GEORGETOWN, Guyana, CMC—The Guyana government says it has received bids from eight firms to conduct a 3D Seismic study of oil blocks offshore. Vice President Bharrat Jagdeo said that once the prequalification process is completed, the bidders must submit proposals for the project.
A 3D seismic study is a vital tool in oil and gas exploration. It creates a three-dimensional image of what lies beneath the Earth’s surface, making it easier to pinpoint potential locations of oil and gas reserves.
Last month, the Ministry of Natural Resources extended a request for Expressions of Interest for a “reputable and experienced” firm to conduct 3D Multi-Client Seismic Surveys offshore Guyana.
According to the notice, the object of this assignment is to acquire, process, and interpret high-quality 3D seismic data to facilitate the exploration and potential development of hydrocarbon resources offshore Guyana and ensure that this data is available for effective evaluation during future bidding and licensing rounds.
Jagdeo told reporters this was not done for the previous licensing round, which concluded in 2023.
“We went out at the last auction without any 3D seismic study, so we didn’t have much data for the areas. When you have less data, people don’t put in great bids, so they don’t know what is there. They can’t interpret the data,” he said, adding that this study will come at no cost to the government.
“We are hoping that [for] all of the unallocated areas, we may have the 3D Seismic studies done by these people. They do it, and we don’t have to pay for it because it’s a very costly exercise. They can share the data with us and sell it to the clients.”
The authorities said that the study would be conducted to ensure that block bidders make more informed decisions.
Last year’s auction concluded with 14 oil blocks in the country’s shallow and deepwater areas.
During the bidding round, eight blocks were shortlisted based on the bidders’ ability to meet the criteria of the expected work program and the required financial commitments.
Six companies were awarded oil blocks, including a Guyanese company, Sispro Inc., which secured two blocks.
Other blocks were awarded to Total Energies, in collaboration with Qatar Energy International and Petronas, International Group Investment Inc. and Montego Energy, Liberty Petroleum Corporation, Cybele Energy Limited, Stabroek Block partners: ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited, as well as Delcorp Inc. Guyana, which comprises Watad Energy and Communications Limited and Arabian Drilling Company of Saudi Arabia.
TTheProduction Sharing Agreement (PSA). It already requires a minimum signature bonus of US$10 million for shallow water and US$20 million for deepwater blocks
While open to minor adjustments in the PSA, the government has been adamant that the essential fiscal terms would remain unchanged.
Jagdeo said that negotiations are ongoing, and agreements on the PSA’s non-fiscal terms are nearing completion.
“We said that we had some pushback on the non-fiscal elements…that they were too harsh, and that is what needs to be finalized,” he told reporters.
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