Guyana Energy Agency
51
Guyana Energy Agency 2009 Annual Report \
Transcript of Guyana Energy Agency
Guyana Energy Agency 2009 Annual Report
\
2009 Annual Report
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................................................... 4
1.0 MANDATE ................................................................................................................................................................ 6
1.1 Legislation ............................................................................................................................................................ 6
1.2 Mission Statement ............................................................................................................................................... 7
2.0 OVERVIEW OF THE DIVISIONS ................................................................................................................................. 8
2.1 Energy & Energy Statistics Division ...................................................................................................................... 8
2.2 Legal & Licensing Division .................................................................................................................................... 9
2.3 Fuel Marking Division ........................................................................................................................................ 10
2.4 Administration/Personnel Division .................................................................................................................... 10
2.5 Finance Division ................................................................................................................................................. 11
3.0 REVIEW OF ACTIVITIES ........................................................................................................................................... 13
3.1 Energy & Energy Statistics Division .................................................................................................................... 13
Petroleum-Based Imports .................................................................................................................................... 13
Consumption of Petroleum Products .................................................................................................................. 13
Acquisition cost and Retail Prices ........................................................................................................................ 14
Oil Agreements .................................................................................................................................................... 15
Research .............................................................................................................................................................. 16
Energy Needs Assessment ................................................................................................................................... 21
Energy Conservation initiatives ........................................................................................................................... 21
Information Dissemination and Awareness Activities ......................................................................................... 22
Project Briefs ....................................................................................................................................................... 24
Training ................................................................................................................................................................ 25
Energy Statistics Initiatives .................................................................................................................................. 26
3.2 Legal & Licensing Division .................................................................................................................................. 27
Licensing Initiatives .............................................................................................................................................. 27
Petrol Filling Station inspections ......................................................................................................................... 28
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Trawler Fuel Carrying Capacity Assessment ........................................................................................................ 28
Legal Initiatives .................................................................................................................................................... 29
Prosecutions ........................................................................................................................................................ 29
Civil Litigation ...................................................................................................................................................... 31
Drafting ................................................................................................................................................................ 31
3.3 Fuel Marking Division ........................................................................................................................................ 32
Fuel Specification Testing .................................................................................................................................... 32
Pilot Bulk Injector Unit ......................................................................................................................................... 32
Sample Analysis ................................................................................................................................................... 33
Analysis by Site .................................................................................................................................................... 34
Analysis of Test Results ........................................................................................................................................ 35
Quantity of Illegal Fuel Seized ............................................................................................................................. 35
Volume Analysis ................................................................................................................................................... 36
Operational Audit ................................................................................................................................................ 36
3.4 Administration/Personnel Division .................................................................................................................... 37
Staff Changes ....................................................................................................................................................... 37
Professional Development ................................................................................................................................... 37
Organisational Restructuring ............................................................................................................................... 38
Infrastructural Enhancement ............................................................................................................................... 39
3.5 Finance Division ................................................................................................................................................. 39
2010 Projections .................................................................................................................................................. 40
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EXECUTIVE SUMMARY
The total volume of petroleum products imported in 2009 was 3,871,968 barrels compared to 3,727,410 barrels in 2008. Thus, there was a 4% increase in total volume of petroleum products imported in 2009 compared to 2008. After removing the duty-free imports, the import volumes by the oil companies increased by 10% over 2008 imports. Imports under the PetroCaribe Agreement accounted for 1,079,252 barrels, which represented 28% of total imports and about 56% of volumes allocated under the Petrocaribe Agreement.
The volume of gasoline consumed (consumption = opening stock + imports – closing stock) in 2009
increased by 11.08% compared to 2008. Total diesel consumption experienced a negligible increase of 0.65%
increase compared to 2008 (inclusive of duty-free). Analysis of the oil company volumes only (excluding
GPL, Bosai, BCGI) revealed that diesel consumption increased by 3% over 2008. The increase in volumes
may be attributed to an increase in agricultural activities and improved detection of illegal fuel.
Avjet/kerosene is imported for both aviation (44%) and domestic consumption (56%). Domestic kerosene
consumption was virtually unchanged while avjet consumption increased by 4.23% over 2008. LPG (liquefied
petroleum gas or cooking gas) consumption increased by 13.67% compared to 2008 and aviation gasoline
(avgas) volume decreased by 18% compared to 2008. Heavy fuel oil consumption decreased by 10%
compared to 2008 primarily as a result of reduced activities in bauxite mining.
The average landed cost (CIF: Cost, Insurance and Freight) of petroleum products imported was significantly reduced in 2009 after an all time high in 2008. While the CIF prices for fuel demonstrated an upward trend throughout 2009, the adjustment of the Excise tax on gasoline and diesel throughout the year moderated the effect of the increasing CIF values throughout the year. The average unit CIF value (US$/bbl) for gasoline (mogas) decreased by 33%; diesel decreased by 40%; kerosene decreased by 46%; fuel oil decreased by 19%; aviation gasoline (avgas) decreased by 33% and cooking gas (LPG) decreased by 49%.
GEA facilitated an electrification project financed by CIDA/OLADE/University of Calgary which resulted in the provision of 49 solar panels and lights, a solar powered freezer, solar water pump, and a diesel-driven motorized cassava grater to the Wowetta community, Region 9.
The desire for improved information dissemination resulted in the design, printing and distribution of 12,000 brochures with energy saving tips; publication of two center-page pull-outs in the newspapers; a press conference; a seven-day radio quiz and a live panel discussion on energy-related matters among other activities.
The GEA issued 213 more licences than 2008 which corresponds to a 26% increase in the total number of licenses issued. This was due to a year-long campaign to ensure that all entities were licensed. For the first time during the year, licensing staff embarked on random spot checks on fuel stations to monitor compliance with GEA requirements and GNBS standards. This exercise has proven to be a useful tool in ensuring that fuel stations are compliant with the relevant standards throughout the year. In 2009, a training exercise was carried out with 10 members of staff in the area of inspection of trucks, road tanker wagons, cargo boats, barges and fuel stations.
There was an increase in the detection of illegal fuel which was correlated with an increase in the number of samples collected, number of sites visited and number of analyses conducted. 1,202 sites were sampled at least once compared to 592 for the previous year. 73 (or 6%) of the 1,202 sites sampled were found with significant dilution (defined as more than 50%) in at least one tank.
Despite the high staff turnover, absence of appropriate investigating personnel, 7 new charges were filed in 2009 compared to 3 in 2008. A 2nd conviction under the GEA legislation was achieved in 2009. A trawler
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owner whose trawler had been intercepted in 2008 with a large quantity of illegal fuel had opted to plead guilty and was convicted of possession of illegal fuel.
A pilot bulk marker injection unit was installed and tested. The bulk injector unit is capable of automatically marking the fuel as it is pumped from the international vessel into the bulk tanks at the bulk terminals. The successful installation and operation of the pilot unit has resulted in a decision to implement the bulk marker injection system at all bulk fuel terminals. The automated bulk injection system will improve the security of the marker concentrate and system integrity. Two of the “quick scan” instruments used to test for marker in fuel were stolen. This means that the smugglers now have access to the technology needed to mark and test the illegal fuel. The implementation of the bulk marker injection at all terminals will coincide with a change of the marker concentrate and testing instruments. This change will render the previously stolen “quick scan” equipment useless. Prosecution of offences continues to be hampered by loopholes and deficiencies in the GEA legislation requiring amendments to be enacted as soon as possible.
Training was completed and tests are currently being conducted using equipment acquired in 2008 to measure final boiling point, flash point and density. This capability will aid in the prosecution of matters since the court requires proof that the substance being tested is diesel, gasoline, or kerosene.
Four senior officers commenced a 6-month management training programme. The accounting system was fully computerised and is now running using Peachtree software. The Agency undertook many activities to improve the physical infrastructure of the building. Louvre windows were replaced with 35 awning windows in 8 offices to improve the performance of air-conditioning units. Washrooms on the ground and middle floors were rehabilitated. Minor building maintenance was done to replace rotting boards and prevent leaking. Tender documents for washing and repainting of the building were finalized.
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1.0 MANDATE
1.1 LEGISLATION
The Guyana Energy Agency (GEA) is governed by the following legislation: Guyana Energy Agency Act 1997, Energy Sector (Harmonisation of Laws) Act 2002, Guyana Energy Agency (Amendment) Act 2004, Guyana Energy Agency (Amendment) Act 2005 and the Petroleum and Petroleum Products Regulations 2004.
