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Govt. demands immediate information on oil discoveries in new PSA
(Kaieteur News) – The Government of Guyana (GoG) has implemented strict reporting measures for oil and gas companies that now require all discoveries be shared with the Minister of Natural Resources immediately.
This is one of the key provisions featured in the new Production Sharing Agreement (PSA), signed between the GoG and the Total Energies led-consortium that has been awarded a shallow water block, offshore Guyana.
The model contract will also apply to all future blocks to be awarded. According to the Article 12.1 “The Contractor shall immediately inform the Minister in writing of any Discovery (Notice of Discovery) pursuant to Section 25(1) of the Act.”
Minister of Natural Resources, Vickram Bharrat
Moreover, oil companies are also required to submit the particulars of the discovery no more than 60 days after completing the exploration well related to the discovery. The PSA adds at Article 12.2 (a) that the particulars of the discovery shall include the steps the contractor proposes to take to test the discovery.
Within 90 days of submission of the particulars of the discovery or such further time as approved by the Minister to allow the Contractor to perform the corresponding tests and analysis, the contractor shall submit the results and analyses of the tests carried out and the samples taken; a description of the geological aspects, as well as the analyses carried out on the fluids and rocks obtained, subject to any technical standards or other direction issued by the Minister or the Minister’s designee to ascertain the chemical composition and physical properties of the discovery (the “evaluated test results”).
According to the PSA, if the Discovery is of non-associated natural gas or heavy or extra heavy liquid hydrocarbons, the contractor must submit the calculations to the Minister and additional supporting information submitted for purposes of classification.
Additionally, the contract sets specific timelines for the contractor to determine and inform the minister on the commercial value of the discovery. It states, “Within 30 calendar days of the date of submission of the Evaluated Test Results under Article 12.2(b) or in the case of extended well testing and formation testing authorized by the Minister…the Contractor shall by further notice under Section 26 of the Act inform the Minister whether or not in the opinion of the Contractor the Discovery is of potential commercial interest.”
These requirements come as Guyanese continue to protest the lack of information on oil discoveries and reserves in the Stabroek Block operated by ExxonMobil Guyana Limited (EMGL).
Only a few weeks ago, this newspaper reported that the 2025 Mid-Year Report revealed three discoveries were made by ExxonMobil but not announced by the company or the GoG.
Exxon later responded to clarify that the discoveries were not commercial value. The non-disclosure of the discoveries comes at a time when stakeholders continue to question how Guyana’s oil reserves remain stagnant in the face of additional oil finds by the operator of the block.
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