Guyana launches bid round for offshore oil blocks

Last Updated on Friday, 9 December 2022, 7:56 by Denis Chabrol

President Irfaan Ali announced the launch of Guyana’s competitive bid round for 14 offshore oil blocks fr0m Friday, December 9.

He said the process is expected to close with the submission of bids on April 14, 2023. and contracts awarded by May 31, 2023.

“This, of course, will follow negotiations and evaluation of the bids that we receive during this bidding round,” he said in a Facebook Live post.  He said bidders would have to pay a US$20,000 participation fee that would also allow access to a virtual data room.

Minister of Natural Resources Vickram Bharrat is expected to publish a notice in the Official Gazette in keeping with the Petroleum (Exploration and Production) Act,

If the explorers find oil in commercial quantities, they would have to pay a US$10 million signature bonus for the shallow water and US$20 million for deep water. Government has already said that there would be 11 oil blocks in shallow waters and three in deep and ultra deep waters.

Dr Ali said one of the features of this bod round is to get to the “best possible outcome” under new terms and conditions based on lessons learned.

According t0 the Guyanese leader, Guyana is interested in “serious” developers but at the same time the new provisions include struct rules for swift relinquishment.  He said the conditions and the bid requirements and conditions provide for a balance between Guyana’s competitive advantage and scope for increased revenue share.

He indicated that there would be separate conditions for deep water and shallow water exploration because deep water requires specialised technologies.