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Govt undertaking new review of Payara contract

Staff Reporter by Staff Reporter
August 16, 2020
in News
Minister of Natural Resources, Vickram Bharrat,

Minister of Natural Resources, Vickram Bharrat,

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…talks up credentials of Canadian consultant, but ignores corruption scandal  

Minister of Natural Resources, Vickram Bharrat,

The Ministry of Natural Resources Saturday night disclosed that a review of the Payara contract was already being done, but in the interest of transparency it has hired Canadian consultants to look over the work that has already been reviewed.

The government also extolled the credentials of one of the consultants, Alison Redford, but ignored the fact that she was caught up in a corruption scandal that forced her to resign as Alberta premier. Reports are that Redford and her office used taxpayer money “inappropriately” during her time as Alberta premier, with planes used for personal and partisan purposes, provincial Auditor General Merwan Saher had found in a report.

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“They consistently failed to demonstrate in the documents we examined that their travel expenses were necessary and a reasonable and appropriate use of public resources,” Saher had written in the report according to a new item on the Canadian Broadcasting Corporation back in August 7, 2014. “Premier Redford used public assets (aircraft) for personal and partisan purposes. And Premier Redford was involved in a plan to convert public space in a public building into personal living space. “How could this have happened? The answer is the aura of power around Premier Redford and her office and the perception that the influence of the office should not be questioned.”

In a statement the ministry said the current review has been undertaken by the Energy Department for more than seven months. The department contracted Bayphase Oil and Gas Consultants at a sum of US$386,830 which commenced in December 27, 2019. There was a first contract extension (no cost) to July 27, 2020 and a second contract extension to September 27, 2020 with a revised contract sum of US$429,382 which represents an 11 percent increase. This review by Bayphase Oil and Gas Consultants will be completed shortly.

“The PPP/C Government has decided to review the work already undertaken by the Department of Energy so that the interest of all Guyanese is protected and in keeping with international transparency and accountability standards prior to approval being given,” the ministry said in the statement.

According to the ministry it will be important to have a team of technical experts to assess progress to date and to assist the ministry, where necessary to successfully conclude the permitting exercise. “This will require coordination on ensuring that regulations are complied with and that they can be enforced.  This will include environmental standards and reservoir management which is about managing how resources are developed to ensure that the interests of the people of Guyana and their resources are developed in a sustainable and responsible manner to the benefit of the country.”

“Bayphase Oil and Gas Review will be re-examined by a team to be headed by Ms. Alison Redford QC which includes the former Deputy Minister of Energy in Newfoundland, Canada, senior international reservoir engineers and Mr. Jay Park, QC, Managing Partner of Park Energy Law based in Canada and the United Kingdom. Ms. Redford has also worked with other groups around the world to conduct similar reviews in nature,” the ministry said.

Ms. Redford has served as a World Bank Advisor on Gas Sector Reform in Pakistan and Afghanistanan and in other jurisdictions, as they develop new approaches to upstream regulation, transparency and accountability inclusive of community engagement. As Premier of Alberta, she introduced the Responsible Energy Development Act which created the Alberta Energy Regulator.  The Act sets out rigorous regulation, compliance and enforcement provisions on all aspects of oil and gas production, including permits and licenses.  Further, she also developed the Canadian Energy Strategy for Canadian First Ministers and the Transition Energy Initiative for the Conference Board of Canada.

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