PNCR outlines Oil and Gas strategies, showing significant shift from PPP Gov’t

By Mark DaCosta- Against the backdrop of mounting criticisms of the People’s Progressive Party’s (PPP) handling of Guyana’s oil and gas sector, the People’s National Congress Reform (PNCR), as part of the wider A Partnership for National Unity (APNU) coalition, has released a detailed statement on how it intends to govern the sector if elected to office. The PNCR/APNU leadership has long questioned the PPP’s transparency and management of Guyana’s burgeoning oil wealth, citing corruption, inefficiency, and missed opportunities. In response, the party has laid out a comprehensive plan of its own.

A central feature of PNCR’s strategy is the formation of a specialised advisory team within 90 days of taking office. This team would consist of experts from various fields — economics, law, engineering, and renewable energy — tasked with guiding the government through the intricacies of upstream, midstream, and downstream operations in the oil and gas sector. This approach, the party claims, will ensure that policy decisions are grounded in technical expertise and long-term national interest.

The establishment of an independent Petroleum Commission is another key element of the plan. The PNCR has emphasised the importance of this body being fully autonomous, free from political interference, and staffed by qualified professionals. The commission would manage all facets of the industry, from licensing and exploration to production and refining.

A significant shift from the current administration’s approach would be the introduction of an independent Inspector General’s Office. This office would operate a 24/7 hotline, allowing citizens to anonymously report any suspicions or knowledge of corruption within the oil and gas sector. PNCR/APNU states that this mechanism is designed to foster public involvement and ensure ethical conduct across the board. Furthermore, the office would have the authority to conduct independent investigations and recommend prosecutions where necessary.

On environmental issues, the PNCR is promising a strict regulatory approach, particularly when it comes to the management of oil spills and gas flaring. Unlike the current administration, which has been criticised for lax oversight, the PNCR pledges to reinstate policies requiring full liability coverage for oil spills. This would include securing parent company guarantees and appropriate insurance to cover the costs of environmental disasters. Additionally, gas flaring would be tightly controlled, only allowed during start-ups, emergencies, or maintenance, and subject to international standards.

Central to PNCR’s vision is the principle that the oil and gas sector should not be prioritised at the expense of the environment. The party proposes the implementation of the World Bank’s plan for an oil and gas unit at the Environmental Protection Agency (EPA), staffed with experienced professionals, to provide proper oversight. The PNCR also commits to completing the Coalition Government’s unfinished “Cradle to Grave Management Plan,” which aims to safely handle hazardous and non-hazardous waste generated by the sector.

Economic sustainability during and after the oil era is another focal point. The party argues that Guyana must avoid the “oil curse” — a phenomenon where countries become overly reliant on oil revenues, leading to economic instability once resources deplete. To combat this, the PNCR plans to prioritise investments in education, ensuring the equitable distribution of oil wealth across the country and building capacity in various sectors. The creation of jobs and opportunities, particularly in rural and underdeveloped areas, is seen as crucial to achieving long-term national prosperity.

Addressing the skills gap in the local economy, particularly in oil and gas, the party promises to conduct a national skills audit across all sectors. This audit would inform the development of training and educational programmes to equip Guyanese workers with the necessary expertise. The PNCR intends to collaborate with institutions like the University of Guyana and technical institutes to fulfil these training needs.

Diaspora involvement also features prominently in PNCR’s strategy. The party intends to create a directory of registered Guyanese professionals and businesses in the diaspora, ensuring that their expertise is utilised in national development. The PNCR plans to give preferential consideration to these professionals in the procurement process, fostering a partnership between local and overseas expertise.

The PNCR’s proposal includes its plan to renegotiate the Stabroek Block Production Sharing Agreement (PSA). The party believes that the 2016 agreement, which has been the subject of intense debate, needs to be revisited to ensure that the people of Guyana receive a fairer share of profits. PNCR’s proposed review would cover areas such as the tax regime, environmental responsibilities, transparency, and decommissioning procedures.

In terms of local content, the PNCR plans to implement policies that maximise the involvement of Guyanese businesses. They aim to ensure that contractors in the oil and gas sector prioritise local goods and services.

Lastly, the PNCR plans to evaluate the feasibility of establishing a National Oil Company (NOC) or a local refinery. This move is geared towards ensuring that more of the value chain remains within Guyana, allowing for greater control over the country’s resources and the retention of more benefits locally.

In its closing remarks, the PNCR states that it will govern the oil and gas sector in full transparency, under the rule of law, and always with the best interests of the Guyanese people at heart.