The core functions listed in section 5 of the principal Act are as follows:
- to advise and make recommendations to the Minister regarding any measures necessary to secure the efficient management of energy and the source of energy in the public interest and to develop and encourage the development and utilisation of sources of energy other than sources presently in use;
- to develop a national energy policy and secure its implementation;
- to carry out research into all sources of energy including those sources presently used in Guyana for the generation of energy, and securing more efficient utilization of energy and sources of energy;
- to monitor the performance of the energy sector in Guyana, including the production, importation, distribution and utilization of petroleum and petroleum products;
- to disseminate information relating to energy management, including energy conservation and the development and utilization of alternative sources of energy;
- to grant and issue licences relating to petroleum and petroleum products, including import licences, wholesale licences, importing wholesale licences, retail licences, bulk transportation carrier licences, storage licences and consumer installation licences;
- to utilise a marking system to add markers to petroleum and petroleum products imported by every person under an import licence or import wholesale licence for the purpose of identifying such petroleum and petroleum products as having been legitimately imported;
- to take samples of petroleum and petroleum products from any person at random throughout Guyana and carry out tests and examination to determine the presence or level of the markers in the samples of the petroleum and petroleum products;
- to perform the necessary tests to determine whether the marker(s) is (are) in the required proportion and any further test necessary to determine whether the petroleum and petroleum products have been lawfully obtained, stored, possessed, offered for sale, blended or mixed with any substance that is not approved;
- to prosecute in the Magistrates’ Courts persons who are in possession of petroleum and petroleum products bearing no markers or at a concentration below that required;
- to prosecute in the Magistrates’ Courts persons who import petroleum and petroleum products without an import licence or wholesale import licence;
- to prosecute in the Magistrates’ Courts persons who purchase, obtain, store, possess, offer for sale, sell, distribute, transport or otherwise deal with illegal petroleum.
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Section 6 of the Act further outlines several advisory functions of the Agency:
- to study and keep under review matters relating to the exploration for, production, recovery, processing, transmission, transportation, distribution, sale, purchase, exchange and disposal of energy and sources of energy within and outside Guyana;
- to report thereon to the Minister and recommend to the Minister such measures as the Agency considers necessary or in the public interest for the control, supervision, conservation, use and marketing and development of energy and sources of energy;
- to prepare studies and reports at the request of the Minister on any matter relating to energy or any source of energy, including research into alternative sources of energy, or the application of such research, and to recommend to the Minister the making of such arrangements as the Agency considers desirable for cooperation with governmental or other agencies in or outside Guyana in respect of matters relating to energy and sources of energy;
- to advise the Minister or assigned authority on matters relating to the administration and discharge of the functions of the Electricity Sector Reform Act 1999.
1.2 MISSION STATEMENT
The general mandate of the Agency is embodied in its Mission Statement:
“To ensure the rational and efficient use of imported petroleum-based energy sources, while encouraging where economically feasible and environmentally acceptable, increased utilization of indigenous new and renewable sources of energy.”
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2.0 OVERVIEW OF THE DIVISIONS
The GEA Organization structure
comprises a Board of Directors,
Chief Executive Officer, Deputy
Chief Executive Officer,
Secretariat and five Divisions:
Fuel Marking Division, Legal &
Licensing Division, Energy &
Energy Statistics Division,
Finance Division and
Admin/Personnel Division.
2.1 ENERGY & ENERGY STATISTICS DIVISION
The Division’s mandate comprises, inter alia, the following duties and responsibilities:
- to ensure that petroleum products are readily available in the country;
- to manage the purchase and importation of petroleum and petroleum products from Venezuela and Trinidad and Tobago;
- to facilitate payment arrangements between the Oil Companies, the Bank of Guyana and other petroleum importers;
- to maintain communication with both the Caribbean Energy Information System (CEIS) and the Latin America Energy Organization (OLADE);
- to collaborate with sector agencies such as the Environmental Protection Agency (EPA), Guyana Hydro-meteorological Service, Guyana Lands and Surveys Commission (GLSC), Office of the Prime Minister and other Ministries and organizations on energy and related matters;
- to develop Guyana’s Energy Policy and revise as necessary;
- to study and review matters relating to the exploration for, production, recovery, processing, transmission, transportation, distribution, sale, purchase, exchange and disposal of energy and sources of energy within and outside Guyana;
- to advise the Minister on matters concerning the control, supervision, conservation, use and marketing and development of energy and sources of energy;
- to prepare studies and reports at the request of the Minister on any matter relating to energy;
- to develop and execute projects relating to alternative sources of energy;
THE GUYANA ENERGY AGENCY ORGANISATION CHART
Board of Directors
(7)
CEO Secretariat
(3)
Admin/Personnel
Division
(12)
Fuel Marking
Division
(50)
Finance
Division
(7)
Legal & Licensing
Division
(5)
Energy & Energy
Statistics Division
(6)
(2)
Chief Executive Officer
(CEO)(ag.) (1)
Deputy Chief Executive
Officer
(Vacant)
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- to advise the Minister or assigned authority on matters relating to the administration and discharge of the functions of the Electricity Sector Reform Act 1997;
- to update the country's energy data with respect to acquisition prices, wholesale prices and retail prices;
- to prepare and analyse energy demand and supply data;
- to supply petroleum information and analysis of the relevant energy data to the Office of the Prime Minister and Ministry of Finance including FOB/CIF monthly reports, price build-up reports, Oil Companies’ stock position, nominations on behalf of importers, actual and estimated volumes/values;
- to supply the CEIS and OLADE databases with energy information.
2.2 LEGAL & LICENSING DIVISION
The Division’s mandate comprises, inter alia, the following duties and responsibilities:
- to inspect all sites, motor vehicles, machinery and equipment for which a licence may be required under the Regulations;
- to grant/issue the relevant licences pertaining to-
o importation of petroleum or petroleum products;
o transportation of petroleum or petroleum products;
o storage of petroleum or petroleum products;
o wholesale of petroleum or petroleum products;
o retail of petroleum or petroleum products;
o storage and own-use of petroleum or petroleum products.
- to suspend, cancel, cease licences in accordance with the regulations made under the Guyana Energy Agency Act 1997 as amended by the Guyana Energy Agency (Amendment) Acts 2004 and 2005;
- to ensure that files for prosecution are completed promptly and dispatched to the Office of the Director of Public Prosecution for advice;
- to oversee and coordinate the assignment of cases for prosecution;
- to prosecute in the Magistrates’ Courts persons who are in possession of petroleum and petroleum products bearing no markers or at a concentration below that required;
- to prosecute in the Magistrates’ Courts persons who import petroleum and petroleum products without an import licence or wholesale import licence;
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- to prosecute in the Magistrates’ Courts persons who purchase, obtain, store, possess, offer for sale, sell, distribute, transport or otherwise deal with illegal petroleum;
- to coordinate the representation of the Agency in civil litigation;
- to prepare Amendments to the Legislation as required and work in collaboration with the Drafting Department of the Ministry of Legal Affairs regarding same;
- to provide management with the necessary legal guidance in execution of the Agency’s overall mandate and in relation to other stakeholder agencies, where necessary.
2.3 FUEL MARKING DIVISION
The Division’s mandate comprises, inter alia, the following duties and responsibilities:
- to utilise the respective marking system to add markers to petroleum and petroleum products imported by every person under an import licence or import wholesale licence for the purpose of identifying such petroleum and petroleum products as having been legitimately imported, whether domestic or duty-free;
- to add the relevant covert proprietary chemical markers to petroleum and petroleum products at the concentration determined by the Minister by notice in the Gazette;
- to maintain the integrity of the marking system;
- to test the accuracy and monitor the effectiveness of the marking system;
- to take samples of petroleum and petroleum products from any site at random throughout Guyana and carry out tests and examination to determine the presence or level of the markers in the samples of the petroleum and petroleum products;
- to perform the necessary laboratory tests to determine whether the marker(s) is (are) in the required proportion;
- to determine the composition and grade of petroleum and petroleum products and determine whether same have been blended or mixed with any substance that is not approved;
- to give testimonial evidence in the prosecution of offences under the Act;
- to provide, through the Analyst’s Certificate, expert/scientific evidence as proof of the legality of petroleum and petroleum products.
2.4 ADMINISTRATION/PERSONNEL DIVISION
The Administration/Personnel Division consists of four functional units viz:
- Chief Executive Officer’s Secretariat;
- Registry;
- Administration/ Personnel Secretariat;
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- Documentation Centre.
The Division’s mandate comprises, inter alia, the following duties and responsibilities:
- to maintain and update the Agency’s personnel files and other records;
- to aid in the recruitment, selection, replacement and continuous professional development of staff;
- to address staff concerns related to wages and salary administration, contract negotiation and separation procedures;
- to improve staff morale through cogent policies and remuneration;
- to manage and maintain the Group Pension, Group Life, Medical and National Insurance Schemes while ensuring that claims, benefits and queries are processed expeditiously and to the satisfaction of the staff;
- to handle all grievance procedures with the objective of reaching mutually acceptable solutions;
- to promote amicable dispute resolution;
- to ensure that office supplies, equipment, and vehicles are adequately provided and maintained;
- to ensure that the Agency’s edifices, facilities and compound are kept clean and properly utilized and maintained;
- to monitor the security services for reliability and adequacy in the execution of their duties;
- to develop and enforce the Agency’s Policy Manual and Disciplinary Code;
- to promote good conduct and discipline in the work environment;
- to provide general support services to the officers of the Agency in the execution of their duties;
- to ensure adherence to health and safety regulations in the work environment.
