ExxonMobil Guyana President Alistair Routledge said Thursday that the company has registered for the offshore licensing round the government launched in December.
“We’re always interested in new acreage,” he said during a media conference in Georgetown. “And clearly, we’ve had some success that [which], you know, brings a certain degree of interest and we should be knowledgeable of it.”
The official said the company is evaluating the data made available by the government on the blocks, but that a final decision will not come until the release of the final terms for the production sharing agreement (PSA).
A 10% royalty rate will head the new model agreement, up from the 2% granted to Exxon for the Stabroek Block. The 75% cost recovery ceiling has been lowered to 65%. The sharing of profits after cost recovery will remain 50/50 between government and contractor. And a corporate tax of 10% will be instituted, where there was none before.
Notably, the deal secures a greater share of the income for the government, when compared to the controversial Stabroek Block PSA.
The government said it will release the draft new model contract for the licensing round on February 13, commencing a period of consultation. The contract is expected to be finalised by March 8.
Guyana has placed 14 blocks on auction; three deepwater blocks and 11 shallow water blocks. Authorities estimate 25 billion oil-equivalent barrels are at stake.
