President Dr. Irfaan Ali says there are “tremendous” opportunities for Chinese seeking to participate in Guyana’s nascent oil and gas sector and he encouraged companies to bid for oil blocks offshore Guyana.
Dr. Ali spoke about Guyana/ China relations in an interview with CGTN, a state-run news channel based in China’s capital, Beijing during his recent visit to the city.
During that interview, he noted that the China National Offshore Oil Corporation (CNOOC) is one Chinese company that has a stake in oil and gas production in the lucrative Stabroek Block offshore Guyana.
CNOOC is a coventurer in this block alongside Hess and ExxonMobil. Together, the three companies are producing oil from the area that already has proven resources of more than 11 billion barrels of oil.
President Ali said his government wants more Chinese companies involved in offshore oil production.
“… we have 14 blocks out there for auction.
“We’re hoping that more Chinese companies would also get involved in the auction of those 14 blocks,” he said.
The 14 oil blocks on auction are for shallow and deep water areas.
There will be separate requirements for qualification to participate in deepwater versus shallow water blocks, with a higher bar set for deepwater areas, which reflects the capital-intensive nature of deepwater exploration and production (E&P) and the highly specialised technical competence required for deepwater E&P activities
There will be a minimum signature bonus requirement of US$10 million for shallow water and US$20 million for deepwater blocks.
Aside from the oil blocks auction, the Guyanese Head of state noted that there are growing opportunities for natural gas production from those offshore oilfields.
Dr. Ali also hinted at the opportunity for Chinese companies to possibly help the government build the massive Amaila Falls hydropower project, stating that the authorities will soon issue a request for expressions of interest.
