C’wealth team arrives to assist natural resources sector – focus being placed on potential oil and gas sectors
February 13, 2012 | By KNews | Filed Under News
Source - Kaieteur News
(from left) Canadian High Commissioner, Mr. David Devine, Minister of Natural Resources and the Environment, Robert Persaud, Permanent Secretary, Joslyn McKenzie and Daniel Dumas of the Commonwealth Secretariat in discussion.
Minister of Natural Resources and the Environment, Robert Persaud and senior officials of the Ministry and the Guyana Geology and Mines Commission, today met with Head of the Economic and Legal Division of the Commonwealth Secretariat, Daniel Dumas and the Canadian High Commissioner, David Devine, for initial discussions on strategies to further develop Guyana’s extractive industries.
Over the next three days Dumas and his team will be meeting with some of the key agencies within the natural resources and environmental sectors including the GGMC, to review the institutions’ systems. Focus will be placed on how Guyana can improve the entire mining sector with new emphasis on the potential oil and gas sectors.
Some of the other issues which the Commonwealth team will address include the systems and practices for the development of the mining industry, the upgrading of laws and policies, and the methodologies that will be developed to improve the overall framework for the mining sector.
Minister Persaud noted that an effective vehicle must be developed to move the natural resources sector and must take into account the laws, the policies and institutional arrangements. In addition, the Ministry has started the development of a strategic plan for the natural resources and the environmental sectors. This will be in line with the other developmental guidelines that facilitate Guyana’s growth.
The Ministry is also engaging in discussions with the Extractive Industries Transparency Initiative to further enhance the integrity and transparency of the sector.
During the discussions, Minister Persaud emphasized the need for international support to effectively manage the sectors particularly as it relates to mining and oil and gas.
There are three pillars to improving development of the sectors, which are the frameworks, institutional arrangements and governance. Dumas noted that most countries look to share environmental and production-sharing agreements with the benefits of royalties.
A country should receive its fair share of the wealth from the extractive industry. As such, the tax systems in place must be attractive for private companies. Thus, a proper framework will ensure proper institutions are in place for effective governance. The workings of the Commonwealth team will be in two phases; Policy and Legislation will be on the oil and gas sectors and Institutional improvements which will be on the general functions of GGMC.
The Commonwealth team has already noted that there should be a review of the Petroleum Law to ensure that it is modernized to reflect the workings of the new era in energy development. Given that Guyana is on the horizon for a sustainable oils and gas industry, the review of the current system is of paramount importance for the country to manage its wealth effectively.
When a natural resource is very profitable for the private investor, the country should be compensated accordingly. In the mining sector there is more room for negotiation, but for oil and gas, the areas for negotiations can vary.
The meeting was also attended by the Commissioner of the Guyana Geology and Mines Commission, Mrs. Karen Livan, Deputy Commissioners, Mr. Kampta Persaud and Mr. Rickford Vieira and the Head of the Petroleum Division, Mr. Noel Dennison. Other senior staff of the Ministry of Natural Resources and the Environment were also present at the meeting.(GINA)
February 13, 2012 | By KNews | Filed Under News
Source - Kaieteur News
(from left) Canadian High Commissioner, Mr. David Devine, Minister of Natural Resources and the Environment, Robert Persaud, Permanent Secretary, Joslyn McKenzie and Daniel Dumas of the Commonwealth Secretariat in discussion.Minister of Natural Resources and the Environment, Robert Persaud and senior officials of the Ministry and the Guyana Geology and Mines Commission, today met with Head of the Economic and Legal Division of the Commonwealth Secretariat, Daniel Dumas and the Canadian High Commissioner, David Devine, for initial discussions on strategies to further develop Guyana’s extractive industries.
Over the next three days Dumas and his team will be meeting with some of the key agencies within the natural resources and environmental sectors including the GGMC, to review the institutions’ systems. Focus will be placed on how Guyana can improve the entire mining sector with new emphasis on the potential oil and gas sectors.
Some of the other issues which the Commonwealth team will address include the systems and practices for the development of the mining industry, the upgrading of laws and policies, and the methodologies that will be developed to improve the overall framework for the mining sector.
Minister Persaud noted that an effective vehicle must be developed to move the natural resources sector and must take into account the laws, the policies and institutional arrangements. In addition, the Ministry has started the development of a strategic plan for the natural resources and the environmental sectors. This will be in line with the other developmental guidelines that facilitate Guyana’s growth.
The Ministry is also engaging in discussions with the Extractive Industries Transparency Initiative to further enhance the integrity and transparency of the sector.
During the discussions, Minister Persaud emphasized the need for international support to effectively manage the sectors particularly as it relates to mining and oil and gas.
There are three pillars to improving development of the sectors, which are the frameworks, institutional arrangements and governance. Dumas noted that most countries look to share environmental and production-sharing agreements with the benefits of royalties.
A country should receive its fair share of the wealth from the extractive industry. As such, the tax systems in place must be attractive for private companies. Thus, a proper framework will ensure proper institutions are in place for effective governance. The workings of the Commonwealth team will be in two phases; Policy and Legislation will be on the oil and gas sectors and Institutional improvements which will be on the general functions of GGMC.
The Commonwealth team has already noted that there should be a review of the Petroleum Law to ensure that it is modernized to reflect the workings of the new era in energy development. Given that Guyana is on the horizon for a sustainable oils and gas industry, the review of the current system is of paramount importance for the country to manage its wealth effectively.
When a natural resource is very profitable for the private investor, the country should be compensated accordingly. In the mining sector there is more room for negotiation, but for oil and gas, the areas for negotiations can vary.
The meeting was also attended by the Commissioner of the Guyana Geology and Mines Commission, Mrs. Karen Livan, Deputy Commissioners, Mr. Kampta Persaud and Mr. Rickford Vieira and the Head of the Petroleum Division, Mr. Noel Dennison. Other senior staff of the Ministry of Natural Resources and the Environment were also present at the meeting.(GINA)