Vice President, Dr. Bharrat Jagdeo says its possible Guyana could host its second oil blocks auction in 2024 but stressed the need to consult with government’s international advisors first. During a recent press conference, the official stressed that timing for such initiatives is very important.
“We’re going to talk to our advisors to see what’s happening in the world of auctions and what’s the right timing because they’re more attuned to what’s happening globally. We have to fit any auction that we may pursue into that context,” the vice president said.
He also stated that Guyana’s second auction will feature the highly prospective 20 percent portion of the Stabroek Block, set to be relinquished this year. The vice president also noted the importance of sustaining management of existing properties as well as those from the first auction. He alluded that the government does not want to find itself in a position where it is overwhelmed.
In the meantime, the Vice President said authorities are keen on concluding the first auction, which attracted bids for eight of the 14 blocks on offer.
The government had announced that a consortium led by four African-Guyanese women, represented by Sispro Inc., secured two blocks: the shallow water block S3 and the deep-water block D2.
Total Energies EP Guyana B.V., in partnership with Qatar Energy International E&P LLC and Petronas E&P Overseas SDN BHD, won the shallow-water block S4.
ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited were awarded the shallow water block S8.
International Group Investment Inc. from Nigeria was selected for two shallow water concessions, S5 and S10.
Liberty Petroleum Corporation and Cybele Energy Limited, an American and Ghanaian partnership, secured the shallow water block S7.
Lastly, Delcorp Incorporated, in collaboration with Watad Energy and Communications Ltd and Arabian Drilling Company, obtained rights to the deep-water block D1.
These companies are now undergoing a due diligence process, as part of Guyana’s rigorous oversight of the oil sector.
Once their agreements are signed, the companies will be expected to pay a 10 percent royalty and a 10 percent corporate tax. Their contracts will also stipulate that cost recovery be capped at 65 percent in a given year, while profits will be shared 50/50 between the parties. For shallow water blocks, companies have to pay a minimum signing bonus of US$10 million, while a minimum of US$20 million is set for deep water concessions.
