GEORGETOWN, Guyana, CMC – The Guyana government Tuesday signed a petroleum agreement with the Ghanaian firm, Cybele, for Block S7, marking the second award arising from the country’s inaugural competitive licensing round, launched in 2022
The Ministry of Natural Resources, in a statement, said that the agreement features modernised fiscal terms, including a 10 per cent royalty rate, a 10 per cent corporate tax rate, a reduced cost-recovery ceiling, and a 50/50 profit-oil split between the two parties.
These terms align with the updated model Production Sharing Agreement, designed to secure greater long-term value and transparency for the people of Guyana. Today’s signing follows the recent award of Block S4 to a consortium comprising TotalEnergies, QatarEnergy, and Petronas, an agreement concluded only weeks ago,” the statement said.
Natural Resources Minister Vickram Bharrat welcomed the signing, noting that it represents another important step in advancing Guyana’s responsible and strategic development of its offshore basin.
He said that Cybele’s entry into the petroleum sector reflects growing international confidence in Guyana’s investment framework and the government’s commitment to transparent and competitive resource development.
Bharrat said the licensing round continues to expand the diversity of operators participating in Guyana’s offshore exploration activities, strengthening the country’s global partnerships in energy development.
Cybele’s bid of US$17 million upfront for a shallow-water well that the company believes contains at least 400 million barrels of oil, but the final figure depends on further studies, officials said Tuesday.
Bharrat told reporters that the company bid 7 million US dollars above the stipulated price for the less than 1,500-square-kilometer concession named S7.
“Initially, when they submitted the bid, they submitted the 17 because you’re basically bidding for the block, so to attract the evaluators’ attention and to show that you are financially sound and interested in the block, obviously, you would put in a good bid, and then the team obviously did a good job in negotiating,” he said.
The companies also have to demonstrate their technical capabilities and experience, and that they have the funds to conduct exploration.
Cybele’s chief executive officer, Beatrice Mensah-Tayui, told reporters that the 400 million barrels of oil stated in a company handout to the media is based on existing data.
“That’s an estimate based on geology that they have currently so that you can extrapolate, but until you do actual work, you really don’t know,” she said, adding that the company would conduct desktop reviews and other studies as part of its work plan.
“Our geology and geophysics team is responsible for that, and every block is different, so depending on the programme that they put in place, then we would share that with you,” she said, adding that her company would no longer be working with the United States-based Liberty Petroleum because of subsequent opportunities in Somalia.
However, Elemental Energies from Norway, well-respected for its work in sound engineering with supermajors like Total, would be working alongside her company in Guyana.
The Natural Resources Minister was elated that, within three weeks, the Guyana government signed production-sharing agreements that raked in a total of US$32 million. The first agreement was with the TotalEnergies-led consortium, which received a US$15 million signing bonus.
Mensah-Tayui said her company’s corporate social responsibility project includes providing opportunities for women.
In a media handout, Cybele said the S7 concession is located about 50 kilometres from ExxonMobil’s Liza 1 and Liza 2 fields. REPSOL’s Carapa-1 3D seismic overlaps 20 percent of S7.
Touting itself as the first African-led operator in Guyana and the first woman-led exploration and production company to have secured a block outside Africa, Cybele also said its geological leadership includes Segun Jebutu, a former lead subsurface scientist for more than 25 years with ExxonMobil wells in Guyana.
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