The Ministry of Natural Resources is getting a paltry $ 150M for the 2021 Petroleum Sector Budget
– Oil and Gas Development Programs cut by more than half
By Gary Eleazar
Kaieteur News – This year’s paltry $ 150M has been allocated to Guyana’s Ministry of Natural Resources (MNR), which holds responsibility for managing the country’s petroleum sector as part of a multi-year Oil and Gas Sector Development Program.
This would mean that the 2021 budget for the program had been cut by US $ 193M, as it would have been allocated $ 343M in 2020, in addition to $ 120M budgeted and spent in 2019.
That $ 4.2B multi-year program is funded by the International Development Association – a component of the World Bank group.
Depending on the scope of the program – as outlined by the Ministry of Finance in the recently approved Budget Estimates for 2021 – the funding will go towards completing a gas-to-power study in addition to improving the legal and institutional framework for managing . and overseeing the Oil and Gas Sector.
The funds are also expected to go towards the creation of an oil and gas data management system, as well as support for public relations for the sector and its project management.
This year’s $ 150M allocation is also expected – according to the Ministry of Finance Estimates – to fund “capacity building for ministries of Natural Resources and Public Works, Environmental Protection Agency, Guyana Geology and Mines Commission and the Department of Energy.
The Ministry has since implemented mechanisms to begin using the allocations inviting tenders for the overhaul of the country’s antique sector laws – a project to be completed in 24 months, starting in July.
At the request of the Ministry, the objective of the assignment is for the consultant to provide legislative drafting services, including on-the-job training, in relation to the development of the legal and regulatory framework for the oil and gas sector for MNR, and the Commission Petroleum (PC) – Regulator of the sector – once established.
The scope of the work identified for the successful consultant is to undertake “a comprehensive review of Guyana’s existing legal and regulatory framework … such a review to include and optimize existing institutional, legislative and regulatory analysis and review documents.”
The consultant is also expected to support MNR in detailing the legislative and regulatory instruments required to update and establish governance, management and Guyana
overseeing the upstream, middle and downstream oil and gas sector, to establish a modern and competitive framework.
This is in addition to developing a prioritized legislative agenda and an action plan in place.
The adviser is also expected to support the Attorney General’s Chambers in the review, assessment and drafting necessary to ensure the legislative and regulatory instrument
are completed in good order for presentation to the National Assembly, and for transposition into law.
“Providing for the transfer of information, including on-the-job training and review workshops, to selected personnel from the MNR, UW, Attorney General Chambers and other ministries / agencies as specified by the MNR, on legal aspects of the petroleum industry. ”
In addition, the Ministry has earmarked $ 4M in Capital Expenditure for the purchase of furniture and equipment.
The Ministry’s current allocation for the year for the Petroleum Management Sector has been revised up to more than $ 435M for the payment of salaries among other administrative expenses.