The government seeks to set the record straight on energy-related projects.

GEORGETOWN, Guyana, CMC—The Guyana government says its priority remains to complete the gas-to-energy (GTE) project “in the shortest possible time” following a ruling by the Dispute Avoidance and Adjudication Board (DAAB) late last month.

The DAAB issued its ruling on January 31 in the dispute between the government and the contractor, Lindsayca/CH4, regarding the GTE 300 MW Integrated Plant after the matter was referred to it on September 19, 2024.

Following the DAAB ruling, the parties have 28 days to determine if they wish to refer the decisions, or any part thereof, to arbitration, which would be the next stage in the dispute-resolution process.

The government said that Exxon Mobil executed certain aspects of the project on its behalf. The Irfaan Ali administration said it will, therefore, in the next few weeks, consult with its partners, including Exxon/Mobil, as well as relevant legal and technical advisors, to determine the best course forward for GOG.

“The government of Guyana’s priority continues to be to ensure that the project is completed in the shortest possible time and in keeping with contractual specifications, to bring the power plant and the NGL plant into operation and deliver the associated benefits to the Guyanese People as soon as possible.

“When completed, the project’s benefits will include a doubling of the country’s electricity generating capacity to meet growing demand and a reduction in the cost of generation, thereby enabling electricity prices paid by consumers to be cut by 50 percent.

“This will, in turn, catalyze rapid expansion in industrial activity and immediately improve the competitiveness of the manufacturing sector and all other productive sectors that are energy intensive, bringing vast employment and entrepreneurial opportunities for Guyanese nationals,” the government said.

It is also said that the completion of the project would facilitate other benefits, such as reducing the cost of LPG cooking gas to households and businesses and realizing domestic self-sufficiency with a significant surplus for the export market.

“Consequently, the project will not only generate significant foreign currency savings for our country as a result of reduced imports but also generate additional export revenue, bringing with it the attendant macroeconomic benefits of a stronger balance of payments position, which will redound to the benefit of the Guyanese people,” it added.

Meanwhile, the government has described media reports as “mischievous” regarding the ongoing bid for the oil and gas licensing round for the country’s open acreage of oil and gas blocks.

A statement from the Ministry of Natural Resources recalled that in 2022, the government launched the oil and gas licensing round. It added that the fiscal terms, technical and financial requirements, and draft Petroleum Agreements (PSAs) were made publicly available to potential bidders as part of the process, encouraging bids from qualified entities.

The statement said that of the total available blocks spanning both deep and shallow water depths, eight blocks received bids, which were duly reviewed. Evaluations were conducted in accordance with international best practices and the terms outlined in the bid round documents.

It said that following the review process, the bidders demonstrating the most sustainable and responsive proposals were shortlisted and engaged to award blocks and grant licenses and PSAs, and this information was made public.

“In this regard, we consider it mischievous to see news articles…claiming that the relevant information was not being shared. On the contrary, this process has been transparent, with ongoing public engagement.

“The most substantially responsive bidders have been publicly announced, and the process is currently in its final stages, with the awardees expected to be formalized soon. When the regulatory process is completed, a press event will be held to mark the signing of the PSAs, ensuring that the public remains informed throughout the process,” the statement said.

It said that while the process is ongoing for all the blocks, at this stage, a minimum of four PSAs are expected to be completed and signed for the year 2025. These include blocks S4—TotalEnergies, Qatar Energy, and Petronas; S5—International Group Investment Inc.; S7—Cybele Energy; and S10—International Group Investment Inc.

“The government of Guyana recognizes the significant public interest in this sector and remains committed to ensuring that the development of the oil and gas industry is conducted in a manner that is both transparent and beneficial to the country as a whole,” the statement added.