GEORGETOWN, Guyana, CMC – The Guyana government says it hopes to sign the Production Sharing Agreements (PSA) with four companies next month, nearly two years after awarding several oil blocks offshore Guyana in the country’s first auction.
Natural Resources Minister Vickram Bharrat, speaking on the latest edition of the “Starting Point” podcast on Sunday, stated that the Government aims to sign the agreements with the four companies in October.
“The negotiation took some time, but I’m happy to say that we have wrapped up… I think about four of those PSA will be signed in a month or so… We have already made contact with those companies. They know themselves by now.”
Vickram Bharrat
In October 2023, the Government announced the award of eight deep- and shallow-water blocks, which were auctioned off during the 2022 Licensing Round. The bidding round closed in September 2023 with six companies bidding on eight of the 14 offshore blocks.
In total, 14 offers were made on those blocks, and among those awarded oil blocks during the bid round was a Guyanese female-led company, Sispro Inc. Others were awarded to Total Energies EP Guyana BV in a consortium with Qatar Energy International E&P LLC and Petronas E&P Overseas Ventures SDN BHD (Malaysia).
The US-based Liberty Petroleum Corporation and the Ghana-based Cybele Energy Limited, as well as the International Group Investment Inc. of Nigeria, the Stabroek Block partners – ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited – were also successful.
In addition, Delcorp Inc. Guyana, which comprises Watad Energy and Communications Limited and Arabian Drilling Company of Saudi Arabia, also received a favourable nod from the authorities.
The Government has been in negotiations with companies, with the Natural Resources Ministry indicating that it is moving ahead to sign the PSAs with four of these companies, among them the consortium of TotalEnergies, Qatar Energy, Petronas, and International Group Investment Incorporated.
Bharrat told the podcast that Sispro Inc., the all-Guyanese women’s company, will also be signing an oil contract with the Government for one of its awarded blocks.
“To date, we have successfully negotiated a PSA for the block in the shallow water [block S3] with Sispro. So, we’re moving ahead with that. And then at some point in the future, once we conclude the negotiation for the deep-water one, we will move forward with that,” he said.
He said the PSA signing with the all-women-led oil and gas company is especially significant for the country.
“I’m very proud that it’s a Guyanese company, especially our women folks, getting involved in the oil and gas sector. It shows that we’re expanding the way we think and taking a risk. It is part of our Government’s policy to ensure that young people and women are given opportunities in this space.
“They’re given the leverage and they’re supported to be engaged in investment, to be engaged in businesses. Today, we’re very proud to say that we’ll be signing a PSA with an all-women’s Guyanese group of investors, and that should be a very proud moment for all Guyanese,” he added.
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