The People’s National Congress Reform (PNCR) and its coalition partner A Partnership for National Unity (APNU) on September 25, 2024 released a 20-point policy plan that set out a detailed framework for restructuring Guyana’s oil and gas sector, directly challenging existing fiscal, regulatory and environmental approaches under the current petroleum regime.
The plan, which drew heavily on the work of energy expert Dr. Vincent Adams, outlined specific institutional reforms, fiscal safeguards and environmental controls that the coalition said were necessary to correct deficiencies exposed during Guyana’s initial phase of offshore oil production.
Central to the proposal was the creation of an independent Petroleum Commission, supported by a high-level Advisory Team with responsibility for overseeing upstream, midstream and downstream operations. The coalition also proposed establishing an independent Inspector General’s Office, equipped with a 24-hour anonymous reporting hotline, to investigate corruption and unethical conduct within government agencies and among oil sector contractors.
The document placed strong emphasis on environmental protection, calling for the reinstatement of full liability coverage and parent company guarantees for oil spills, strict limits on gas flaring, and enforcement mechanisms to ensure environmental stewardship took precedence over production targets and profit considerations.
A core plank of the plan was a comprehensive review of the 2016 Stabroek Block Production Sharing Agreement (PSA), which the coalition said must be revised to secure greater value for Guyana. The review would encompass fiscal terms, tax treatment, transparency obligations, environmental responsibilities, decommissioning liabilities and local content requirements. The coalition also proposed feasibility studies for establishing a National Oil Company and a domestic refinery, while directing oil revenues toward national skills development and economic diversification.
The coalition’s explicit call for ring-fencing of individual oil projects marked a direct break from the existing contractual framework and from the positions maintained by both ExxonMobil and the governing People’s Progressive Party/Civic (PPP/C). The 2016 PSA does not include ring-fencing, allowing development costs from one project to be offset against revenues from another — a structure critics argue has significantly delayed government earnings. Analysts have estimated that the absence of ring-fencing has cost Guyana billions of US dollars, potentially translating into thousands of dollars per citizen in foregone revenue by 2024.
ExxonMobil has consistently defended the PSA as commercially balanced and appropriate to the conditions under which it was negotiated. While the company did not issue new statements at the time of the PNCR/APNU release, Exxon executives have previously argued that ring-fencing could deter investment and undermine project economics.
The PPP/C government, despite earlier commitments to revisit aspects of the oil contract, had not pursued ring-fencing by late 2025. Instead, the administration worked with ExxonMobil to complete the contractual relinquishment of 20 per cent of the Stabroek Block, returning approximately 2,534 square kilometres of non-producing acreage to the State.
Environmental risk featured prominently in the coalition’s critique. The plan warned that accelerated offshore development without robust regulatory capacity heightened Guyana’s exposure to oil spills, gas flaring and broader climate-related impacts, reinforcing the need for stronger oversight institutions and enforceable environmental standards. International analysts have warned that rapid offshore development without stringent regulatory oversight could leave Guyana exposed to pollution and climate impacts, including gas flaring and oil spill hazards — issues seen as demanding stronger environmental governance structures.
Although APNU did not form the government, the coalition secured 12 seats in the National Assembly. Political analysts say the opposition is positioned to press elements of the oil and gas plan through parliamentary action, including the possible tabling of a White Paper aimed at forcing legislative debate on ring-fencing, environmental safeguards and petroleum sector governance.
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PNCR/APNU’S POLICIES, STRATEGIES AND PRINCIPLES FOR THE DEVELOPMENT OF THE OIL AND GAS SECTOR
Below, we outline the comprehensive set of policies, strategies and principles that will guide our management of the oil and gas sector as the next government.
1.   Within 90 days of taking Office, the PNCR/APNU Administration will constitute a distinguished Advisory Team (AT) of professionals with specialties including business, contracts, law, economics, auditing, engineering, geology, and renewable energy, to advise the Government on the upstream, midstream, and downstream planning, development and administration of Guyana’s Oil & Gas (O&G) sector.
2. Â Â We will review the existing drafts of the Petroleum Commission Legislation and restructure as necessary to finalise the establishment of an independent/autonomous Petroleum Commission equipped with the highest caliber fit-for-purpose professionals, to manage the O&G sector from application for licenses through auction, exploration, production, sales, refining, and gas utilisation for energy conversion.
3.   To eradicate corruption and unethical conduct by Government and contractor officials, we will institute an independent Inspector General’s (IG) Office with a 24/7 anonymous hotline to involve the public in reporting any knowledge or appearance of corruption. The IG Office will be adequately resourced and vested with the authority to conduct independent investigations and, where necessary, recommend prosecutions.
