GEORGETOWN, Guyana, CMC – The Guyana government has released the draft model petroleum agreements for the deep and shallow-water areas, coinciding with a 14-day consultation before finalization.
The Ministry of Natural Resources said the agreements embody rigorous research and analysis by the ministry’s internal team and external consultants on all topics relevant to a modern petroleum agreement for Guyana.
“The process involved a comprehensive assessment of the current petroleum agreement and the identification of best practices relevant to every contractual aspect of a modern agreement grounded in the Guyana context,” the ministry said in a statement.
It ensures a comprehensive framework of international best practices governs new investments. The model petroleum agreements will be followed by overhauling the 1986 Petroleum Act and Regulations.
Feedback on the draft model agreements should be addressed to the Minister of Natural Resources.
The indicative Guyana 2022 Licensing Round Schedule will be updated. It will reflect the new timeline for the publication of the finalized terms and guidelines for the model petroleum agreement and bidding process, which the ministry said would be adjusted to facilitate maximum participation from global interest.
It said Official Expressions of Interest (EOI) had been received for all 14 blocks for the Guyana 2022 Licensing Round tender, demonstrating global interest in Guyana’s shallow and deepwater offshore acreage.
The statement said that the model petroleum agreements represent the government’s commitment to establishing a model production-sharing agreement (PSA) guided by industry standards and best practices.
“At the core, these are aimed at maximizing the socio-economic benefits for our nation without disincentivizing foreign investors in the sector. The government of Guyana remains committed to a new era of oil and gas development, characterized by a competitive and favorable investment climate,” the statement added.
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