2.5 FINANCE DIVISION
The Finance Division is tasked with the responsibilities of the day to day management of the Agency’s financial resources. The Division’s mandate comprises, inter alia, the following duties and responsibilities:
- to advise management on the Agency’s financial matters, and where necessary, other agencies;
- to manage and maintain the Agency’s income and expense accounts and all other accounting records;
- to prepare the Agency’s financial statements;
- to prepare the Agency’s budget documents;
- to prepare monthly wages and salaries and other allowances;
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- to process payments;
- to manage the procurement, receipt and issue of stationery, stocks, office equipment and assets of the Agency and monitor use of same to prevent abuse of the Agency’s resources;
- to maintain and update the Agency’s asset register;
- to ensure that goods and services procured by the Agency are so procured in compliance with the Procurement Act and other relevant guidelines;
- to verify the accuracy of bills and receipts provided and investigate suspicious or fraudulent bills/receipts;
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TOTAL IMPORTS BY PRODUCTS FOR THE YEAR
2009
PRODUCTS VOLUME C.I.F VALUE
LTRS BBLS US$
MOGAS: UNLEADED 150,788,676 948,434 72,611,598
GASOIL (0.5S)/DIESEL 263,706,967 1,658,670 124,458,625
AVJET 14,120,430 88,815 6,629,290
KERO 18,189,067 114,406 8,539,443
FUELOIL 143,246,969 900,998 58,690,442
AVGAS 1,222,451 7,689 985,019
L.P.G 24,318,016 152,956 7,540,447
TOTAL 615,592,576 3,871,968 279,454,864
CIF VALUE
BBLS LTRS US$1994 3,095,728 492,180,508 72,067,912
1995 3,624,053 576,177,314 85,161,130
1996 3,711,893 590,142,732 100,696,609
1997 4,093,677 650,841,425 107,727,233
1998 4,125,765 655,943,000 78,539,499
1999 4,137,266 657,771,510 99,704,391
2000 3,924,614 623,962,606 143,277,974
2001 3,834,651 609,659,659 123,373,521
2002 3,865,505 614,565,043 122,643,684
2003 3,980,199 632,799,898 153,193,966
2004 3,901,760 620,329,117 185,702,255
2005 3,546,069 563,778,872 240,663,147
2006 3,179,925 505,566,736 251,594,083
2007 3,910,234 621,676,373 325,461,550
2008 3,727,410 592,609,734 410,442,230
2009 3,871,968 615,592,576 279,454,864
VOLUME
PERIOD 1994 TO 2009
3.0 REVIEW OF ACTIVITIES
3.1 ENERGY & ENERGY STATISTICS DIVISION
The Energy and Energy Statistics Division managed several initiatives under its mandate in 2009 such as the
oil agreements, energy research, information dissemination and solar projects.
PETROLEUM-BASED IMPORTS
The import volume data revealed that there was a 4% increase in total volume of petroleum products
imported in 2009 compared to 2008. Imports by the oil companies increased by 10% over 2008 imports.
Imports under the PetroCaribe Agreement accounted for 1,079,252 barrels, which represented 28% of total
imports.
CONSUMPTION OF PETROLEUM PRODUCTS
Consumption of petroleum products was calculated based on opening stock, closing stock and import
volumes (Opening stock + Import volumes – Closing Stock) for the year. The volume of gasoline consumed
in 2009 increased by 11.08% compared to 2008.
Diesel consumption experienced a negligible increase of 0.65% increase compared to 2008 (inclusive of duty-
free). Analysis of the oil company volumes only (excluding GPL, Bosai, BCGI) revealed that diesel
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consumption increased by 3% over 2008. The increase in volumes may be attributed to an increase in
agricultural activities and improved detection of illegal fuel.
Avjet/kerosene is imported for both aviation (44%) and domestic consumption (56%). Domestic kerosene
consumption remained virtually unchanged while avjet consumption increased by 4.23% over 2008.
LPG (liquefied petroleum gas or cooking gas) consumption increased by 13.67% compared to 2008.
Aviation gasoline (avgas) volume decreased by 18% compared to 2008.
Heavy fuel oil consumption decreased by 10% compared to 2008 primarily as a result of reduced activities in
bauxite mining.
ACQUISITION COST AND RETAIL PRICES
The average landed cost (CIF: Cost,
Insurance and Freight) of petroleum products
imported was significantly reduced in 2009
after an all time high in 2008. Throughout
2009, however, CIF prices increased
gradually. The adjustment of the Excise Tax
on gasoline and diesel throughout the year
moderated the effect of the increasing CIF
prices. The average unit CIF value (US$/bbl)
for gasoline (mogas) decreased by 33%; diesel
decreased by 40%; kerosene decreased by
46%; fuel oil decreased by 19%; aviation
gasoline (avgas) decreased by 33% and
cooking gas (LPG) decreased by 49%.
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The average retail price for
petroleum products decreased in
2009 compared to 2008 due
primarily to the reduced acquisition
cost.
Average retail price for domestic
kerosene decreased by 36%; gasolene
decreased by 27%, diesel (gasoil)
decreased by 28% and cooking gas
(LPG) decreased by 12%.
*LPG: G$/20lb cylinder
OIL AGREEMENTS
Despite operational challenges, the PetroCaribe Agreement and the Trinidad and Tobago Oil Agreement were both managed with exceptional competence to ensure a continuous supply of petroleum and petroleum products in the country. In total, the Division facilitated eighty-three (83) shipments of petroleum and petroleum products on Guyana’s behalf for 2009. Twenty five (25) shipments were administered under the PetroCaribe Agreement whilst the remaining fifty eight (58) were cumulatively administered under the other arrangements.
The total CIF value of petroleum products imported in 2009 was US$279,454,864 (representing 3,871,968 barrels).
The Division was successful in submitting promissory notes in respect of the first twenty two (22) shipments under the PetroCaribe Agreement. Effective management of the PetroCaribe Agreement was responsible for the Division having disbursed to the Ministry of Finance US$31,306,476.54 as the Financed Portion under PetroCaribe. Due to declared Force Majeure at ISLA refinery in December 2008, and looming uncertainty at PDVSA, the oil companies were not inclined to nominate products from PDVSA. There was therefore only one (1) shipment under the agreement for the months of January and February 2009. One audit inspection was conducted by a team from PDVSA under the Petrocaribe Agreement in the month of February.
A Cabinet paper was prepared and subsequently approved for Mr. Delroy O’Neal-Economist (ag), GEA and Ms. Donna Yearwood-Head, Debt Management Division, Ministry of Finance, to travel to Caracas, Venezuela, March 1-5, 2009 to rectify issues regarding incorrect invoices and operational logistics of the PetroCaribe Agreement. Mr. O’Neal (GEA) and Ms. Yearwood (Ministry of Finance) met with officials from PDVSA in Venezuela to rectify issues of concern. Among the issues discussed were incorrect invoices, incorrect price calculation, economics and operational logistics. Additionally, a detailed reconciliation statement of the cash and financed amounts was completed and agreed upon by both parties (GEA and PDVSA).
Cabinet Paper was submitted and subsequently approved for Guyana’s participation at the Ministerial Meetings for the VI Presidential Summit of Petrocaribe held in St. Kitts on June 11-12, 2009. (June 11 – Meeting of Ministers and June 12 – Heads of State Summit). The Honourable Prime Minister of Guyana, Samuel A. Hinds and the Chief Executive Officer (ag) represented Guyana.
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RESEARCH
- The Brultech ECM-1220, an energy audit meter, was researched and subsequently procured for performing energy audits. The meter was used to measure the amount of energy consumed by various types of fluorescent tubes and ballasts. The information provided by the energy audit meter was used in the preparation of a Programme to Promote the Effective and Efficient Use of Energy in Guyana.
- Attempts were made to source literature and costs of pedal-powered generators for use in remote hinterland communities. The pedal-powered generators would be used for battery charging. GEA met with the Head of the Department of Mechanical Engineering, University of Guyana, to further discuss areas of cooperation relating to the research, design and construction of an appropriately-sized pedal-powered generator for battery charging in remote hinterland communities.
- GEA liaised with the Guyana Revenue Authority for the provision of information on the total fleet of vehicles registered in the country to determine the impact on fuel consumption. Traditionally, only data for new vehicle registration were provided.
- Officers of the GEA visited the Docol facility to familiarize themselves on the process of transporting, storing and bottling of liquefied petroleum gas (LPG).
- A comprehensive document titled Energy Development in Guyana was prepared to outline all of the energy development initiatives being undertaken in Guyana.
AMAILA FALLS HYDRO ELECTRIC PROJECT
The Prime Minister met with officials from GEA, GGMC, GLSC, EPA, OCC-OP (Office of Climate Change
under the Office of the President) and GFC to discuss the likely future events leading up to the construction
of the Amaila Hydropower Station. GEA was appointed to Chair future meetings.
Efforts to coordinate a visit into the Kuribrong area were met with many challenges. Some agencies
expressed concerns about the financing of the visits into the area and the logistical arrangements. Since
current employees of GEA never visited the site, a two-person team journeyed to the site to become familiar
with the logistical arrangements in the 1st week of September, 2009. The purpose of the site visit was to:
Conduct a reconnaissance of the access road/trail to Powis landing
Determine logistical requirements for leading subsequent teams to the site.
Determine associated costs.
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The trip took the team approximately 9hrs 45 mins by road and trail from Georgetown to Powis landing and
about 4hrs 15mins from Powis landing to the Kuribrong mountain foot by boat and tractor-trailer.
On the 16th September, 2009, the Division presented a report on the trip to Amaila Falls Hydropower site to
the other sectoral agencies indentified by the Prime Minister. The following agencies were represented at the
meeting:
EPA
Guyana Lands and Survey
Office of the Climate Change
Forestry Commission
Guyana Geology and Mines Commission
The participants also gave a status report on the project as it relates to their respective agencies and sectoral
areas.
