Guyana’s oil, gas licensing round nears completion

-minimum of four PSAs could be completed, signed this year, Natural Resources says, reaffirms commitment to transparency in process

THE government is approaching the final stages of its 2022 oil and gas licensing round, with at least four Production Sharing Agreements (PSAs) expected to be signed for the year 2025.
According to a press release from the Ministry of Natural Resources, this development comes as part of Guyana’s ongoing efforts to expand its offshore oil and gas sector in a transparent and beneficial manner.

The licensing round, launched in 2022, made available several oil and gas blocks within Guyana’s territory, spanning both deep and shallow water depths.

As part of the process, the government publicly disclosed fiscal terms, technical and financial requirements, and draft PSAs to potential bidders.
This open approach aimed to attract qualified entities and ensure a fair and competitive bidding process, the ministry said.

Following the submission of bids, eight blocks received proposals which underwent thorough evaluation in accordance with international best practices and the terms outlined in the bid round documents.

The government then shortlisted and engaged with bidders who presented the most sustainable and responsive proposals, moving forward with the process of awarding blocks and granting licenses and PSAs.
“In this regard, we consider it very mischievous to see news articles, by News Source titled “Government tightlipped on companies to sign new PSA for offshore oil blocks”, claiming that the relevant information was not being shared. On the contrary, this process has been transparent, with ongoing public engagement,” the Natural Resources Ministry said.

As the process enters its final stages, the government has revealed that a minimum of four PSAs are expected to be completed and signed for 2025.
These include: Block S4 – awarded to a consortium of TotalEnergies, Qatar Energy, and Petronas; Block S5 – awarded to International Group Investment Inc.; Block S7 – awarded to Cybele Energy; and Block S10 – awarded to International Group Investment Incorporated.

The government has assured the public that upon completion of the regulatory process, a press event will be held to mark the signing of the PSAs, ensuring continued transparency and public awareness.

“The Government of Guyana recognises the significant public interest in the oil and gas sector and reiterates its commitment to developing the industry in a manner that is both transparent and beneficial to the country as a whole.
“For those seeking further information and updates on Guyana’s oil and gas sector developments, the government encourages the public to stay informed through its official petroleum website,” the Natural Resources Ministry said.

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