Vice President and General Secretary of the People’s Progressive Party (PPP), Dr Bharrat Jagdeo made it clear that his government will continue to encourage oil exploration offshore Guyana.
Responding to a question at his recent press conference, Jagdeo explained that while the government may one day choose to halt approvals for future projects, that time has not come. “At some stage, if we say no more, we’re not going to approve future development plans and that may come in the future…But right now we have no intention of stopping any exploration for more oil and gas,” Jagdeo said.
Further, he pointed that this is also proven with the government’s inaugural oil block auction, which was a campaign promise. He noted that government embarked on the auction even before key policies were finalized.
While no blocks have been awarded as yet, Jagdeo made government’s intention clear to continue supporting the oil and gas industry. Jagdeo shared, “We’re now in the process of awarding a number of people the contract to do the seismic and so the next time we go to auction, we’d be able to hopefully have a good auction and then to resume exploration simultaneously in several blocks because we need to prove more reserves.”
He reiterated the PPP government’s position not to renegotiate ExxonMobil’s Stabroek Block Production Sharing Agreement (PSA), but highlighted the improvements included in the new PSA that will govern future oil blocks.
Exxon discovered oil offshore Guyana in 2015 and began production by the end of 2019. The company is expected to bring its fourth project, Yellowtail, on stream this year, adding to the three already producing: Liza 1, Liza 2, and Payara. With approval already granted for six developments, Exxon has also submitted proposals for a seventh project in the Stabroek Block.
The Vice President linked ongoing offshore exploration to benefits for the local economy, made possible through Guyana’s Local Content Law implemented in 2021.
Jagdeo explained, “When the exploration activities go on, it also feeds back into the local economy because the people who come in to do the exploration, they have to utilize the services of the country and they have to procure things from our people as stipulated by the local content law.“
He noted, “So it’s not our intention to curtail exploration.”
