Following the recent oil blocks auction in Guyana, the government is set to receive more than US$100 million in signature bonuses, with contracts expected to be signed in the first quarter of 2024. The oil auction, the country’s first such initiative, concluded with eight out of the 14 blocks being awarded – two in deep water and six in shallow water.
The government had set minimum bids at US$10 million for each of the shallow water blocks and US$20 million for the deepwater blocks in the ultra-deep Area C.
Guyana’s Natural Resource Fund is expected to be the repository for the signature bonuses. The Fund, established in 2019, regularly receives royalties and oil sales revenues.
Negotiations are ongoing for the finalization of the petroleum agreements for each block.
