Guyana receives bids for 8 of 14 oil blocks

Guyana has received bids for eight of 14 oil blocks that were up for auction, government sources confirmed to the News Room on Tuesday afternoon, and awards are slated to be made by the end of the year.

Thought eight blocks were tendered for, there were six bidders in total; but it is not clear at this time which of the bidder bid for more than one of the blocks.

A total of 14 oil blocks were up for grabs – 11 in shallow water and three in deep water.

The companies which put in bids are:

1. ExxonMobil, which already has the giant Stabroek Block
2. SISPRO INC (Guyana), headed by Guyanese businesswomen
3. Total Energies EP Guyana BV; Qatar Energy International E&P LLC; Petronas E&P Overseas Ventures SDN BHD (Malaysia)
4. Delcorp Inc Guyana and Watad Energy and Arabian Drillers of Saudi Arabia
5.Liberty Petroleum Corporation of the US and Ghana-based Cybele Energy Limited
6. International Group Investment Inc and Montego Energy SA (London)

Revenues from the oil sector have been funneled into Guyana’s national budgets, propelling large scale development projects across the country. Last year, US$1 billion was made from the sale of Guyana’s oil and royalties.

In a report just released, the International Monetary Fund rated Guyana as the fastest growing economy in the world.

The government has not been shy in saying it is pursuing the development of the oil and gas sector because of it’s potential to transform the country and bring wealth to people.

ExxonMobil, the operator of the Stabroek Block, currently pumps about 360,000 barrels of oil per day from two production vessels; production will be ramped up to over a million barrels a day in the next four years.

The deadline for the submission of bids for these other oil blocks was pushed back a few times as the government sought to finalise new changes to the sector’s regulatory framework.

The auction was launched in December 2022 with an April 2023 deadline. It was later extended to June, then July, and then September 12.