OLADE/UNIVERSITY OF CALGARY RURAL ELECTRIFICATION PROJECT
Guyana was chosen as one of the countries benefitting from the OLADE/University of Calgary/CIDA Rural Electrification Project. The Project, which commenced in July 2007, was a pilot project that sought to promote rural electrification within poor and isolated communities. The objectives of the project were to:
Incorporate rural stakeholders into the development of rural electrification strategies.
Make use of lessons learnt from pilot projects carried out in isolated poor communities.
Set up sustainable schemes for the provision of energy services to poor communities, using energy as a tool for development.
Tractor Trailer
Boat
Boat
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Guyana received funding by CIDA in the sum of US$101,500 with support from the Latin American Energy Organization (OLADE) and the University of Calgary/Haskayne School of Business. The Guyana Energy Agency was the facilitator for the project and was tasked with the responsibility of ensuring that all aspects of the project were successfully completed. The Wowetta community in Region 9 was selected as the recipient for the Project based on work done in the Assessment Phase of the project. The project provided the following:
1. DC lighting for 49 homes to provide approximately 6hrs of light per day. (Each home system consists of a single 40-watt solar panel, one 92 ampere hours deep cycle battery, one 6 amp charge controller with low voltage disconnect and two DC lamps: a 7-watt lamp centrally-placed for general lighting and a 15- watt lamp for focused lighting).
2. A 5.8 ft3 solar powered freezer with 2 x 130W solar panels for storage of perishables. (A community shop was established using the freezer for ice-making, cooling beverages and storing meat).
3. 4 x 85W solar panels with a water-pump to irrigate a nearby vegetable garden from a community-dug well.
4. A locally manufactured cassava chopper/grinder with a 2 hp motor powered by a diesel generator to produce commercial quantities of farine. (The group expects to process 1500 pounds of cassava per week).
5. Joinery shop funds of US$2000 as seed money to cover the cost of the first few months of operation including the purchase of fuel and raw material such as fasteners, consumables, varnishes, glues, etc.
Two officials from OLADE: Mr. Carlos Florez, Executive Secretary and Byron Chilinquinga, Coordinator of Renewable Energy Sources and the Environment, visited Guyana during the period May 27-29, 2009 to meet members of the Wowetta community and tour the completed installations.
Members of staff, along with a local consultant, Mr. Maxwell Jackson, visited Wowetta Village in Region 9 where they conducted an impact assessment of the OLADE-University of Calgary/ CIDA/ GEA Rural Electrification Project. The consultant utilized a survey instrument and dialogued with the community to determine the impact of the project on the community. It was found that the community participated fully with women being more responsive; a high level of satisfaction was evident from community members and there was a general improvement in social and economic activities.
Village Shop with the Solar-Powered Freezer Beds produced by the Joinery Shop
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Discussions with Members of the Community Community-Dug and Solar Water Pump
The Agency organized and participated in the Final National Consultation Workshop for the Project. The workshop covered the following:
- National Lessons Learnt
- Project Impact and Recommendations for Future Projects.
The Hon. Prime Minister, Mr. Samuel Hinds and the Hon. Minister of Amerindian Affairs, Mrs. Pauline Sukhai both made brief remarks about the effects the projects have had on the development of the rural Amerindian community and Guyana, in general. They also congratulated the parties that made the project a success and indicated that this type of project can be replicated in other communities.
COMPACT DC HOME SOLAR LIGHTING KITS
GEA was instrumental in the preparation of an installation/operation manual for the 1000 solar-powered systems to be distributed to hinterland communities identified by the Ministry of Amerindian Affairs. 1000 Compact DC Home Solar Lighting Kits arrived in Guyana on May 14, 2009. The GEA, at the invitation of the Ministry of Amerindian Affairs, demonstrated the installation and operation of the 15-Watt DC Home Solar Light Kit at the Annual Toshaos Council on July 31, 2009.
Two members of staff conducted site visits on four villages that received 15-watt Solar Home DC Lighting Kits. The villages included:
o Kwatamang = 67 Kits distributed
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o Rupertee = 52 Kits distributed
o Surama = 50 Kits distributed
o Toka = 37 Kits distributed
o Kwaimatta = 21 Kits distributed
It was the general consensus of all the communities visited that the systems were a good intervention by the Government. The community members indicated that the light has a positive impact on their livelihood since productive activities can be undertaken at night. Some systems were experiencing problems with the bulbs and the connectors.
WAMAKARU HYDRO PROPOSAL
The Government of China signalled its intention to finance and develop 3MW hydropower plants for up to 14 countries. The Agency assisted in the preparation of a document on the Wamakaru Hydro Site in Region 9 with a potential of approximately 3.5MW.
BIODIGESTER SITE VISIT
A team visited the bio-digester in use at the St. Stanislaus College Farm. Mr. Vishnu Panday who is responsible for the operations at the farm provided a guided tour to the team.
The purpose of the site visit was to understand the design considerations and operational requirements for the bio-digester at the farm.
According to Mr. Panday, the low-cost design of the digester is suitable for Guyana. The key component was the 25m of UV plastic that was imported from Costa Rica at a cost of US$300.
GEA will review the design to determine the total investment required to construct a similar bio-digester.
For the initial set-up, two drums of manure are required.
Water is added until the manure is dissolved. This is then released into the bio-digester pit and left for about forty days.
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Mr. Panday advised that 1 cow produces about 20kg of manure per night. The 17m3 (1.5m x 1.8m x 8.8m) bio-digester requires between 80 to 100kg of manure per day which can be produced from about 5 cows. The bio-digester requires the mixing of four buckets of cow manure and three buckets water for daily production.
The methane produced is sufficient to cook for two families of five.
Some of the fertilizer obtained from this process is used in the nursery while the remainder is sold at a cost of G$500 per 20-gallon.
ENERGY NEEDS ASSESSMENT
A group of MIT students are conducting a project to design a wave-propelled turbine generator. Collaboration with Iwokrama had identified Fair View Village as a possible location for the study. A group of students subsequently visited the site for a technical review and requested GEA’s assistance to conduct an Energy Needs Assessment. A team comprising Sandra Britton, Sherwin Clarke, Ranata Robertson and Dexter Ceres visited the village in November, 2009 to gather information. While several villagers generate electricity from small private generators for own use, the survey indicated that there is a need for electricity within the village.
Picture Showing Section of Community Members Picture Showing Kurupukari Falls
ENERGY CONSERVATION INITIATIVES
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- In 2009, the Division accelerated its energy conservation education campaign by publishing center-page pullouts of the information contained in the brochures produced in 2008. The center-page pullout appeared in the Guyana Chronicle Newspaper on September 13 and December 06, 2009.
The pullout comprised the following tips:
o ‘Building Design’ Energy Conservation Tips
o ‘Energy Efficient Lighting’ Energy Conservation Tips
o ‘Be Auto$mart’ Energy Conservation Tips
o ‘Appliances’ Energy Conservation Tips
- An invitation issued by the Global Environment Facility (GEF) called for submission of proposals for technology transfer projects. Grant funding within the range of US$1 to 3 million was indicated for qualifying projects. The Agency assisted in indentifying an Energy Efficiency Demonstration Project in the Water Sector which was subsequently submitted through the EPA after consultation with GWI.
- A Cabinet Paper was prepared requesting the following to encourage the utilization of compact fluorescent energy saving lamps (CFLs):
o approval for removal of the current 20% import duty applied to compact fluorescent energy saving lamps
o approval for zero rating compact fluorescent energy saving lamps
- The Agency continued to work with the Guyana Power & Light Inc. to finalize the project document and budget for submission to the IDB for funding of their Demand Side Management Programme. A budget of US$25,000 was presented for the financing of printing of brochures and publication of energy efficiency tips in the newspapers and on the various television channels.
INFORMATION DISSEMINATION AND AWARENESS ACTIVITIES
- The Agency assisted and facilitated an ECLAC consultant, Mr. Erwin Edwards, who visited Guyana (August 24-27, 2009) to gather information for an Energy Study. Mr. Edwards, the contracted ECLAC consultant of Barbados, was tasked with obtaining information on the potential for alternative energy technologies in the Caribbean, with Jamaica, Barbados and Guyana as the pilot countries. Mr. Edwards visited a number of sectoral agencies: UAEP, OPM, GWI, IAST, Ministry of Agriculture, OP- LCDS, Mr. M. Sankies University of Guyana and DDL. The study is scheduled for completion by October 31, 2009.
- 12,000 brochures on energy efficiency tips for lighting, appliances, buildings and transportation were disseminated to a few key agencies: National Climate Committee, Ministry
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of Agriculture, GGMC, OPM, UG, EPA, IAST and Guyoil and during Guyexpo.
- A press conference was held at the GEA building on June 05, 2009, to launch the Energy Saving Brochures. The Honourable Prime Minister and the Chief Executive Officer (ag) presented the brochures and discussed the importance of energy saving and other initiatives to promote energy saving and awareness. The press conference was extensively covered in all segments of the media.
- A blog environment was created on the website to accommodate dialogue and feedback on alternative energy and energy efficiency.
- A Team from Scott Wilson along with the Project Coordinator for the SNC visited the Agency to conduct an interview for the preparation of the Mitigation Report. Statistical and other information was provided to the team.
