Oil blocks auction: Gov’t hopes to finalise awards by year end

Vice President Dr. Bharrat Jagdeo said the government is in the process of evaluating the bids for eight blocks offshore Guyana and a final decision on any award could be made before the end of the year.

Dr. Jagdeo spoke during a press conference hosted at Freedom House, the People’s Progressive Party Civic (PPP/C) headquarters in Georgetown.

“We are anticipating in early October to finish the evaluation and then to move on to conclude the agreement before the end of the year,” Dr. Jagdeo said.

According to him, six bidders made 14 offers. They bid for eight of the 14 shallow and deepwater blocks offshore Guyana.

And Jagdeo revealed that the blocks that did not get any bids were: D3, S1, S2, S6, S9 and S11. That means blocks D1, D2, S3, S4, S5, S7, S8 and S10 got bids.

The blocks can be viewed in the map below:

Though the six blocks did not get any bids, the Vice President said the government is “extremely pleased” with the response to the auction.

He explained that funding for oil and gas exploration and production globally is limited given the push for the use of more renewable energy sources. Additionally, Because Guyana managed to get 14 offers for eight blocks in its first ever auction, Jagdeo believes the bid round has been a “great success.”

Further, he pointed out that there are multiple bids for some blocks, meaning that those blocks are very competitive. And Jagdeo also believes the bidders are upbeat about prospects in Guyana.

“Given the overwhelming success here and the discovery rates, a lot of these bidders are excited about the prospects as we are,” Jagdeo said.

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:

ExxonMobil, which already has the giant Stabroek Block
SISPRO INC (Guyana), headed by Guyanese businesswomen
Total Energies EP Guyana BV; Qatar Energy International E&P LLC; Petronas E&P Overseas Ventures SDN BHD (Malaysia)
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
International Group Investment Inc and Montego Energy SA (London)