4.   We will immediately reinstate the Coalition Government’s requirements for full liability coverage: this includes the appropriate insurance, as well as, a parent company guarantee to cover the full cost of an oil spill; prohibition of gas flaring except in special cases of start-up, emergency and maintenance in compliance with the Environmental Impact Assessment (EIA); re-injection of the very hot, toxic and oil laced water, in accordance with international standards and the World Bank. We will implement the World Bank’s Plan for an O&G Unit at the EPA comprising skilled and experienced O&G professionals to provide adequate oversight.
5. Â Â Will inculcate the safety and environmental protection culture that safety and stewardship of the environment take paramountcy over production and profits, and there must be accountability for any violation of this rule.
6.   We will complete an in-depth analysis of (1) projected estimates of the annual O&G production profile through the life of the fields; and (2) corresponding estimates of projected government revenues which will inform the Government’s annual budgetary allocations and out-years strategic planning. There will also be a regular review of the movement of oil prices in the short, medium, and long term.
7.   To ensure economic sustainability during and after the O&G era, we will make the building of capacity in the education sector our highest priority in the investment of O&G revenues, including the equitable distribution of wealth to local areas of the regions in the form of capacity building, projects, and job creation to avoid the oil curse syndrome. Â
8. Â Â We will conduct a national skills audit for all sectors of the economy, including O&G. This will identify the needed categories, competencies, and skills along with the strategies for the training and development that will include on-the-job, off-the-job and classroom training provided by the international contractors. We would establish a consortium comprising the University of Guyana (UG), the Government Technical Institutes, and other training institutions to also facilitate the training needs identified in the skills gap analysis.
9. Â Â We will develop a directory of registered diaspora O&G professionals and businesses. The aim is to ensure an active and organized utilisation of their skills through partnering, and advising, with provision for preferential consideration in the procurement process.
10. Considering the vastly changed conditions since the signing of the 2016 Stabroek Block Production Sharing Agreement (PSA) and consistent with Article 32.1 of the PSA, we will complete a top-to-bottom review of the PSA and then engage the Stabroek Block Partners, to maximize the benefits of the oil resources to the people of Guyana while ensuring a fair share of profit for Stabroek Block Partners. The review will include, but not be limited to ring-fencing of projects, oil tax regime, environmental responsibilities, decommissioning, transparency, the timely reporting of information, regulatory oversight and real-time monitoring, auditing, local content, shared management and decision-making in operations in the oil and gas sector.
11. We will conduct feasibility studies to determine the viability of creating a National Oil Company (NOC) and/or a local refinery.
12. We will complete the Cradle to Grave Management Plan commenced by the Coalition, for the management of the millions of tons of hazardous & non-hazardous wastes generated by the O&G industry and the rest of the country, to ensure that treatment, storage, and disposal (TSD) of these wastes are done in accordance with safe and environmentally sound international standards and practices. This will include completion of site evaluations and selections, and designs of state-of-the-art landfills to guarantee adequate treatment, storage and disposal (TSD) currently unavailable in Guyana.
13. We will undertake a complete review of the Stabroek Block PSA, and we will also complete a similar review of the contractual regime of the other blocks.
14. Taking into account that the existing 1996 Environmental Protection Agency (EPA) Act was legislated 19 years before O&G discovery and hence, did not consider specific O&G regulations and other unforeseen industrial activities, we will complete a holistic review of the EPA Act with recommended amendments for legislative approval to ensure safe and environmentally sound oversight to comport with Guyana’s new and foreseeable development.
15. For full transparency, we will institute a publication of information protocol ensuring that all information including, but not limited to contracts, agreements, contractor quarterly reports, new discoveries, updated reserves, and production data be made accessible to the public conveniently and timely.
16. We will complete a feasibility study to evaluate the most economical and environmentally viable options for utilizing the produced gas as an energy resource for Guyana, including the use of ISO Containers for the transportation of Natural gas to shore.
17. We will conduct a review of the Natural Resource Fund (NRF) and restructure it as necessary to ensure its independence, prudent management, and the fulfillment of its mandate.
18. In order to stimulate the local economy and gain skills and international competitiveness in the supply of goods and services, we will institute a local content policy that ensures equitable participation of local businesses by requiring the Contractor to maximise expenditures on local goods and services.
19. We will govern and manage the oil and gas sector in the best interest of the people of Guyana and in accordance with the rule of law.
20. We will utilise the resources of the O&G sector to craft a foreign policy which will facilitate the integration of the O&G Sector into a strong national economy that can help to protect the territorial integrity and sovereignty of the nation.
September 25, 2024
