Due diligence on awardees being conducted to wrap up oil blocks awards – Jagdeo 

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A verification process of the oil block awardees is being undertaken before the final sign-off, said Vice President Bharrat Jagdeo on Jan. 11. 

Asked for an update on the auction, Jagdeo shared that the firms were asked to submit additional information, due at the end of this month. 

“We assessed the proposals on the basis of a number of criteria. Our consultants did  too. So, now we have to verify what [was] in those proposals. We rank them based on what people said and then we decided to award but [for] the final sign-off, we have to do the due diligence to see what was in the proposal, that the companies can meet those obligations and they have the wherewithal to address those issues. That is where we are now,” he explained. 

We decided to forego experience so locals could participate in bid round – Guyana VP   | OilNOW

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 winners are as follows: 

S4 – TotalEnergies, Qatar Energy, and Petronas 

S3 –  Sispro Inc

S5 –  International Group Investment Inc. and Montego Energy

S7 – Liberty Petroleum Corporation and Cybele Energy

S8 – ExxonMobil, Hess, and CNOOC

S10 – International Group Investment Inc. and Montego Energy

D1 – Delcorp Inc., Watad Energy and Arabian Drillers

D2 –  Sispro Inc. 

Guyana is expected to receive more than US$100 million in signing bonuses. Contracts will be signed this quarter. 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.

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