Oil auction: Company run by Guyanese women among six firms getting oil blocks

eight of 14 oil blocks, the government has finally awarded eight of the blocks to six different companies.

This was announced by Vice President Dr. Bharrat Jagdeo on Thursday during a party press conference at the People’s Progressive Party Civic (PPP/C) Headquarters at Freedom House.

The list of the companies and blocks are:

  • S3 has been awarded to Sispro Inc., a company headed by four Guyanese businesswomen
  • S4 to a consortium comprising Total Energies EP Guyana BV; Qatar Energy International E&P LLC; Petronas E&P Overseas Ventures SDN BHD (Malaysia)
  • S5 to International Group Investment Inc, a Nigerian group
  • S7 to Liberty Petroleum Corporation of the US and Ghana-based Cybele Energy Limited
  • S8 to a the ExxonMobil, Hess and CNOOC consortium currently operating in the Stabroek Block offshore
  • S10 was also awarded to the International Group Investment Inc.
  • D1 went to Delcorp Inc Guyana and Watad Energy and Arabian Drillers of Saudi Arabia, two Saudi Arabian companies that are incorporated
  • And D2 also went to Sispro Inc.

‘S’ refers to blocks in shallow water while ‘D’ refers to blocks in deep water; there were 11 shallow water and three deep water blocks up for grabs.

The 14 oil blocks that are up for grabs in shallow and deep water areas offshore Guyana (Map from the Ministry of Natural Resources)

Meanwhile, Jagdeo noted that the government will now enter into negotiations with the companies in keeping with the Petroleum Activities law.

“We’ve been told that everyone has confirmed that they have the resources to pay the signing bonus. US$10 million for each shallow block and US$20 million for each in the deep water.

“For any of this to move forward, at a minimum these companies have to meet this requirement,” Jagdeo said.

He also addressed concerns raised.

“We may have a situation where we may not be able to finalise with everyone,” he cautioned, reflecting on concerns already raised by ExxonMobil about fiscal terms.

Jagdeo said the government will not change those fiscal terms and as such, he said, “If the demands are extreme, then we will simply not proceed with that.”