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Female Guyanese consortium still looking for operator
…Min. Bharrat hopeful oil contract could be signed soon
(Kaieteur News) – Sispro Inc., the stand-alone Guyanese company that participated in the country’s inaugural oil block auction is still looking for an operator. This was revealed by Minister of Natural Resources Vickram Bharrat, who said that he remains hopeful that the company will be able to lock in an operator and sign a contract soon.
Sispro, a consortium led by four African Guyanese women, was awarded a shallow water block called S3 and a deepwater block titled D2.
The women behind Sispro Inc., (from left) Ayodele Dalgety-Dean, Abbigale Loncke-Watson and Dr. Melissa Varswyck
Speaking with reporters last week, Minister Bharrat said discussions with Sispro are ongoing. Asked whether he remains optimistic about signing additional Production Sharing Agreements (PSAs) before the end of the year, Bharrat said, “As I mentioned, the team is speaking with Sispro. The team is in negotiation with Sispro. So, I’m still hopeful. I’m always hopeful. You know me, I’m always positive, and I’m always hopeful.”
He added that Sispro remains a preferred partner but stressed that the company must secure a suitable operator before any agreement is finalised. “That is why I’m even more hopeful that they can reach a position with their operator, and that we can sign as soon as possible, if possible, this year, we’ll be even more excited,” the minister said.
Bharrat shared, “They need an operator, an operator with the kind of credential and the balance sheet as well to execute the work programme, because we’re not going to sign an agreement with companies that cannot or an operator that cannot execute the work programme.”
Minister of Natural Resources, Vickram Bharrat
Bharrat made the comments on the sidelines of the signing of a petroleum agreement with Ghanaian offshore explorer Cybele Energy Limited for Block S7, a shallow-water concession that was also awarded during Guyana’s inaugural bid round. The inaugural auction, launched in December 2022, comprised 14 blocks, eight of which received bids, and authorities have indicated that additional agreements are expected as negotiations continue.
Under that agreement, Cybele is expected to pay a US$17 million signing bonus to the Natural Resources Fund (NRF). The S7 block, which is under 1,500 square kilometres, has been conservatively estimated by the African woman-led company to hold 400 million barrels of oil. While the required signing bonus for shallow-water blocks is US$10 million, Cybele offered US$7 million above the minimum in its bid.
Notably, the Cybele agreement represents the second contract finalised from Guyana’s maiden auction round. The government has already concluded the agreement with TotalEnergies and its partners QatarEnergy and Petronas for Block S4, another shallow-water concession.
The PSAs governing the two agreements signed so far require 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 each year, while profits will be shared 50/50 between the company and the state.
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- Abbigale Loncke-Watson, Ayodele Dalgety Dean, consortium, Dee George, Dr. Melissa Varswyck, oil, Sispro Inc.
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