Petrobras, Brazil’s state oil producer, has decided not to participate in the ongoing offshore licensing round in Guyana. Vice President of Guyana, Dr. Bharrat Jagdeo told reporters on Thursday he had a meeting with Petrobras officials in New York, while attending S&P Global’s CERAWeek in March, during which he was informed.
The company revealed its alternative plan.
“They have an impressive program to explore just East of French Guiana, in their territory,” Jagdeo said.
According to Norway’s Rystad Energy, Petrobras is looking to focus its exploration efforts on the potential of the equatorial margin later this decade, with hopes to replicate the unprecedented success at Guyana’s Stabroek Block. The basins that Brazil’s state explorer is expected to target are Foz do Amazonas, Para- Maranhão, Barreirinhas, Ceará, and Potiguar.
Jagdeo said Petrobras believes that the geology of the region indicates potential to replicate the success Exxon has had in Guyana’s oil-rich waters.
Petrobras, alongside Chevron and Shell, had expressed prior, that it is interested in participating in the licensing round, according to a Reuters report. Recognising the significance of Petrobras in the energy sector, Jagdeo said Guyana’s President, Dr. Mohamed Irfaan Ali, has taken proactive steps to address the situation. Ali recently returned to Guyana from a visit to Brazil, where he met with President Luiz Inacio Lula da Silva. Jagdeo said Ali has personally engaged in discussions with President Lula of Brazil to explore possible avenues for Petrobras’ involvement in Guyana’s market. Jagdeo said there seems to favourable movement, in this regard.
Vice President Jagdeo said the Brazilian company’s presence in the Guyanese market could bring substantial benefits.
“We believe Petrobras is a big player and we’d like them in in our market too. We can benefit a lot from the training and expertise and everything else from Petrobras.” Jagdeo said.
Guyana’s licensing round of 14 blocks (11 shallow water and three deepwater) is ongoing.
Government plans to close submissions on July 15, and conclude awards by the end of the third quarter. However, government has not released its finalised model contracts yet, and is also expected to pursue amendments to the Petroleum (Exploration and Production) Act before the closing date for bid submissions.