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Companies requested to supply additional info for due diligence review – VP Jagdeo
New oil blocks auction…
Kaieteur News – Vice President, Dr. Bharrat Jagdeo on Thursday disclosed that the companies which participated in Guyana’s maiden auction in December 2022 have been requested to provide additional information. He said this forms part of a rigid due diligence process being overseen by authorities.
During his weekly press conference held at Freedom House, the chief policy maker for the oil sector said he met with the Natural Resources Minister, Vickram Bharrat who recently told him that the companies which bid for eight of the 14 oil blocks on offer were requested to supply additional information by January’s end.
“The information will come in by the end of this month, beyond which they will hopefully be able to conclude these arrangements…Remember I said to you that we assessed the proposals on the basis of a number of criteria. Our consultants did too, so now we have to verify what was in those proposals before the final sign off,” the Vice President said.
The official added that it is important for authorities to ensure that the companies have the wherewithal to meet their obligations as well as verify the source of funds. “So we still have that work to be done,” the Vice President said.
Blocks in red received 14 bids from six groups of companies
Last year October, the Guyanese official had revealed that a consortium led by four formidable African-Guyanese women made history by securing two significant oil blocks in Guyana’s debut auction. The consortium, represented by Sispro Inc., includes Dr. Melissa Varswyk, Abbigale Loncke-Watson, Ayodele Dalgety Dean, and Dee George. They successfully secured a shallow water block named S3 and a deep-water block titled D2, marking a groundbreaking achievement in the country’s oil industry.
As for the other companies, he had revealed that Total Energies EP Guyana B.V., in partnership with Qatar Energy International E&P LLC and Petronas E&P Overseas SDN BHD, was approved for the shallow water block S4. ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited secured the shallow water block S8.
International Group Investment Inc, from Nigeria, was eligible for two shallow water concessions, S5 and S10. Additionally, Liberty Petroleum Corporation and Cybele Energy Limited, an American and Ghanaian partnership, were approved for the shallow water block S7.
Finally, Delcorp Incorporated, a Guyanese company, collaborated with Watad Energy and Communications Ltd and Arabian Drilling Company to secure the deep-water block D1. Government has not yet disclosed the details of the bids submitted by these companies but pledged to do so after careful evaluation of those documents. Winners of the new blocks will be expected to pay a 10 percent royalty and a 10 percent Corporate Tax. The cost recovery in the new contracts will be capped at 65 percent in a given year, while profits will be shared 50/50 between the parties. Shallow water blocks, companies have to pay a minimum of US$10 million while a minimum of US$20 million is set for deep water concessions.
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