Four production sharing agreements to be signed this year

Last Updated on Friday, 31 January 2025, 20:26 by Writer

The Guyana government and a number of companies would be inking production sharing agreements (PSAs) this year for four offshore blocks, Minister of Natural Resources Vickram Bharrat said Friday.

Mr Bharrat declined to name the companies that would be signing the PSAs, when asked by opposition oil and gas spokesman, David Patterson during consideration of the 2025 National Budget estimates of expenditure.

The Minister reiterated that the same model PSA would be used for both shallow and deep water blocks. The fiscal terms for all PSAs, he restated, would be 10% royalty, 65% cost recovery and 10% corporation tax.

Those terms are regarded much more favourable than the 2016 PSA for the Stabroek Block.

Meanwhile, in response to Mr Patterson, the Natural Resources Minister said two production licences would be signed this year, one for oil production and the other for natural gas. Hammerhead had been previously named as the 7th project.