- The Guyana Energy Agency participated in the Karen Pollard Endurance Walk which was held on November 01, 2009. The walk commenced at the Ministry of Finance and finished at Madawini Creek, Soesdyke, Linden Highway (26 miles). Thirteen persons from various sections of the Agency participated.
- The Agency coordinated and facilitated the activities of Energy Week 2009 which took place during the week of November 30, 2009 to December 06, 2009. The following activities were conducted:
o Radio Quiz (entire week) o Live Panel Discussion on NCN Channel 11 on energy-related topics (December 02, 2009) o Hydropower Lecture “Development of Small Hydropower” by Mr. Sven Homscheid at the
University of Guyana (December 02, 2009) o Center-page pull-out with Energy Efficiency tips (December 06, 2009)
- Cabinet approval was received for the CEO (ag), GEA to attend the Meeting on Energy Efficiency in
the Caribbean, Port-of-Spain, Trinidad & Tobago, April 29, 2009. The CEO (ag) attended the meeting and provided information on the Energy Efficiency initiatives currently being undertaken in Guyana.
- On September 23, 2009 the E&ES Division participated in a national stakeholders’ workshop on National Science and Technology Policy. The workshop was hosted at NCERD with participants from the following organizations:
o University of Guyana o Ministry of Finance o GNBS o Bureau of Statistics o Office of the Climate Change o Ministry of Education o Guyana Water Inc.
The various entities provided feedback and recommendations to strengthen the policy document.
- Members of staff from E&ES Division coordinated activities and participated at GuyExpo 2009 which was held at Sophia Exhibition site from October 1-6, 2009. Members of staff were drawn from various Divisions to assist each day at the exhibition. A total of nine persons assisted in manning
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the booth. The GEA along with the Office of Climate Change (OCC), Guyana Forestry Commission (GFC), National Drainage and Irrigation Authority, Fisheries and the Ministry of Agriculture formed a virtual “walk-through” in order to illustrate the elements of the Low Carbon Development Strategy.
GEA’s booth consisted of a hydropower model identifying the key elements of a hydropower installation, solar panels and lighting kits, information on the Wowetta project, a power point presentation showing the link between the low carbon development strategy and hydropower, information on the economics of replacing incandescent lamps with compact fluorescent lamps (CFLs). 2000 each of the following brochures were distributed: Energy Efficient Building Designs, Be Auto Smart, Appliances and Energy Efficient Lighting.
- Members of staff participated in the Annual Walk organized by the National Climate Committee on May 31, 2009, in observation of World Environment Day. The theme for this year was “Your Planet needs you: Unite to Combat Climate Change”. 75 Brochures on energy efficiency tips for lighting, appliances, buildings and transportation were distributed.
- Cabinet approval was received for Guyana’s participation at the VI International Conference for Renewable Energy, Energy Savings & Energy Education held in Havana, Cuba from June 09-12, 2009. Head-Energy & Energy Statistical Division attended.
PROJECT BRIEFS
- The Japanese Government, through their embassy in Port of Spain, offered assistance to provide a Solar Power Generation Plant through the Cool Earth Partnership Financial Mechanism. His Excellency,
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President Bharrat Jagdeo, advised that the Ministry should request assistance for solar panels for public buildings in Guyana. In order to identify the relevant public buildings, certain decisions will have to be made with regard to the proposed configuration of the solar-powered generation system and technology. GEA prepared a report on the “Cool Earth Partnership: Photovoltaic Options” and submitted answers to the questionnaire. The Japanese later clarified, and with the assistance of GPL, a single 1 MW PV facility readily visible and accessible which was proposed for location just east of the existing industrial area at Eccles.
TRAINING
- The Head, Energy and Energy Statistics Division received Cabinet’s approval to attend a workshop to launch the Caribbean Information Platform on Renewable Energy (CIPORE) in Ocho Rio, Jamaica during February 23-27, 2009. CIPORE intends to provide a communication system for the exchange of renewable energy information for the region. CIPORE will provide information on projects and media galleries on renewable energy sites from 13 Caribbean countries. The workshop provided the necessary training over a period of two days. The purpose of this two-day training workshop was to introduce the platform to the participants who will also serve as its main contributors of information representing their respective countries and various other stakeholders in the region.
- The Head, Energy & Energy Statistics Division, and the Economist (ag) participated in a five-day Greenhouse Gas Inventory training from May 18-22, 2009 at the Ministry of Agriculture.
- Members of staff from the Energy and Energy Statistics Division organized and participated in an OLADE-hosted online/ virtual training workshop on PV Technological Trends and Applications. The training session was held in the Boardroom of the GEA in August 2009. The training session focused on the following areas:
o PV Technology Overview o Fundamentals of PV Technology o Characterization of PV Technology o On-grid PV Systems o Off-grid PV Systems o Market Trends of PV Technology
A number of sectoral agencies were invited to participate in the workshop. The following agencies were represented at the workshop:
o Ministry of Agriculture o Ministry of Local Government o Ministry of Health o Office of the Prime Minister/ UAEP o University of Guyana o Guyana Water Inc. o Environmental Protection Agency o Guyana Power and Light Inc.
- GEA received two electronic texts on Hydropower from Mr. Sven Homscheid, CREDP consultant and Hydropower Engineer:
o Developments in Hydropwer Engineering o Layman’s Guide on How to Develop a Small Hydro Site.
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ENERGY STATISTICS IN ITIATIVES
The Division was successful in updating the country’s energy demand data and bulletin. The Division also submitted oil projection for 2010 to the Ministry of Finance and the Bank of Guyana. Oil projections were submitted to the Ministry of Finance for the period, 2009-2012.
The table below was prepared in 2009 to represent the total energy supply using 2008 as a base year. In 2008,
approximately 5 million barrels of oil equivalent (boe) was supplied from a variety of energy sources: diesel
(gasoil), bagasse, fuel oil, gasoline, rice husk, kerosene, LPG, fuelwood, charcoal, avgas, solar photovoltaics
and biodiesel. GEA will be actively cataloguing the energy generated from the various sources in Guyana with
the objective of more accurately estimating their respective contribution to the national energy matrix during
2010.
For the 2015 projection, moderate annual growth rates were assumed for each product. The major
assumption for 2015 is the replacement of fossil-based sources of energy for electricity generation with
hydropower. In addition, Demerara Distiller’s Ltd (DDL) bio-methanization plant scheduled, for a June 2010
completion, will replace fuel oil with about 94,345 barrels of oil equivalent of biogas.
Energy Value
(BOE) %%
Energy Value
(BOE) %%
Notes
AVGAS 7,860 0.16% 8,465 0.18%
1.1% increase per
yr.
KERO 88,950 1.81% 95,799 2.01%
1.1% increase per
yr.
AVJET 60,121 1.22% 64,751 1.36%
1.1% increase per
yr.
GASOLENE 687,830 13.96% 740,793 15.51%
1.1% increase per
yr.
FUEL OIL 974,347 19.77% 369,774 7.74%
Removing GPL,
DDL
DIESEL 1,535,457 31.16% 1,361,950 28.51%
Removing GPL.
1.1% increase per
year
LPG 94,837 1.92% 102,140 2.14%
1.1% increase per
yr.
HYDROPOWER 0 0.00% 433,529 9.08%
737 GWh energy
supply
BIODIESEL 951 0.02% 1,046 0.02% 1.1% increase
BAGASSE 1,232,458 25.01% 1,257,107 26.32% 2% increase
CHARCOAL 2,730 0.06% 2,758 0.06% 1% increase
FUEL WOOD 19,865 0.40% 18,871 0.40% 5% decrease
RICE HUSK 222,172 4.51% 224,394 4.70% 1% increase
SOLAR PV 28 0.00% 1,185 0.02%
1200x65 W to 12
villages + 1MW
solar PV plant
WIND 0.00% 0.00%
BIOGAS 0.00% 94,345 1.98% DDL
TOTAL 4,927,606 4,776,908
Energy Supply
2008
Enegy Supply
2015
57%
43%
Fossil Fuels
Renewable
Energy
70%
30%
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2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Year to
Date
7 0 0 0 0 1 0 5 3 2 0 1 0 12
15 0 0 0 2 5 1 3 0 1 0 0 12
254 18 10 20 23 27 22 34 61 49 27 25 10 326
135 16 2 3 54 10 6 33 31 53 13 11 6 238
Road Tanker Wagons 101 5 0 0 0 21 8 2 2 8 7 18 2 73
Trucks 284 21 8 12 32 46 38 35 25 33 29 32 21 332
Fuel Barges 11 0 0 0 0 3 4 0 0 3 0 0 0 10
Boats 21 4 1 1 2 6 1 3 5 5 2 3 5 38
828 64 21 36 113 119 79 113 130 153 79 90 44 1041
126%
Importing Wholesale
TOTAL
2009 Year to Date/2008 Total =
Retail
Consumer Installation
Transportation
Wholesale
3.2 LEGAL & LICENSING DIVISION
2009 was one of the most successful years in the history of the Agency’s licensing activities. The Agency issued 1,041 licences, which amounted to 213 more than the preceding year, a 26% increase compared to 2008 but lower than the record high of 1,120 licences in 2007. However, licensing activities were responsible for record high revenue earnings in excess of 20 million dollars. This extraordinary performance was due to the unparalleled determination and drive of the licensing staff and a year-long campaign to ensure that all entities were licensed.
