-as Guyana expands exploration – Min. Bharrat

Minister of Natural Resources Vickram Bharrat says Guyana’s new oil agreements are designed to deliver greater benefits to the country compared with previous contracts. 

Speaking on the Starting Point podcast, Minister Bharrat says new production sharing agreements now include a 10 per cent royalty, 10 per cent tax and reduced cost recovery provisions. He said two agreements were signed last year, including one with a consortium comprising Total Energies, Qatar Energy and Petronas, and another with Ghana-based Cybele Energy. 

The Minister confirmed that Cybele Energy is yet to pay its US$70 million signing bonus, citing issues involving the company’s investors. 

“They would have indicated to us that they’re having a few issues with their investor, but they’ve also indicated recently that they are signing a new agreement, which I believe maybe as we speak, that agreement is being signed with another investor, and that they will be in a position to pay the signing bonus,” he explained.

Minister Bharrat said the government has given the company additional time to resolve the matter but warned that the agreement could be suspended or cancelled if it fails to comply. He noted that Cybele has already established a local office, employed Guyanese staff and paid more than US$2 million in licensing and other fees. 

The Minister said the Total Energies-led consortium has moved forward with its exploration programme and is currently conducting seismic surveys in Guyana’s waters. He explained that seismic data will help determine potential drilling locations by identifying possible hydrocarbon deposits beneath the seabed. 

“So these are specialised vessels basically that pick up data from the seabed or below the seabed, I may say so, to determine whether there are hydrocarbons or signs of hydrocarbons. From that now the company can analyse and make an informed decision as to where they should drill the wells,” he said.

The Natural Resources Minister says the government is pleased with the progress of exploration activities and expects continued expansion of Guyana’s oil and gas sector.