By Josiah Williams
Eight companies have expressed interest in conducting 3D seismic studies offshore Guyana to assess oil levels in various blocks.
This development follows Guyana’s call for Expressions of Interest (EOIs) to enhance the competitiveness of future bid rounds for oil exploration.
The announcement was made by PPP General Secretary, Dr. Bharrat Jagdeo, during a press conference at Freedom House on Thursday.
Dr. Jagdeo highlighted that last year, Guyana auctioned 14 oil blocks without conducting seismic studies, resulting in only eight bids.
He emphasized the importance of having detailed data to attract better bids, as companies are more likely to make substantial offers when they can interpret comprehensive seismic data.
Dr. Jagdeo stated that the government aims to have all unallocated blocks undergo geo-seismic scans.
This approach is expected to enable companies to make informed decisions in future auctions.
He also assured that state revenue would not be used for these activities, as the companies conducting the seismic studies would bear the costs and share the data with the government while selling it to clients.
Negotiations with the companies awarded blocks last year are still ongoing, with discussions focusing on the non-fiscal and environmental aspects of the new Production Sharing Agreement (PSA).
Dr. Jagdeo noted that some companies have expressed concerns about the stringent non-fiscal elements, but the government remains firm on these conditions.
This initiative represents a strategic move to improve the competitiveness and transparency of Guyana’s oil sector, ensuring that future exploration and production activities are based on robust data.