Vice President Dr. Bharrat Jagdeo committed that the Guyana government will provide vital documents, including the model petroleum agreements and the amendment to the Petroleum (Exploration and Production) Act, to investors ahead of the bidding deadline for oil blocks in the country’s historic offshore licensing round.
ExxonMobil, for one, had said it has not decided whether to participate in the offshore licensing round because it is awaiting the finalisation of those documents. The major currently operates three blocks offshore Guyana, including the prolific Stabroek Block.
During a press conference on June 8, Jagdeo noted the ongoing local government elections season as a contributing factor to the key documents not yet being ready. He said the government intends to prioritise the matter promptly in a few days, assumed to mean after the conclusion of the June 12 local government elections.
“It’s very tight now. And to be frank with you, the local government elections interfered a bit with it. And also the drafting [of the amendment to the law], it’s taking time. We’ve had a lot of feedback on the law, not so much the PSA, but on the legislation itself. So, we are going to return to this in earnest in a couple of days’ time.”
He also committed to ensuring sufficient time for investors to study the provided documents and make informed bids. He stated: “We believe that our word is important in the markets around the world… So those documents will be in place and they would have adequate time to study those and then make their bids, whatever the timing is.”
The offshore licensing round in Guyana has garnered significant attention due to the remarkable discoveries made in the Stabroek Block since 2015, amounting to over 11 billion oil-equivalent barrels. To encourage exploration beyond the Stabroek Block, Guyana has opened 14 blocks for auction, estimated to hold 25 billion oil-equivalent barrels.
