Gov’t releases new oil contracts and is seeking the public’s input 

Click here to read new contact for shallow areas:

Draft Model Shallow Water PSA_V2

See below full press release from the Ministry of Natural Resources:

The Ministry of Natural  Resources, on behalf of the Government of Guyana, is pleased to announce the release  of the draft Model Petroleum Agreements for both the deepwater and shallow-water area, and the commencement of a fourteen-day consultation period before  finalisation.  

The draft Model Petroleum Agreements embodies rigorous research and analysis by  the ministry’s internal team, and external consultants on all topics relevant to a  modern petroleum agreement for Guyana. The process involved a comprehensive  assessment of the current petroleum agreement and the identification of best practices  relevant to every contractual aspect of a modern agreement grounded in the Guyana context.  

To ensure new investments are governed by a comprehensive framework of  international best practices, the Model Petroleum Agreements will be followed by an  overhaul of the 1986 Petroleum Act and Regulations.  

Feedback on the draft model agreements should be addressed to the Minister of  Natural Resources and sent to licensinground2022@petroleum.gov.gy with the  Permanent Secretary copied, jmckenzie@nre.gov.gy.  

The indicative Guyana 2022 Licensing Round Schedule will be updated at  www.petroleum.gov.gy/guyana-offshore-licensing-round-2022 and www.nre.gov.gy which will reflect the new timeline for the publication of the finalised Terms and  Guidelines, Model Petroleum Agreement and process of bidding — all adjusted to  facilitate maximum participation from global interest. Official Expressions of Interests  (EoI) have been received for all fourteen blocks for tender of the Guyana 2022  Licensing Round, demonstrating global interest in Guyana’s shallow and deepwater  offshore acreage.  

The Model Petroleum Agreements represent the PPP/C Government’s commitment to  its manifesto promise of establishing a model production sharing agreement (PSA),  guided by industry standards and best practices. At the core, these are aimed at  maximising the socio-economic benefits for our nation without disincentivising  foreign investors in the sector. The Government of Guyana remains committed to a  new era of oil and gas development, characterised by a competitive and favourable  investment climate.