Guyana blocks may be reserved for national oil company
Vice President Bharrat Jagdeo says new blocks offshore Guyana will either go up for auction in Q3 2022 or will be reserved for a proposed national oil company - a decision now being discussed.
Jagdeo was speaking at the opening of the International Energy Conference and Expo Guyana 2022 at the Marriott Hotel Georgetown. He added there was no need for prospective bidders to be “unduly alarmed” by the planned model Production Sharing Agreement because while it will see a greater government share it will not inhibit accelerated exploration and will offer predictability.
The administration will also work on building regulatory capacity and on drafting a revised Petroleum Act so as not to hold back the pace of developing and monetising offshore reserves that are currently upwards of 10B barrels and may be as high as 23B.
Jagdeo’s remarks reflect both a consideration of the energy transition and the need to acquire oil revenues as part of rapidly developing the country and diversifying the economy. His open invitation to investors to meet with government officials this week also contrasted to the previous government which took a hands off and very controlled approach to the sector with limited contact with the industry. Where ministers were previously discouraged from attending such conferences, today’s opening saw at least eight present.
President Irfaan Ali was adamant that local content is a high priority and non-negotiable in how companies should go about investing here. The private sector must benefit. Barbados Prime Minister Mia Mottley got loud applause when she addressed the local content issue, declaring the day citizens are not extended opportunities for what is a national patrimony is the day “we sow the seeds of our own destruction”.
Ghanaian President Nana Addo Dankwa Akufo-Addo was adamant of the right of his nation and other developing countries to monetize their resources and not be restricted by Western institutions.
Chairman and CEO of ExxonMobil, Darren Woods described the 20-plus finds on the Stabroek Block as “unmatched in modern history”. He acknowledged how important capacity building for local businesses was to the government and thanked it for offering predictability to the block’s consortium made up of itself, Hess and CNOOC. Woods said the consortium’s plans are for six FPSOs by 2027 and potentially four more before 2030 with output exceeding 1M B/D. Jagdeo said the fourth project Yellowtail is likely to be approved by the end of March.