The Government of Guyana, through the Ministry of Natural Resources, has provided an update on the status of the application and review process for Production Sharing Agreements (PSAs) governing the oil blocks awarded during the country’s debut licensing round.
The ministry confirmed the following:
- Sispro Inc. was the most responsive bidder for blocks D2 and S3. Their applications have been submitted, but responses from the applicant are pending.
- International Group Investment Inc. was the successful bidder for blocks S5 and S10. The PSA has been accepted, and the processing is ongoing for both blocks.
- Cybele Energy Limited was the most responsive for block S7. The PSA has been accepted, and the final review is in process.
- Delcorp Inc. in collaboration with Watad Energy and Arabian Drilling secured block D1. The PSA has been accepted and is in its final stages of review.
- TotalEnergies EP Guyana B.V., Qatar Energy International E&P LLC, and Petronas E&P Overseas SDN BHD are the most responsive bidders for block S4. Their PSA is in the final stages of review.
- ExxonMobil Guyana Ltd, Hess Guyana Ltd, and CNOOC are the most responsive bidders for block S8. Their PSA is still under review.
Since the auction’s announcement in October last year, the Government of Guyana has enacted the Petroleum Activities Law and published a modernized PSA framework. The new PSA requires a 10% royalty, a 10% corporate tax, and a 50/50 profit oil split, with a cost recovery ceiling set at 65% of total revenue in any given year.
The companies are expected to pay their respective signing bonuses—US$10 million for shallow water blocks and US$20 million for deepwater blocks—at the time of signing. With six shallow water blocks and two deepwater blocks awarded, Guyana stands to collect US$100 million in signing bonuses.
