Commonwealth Deputy Secretary-General Deodat Maharaj has underlined the critical importance of emerging oil and gas producer countries designing responsible, accountable and transparent regulatory regimes
Commonwealth Deputy Secretary-General Deodat Maharaj has underlined the critical importance of emerging oil and gas producer countries designing responsible, accountable and transparent regulatory regimes.
Speaking at a forum of representatives from government, industry and non-governmental organisations in London on Monday, Mr Maharaj said that many Commonwealth nations are on the cusp of becoming significant petroleum exporters following recent resource discoveries.
“For many countries, this activity could prove to be transformational if properly managed,” he said.
Mr Maharaj however cautioned that governments and industry need to address social, cultural and environmental concerns when exploring for and producing oil and gas. “Experience has shown that if these issues are ignored or inadequately addressed, the stability of petroleum operations can be placed at risk and the potential benefits to local communities and the broader population left unfulfilled,” the Deputy Secretary-General stated.
During his presentation at the New Petroleum Producers Discussion Group at Chatham House, Mr Maharaj laid out practical measures that are “key to the successful management of petroleum and other natural resources such as metals and minerals”. These include policies, laws and regulations that embrace international best practices, capable and accountable institutions, and a clear commitment to fiscal and revenue transparency.
The first New Petroleum Producers Discussion Group meeting was held in October 2012 by the Commonwealth, NGO Revenue Watch and Chatham House, a leading UK think-tank, to help emerging oil and gas producers establish responsible governance rules and institutions. Its role is to draw up practical guidelines and promote better coordination of technical advisory programmes.
Participants in the forum include Commonwealth countries Belize, Ghana, Kenya, Mozambique, Namibia, Papua New Guinea, Seychelles, Sierra Leone, Tanzania and Uganda.
The Commonwealth, an organisation of 53 member countries, has a track record in helping governments construct responsible, accountable and transparent regulatory regimes that allow for oil and gas exploration and development to be tailored to local circumstances and challenges. Countries that have sought Commonwealth expert advice in recent years include Belize, Namibia and Tanzania.
Thanks to Commonwealth technical support, the Indian Ocean island nation of Seychelles now has a model petroleum agreement which forms the basis for the negotiation of offshore petroleum acreage between the government and prospective investors.
Based on its technical experience, the Commonwealth contributed to a report with Chatham House and Revenue Watch in September 2013 titled ‘Guidelines for Good Governance in Emerging Oil and Gas Producers’. This followed a Commonwealth Natural Resources Forum at Marlborough House in April 2011.
“Our mission is clear,” Mr Maharaj said in his presentation to the New Petroleum Producers Discussion Group. “It is to help position our member countries to realise the potential of their resource wealth as a driver of sustainable development and economic prosperity.”
More information on the New Petroleum Producers Discussion Group
