Latest update July 3rd, 2026 12:24 AM
Canadian company expects new Orinduik oil deal by September
(Kaieteur News) – Canadian firm, Eco (Atlantic) Oil & Gas says it is making “strong progress” in negotiations with the Government of Guyana through the Ministry of Natural Resources for a new Production Sharing Agreement (PSA) for the offshore Orinduik Block.
In a statement this week, Eco noted that itself and its partner Navitas Petroleum LP, an Israeli company is in talks with the ministry to secure a new oil deal. The company also said that it expects that the negotiations for the new PSA to be completed during the third quarter of 2026.
The update follows statements by Minister of Natural Resources, Vickram Bharrat who had confirmed that the Orinduik prospecting licence, which expired on January 14, 2026, was not extended. “They have to apply for new licence under the new PSA,” Minister Bharrat said.
Map showing location of Orinduik Block
The new PSA which was introduced by the current administration, features improved fiscal terms from the Stabroek and Orinduik PSAs. The new PSA mandates a 10% royalty rate and a 10% corporate tax and it lowers the cost recovery ceiling from 75% to 65%.
The PSA that previously signed for the Orinduik Block features a low royalty rate of 1% on crude oil produced and sold, a 75% cap on cost recovery and no corporate income tax. Similar to the Stabroek Block deal, the Minister of Natural Resources is required to pay the companies income tax from its share of profit oil.
Eco holds a 100% working interest in the 1,354 square kilometers (km2) Orinduik Block and an indirect working interest in the 4,800 km2 Canje Block, through JHI Associates.
Eco’s President and Chief Executive Officer (CEO) Gil Holzman previously disclosed that Eco and JHI “remain engaged with the Government of Guyana with respect to a potential extension or reissuance of JHI’s Canje block offshore, in parallel to Eco’s ongoing discussions with the Ministry on the terms of the Orinduik Block offshore.”
The Orinduik Block is situated in shallow water, 170 km offshore Guyana. In 2019 two oil discoveries were made, Jethro-1 and Joe-1, both wells encountered high quality reservoirs containing mobile heavy crude. Notwithstanding the expiration of the licence for that block, Eco had outlined that the provisions under the Petroleum Act allow it to retain rights to its Jethro-1 and Joe-1 discoveries while its appraisal programme was under review. In relation to this, the company had shared that both the ministry and Guyana Geology and Mines Commission (GGMC) had received the relevant joint submissions in relation to the proposed appraisal work.
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