Classes of Licences Issued in 2009
Bar Graph Showing Number of Licences Issued: 2005 to 2009
LICENSING INITIATIVES
In 2009, the Division took several initiatives aimed at, inter alia, the following:
- review of closed sites and sites with un-renewed licences ;
- random petrol filling station inspections; and
- trawler fuel carrying capacity assessment.
The Division embarked on a monumental task of visiting sites to ascertain the extent of petroleum activities and to verify whether the sites reported as ‘closed’ were indeed closed. This campaign saw teams fanning out throughout the length and breadth of Guyana over a three-month period, working indefatigably at capturing
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all sites which had been licensed from the inception of the Licensing process. Teams came face to face with the dynamic world of petroleum activity and in cases ended up licensing applicants while on the river.
The exercise provided considerable insight in determining why some licensees had failed to renew their respective licences. Complaints by persons in outlying areas included inability to acquire petroleum licences from the Guyana Fire Service due to limited or no visits by fire officers to carry out the necessary inspections, ignorance of penalties of non-renewal of licences and various costs associated with taking out all the necessary licences with the various agencies.
Photographs showing Licensing Staff Interacting with an Applicant Mid-River
PETROL FILLING STATION INSPECTIONS
In an effort to ensure continued conformity with the ‘GNBS Guidance For The Design, Construction, Modification And Maintenance Of Petrol Filling Stations’ and with GEA requirements, the Division randomly sent out teams to petrol filling stations to conduct thorough inspections. This activity was well received by most of the petrol filling station operators who expressed gratitude for the Agency’s initiative at pointing out areas of concern and providing guidance on corrective measures. More than thirty petrol filling stations were inspected in 2009.
TRAWLER FUEL CARRYING CAPACITY ASSESSMENT
Recognizing that several modified trawlers had been intercepted with large quantities of illegal petroleum with greater frequency, an exercise to assess the fuel carrying capacity of trawlers was undertaken in 2009. This exercise was very insightful, revealing that many trawlers have fuel tanks capable of carrying thousands of gallons of fuel. Some had capacities in excess of 40,000 UK gallons. Due to the finding that many trawlers bore very large fuel carrying capacities and upon consultation with the Minister,
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members of the Guyana Association of Trawler Owners and Seafood Processors were invited to apply for bulk transportation carrier licences to transport petroleum and petroleum products in bulk quantity. To date, the response has been encouraging. However, there is need to extend this exercise to capture those trawlers which do not fall under the umbrella of the Association.
LEGAL INITIATIVES
The Division worked on a number of different legal matters during 2009, including investigation of new incidents, prosecution of offences, defending the Agency in civil matters, legislative drafting and the daily advice and guidance to management. The Division worked in conjunction with the Fuel Marking Division on investigating the forty-six (46) incidents of illegal fuel. In addition, the Division worked indefatigably towards ensuring that incident reports were generated promptly, case files were built and sent to the relevant agencies and that offences were prosecuted conscientiously.
Charges were filed in respect of several matters including: Orin Alcee; Harry Lall Motielall et al; Chandradat Ramdass et al; Sheer Khan Karimulla; Thakur Sattrohan et al; Lakeram Tapecessar & Shafraz Hussain; Narine Persaud.
PROSECUTIONS
1. Bishnarine Persaud cld Sanjay:
The Agency recorded its second conviction for illegal petroleum on January 20, 2009 when Bishnarine
Persaud called ‘Sanjay’ pleaded guilty to the charge of possession of illegal petroleum contrary to section
5B(10) of the GEA Act 1997 as amended by the GEA (Amendment) Acts 2004 and 2005. His Worship,
Magistrate Fazal Azeez of the Bartica Magistrate’s Court imposed the maximum fine of three million dollars
($3,000,000) and ordered the release of the vessel. Mr. Persaud is the owner of motor vessel ‘Captain
Nicolas’, which was intercepted in the Essequibo River on October 28, 2008 with illegal petroleum in its
tanks.
2. Orin Alcee:
During the month of February, 2009 charges were laid against Orin Alcee for the offence of possession of illegal petroleum contrary to section 5B(10) of the GEA Act 1997 as amended by the GEA (Amendment) Acts 2004 and 2005. Mr. Alcee was the driver of a truck which had been intercepted at the McKenzie-Wismar Bridge on August 26, 2008 with drums of illegal petroleum. To date, Mr. Alcee has not been located for service of the summons to be effected.
3. Harry Lall Motielall et al:
The following three (3) charges were proffered in this matter:
i. Motielall and Ally:- Dealing with illegal petroleum contrary to section 5B(12) of the Guyana Energy
Agency Act 1997, Act No. 31 of 1997 as amended by section 4 of the Guyana Energy Agency
(Amendment) Act No. 3 of 2004 and section 2 of the Guyana Energy Agency (Amendment) Act
No.12 of 2005.
ii. Shamsundar:- Discharging petroleum into a vessel without a permit from the Guyana Energy Agency
for such discharge contrary to section 63(3) of the Petroleum and Petroleum Products
Regulations 2004 made under the Guyana Energy Agency Act 1997, Act No. 31 of 1997 as
amended by the Guyana Energy Agency (Amendment) Act 2004, Act No. 3 of 2004.
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iii. Motielall:- Storing illegal petroleum in a total quantity exceeding 2000 litres without a storage licence
issued by the Guyana Energy Agency contrary to section 4(1)(f) of the Petroleum and Petroleum
Products Regulations 2004 made under the Guyana Energy Agency Act 1997, Act No. 31 of
1997 as amended by the Guyana Energy Agency (Amendment) Act 2004, Act No. 3 of 2004.
On March 24, 2009 the matters came up before His Worship, Mr. Haymant Ramdhani, Magistrate for the
East Demerara Magisterial District, at the Mahaica Magistrate’s Court. The learned Magistrate therein
dismissed the complaints against the defendants on a preliminary objection by Defence Counsel, Mr. Vic
Puran, even before the charges were read. The facts were that the complaints in 2 of the matters had not been
signed by a magistrate and were therefore a nullity. With regard to the third complaint, there had been an
error in one of the recitations of the complaint in that the complaint read that the complaint was made before
the Magistrate of the Georgetown Magisterial District as opposed to the East Demerara Magisterial District.
However, all other references in the said complaint were in fact to the East Demerara Magisterial District. It
is important to note that of all the complaints filed this was the only one purportedly signed by the learned
Magistrate. As a result of the error in stating the wrong Magisterial District, the learned Magistrate found the
charge to be a nullity and dismissed same. An Appeal to the Full Court has since been filed.
4. Chandradat Ramdass et al
The following four (4) charges were filed in this matter:
i. Dealing with illegal petroleum contrary to section 5B.(12) of the Guyana Energy Agency Act 1997,
Act No. 31 of 1997 as amended by section 4 of the Guyana Energy Agency (Amendment) Act
No. 3 of 2004 and section 2 of the Guyana Energy Agency (Amendment) Act No.12 of 2005.
ii. Transporting petroleum in bulk quantities on sea without a licence to transport petroleum in bulk
quantities contrary to section 4(1)(d) of the Petroleum and Petroleum Products Regulations
2004 made under the Guyana Energy Agency Act 1997, Act No. 31 of 1997 as amended by the
Guyana Energy Agency (Amendment) Act 2004, Act No. 3 of 2004.
iii. Possession of petroleum in a total quantity exceeding 2000 litres without a storage licence issued by
the Guyana Energy Agency contrary to section 4(1)(f) of the Petroleum and Petroleum Products
Regulations 2004 made under the Guyana Energy Agency Act 1997, Act No. 31 of 1997 as
amended by the Guyana Energy Agency (Amendment) Act 2004, Act No. 3 of 2004.
iv. Dealing in petroleum not obtained from a licensed importing wholesaler or retailer contrary to
section 63(2) of the Petroleum and Petroleum Products Regulations 2004 made under the
Guyana Energy Agency Act 1997, Act No. 31 of 1997 as amended by the Guyana Energy
Agency (Amendment) Act 2004, Act No. 3 of 2004.
5. Sheer Khan Karimulla:
The following two (2) charges were laid in respect of this matter:
i. Dealing in illegal petroleum contrary to section 5B(12) of the Guyana Energy Agency Act 1997,
Act No. 31 of 1997 as amended by section 4 of the Guyana Energy Agency (Amendment) Act
No. 3 of 2004 and section 2 of the Guyana Energy Agency (Amendment) Act No.12 of 2005
ii. Storing petroleum in a total quantity exceeding 2000 litres, without a storage licence issued by the
Guyana Energy Agency, contrary to section 4(2)(ii) of the Petroleum and Petroleum Products
Regulations 2004 made under the Guyana Energy Agency Act 1997, Act No. 31 of 1997 as amended
by the Guyana Energy Agency (Amendment) Act 2004, Act No. 3 of 2004.
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6. Shiraz Ali:
In June 2009, His Worship Magistrate Fazal Azeez, presiding at the Leonora Magistrate’s Court, struck out
the charge against Shiraz Ali for possession of illegal petroleum. Before closing of the prosecution’s case,
Prosecuting Attorney, Ms. Jaya Singh, had made an application to amend the charge and the particulars of the
charge, both of which contained inaccurate information regarding i) the Act and Section under which the
Defendant was charged; and ii) the entity determining the quantity of marker. The GEA (Amendment) Act
2004 had stipulated that the Guyana Energy Agency determined the quantity whereas the GEA (Amendment)
Act 2005 amended that provision so that the 'Minister' was the entity empowered to determine same.
