Guyana President Dr. Mohamed Irfaan Ali has launched Guyana’s competitive bid round for 14 offshore oil blocks, comprised of eleven shallow water blocks and three ultra-deepwater blocks.
Officially open today, December 9th 2022, the bid round is expected to be open for 4 months and will close on April 14th 2023.
With the massive potential for “25 billion barrels”, President Ali outlined that evaluations of the proposals will take place and following an expedited negotiation period, awards of blocks are expected in Q2 2023.
Minister of Natural Resources Vickram Bharrat is expected to publish a notice in the Official Gazette in keeping with the Petroleum Act.
Guyana has seen extraordinary success with offshore discoveries in the last 5 years. The country continues to grow and expand the opportunities to increase production and the inflow of investment into the energy industry and other sectors. The largest upstream player to date has been Exxon, who produces more than 340,000 barrels of oil per day from two FPSOs. The company has had significant success in Guyana and indicates that additional FPSOs are already in development for future projects.
The government has made it clear in the past that the industry must be to the benefit of all Guyanese citizens. At the launch of the bid round, President Ali, stated, “We are hoping that there will be maximum participation and that Guyana would be part of a partnership that creates greater benefit and greater wins for our country and our people.”
Improved fiscal terms have been outlined that provide greater balance of the share of revenue between the government and contractor, while maintaining Guyana’s competitive edge in the region globally.
The International Energy Conference and Expo will take place from February 14-17 2023 at the Guyana Marriott Hotel. At the conference there will be keynote addresses by the leadership of the country including: His Excellency Dr. Mohamed Irfaan Ali, President of Guyana, Prime Minister Mark Anthony Phillips, Vice President, Dr. Bharrat Jagdeo and Minister of Natural Resources, Vickram Bharrat.
At the conference we will also hear from senior experts in Guyana’s oil and gas sector, including John Hess, Chief Executive Officer, Hess and Alistair Routledge, President, ExxonMobil Guyana.