The Department of Energy has issued several tenders for international
experts to, among other things, assist Guyana in a cost recovery audit
and review of the Liza Phase Two development plan.
Director of the Department, Dr. Mark Bynoe, in his first press
conference since being appointed three months ago, noted the idea of
the tenders is to build the department’s capacity while ensuring a
strong regulatory and legislative framework is set up to govern the
oil and gas industry.
“As we seek to build the capacity of the department, in the short
term, using external resources, we continue to promote mentoring and
capacity building as the philosophy going forward,” Dr. Bynoe
In relation to the cost recovery audit, Dr. Bynoe said the tender
invites international firms to assist in the completion of the first
audit under the existing Production Sharing Agreement (PSA) with
ExxonMobil and its partners.
The job will see a collaborative and institutional capacity building
approach being utilised during the conduct of the audit, Dr. Bynoe
The Department of Energy has also tendered for a firm to assist in the
review and approval with knowledge of the Liza Phase Two field
development plan. “We have received numerous expressions of interests
and will soon be moving towards a call for technical and financial
Dr Bynoe added that the department is also considering hiring external
legal assistance to help build a robust framework that ensures maximum
net returns to Guyanese.
The department is currently reviewing the current legal and regulatory
framework for the oil and gas sector. This includes the revision and
possible replacement of legislation. A presentation is expected to be
made to the department in the following week.
It will also utilise external resources as it finalises the Local
Content Policy and to conduct a needs assessment of the Environmental
Protection Agency’s (EPA) readiness to regulate the oil and gas
sector, from an environmental perspective.
The Department of Energy was established in August of this year to
manage the hydrocarbon resources while seeking to increase the net
benefit accruing to Guyana.
The department has absorbed the four members of staff from the
Petroleum Directorate which was under the purview of the Ministry of
Natural Resources. The staff has been augmented by the recruitment of
a director, an energy advisor, two accounts, a procurement specialist,
office manager and confidential secretary.
It also works closely with the Petroleum Department within the Guyana
Geology and Mines Commission (GGMC).
“The structure of the department will evolve in a fit for purpose
manner with a heavy focus on taking a minimalist approach to resource
management in collaboration with mandate agencies like the
Environmental Protection Agency, the Audit Office of Guyana and the
Guyana Revenue Authority,” Dr. Bynoe said.
The Department of Energy will eventually become a ministry with
responsibility for all forms of energy. It will include
semi-autonomous regulatory agencies reporting to it. Dr. Bynoe said he
is cognisant that these institutions need to be strong so they can be