Guyana’s Vice President Dr. Bharrat Jagdeo has announced a one-month postponement of the country’s offshore licensing round beyond the July 15 bid submission deadline. The delay is to facilitate a review of Guyana’s oil and gas regulatory framework. The decision was disclosed to Reuters during an interview with Jagdeo.
Dr. Jagdeo also discussed plans to initiate a public consultation process for the draft Petroleum (Exploration and Production) Act. The act, set to be unveiled June 19, aims to amend Guyana’s petroleum law. The public consultation will allow citizens to provide their input and contribute to shaping the proposed amendment.
The postponement of the licensing round is for the finalisation of the law and the model petroleum agreements. Two versions of the PSA have been prepared for different blocks: deep water and shallow water. These drafts have already incorporated received comments and are currently undergoing further policy review.
ExxonMobil, one of the potential bidders, is awaiting the finalisation of the documents before deciding whether to participate in the licensing round. Despite the delay in preparing the key documents, Dr. Jagdeo assured that the government is committed to prioritising the issue and ensuring that investors have sufficient time to review the documents before submitting their bids.
The offshore licensing round has garnered significant global interest due to the remarkable oil discoveries in the Stabroek Block since 2015. With 14 blocks open for auction, estimated to contain approximately 25 billion oil-equivalent barrels, Guyana aims to promote exploration beyond the Stabroek Block.
