By Vishani Ragobeer
A total of 14 new oil blocks under new payment terms are up for grabs this year and Vice President Dr. Bharat Jagdeo believes that Guyana’s auction will be successful given the government’s focus on the continued development of the oil sector.
The Vice President, speaking at a stakeholder engagement at State House on Thursday night, said that investors across the globe are more “discerning” about where they invest.
This is so because there are abundant investment opportunities across the globe. But Jagdeo reasoned that investors will continue seeking ventures in Guyana because the country has managed to keep momentum in the oil sector going.
“Over 70 countries are in bidding round, trying to get money to invest in their oil and gas.
“… only maybe 10 will succeed (and) we will be one of those in the world,” Dr. Jagdeo told a gathering of mostly local private sector players.
The momentum contributing to the rapid development of Guyana’s oil and gas industry and other spinoff sectors, Jagdeo explained, comes from the government’s decision to exploit much of the resource in the shortest possible time.
It is, for this reason, the government has sanctioned new projects and allowed new Floating Production Offloading and Storage (FPSO) vessels (oil ships) to come into Guyana’s waters.
“We need to keep the investments being made to keep the momentum going,” he said pointedly.
When he announced the upcoming auction in December, President Dr. Irfaan Ali noted that the Guyana offshore basin has captivated the attention of the global oil market participants, being called the world’s fastest-growing super basin, with estimated resources in excess of 25 billion barrels of oil equivalent (boe) and an estimated reserve in excess of 11 billion boe.
The licensing round allows the Government of Guyana to create and administer an improved fiscal and regulatory framework that is driven by good international oil field practices and standards, the President pointed out then,
After the auction, the government hopes to award new contracts for shallow and deepwater areas by the end of May.
Jagdeo, on Thursday, also reminded all that the government can auction more blocks in the future. There will at least be 20 per cent of the prolific Stabroek Block up for grabs.
Production at this block has begun with operator ExxonMobil mandated to relinquish some 20 per cent of the block this year.
