A view from offshore Guyana where oil production and exploration activities are ongoing
Dear Editor,
Reference is made to an article published in the local press on September 15th, 2024, edition, with the caption “for Guyana to prosper with its oil politicians must be replaced with a competent Petroleum Commission―TT specialist”. I don’t know where these “specialists” are from, but this latest specialist dug up, is Trinidadian Kuarlal Rampersad.
His reasoning is quite illogical because he thinks that experts are incorruptible. Politicians are not the only ones who are corrupt, experts are perhaps more corrupt than politicians.
What is interesting though is that this so-called specialist has the audacity to lecture Guyana on what is good for its prosperity, but the same thing he wants for Guyana, is absent in his own country. I confirmed that Trinidad and Tobago (T&T) has no such Petroleum Commission, a country that has been in the oil and gas business for more than a century. Is he suggesting, therefore, that the Trinidadian politicians are corrupt and therefore there is/was no prosperity in T&T?
I would argue that a Petroleum Commission is not necessary. Those same experts should be recruited within the ministry and other regulatory agencies.
The disadvantage with a Petroleum Commission of sorts is that it could move in the opposite direction that the country intends to go as a matter of its public policy. In our case, the policy is to ramp up production as fast as possible and to extract maximum resources as fast as possible, considering that there is a relatively short window to do so. We are in an era where we cannot afford to move at snail’s pace in an industry that is increasingly evolving.
On the issue of corruption, this is why it is important to have a robust legal framework, parliamentary oversight, and strong institutions. As such, strengthening of the overarching governance and legislative framework for the sector is paramount. Are we doing this as a country? The answer is yes.
It is foolish to think that experts are not corrupt, and that a Petroleum Commission will magically prevent corruption. There is no such guarantee.Furthermore, it is worthwhile to note that the existing institutions, such as the Guyana Revenue Authority (GRA) and the auditors have been doing a commendable job in terms of uncovering financial and other irregularities through the cost recovery audits. There are at least three cases in the sector that are the subject of arbitration, of which one landed in the local court (the inflated invoice by a Trinidadian firm). These examples are good indicators that the existing institutions are working effectively.
Yours sincerely,Joel Bhagwandin
