Guyana To Launch First Oil Tender Beneath New Guidelines

Guyana To Launch First Oil Tender Beneath New Guidelines

Guyana’s subsequent oil tender will probably be performed beneath new guidelines that considerably improve the nation’s share of the oil income.

That is in response to Guyana’s vp, who mentioned this week that the federal government will provide 14 offshore blocks in its subsequent public sale, of them three deepwater and 11 shallow ones.

“We determined that to get the bids extra aggressive, we’ll permit locals and worldwide firms to bid so there will probably be minimal technical and monetary {qualifications} for the bids,” Vice President Bharrat Jagdeo said.

Per the brand new guidelines, the production-sharing agreements with the profitable firms would see income break up on a 50:50 foundation, plus a 10-percent royalty charge and 10-percent company tax charge, Reuters reported, citing an deal with by Jagdeo.

Presently, Guyana solely will get 15 p.c of oil revenues plus a 2-percent royalty charge, which has been criticized as too unfavorable for the nation – one of many poorest in South America.

Additionally, there will probably be limits on what number of blocks an organization may be awarded, in response to the federal government’s new plans for the oil business. Though an organization might bid for as many blocks because it needs, it might solely be awarded a most of three.

The signing bonuses for the deepwater blocks had been set at $20 million, and the bonuses for the shallow-water blocks at $10 million.

Guyana has change into the brand new scorching spot in international oil after Exxon and its companions Hess and CNOOC made a string of discoveries off its coast. The string continues, by the way in which, with Exxon announcing one other two discoveries in late October.

This has introduced the overall since 2015 to greater than 30 discoveries, with reserves within the billions of barrels. Manufacturing thus far is 360,000 bpd, which is above design capability, Exxon mentioned in October. Plans are to spice up this to over 1 million bpd by the tip of the last decade.

By Irina Slav for

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