–deal brings Guyana US$17 million signing bonus

THE Government of Guyana on Tuesday signed a petroleum agreement for offshore block S7 (shallow) with the Ghanaian firm, Cybele Energy Limited, attracting a signing bonus of some US$17 million.
The contract was signed during a ceremony at the Pegasus Suites and Corporate Centre, during which it was noted that it is the second contract being awarded which results from Guyana’s inaugural competitive licensing round in 2022.
The agreement, according to the Natural Resources Ministry, features modernised fiscal terms which include a 10 per cent royalty rate, a 10 per cent corporate tax rate, reduced cost-recovery ceiling, and a 50/50 profit split between Guyana and the contractor.

These terms align with the updated model Production Sharing Agreement designed to secure greater long-term value and transparency for the People of Guyana.
Minister of Natural Resources Vickram Bharrat said that the signing of the contract shows that Guyana’s presence is being marked globally.
“It shows that our work has been truly recognised around the world, so much so that it is attracting investments and interests globally and across continents,” he said.
Bharrat went on to say that with the agreement, the country now has companies across all continents operating in the oil and gas sector here.
He added that Cybele’s entry into the petroleum sector reflects growing international confidence in Guyana’s investment framework, and the government’s commitment to transparent and competitive resource development.
Minister Bharrat related that the licensing round continues to expand the diversity of operators participating in Guyana’s offshore exploration activities.
Chief Executive Officer (CEO) of Cybele, Beatrice Mensah Tayui, said: “Guyana has taken a bold step in the advancement of women.”
The Ghanaian company is the first African-led and women-led one to enter into such an agreement, and the CEO described the process as one that has been seamless.
She went on to say that the block provides several opportunities, even as she noted that the vision for S7 is a robust one.
The signing of the agreement follows the recent award of Block S4 to a consortium just some weeks ago.