Guyanese company among several win oil blocks offshore Guyana

Last Updated on Thursday, 26 October 2023, 16:08 by Denis Chabrol

The wholly-owned Guyanese company, SISPRO Inc, is among several major international oil companies that have won bids to explore for oil offshore Guyana, Vice President Bharrat Jagdeo announced on Wednesday.

“This is a very risky sector and I’m extremely pleased that the locals have been able to organise themselves to work with some foreign companies and put in the bids,” he told a news conference. He praised them for seizing the opportunity by “actually doing something” rather than “sit on the sidelines” like a number of critics.

SISPRO Inc. has won exploration bids for one concession each in the shallow and deepwater. That means that they have to fork up a US$10 million signature bonus for the shallow water block and US$20 million for the other in the deepwater.

SISPRO INC (Guyana) is chaired by Dr. Melissa Varswyk. Other team members are Secretary and Executive Director, Abbigale Loncke- Watson; Executive Director, Ayodele Dalgety-Dean, and Executive Director, Dee George.

Ms Dalgety-Dean said she and her colleagues “had every confidence that we would get the blocks” and work in the best interest of all Guyanese. “After all, we’re an indigenous company. We’re aiming to build generational wealth for all Guyanese and this is super-important to us as we’re sure it is for the Guyanese government,” she said.

Ms Dalgety-Dean said her company was prepared with its signature bonuses, project financing and workplan from seismic work through to development and production.

Vice President Jagdeo also announced that the ExxonMobil-led consortium and the France-headquartered TotalEnergies are among those that have won bids in the South American nation’s inaugural competitive bid round.

The Natural Resources Ministry was later Thursday expected to provide details,

Shallow water blocks have been awarded to a consortium of TotalEnergies, Qatar Energy and Petronas; the Nigeria-based International Group Investment Inc; and the American-owned Liberty Petroleum Corporation; ExxonMobil, Hess and CNOOC; and the wholly-owned Guyanese company, SISPRO Inc.

Deepwater blocks are awarded to Delcorp, a Guyanese-registered company made up of two Saudi Arabian companies Watad Energies and Communications Ltd and Arabian Drilling Company, and SISPRO Inc.

Mr Jagdeo said government was willing to consider “minor changes” to the Production Sharing Agreement but again ruled out changes to the fiscal terms and aspects related to transparency and accountability. He said government would not sign a PSA with ExxonMobil if their demands are “extreme”.  “We will simply not proceed with the signing in that regard,” he said.

ExxonMobil Guyana’s President, Alistair Routledge earlier this month said his company was in no way deterred by Venezuela’s sabre-rattling to press its claim to Guyana’s Essequibo Region and its maritime space. He said the company would be going ahead with this new oil block.