With less than two weeks left for companies to participate, anticipation remains high on the outcome of Guyana’s first bid round. At stake is a potential 25 billion barrels of oil equivalent up for grabs. It is clear that the Guyanese government is gearing up for an era of aggressive exploration and development offshore.
The roadmap to this landmark moment is clearly delineated:
– Submission Deadline: All interested parties must submit their bids by September 12, 2023.
– Evaluation Period: From September 18 to October 6, 2023, the government will scrutinise all bids.
– Negotiation Window: October 10 to October 27 is set aside for negotiating with potential winners.
– Contract Award Date: By November 1, the successful bidders will know their fate.
President Dr. Mohamed Irfaan Ali assented to the bill on August 16, shortly after its passing earlier this month. The government swiftly acted on its commitment, publishing finalised model petroleum agreements for both shallow and deep-water blocks on the Petroleum Management Programme’s website.
Of the 14 blocks available, three are in deep waters and 11 in shallow waters. The investment requirements, financial and work commitments, and signature bonuses are carefully calibrated based on the type of block.
The current exploration activity offshore Guyana is largely dominated by ExxonMobil in the Stabroek Block. Recent discoveries by CGX Energy, in the Corentyne block have amplified the basin’s potential.
With several blocks set to be awarded in November, it is evident that the 2024-2027 timeline will be a high-activity period for Guyana’s offshore activities. ExxonMobil, having secured the Environmental Protection Agency’s nod, plans to drill 35 wells in the Stabroek block, with drilling expected to span from late 2023 to around 2026-2027. Additionally, Exxon is seeking permission to drill in the Kaieteur and Canje blocks.
Repsol is eyeing a renewal of its Kanuku block exploration license, while Eco (Atlantic) Oil and Gas is setting its sights on the Orinduik block.
