The Ministry of Natural Resources has made an important announcement regarding the extension of Guyana’s inaugural auction, the 2022 Licensing Round. The deadline for bid submissions has been yet again extended which marks the third extension of the bid submissions for the auction, now scheduled to conclude on Tuesday, September 12, 2023.
Last month on June 22, Vice President Dr. Bharrat Jagdeo had announced the second extension, noting that the bids will remain open until it completes the modernisation of the old Petroleum Exploration and Production Act. He also noted that the extension served to pave way for a comprehensive package for investors as well as updated regulatory and fiscal terms.
In its announcement today, the Ministry acknowledged that this additional extension was necessary due to ongoing efforts to enhance the petroleum regulatory framework based on valuable feedback received from stakeholders.
It said, “Whilst recognizing the new era of oil and gas development and investors’ confidence in our economy, the government is working to ensure that this competitive licensing bids and future rounds are governed by a modern regulatory framework with improved technical and institutional capacities”.
Furthermore it said to complement the new model production sharing agreements (PSAs), the government is in the process of finalizing the Petroleum Activities Bill 2023. This new legislation will not only bolster the sector’s management but also introduce enhanced economic measures for all licensees participating in the current bidding round, as well as for future development and production operations within Guyana’s petroleum sector.
Previously, the government had revealed plans to revise the outdated 1986 Petroleum Act to align with the fiscal and regulatory changes proposed in the upcoming draft model PSAs. These revisions aim to provide investors with a comprehensive package for Guyana’s maiden auction, which comprises 14 blocks, including three deepwater and 11 shallow water blocks available for contention.
According to the Ministry, since its official launch on December 9, 2022, the Licensing Round has generated significant global interest, and the government has greatly benefited from insightful feedback during the consultation periods of the Indicative Terms and Guidelines, the draft model Production Sharing Agreements (PSAs), and the draft Petroleum Activities Bill.