Gov’t wants exploration at new oil blocks to start ‘as soon as possible’

Eight oil blocks – two in deep water and six in shallow water – were recently awarded to six different companies and groups, and the government is hoping to start negotiations next week so that exploration at the blocks can start as soon as possible.

This is according to Minister of Natural Resources, Vickram Bharrat who spoke at a press conference on Tuesday.

Bharrat said the six companies and groups were formally notified of the award and negotiations with them are expected to start next week.

“We want exploration activities because it is through exploration activities that opportunities will come,” the Natural Resources Minister told reporters.

Already, he said the companies and groups have all noted that they can satisfy key requirements including the US$10 million (shallow water) and US$20 million (deep water) signing bonus for blocks.

He also said that the companies have submitted their work programmes but they must now engage the government how what resources they have and how they can execute these programmes.

Though optimistic that these negotiations will go well, Bharrat warned that there will be “stiff penalties” for any company that cannot effectively execute their work programme.

Vice President Dr. Bharrat Jagdeo announced the award of the oil blocks in October:

• S3 has been awarded to Sispro Inc., a company headed by four Guyanese businesswomen
• S4 to a consortium comprising Total Energies EP Guyana BV; Qatar Energy International E&P LLC; Petronas E&P Overseas Ventures SDN BHD (Malaysia)
• S5 to International Group Investment Inc, a Nigerian group
• S7 to Liberty Petroleum Corporation of the US and Ghana-based Cybele Energy Limited
• S8 to a the ExxonMobil, Hess and CNOOC consortium currently operating in the Stabroek Block offshore
• S10 was also awarded to the International Group Investment Inc.
• D1 went to Delcorp Inc Guyana and Watad Energy and Arabian Drillers of Saudi Arabia, two Saudi Arabian companies that are incorporated
• And D2 also went to Sispro Inc

‘S’ refers to blocks in shallow water while ‘D’ refers to blocks in deep water; there were 11 shallow water and three deep water blocks up for grabs.