Guyana’s Vice President Bharrat Jagdeo said on Thursday that no new oil block contracts or agreements for a major gas project involving U.S. firm Fulcrum LNG will be signed before the country’s General and Regional Elections scheduled for September 1.
Jagdeo said negotiations will temporarily go “on autopilot” as the government shifts focus to the election campaign. “It would be unethical to do so in a major project of this nature,” he said during a press conference.
Fulcrum LNG, a U.S. startup led by former ExxonMobil Guyana official Jesus Bronchalo, was engaged by the Guyanese government in 2024 to explore the potential for a large-scale natural gas development offshore, in collaboration with ExxonMobil, operator of the prolific Stabroek Block.
The potential project has generated public interest amid questions about Fulcrum’s role and the potential economic impact of a large gas export operation. Jagdeo described the initiative as “transformational,” with prospects for “massive wealth creation,” and industrialization, particularly for Regions 5 and 6.
Separately, Jagdeo said no petroleum agreements will be signed soon with the winners of offshore blocks from the country’s first competitive auction for now. While the government had previously said awards were expected this year, the Vice President said such deals are unlikely to be finalized “maybe for the next two or three months.”
Jagdeo’s comments indicate that the elections are now a key factor in delaying final decisions on both fronts. “We have about 80-something days more for the elections and thereafter, we’ll return to it with vigor,” he said.
Guyana has emerged as a must-watch oil player since ExxonMobil’s 2015 discovery in the Stabroek Block fueled first production in December 2019. The rate of oil production is increasing every year, with condensate and small-scale gas production also expected in the second half of the decade.
