New terms and conditions being finalised to maximise gains in upcoming oil blocks auction - Natural Resources Ministry

New terms and conditions being finalised to maximise gains in upcoming oil blocks auction – Natural Resources Ministry

Oct 01, 2022 News

Kaieteur News – The Government of Guyana (GoG) said on Friday that it is preparing to launch its first bidding round for offshore exploration and production of hydrocarbon blocks. It said Cabinet is finalising the new fiscal terms and conditions which will allow for the country to gain the maximum economic benefits as it advances the exploration and development of the Guyana offshore blocks.

The 2022 bidding round, which is expected to be officially launched soon, and will be open for several months, is expected to give interested companies sufficient time to prepare their competitive packages and bid to win the available acreages offshore; which will be done in an open and transparent manner.

Since the discovery of Liza in 2015, the Guyana offshore basin has seen unprecedented development, with Guyana setting a new paradigm for expeditious development of oil and gas resources. According to S&P Global, “the four-and-a-half-year time frame from discovery to first production places Guyana first among global deepwater jurisdictions in terms of the average time to bring major discoveries on stream.”

With the upcoming bidding round, the Government of Guyana expects to chart a new path as the Guyana offshore areas emerge as a potential super basin with over 11 billion boe (barrels of oil equivalent) discovered to date. With substantial exploration activities ongoing, this figure is expected to increase significantly.

In light of this, Cabinet said it is concluding a definitive terms of reference for the competitive licensing round which will foster a conducive investment environment while maximising value for the people of Guyana.

In this process, the government said it will seek to ensure the country gets a fairer share of revenues from oil and gas resources through improved fiscal arrangements to benefit the people of Guyana.

Further, government said it will safeguard the safety of people and the environment by following international best practices in offshore oil and gas development.

It also said that it intends to maintain a competitive position in the region and globally as key to continued success.

Additionally, government said it will be embarking on an intensive promoting campaign with all necessary technical data and requirements which will ensure that the competitive bidding round is successful for the future development of the offshore exploration and production of hydrocarbons for Guyana’s economy.

Further, it said this process will be done in keeping with international best practices for transparency and accountability.

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