Guyana’s consideration to possibly establish a national oil company has been shelved, Vice President Dr. Bharrat Jagdeo said at the International Energy Conference.
Instead, South America’s rising oil star will be focusing efforts on more direct government-to-government engagements for oil blocks not being offered in the upcoming auction. And according to the VP, Brazil, Qatar and Kuwait are eager to partner with Guyana.
India and the United Arab Emirates (UAE) also had their eyes on a similar deal.
Right fiscal regime key to Guyana getting most out of upcoming bid round – Rystad Energy | OilNOW
In the auction, Guyana has 14 blocks up for grabs. And the Vice President made it clear that a maximum of “three blocks” will be awarded to each investor.
“Because we want multiple numbers of investors coming in here because they can start exploration activities simultaneously,” the Vice President affirmed.
This aligns with the government’s plan of accelerated oil and gas development.
Currently, its main oil concession – the Stabroek Block – has churned out over 30 discoveries amounting to 11 billion oil-equivalent barrels.
For auction, Guyana’s first ever, the government has said successful bidders will have to pay a minimum of US$10 million for each of the 11 shallow water blocks in play. They would also have to pay a minimum of US$20 million for each of the three deepwater blocks up for grabs in the ultra-deep Area C. If the government is successful in awarding all 14 blocks, it therefore, means that the country will earn no less than US$170 million in signing bonuses.
