Guyana Moves to Create Beneficial Ownership Register for Transparency in Oil Sector
The Guyanese government has announced its intention to establish a beneficial ownership register, aimed at increasing transparency in the country’s oil sector. This move is part of the government’s commitment to Extractive Industries Transparency Initiative (EITI) and its obligations as an EITI candidate since 2017.
Background
Beneficial ownership refers to the natural person or persons who ultimately own or control a company. The Guyanese government has issued a request for proposals to solicit expressions of interest from consultants who can help establish the beneficial ownership register.
Commitment to Transparency
Guyana’s commitment to beneficial ownership transparency is in line with its obligations as an EITI candidate. The country has agreed to implement the EITI Standard’s Beneficial Ownership Requirement 2.5, which sets out several requirements for ensuring transparency in the management of extractive resources.
Support from Key Officials
Vice President Dr. Bharrat Jagdeo has expressed his support for the initiative, stating that every beneficial owner should be known and updated whenever oil blocks change hands. “We [should] know at all times who owns the different blocks or what shares of the blocks,” he said during a press engagement in 2020.
Importance of Transparency
The move to establish a beneficial ownership register comes as Guyana’s natural resources portfolio has been expanded with the entry of oil into the mix. Minister of Natural Resources, Vickram Bharrat, emphasized that while this new prospect brings renewed hope for the country, it also presents great scrutiny, emphasizing the government’s responsibility to ensure prudent and sustainable management of its resources.
Initiatives Promoting Transparency
The government has highlighted several initiatives aimed at promoting transparency in the sector, including:
- An active legislative agenda
- Preparation of EITI reports
- Procurement of a legal firm to draft legislation overhauling the country’s petroleum laws
These efforts will incorporate mechanisms that bolster transparency and accountability initiatives.
Progress towards Transparency
As part of its commitment to transparency, the government has already made its first two EITI reports publicly available. Additionally, it is seeking an independent consultant to draft the terms of reference for the third report.
The administration has also vowed not to spend any revenue gained from petroleum resources until its Natural Resources Fund is recalibrated in a way that guarantees transparent management.
Guyana Extractive Sector Transparency Week
The Guyana Extractive Sector Transparency Week, which runs from June 7-11, aims to provide relevant information, create awareness, and stimulate public debate on transparency initiatives. The event is funded by USAID and implemented by the Pan-American Development Foundation.