The Government of Guyana plans to issue exploration licenses for new offshore oil blocks this year, two years after launching a competitive bidding process for 14 blocks. The delay has prompted an apology from Natural Resources Minister Vickram Bharrat.
“I want to personally apologize because, I agree with you, we should have concluded at least some of the agreements with regards to the bidding round. It has taken a long time…” Minister Bharrat said at a recent press conference.
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In late 2023, the government awarded eight blocks to six bidders: TotalEnergies Consortium (with Qatar Energy and Petronas), Sispro Inc., International Group Investment Inc. and Montego Energy, Liberty Petroleum Corporation and Cybele Energy, ExxonMobil with Hess and CNOOC, and Delcorp Inc., Watad Energy, and Arabian Drillers.
Four companies—TotalEnergies Consortium, International Group Investment Inc., Cybele Energy Limited, and Delcorp Inc.—have accepted the new PSA.
However, ExxonMobil and its partners, Hess and CNOOC, are still reviewing it. ExxonMobil has raised concerns about the non-fiscal terms of the PSA. Exxon Guyana’s President Alistair Routledge stated last year that the company has no qualms with the fiscal terms. However, it is the punitive measures that are of concern.
Sispro Chairwoman Dr. Ayodele Dalgety-Dean told OilNOW that challenges like “regulatory compliance and setting up the necessary infrastructure” have prevented it from finalizing the award.
Minister Bharrat emphasized the need for uniformity in the agreements. “We haven’t been able to conclude a PSA that is accepted by all the bidders. And we don’t want to be in a position, where we have a PSA for different companies. That is not the ideal position to be in,” he said.
While the exploration licenses are expected to be issued in 2025, the Minister noted that specifics remain uncertain.
