VP Jagdeo floats idea of formation of national oil company with remaining oil blocks

Speaking during a session at the ongoing International Energy Conference in Guyana, Mr. Jagdeo said in the previous oil blocks were given out on a first-come, first-serve basis, but since the country has found oil, the policy changed for the remaining oil blocks to either go to an auction during the third quarter of this year or alternately to use those blocks to form a national oil company.

VP Jagdeo floats idea of formation of national oil company with remaining oil blocks

Vice President Bharrat Jagdeo has announced that the Government is exploring several options with the remaining oil blocks including an option to form a national oil company.

Speaking during a session at the ongoing International Energy Conference in Guyana, Mr. Jagdeo said in the previous oil blocks were given out on a first-come, first-serve basis, but since the country has found oil, the policy changed for the remaining oil blocks to either go to an auction during the third quarter of this year or alternately to use those blocks to form a national oil company.

“To offer clarity by the third quarter of this year all of those decisions would be made. So we will either make a decision that we will be part of a National Oil company with those remaining blocks or we will tender them with our without seismic (studies)” Mr. Jagdeo said.

The Vice President said the government has already received several proposals from large operators that are willing to work with the government in a national oil company and utilize the remaining oil blocks.

Jagdeo also said the pace of development in the country has been rapid and the government has been trying to evolve to keep up with that pace.

“At the level of the government we have to try to keep regimes evolving and our regulatory approval at the pace that we don’t become a humbug on the development of the industry and slow down the pace,” Mr. Jagdeo said.

The Vice President admitted that it has been a challenge developing the local oil sector. He said the government is still to put all systems in place.

“So while we have not evolved all of the policies and the structures, the institutional structures, the management structures, the regulations to where we would wish them to be ultimate—in what a mature environment will be for the management and regulation of the sector we are still lagging in that regard,” Mr. Jagdeo said.

It was noted that Guyana is guided by several key principles as the sector develops, chief among them is shared prosperity for all Guyanese. 

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