There is a wide variety of petroleum contracts which countries, with the single exception of the USA, may choose to adopt. The USA is unique in that the state or the Government does not have blanket ownership of petroleum resources. If it is on government land, then yes, the property with the petroleum vests in the government and so too if the petroleum exists offshore. But otherwise, petroleum found under the land owned by a person belongs to that person.
In Guyana, as in every other country, the ownership of petroleum vests in the State, whether or not the petroleum is found in private property. Section 2 of the Petroleum Exploration and Production Act which was passed since 1939 vests in the State the property in petroleum existing in its natural condition in Guyana and grants the State the exclusive right of searching for and getting such petroleum. This may not be popular, nor does it seem right and the day may not be too far off when the issue is tested in our courts, whether on the basis of the technical definition of land or the constitutional right to property or on the basis of fair and adequate compensation. We will leave that discussion for another day!
We continue the discussion
