The People’s Progressive Party/ Civic (PPP/C) Government in keeping with its manifesto promise is fulfilling another mandate by the release of the draft model Production Sharing Agreements (PSAs) for both shallow-water and deepwater areas. The Model Petroleum Agreements represent the government’s commitment on its promise to establish a modern framework on industry standards and best practices, which includes a new fiscal regime of 10% royalty, 65% cost recovery limit, 10% petroleum tax and 50:50 profit sharing ratio. The new fiscal regime is aimed to bring about greater socioeconomic benefits for our nation without disincentivising foreign investors in the sector.

The Government of Guyana since taking office in August 2020 has been working to transform the governance framework and management of the petroleum sector by effectively developing and implementing various policies and programmes which allow for adherence to international best practices and principles. Some of the key manifesto commitments met already or being implemented include:

1. 1. Update the principles and conditions of all new petroleum production licences
2. 2. Enact Local Content Law and establish a Secretariat
3. 3. Amend Natural Resource Fund Law to provide greater oversight and management of revenue
4. 4. New environmental permitting conditions and fees
5. 5. Conducting Cost Recovery Audits
6. 6. Continuous review and modernizing of the legislative framework for the oil and gas sector
7. 7. Development of Offshore Safety Regulations
8. 8. Development of Hydrocarbon Environmental Management Regulations
9. 9. Updating of the 1986 Petroleum and Exploration Act
10. 10. Inter-agency collaboration to improve monitoring capabilities (MNR, GGMC, GNBS, GRA)