Contract signed with Ghanaian firm for shallow-water oil block

Dec 10, 2025 News

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…US$17M signing bonus to be paid within 3-weeks
…company estimates block holds 400m barrels of oil

(Kaieteur News) – Ghanaian offshore explorer Cybele Energy Limited has formalised a petroleum agreement with the Government of Guyana for Block S7, a shallow-water concession awarded to the company during Guyana’s inaugural bid round.

Cybele is expected to pay a US$17 million signing bonus into the Natural Resources Fund (NRF) within three weeks for the oil block, which is under 1,500 square kilometres. The African woman-led firm has conservatively estimated that S7 holds 400 million barrels of oil. It should be noted that while the required bonus for shallow-water blocks is US$10 million, Cybele offered US$7 million above the minimum when it submitted its bid.

The signing ceremony was held at the Pegasus Corporate Suites in Georgetown on Tuesday.  Minister of Natural Resources, Vickram Bharrat in his address welcomed the Cybele into Guyana petroleum industry and noted that it represents another important step in advancing Guyana’s responsible and strategic development of its offshore basin.

Speaking with reporters, Minister Bharrat shared, “For shallow blocks the minimum signing bonus is actually US$10 million…”  He explained that the additional US$7 million was an offer Cybele made when it submit its bid for the block. “They would have submitted US$17 million because you’re basically bidding for the block so to attract the evaluators’ attention and to show that you are financially sound and that you are interested in the block, obviously you would have put in a good bid,” the minister said.

He added, “What Guyana is offering is the block…most of the blocks that were auction in 2022 bid round is average 2,000 square kilometers these are very small blocks and having attracting this kind of signing bonus is quite commendable.”

According to Minister Bharrat, Cybele will start work almost immediately as the company already has local partners. Further, he noted that Cybele’s entry into the petroleum sector reflects growing international confidence in Guyana’s investment framework and the government’s commitment to transparent and competitive resource development.

The fiscal regime for the S7 operations will be governed by the new Production Sharing Agreement (PSA) which requires the payment of a 10 per cent royalty and a 10 per cent corporate tax. The cost recovery ceiling will be capped at 65 per cent in a given year, while profits will be shared 50/50 between the company and the state.

Cybele operates in Africa, the United States and the Caribbean, and is now the first African-led operator in Guyana’s oil and gas sector. According to the company’s factsheet, S7 is located 50 kilometres from ExxonMobil Guyana Limited’s Liza One and Two fields in the Stabroek Block, which is estimated at 11.6 billion barrels. The oil fairway, the company said, runs through S7 toward Suriname. Cybele plans to drill its first well within 12 months.

Cybele Energy Guyana Chief Executive Officer (CEO) Beatrice Jones-Mensah Tayui in her address, praised the ministry for, “one of the most seamless processes we’ve been through.”

“The vision is to uphold safety and to respect the environment that has been gifted to us. We will make sure we do right by Guyana. We stand in a position to make change; we have a robust CSR (Corporate Social Responsibility) programme. Our corporate social responsibility, we will make sure that we work with the communities that we serve. Our local content will be intentional…we will ensure we do right by Guyana,” she outlined.

Tayui also noted that Block S7 provides a lot of opportunities and assured that Cybele will execute its duties in accordance to the agreement.

Further, she also underscored the significance of an African company and one particularly led by a woman participating in one of the world’s most dynamic petroleum provinces and reaffirmed Cybele’s commitment to responsible exploration and meaningful partnership with Guyana. Tayui noted that the agreement which advances the historic ties between Ghana and Guyana, marks the dawn of a new era for women.

“I want to applaud the leadership and government of this country that sees it fit to put the talent of women on the platform in such an industry as oil and gas,” she added.

The signing of the agreement with Cybele marks the second finalisation from the inaugural auction round. Recently, government and energy giant Total Energies and its partners Qatar Energy and Petronas for has Block S4, a shallow-water concession off the country’s coast. Guyana’s maiden auction launched in December 2022 included 14 blocks, eight of which received bids. Government is expected to conclude additional agreements as negotiations continue.

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• Beatrice Jones-Mensah Tayui, Cybele Energy, Ghanaian firm, Natural Resources Fund, oil block

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