, and Petroleum Commission to address these issues once established through the direct involvement of external experts. The activity will allow experts to be hired as consultants to provide general technical advice, business advice, political and strategic analysis of key documents, and, most importantly, on-the-job training and peer mentoring. Work closely with government to establish long-term regulation of the oil and gas sector.
Sub-component B.2: Support key training needs of major oil and gas agencies. This will be supplemented by immediate injection of technical capabilities through sub-component B.1. The sub-component will provide training for strategic personnel from major government agencies directly involved in the oil and gas industry.
Subcomponent B.3: Establishment of petroleum data management. As exploration activity in Guyana increases, GGMC is being inundated with a wealth of oil and gas information and data -- seismic surveys, well logging reports, field data, tapes, samples, maps, geological models, etc. This sub-component will be for the establishment of a new national petroleum data repository for Guyana, ranging from the conduct of needs assessments, to the acquisition of the required hardware and software, to the collection and storage of existing data (core samples, well reports, field tapes, seismic reports, etc.).
Sub-component B.4: Strengthening of environmental and social management. Guyana has an overall framework for environmental and social governance, but there are gaps in some areas, particularly with regard to the supervision of the oil and gas sector.
Component C: Strengthening financial management. Limited institutional capacity and governance challenges in Guyana are major obstacles to successful public financial management, including the recently approved Natural Resources Fund legislation, which addresses an increasingly highly volatile economy and macroeconomic management of a loss of competitiveness. This component will strengthen the GCRG's public financial management, macroeconomic and financial analysis capabilities and support the implementation of the Natural Resources Fund Act.
Component D: Project management. This component will provide support to the Government of the Cooperative Republic of Guyana in the management and coordination of all project activities funded by the proposed project. More specifically, it will support the government's procurement, financial management, safeguards management, monitoring and evaluation capabilities, and provide technical advisory services to the Department of Energy by providing project executing units with training, instrumentation staffing, procurement of goods, and operational costs.
Intention of cooperation: now we are looking for domestic enterprises to invest in this project. Please contact us if you are interested.