The learned Magistrate refused the application and ruled that the charge was a nullity and that as a result the
Court had no jurisdiction to amend same. Since the fault was procedural, the matter was ‘struck out’ but not
‘dismissed’. However, the prosecution could not have re-filed since the limitation period of within six months
of the commission of the offence had long expired. This case commenced in 2006 and was one of the very
first cases under the GEA Legislation.
7. GEA v. Narine Persaud:
One (1) charge of illegal petroleum contrary to section 5B(12) of the Guyana Energy Agency Act 1997,
Act No. 31 of 1997 as amended by section 4 of the Guyana Energy Agency (Amendment) Act No. 3 of 2004
and section 2 of the Guyana Energy Agency (Amendment) Act No.12 of 2005.
8. GEA v. Lakeram Tapecessar & Shafraz Hussain:
One (1) charge of illegal petroleum contrary to section 5B.(12) of the Guyana Energy Agency Act 1997,
Act No. 31 of 1997 as amended by section 4 of the Guyana Energy Agency (Amendment) Act No. 3 of 2004
and section 2 of the Guyana Energy Agency (Amendment) Act No.12 of 2005.
CIVIL LITIGATION
Two new civil matters were brought against the GEA in 2009:
1. Tapecessar v GEA, wherein GEA was served with an Order Nisi on behalf of Mr. Tapecessar for
the release of a truck modified with a prefabricated metal tank fitted into the tray, which had been
intercepted transporting a quantity of fuel without the requisite licence.
2. Satynarine Sahadeo v. GEA, wherein Mr. Sahadeo is seeking via writ of summons, damages for
unlawful detention of and injunctions for the release of 2 fuel tankers discovered transporting
petroleum without the requisite bulk transportation carrier licence. Both tankers currently bear false
licence plates.
DRAFTING
The Division was able to finalize the draft proposed amendments to the Guyana Energy Agency Act with Mr. Kumar, the Drafting Specialist of the Ministry Of Legal Affairs. That Draft was subsequently further revised.
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3.3 FUEL MARKING DIVISION
All legally imported fuel was marked with the appropriate marker throughout the year for Chevron, SOL,
Guyoil and the lesser known importers like the BCGI (bauxite company), GPL and the Trawlers Association.
The sampling and testing program continued to encompass all areas of the country with great emphasis on
Regions Two, Three and Four along with the maintenance of a twenty-four hour daily operation at the
Mackenzie Bridge, Linden in Region 10.
As the operational policy emphasized intelligence-activated sampling allied with routine sampling in the
established problem areas, a significant number of incidents of discovery and subsequent seizures of illegal
fuel occurred.
Outstanding cooperation was achieved between the various agencies e. g Guyana Police Force, Guyana
Revenue Authority (Customs Enforcement), Guyana Defence Force (Coast Guard mainly) resulting in several
interdictions of illegal fuel and assistance in capturing, escorting and securing various transport vessels (both
land and water) under the stewardship of the Task Force on Fuel Smuggling and Contraband.
FUEL SPECIFICATION TESTING
The equipment to determine various differentiating properties of fuel have been put into operation. The
equipment enables the Division to measure parameters for distillation, final boiling point, flash point, and
density which will be used to determine whether the substance being tested is a diesel, gasoline, or kerosene.
PILOT BULK INJECTOR UNIT
As an improvement to the fuel marking programme, it was
proposed to add the chemical marker into the bulk storage
tanks using an automated bulk marker injection system.
This bulk marking system will utilize self-powered
injectors to automatically inject the chemical marker
concentrate at a predefined dosage during discharge of
fuel from the international vessels into the bulk storage
tanks. The system of bulk marking will improve security
by taking the domestic marker out of the hands of the
marking staff where ‘losses’ have been experienced in the
past. These changes will further enhance the fuel marking
programme whilst minimizing impact on terminal
operations. Diesel and gasoline will be marked using the bulk injection system while kerosene will continue to
be marked by the addition of the adulterant marker directly into the bulk tank as is currently done. One
Marking Officer will remain at the terminal to add the adulterant marker to duty-free gasoline or diesel at the
time of sale.
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The Agency successfully completed the installation of the pilot Bulk Marker Injection System at the SOL
Terminal, Linden. Full implementation of the units at the various terminals in the country will commence in
2010. This unit is capable of automatically marking the fuel as it is pumped from the international vessel into
the bulk tanks at the bulk terminals. The successful installation and operation of the pilot unit has resulted in
a decision to implement the bulk marker injection system at all bulk fuel terminals. The automated bulk
injection system will improve the security of the marker concentrate and system integrity.
SAMPLE ANALYSIS
The number of fuel samples collected/logged each year is captured in the table below:
2003 2004 2005 2006 2007 2008 2009
434 6,639 9,621 6,104 Linden 9,500 15,223 Linden 12,191 20,639 Linden 12,072 20,799
Other 5,723 Other 8,448 Other 8,727
Number of Samples Collected Annually
In 2009, the Division collected a number of samples similar to that collected during 2008. The table below
shows the breakdown of samples analysed by Region. A relatively large number of samples was recorded in
Region 10 due to the 24-hr check point installed at the McKenzie-Linden Bridge to monitor fuel movements
into interior locations.
Number of Quantitative Analyses by Region Notes:
1. Database to track analyses was installed in July, 2004 and are not representative of ALL samples analysed for that
year.
2. Sampling for 2006 and 2007 was focused on “hot spots”
3. Sampling on a 24-hr basis commenced in 2007 at the McKenzie, Linden Bridge
Number of Quantitative Analyses by Region
Region 2004 2005 2006 2007 2008 2009
1 10 79 40 1,134 157 20
2 777 4,130 1,557 870 613 1,173
3 496 1,188 908 1,473 3,386 3,927
4 823 1,183 1,111 809 2,212 1,848
5 111 403 225 151 354 420
6 599 1,596 165 476 618 376
7 140 338 195 290 561 170
8 33 11 61 227 95 76
9 25 5
10 42 168 744 9,457 12,457 12,236
Total 3,056 9,096 5,006 14,887 20,453 20,251
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ANALYSIS BY SITE
The table below shows that in 2009 there was much progress in the sampling of a diverse number of sites. 1,202 sites were sampled at least once compared to 592 for the previous year. 73 (or 6%) of the 1,202 sites sampled were found with significant dilution (more than 50%) in at least one tank.
*2008 figures amended due to a revised methodology.
Analysis of Site Results
From 2006 to 2009, the percentage of sites found with significant dilution in at least one tank has
progressively decreased from 34% in 2006 to 6% in 2009. The data suggests that either more sites are dealing
in legal fuel, or illegal fuel is no longer stored on site.
Extreme measures are being adopted to transport, store and sell illegal fuel indicating the effectiveness of the
fuel marking technology in identifying illegal fuel, inherent fear of the technology, fear of detection and fear
of prosecution.
2004 2005 2006 2007 2008* 2009
No. of Sites sampled at least once 573 763 656 566 592 1,202
No. of Sites found with significant dilution in at least 1 tank
72 240 220 128 57 73
% of Sites found with significant dilution in at least 1 tank
13% 31% 34% 23% 10% 6%
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TEST
RESULTS
(Quantitative
analyses)
0-50 % 42 12% 28 6% 196 6% 855 9% 764 15% 1,169 8% 593 3% 701 3%
51-70 % 59 17% 32 7% 275 9% 1,234 14% 223 4% 343 2% 254 1% 767 4%
71-90 % 67 19% 89 19% 475 16% 2,576 28% 928 19% 8,204 55% 8,593 42% 12,654 62%
91 % - 188 53% 329 69% 2,110 69% 4,431 49% 3,091 62% 5,171 35% 11,013 54% 6,129 30%
Total 356 100% 478 100% 3,056 100% 9,096 100% 5,006 100% 14,887 100% 20,453 100% 20,251 100%
Qualitative
Analyses 375 1,825 1,180 307
2009
887
20082006 2007
03 Dec 2003
(Assessment
Phase)
27 Jan 2004
(Post-
Assessment) 20052004
36
ANALYSIS OF TEST RESULTS
The table below shows test results for samples collected from 2003 to 2009. The results are categorized in
four ranges:
0 to 50% : Significant dilution 51 to 70% : Some dilution
71 to 90% : Suspected dilution 91% and more : Legal
The table below shows that during the assessment phase (2003), 12% of the samples analysed were found to be significantly diluted. This decreased to 6% in the post-assessment phase and throughout 2004. From 2005 to 2007, the testing strategy was focused on areas with a high incidence of illegal activity. For this three-year period the percentage of significantly diluted samples fluctuated from 9% to 15% and then to 8%. This fluctuation would be a direct result of the strategy used for sampling and would have a direct relationship with the number of samples analysed and the focus on areas with a high incidence of smuggling. 2008 can be characterized as a mixture of focused, planned and random sampling. The percentage of samples found with significant dilution was maintained at 3% in 2009 indicative of sustained reduction in the percentage of significantly diluted samples analysed.
