The Ministry of Natural Resources (MMR) has announced the government’s decision to extend the bid submission deadline for the 2022 licensing round which will see 14 of Guyana’s offshore blocks going up for auction.
In its statement released today, the ministry noted that the new deadline is July 15, 2023, which serves as a three-month extension to the original April 14, 2023 deadline.
According to the MNR, the decision to extend the deadline comes as a response to industry feedback and the advanced pace of modernising the oil and gas regulatory framework, which underpins the offshore oil and gas licensing round.
It further noted that the Guyana 2022 Licensing Round, which was launched on December 9, 2022, has received strong global interest. It has also gone through various consultation periods for the Indicative Terms and Guidelines and the draft model production sharing agreements (PSAs). As such, the Government has benefited from insightful feedback during these consultations, which has necessitated the extension of the bidding period.
“Concurrently, the government recognises that the new era of oil and gas development, facilitated by this current and future rounds, must be governed by a modern regulatory framework and has been thoroughly moving the finalisation of the model PSA, as promised in this government’s manifesto, and the overhaul and strengthening of the 1986 Petroleum (Exploration and Production) Act,” the MNR noted.
It also revealed that the government has recently concluded agreements with PGS Exploration (UK) Limited and CGG Data Services to reprocess additional 2D seismic data relevant to the blocks for tender. This will see existing and prospective participants in this licensing round benefitting from further seismic data that can be licensed to better inform their submitted bids.
To encourage a ramp-up of exploration outside of the Stabroek Block, the government decided to facilitate the offshore licensing round which places 14 blocks on auction. Of that 14, three are deepwater blocks and 11 are shallow water blocks which possess an estimated 25 billion oil-equivalent barrels.
With the licensing round expected to attract significant global interest, positive outcomes for the country’s economy are anticipated.
The government has also repeated its commitment to the successful execution of the licensing round and the strengthening of the nation’s petroleum management network.
