THE Ministry of Natural Resources yesterday released the Production Sharing Agreement (PSA) for Anadarko Petroleum Corporation, the US owned oil and gas exploration company, whose seismic vessel Venezuela arrested in Guyana’s waters in October 2013.

The release of this PSA follows several previously released by the Government of the Cooperative Republic of Guyana commencing with the ExxonMobil PSA in December 2017.
According to the Ministry of Natural Resources, in 2012, Anadarko was granted an exploration licence for the Roraima block offshore Guyana. “In October 2013, while conducting geophysical survey on behalf of Anadarko, the research vessel MV Teknik Perdana was ordered out of Guyana’s Exclusive Economic Zone by the Venezuelan Navy and escorted to the island of Margarita. The Research vessel had at least five US citizens onboard,” the MNR said.

The release from the Ministry said that following this incident, Anadarko halted operations in Guyana until July 2015 “when company officials met with the Minister of Natural Resources, Hon. Raphael Trotman and restated the company’s interest in drilling for oil in the licenced area.”

The PSA outlines that the cost recovery ceiling for production is 75 percent, while the 25 percent balance or profit oil will be shared between the investor and the Government of Guyana on a 50/50 basis. Royalty is 1 percent paid from the Government’s take of the profits. There is no provision of a signing bonus in this PSA.