Test Results of Samples Analysed
QUANTITY OF ILLEGAL FUEL SEIZED
The table below compares the volume of illegal fuel
seized from 2005 to 2009.
2005
(UK Gal)
2006
(UK Gal)
2007
(UK Gal)
2008
(UK Gal)
2009
(UK Gal)
3,011 8,001 21,793 33,560 24,732
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VOLUME ANALYSIS
Volumes of gasoline, diesel and kerosene imported by the oil companies (excluding large duty-free
consumers) are depicted above. The upward trends of diesel and gasoline correlate with economic growth
and the successes of detection of illegal fuel.
OPERATIONAL AUDIT
The Authentix representative reviewed the procedures of the fuel marking programme with the objective of
ensuring conformity and accountability. The Authentix representatives, Mr. Richard Tier and Mr. Ian
Webster visited from the 20th – 27th January, 2009 for a complete audit of the new dispensing and
reconciliation of marker concentrate system (using both volume and weight measurement into the new
aluminum cans).
On October 07, 2009m two LSX units used by the Fuel Marking Division to conduct field tests for the
quantitative marker were reportedly missing (a defective one and a working one). There were a total of 8 units
initially in stock. Authentix has been informed and will be sending replacements. The Police were called in to
conduct investigations. Systems have been put in place to track all equipment and consumables used in the
field. The stolen units will be rendered useless when the marker change occurs in 2010.
The relatively high turnover continues to challenge the operational strength of the Division.
Ten (10) employees from the Agency were subjected to polygraph testing in 2009. Four of the persons tested
failed the polygraph test resulting in the termination of their services.
The vacant position of Analyst was filled in October 2009.
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3.4 ADMINISTRATION/PERSONNEL DIVISION
STAFF CHANGES
At the beginning of 2009, the Agency had a staff complement of seventy eight (78) employees but by the end of the year had reduced to seventy-three (73) employees.
22 new employees joined the staff in 2009:
- 14 Analytical Inspectors
- 1 Analyst
- 5 Marking Officers
- 1 Driver
- 1 Accounts Clerk II 8 employees resigned:
- 3 Analytical Inspectors
- 4 Marking Officers
- 1 Accounts Clerk II 6 employees had their services terminated:
- 1 Analytical Inspector
- 5 Marking Officers 3 Dismissals:
- 1 Boat Captain
- 1 Driver
- 1 Analytical Inspector
PROFESSIONAL DEVELOPMENT
The Division, recognizing that the Agency’s greatest strength lies in its human resource, placed significant emphasis on professional development of staff. In this regard, the Division facilitated participation of a number of officers at seminars, workshops, conferences, training programmes:
- The Authentix representatives, Mr. Richard Tier and Mr. Ian Webster visited from the 20th – 27th January, 2009 and conducted a short training session in the use of the new fuel testing equipment. The Flash Point tester malfunctioned and was returned to the manufacturer.
- Ms. Tracy Brammer and Ms. Minerva Devonish completed training in the use of Peachtree Accounting Software.
- During the month of February, 2009 consultant, Mr. Aldwyn Lequay, of Inspection Services Company Ltd, Trinidad and Tobago, carried out training exercises with staff of the Legal and Licensing Division and the Fuel Marking Division. This training included inspection of trucks, road tanker wagons, cargo boats, barges, fuel stations. Ten (10) members of staff underwent this training activity. Four (4) others were observers.
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- Mr. Aldwyn Lequay of Inspections Services Inc. of Trinidad conducted a one-on-one assessment with the persons who underwent the training held in February 2009 on inspection of petroleum-transporting road tanker wagons, trucks, shipping vessels, and petrol-filling stations.
- Mr. D. D’Anjou attended a two-day training seminar from February 12 to 13, 2009 on Root Cause Analysis hosted by the G.N.B.S in collaboration with Delphi Consultants Limited of Trinidad and Tobago.
- S. Ahamad, D. Haimraj, and M. Ragoober completed the International Business Communication course at I.P.E.D.
- S. Ahamad, D. Haimraj, and M. Ragoober commenced the Business Management and Administration course as part of the Supervisory training course at I.P.E.D.
- L. Nassy commenced Microsoft Access 2007 at Global Technology.
- Training of Ms. Yota Burgess, Analyst, in all laboratory analyses including Flash Point, Density and Distillation was conducted.
- Ms. Nelta Dainty-Typist Clerk and Mr. Joslyn Nesbitt-Stores Clerk/Purchaser proceeded on a training course for a Certificate in “Office Procedures and Administration”, facilitated by IPED.
ORGANISATIONAL RESTRUCTURING
The Agency expended much effort in the year under review to promote greater efficiency, productivity and utilization of the Agency’s resources. In this regard, the Agency embarked on a comprehensive systems review both in terms of structural reorganisation and rotation of staff. As a result, the Agency amended its organization structure to create more functional roles aimed at improving achievement of the overall mandate of the Agency. Some of the significant changes include the following:
- The Licensing Unit was transformed into the Legal and Licensing Division. The post of Legal Officer was changed to Legal Officer/Head- Legal and Licensing Division.
- The Conventional Energy Division and Non-Conventional Energy Divisions were merged into the Energy and Energy Statistics Division. Ms. Sandra Britton was reassigned from Head- Conventional Energy Division to Head Energy and Energy Statistics Division.
- Mr. William Holder was reassigned from Products Quality Control Officer, Fuel Marking Division to Head-Fuel Marking Division and performs the statutory function of Analyst.
- Mr. George Jaundoo was reassigned from Inventory Officer to Head (ag)-Marking Section –Fuel Marking Division.
- Mr. Sayaid Ahamad was reassigned from Laboratory Analyst to Head (ag)-Inspecting Section –Fuel Marking Division.
- Ms. Sophia Whyte was reassigned from Information Documentation Officer to Administration/Personnel Officer.
- Ms. Aurina Parbhudas was reassigned from Steno Typist II, CEO Secretariat to Clerk I, Legal and Licensing Division.
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INFRASTRUCTURAL ENHANCEMENT
During the year under review, the Agency undertook several tasks aimed at increasing the longevity of the edifice and enhancing the aesthetics of the surroundings. Due to the high cost of contracted labour, the building was washed and front fences painted by the Agency staff at a significantly reduced cost. As such the stairways, external walls, ceiling of the ground and first floors of the building were cleaned, the curtains from all Divisions were washed and the front concrete fence was washed and painted.
Several tasks were contracted out. Electrical faults to lighting systems in the parking area, security lamps and other areas were remedied; general plumbing works were done to the water system, including installation of float switch, pipes, gate valve, hose and fittings; water pumps were installed to facilitate adequate supply of water; damaged windows were repaired to prevent rainwater from seeping into the building; the northwestern section of roof (attic) was repaired to stop leakage, which was causing serious damage to the beam, flooring, walls and edging on top floor; a section of the western wall of the building at Kingston offices was repaired; two office chairs, one microwave and one electric water dispenser were repaired; wooden floors throughout the Head Office were refurbished and stained, one executive desk was resurfaced due to its deplorable condition; the Legal Officer’s office was repainted; defective locks and door bolts were replaced; the GEA Billboard was refinished; one safe which had been out of use for some years was dismantled and removed from the Licensing Office; computer systems, fire extinguishers, air conditioning units and the fire alarm system at Head Office were all serviced. In the interest of preserving the integrity of files, locks were placed on canisters and filing cabinets in the Finance Division and the Legal and Licensing Division. The Division oversaw the extension of the Legal and Licensing Office to provide additional space to accommodate more workstations and provide adequate seating for applicants. In addition to these infrastructural changes, surveillance cameras were installed to complement security for the Fuel Marking Operations.
3.5 FINANCE DIVISION
The activities of the Agency are financed from Government subventions and from revenue generated by the Agency. Revenue was generated by the Agency from administrative fees (Agency Fees) for the marking and handling of fuel and from the issuance of licences to sell, store, transport and deal in petroleum and petroleum products.
Due to the programmatic self-financing nature of the Fuel Marking activities, separate accounts are kept for its income and expenditure.
The Agency also facilitated payments for fuel purchased under the PetroCaribe Agreement by the oil companies. The payments for fuel to Venezuela are channelled through the Agency and were captured in the Accounts. This arrangement serves to ensure that payments are made according to contractual obligations. While the payments are captured as income, they do not represent actual income since they are disbursed as cash payments to Venezuela and as financed payments to the relevant accounts at the Bank of Guyana.
The Division was able to update its records as at 31 December 2008 and to present information in a timely, efficient and professional manner. In addition, the budget detailing the review of programmes for 2008 and an overview for 2009 was presented to Office of the President. The financial Statements for GEA for the years 2003, 2004, 2005 and 2006 were completed and sent to the Audit Office. The Division was also able to complete the financial statements for the Fuel Marking Division for the years 2003, 2004, 2005 and 2006 of which 2003 to 2005 were audited and the audit report is pending.
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2010 PROJECTIONS
In 2010, there will be greater focus on the monthly budget and ensure that expenses do not exceed income. The accounting records will be fully computerized using the Peachtree accounting software to improve the efficiency of the organization. The Division will continue visiting sites to verify assets and to authenticate expenses incurred. In addition, the financial statements for 2007 and 2008 are expected to be sent to the audit office. The quarterly reports detailing the income and expenditure will be sent to the Ministry of Finance along with the relevant summary sheets for the four quarters of the year.
