The government has once again decided to postpone Guyana’s inaugural auction, the 2022 Licensing Round. Vice President, Dr. Bharrat Jagdeo made this announcement during a press conference held today, emphasizing that the extension would not be significantly long.
The Vice President also mentioned that the government has personally informed nearly all interested parties about the postponement, and the news has seemingly been well receiveblocks
Initially, the deadline for bid submissions for the 2022 Licensing Round, which involves the auctioning of 14 offshore blocks in Guyana, was extended on April 12. The Ministry of Natural Resources (MNR) made this decision, setting the new deadline for July 15, 2023. The extension provided a three-month window beyond the original deadline of April 14, 2023.
The MNR had stated that the deadline extension was a response to feedback from the industry and the ongoing efforts to modernize the regulatory framework for oil and gas, which forms the basis of the offshore licensing round. The MNR also highlighted that the 2022 Licensing Round, which commenced on December 9, 2022, has garnered significant global interest and extensive consultations were conducted regarding the Indicative Terms and Guidelines, as well as the draft model production sharing agreements (PSAs). Consequently, the government gained valuable insights from these consultations, necessitating the extension of the bidding period.
Today, Jagdeo emphasized the government’s commitment to establishing the necessary framework, including the 2023 Draft Petroleum Activities Bill and the draft new model production sharing agreements (PSAs). It is worth noting that the government previously stated that revisions to the existing outdated 1986 Petroleum Act were being made to support the fiscal and regulatory changes outlined in the nearing completion of the draft new model PSAs.
These updates aim to provide investors with a comprehensive package for Guyana’s maiden auction, the 2022 Licensing Round, featuring 14 blocks, including three deepwater blocks and 11 shallow water blocks up for contention.