Oil Block Auction: Gov’t negotiating with oil companies; no drilling prospects approved

The Guyana Government through the Ministry of Natural Resources confirmed on Wednesday that it remains engaged in a robust negotiation process with the companies approved for oil blocks in the nation’s inaugural bid round.

Minister within the Ministry of Public Works, Deodat Indar during a panel discussion at the Offshore Technology Conference (OTC) in Houston, Texas on Wednesday inadvertently stated that the government received three drilling prospects from a consortium with Petronas, Qatar and TotalEnergies and that those prospects will get underway soon in shallow water block— S4.

However, when contacted, Natural Resources Minister, Vickram Bharrat clarified that no awards have been made to date. The minister further stated that there is a process that needs to be followed. He recalled that of the 14 blocks that went on offer, eight received high interest from local and international companies. Sispro Inc., a consortium of four Guyanese women, was approved for two blocks —S3 and D2.

Along with other winning oil companies, ExxonMobil, Hess, and CNOOC bid for S8.

Minister Bharrat said that while Cabinet approved for the companies to receive the said blocks, robust negotiations are taking place with the bidders, following which the Production Sharing Agreements (PSAs) would be signed and the awards made.

Minister Bharrat said, “It is only after this process is completed that other steps would take place, including the payment of signing bonuses and the final approval of work programmes.”

“This will also be the first time that the new model PSAs would be used, utilizing the modernized fiscal regime that increases the country’s take while ensuring considerable returns for investors.”