Ramotar Govt. ignored GGMC’s advice to invite competitive bids for Block

Nov 14, 2020 News

Kaieteur News – The Donald Ramotar administration ignored the Guyana Geology and Mines Commission (GGMC) when the regulator advised that the government could facilitate competitive bidding acquiring Guyana’s oil block ‘C’, after at least four oil companies had shown interest in the area. This was revealed to Kaieteur News by a source.

Former President, Donald Ramotar

This newspaper understands that two of the interested companies were Repsol from Spain, and Royal Dutch Shell from the Netherlands, both major international players in oil and gas.
It is understood that after noticing the interest in Area ‘C’, Head of the GGMC Newell Dennision recommended in a brief that the government invited the interested companies to participate in a restricted, competitive bidding arrangement. However, the government provided no response.
Dennison’s subject Minister was Robert Persaud, who held responsibility for Natural Resources. However, Ramotar held the responsibility for Petroleum. Notably, in addition to Area ‘C’, Repsol was also interested in the area south, which later became the Canje Block. Repsol had been interested in the area even before Mid-Atlantic sent in its application and registered as a company.

Former Minister of Natural Resources, Robert Persaud

The GGMC was aware that Repsol had billions of dollars at its disposal, and communicated that to the Ramotar government. Despite this advice, the Canje Block was given away by the administration in 2015 to the penniless, infant company Mid-Atlantic Oil & Gas Incorporated, a few weeks before the election.
Repsol had also, by the time it expressed interest in the area, had a few decades of experience in the industry, with a reasonable track record. Mid-Atlantic was registered as a company in Guyana one month after it applied for the Canje Block, and received the block two years later, despite having no track record to speak of.Mid-Atlantic did no work when it got the block. Instead, it sold out shares to JHI Associates, ExxonMobil and Total SE. It also transferred its operatorship to ExxonMobil. No drilling has been done in the block as yet.
Kaieteur News understands that Repsol is still interested in Area ‘C’, the only part of Guyana’s offshore area, which has not been given out. It is in ultra deepwater.
Earlier this year, the Department of Energy announced it is wrapping up the details of a contract, which it would award to a company for a seismic survey on Block C. It is unclear whether the new government will continue with this award.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News