Guyana on Dec. 9 formally opened a highly anticipated bidding round for 14 oil and gas blocks in its oil-rich offshore, hoping to award exploration contracts by the end of May.
The country is home to one of the largest oil discoveries in the last decade, with about 11 Bbbl of oil and gas found by a consortium led by Exxon Mobil. The government wants to diversify by recruiting new explorers and expanding the role of the state in the business.
Companies can bid through April 14 for the areas after paying a $20,000 fee per block bid to gain access to a virtual data room and participate in the bidding process.
The government set separate requirements for the three deepwater and 11 shallow water blocks on offer, with minimum signature bonus requirement of $10 million for shallow water and $20 million for deepwater areas.
The bidding round will encourage an improved fiscal and regulatory framework, President Irfaan Ali said. Guyana is working on developing a new model production sharing agreement that is expected to increase the government take of oil produced, compared to terms negotiated with the Exxon-led consortium.
"What we are seeking to do is to have the best possible outcome for Guyana, given the lessons we have learnt," Ali said.
Guyana is aiming for a "balance" to ensure the country gets the best possible deal in terms of revenue, while not scaring off investors.
"The cost for capital is going up, and we also understand the access to capital has become cumbersome," the president added.
Global Energy-related CO2 Emissions Edged Up to Record High in 2022: IEA
2023-03-02 - Clean tech offsets some emission rises from oil and gas but fossil fuel emissions must fall to meet climate goals.
Exxon Mobil Advances Massive Hydrogen Plant with Contract Award
2023-01-30 - As part of the Houston area Gulf Coast project, Exxon said it intends to capture and permanently store about 7 million metric tons of CO2 annually.
Chevron, Hyzon, Raven Partner in Waste-to-Hydrogen Project
2023-01-09 - The California facility is expected to produce up to 2,400 metric tons per year of hydrogen and come online in first-quarter 2024, the companies say.
Energy Transition in Motion (Week of Feb. 17, 2023): Advancing Projects, Investment
2023-02-17 - Here’s a look at some of this week’s renewable energy news, including technology agreements for a large-scale hydrogen plant being developed by Exxon Mobil.
Chevron Reports Low-Carbon Energy Progress
2023-03-01 - Chevron updated its progress toward targets for lower carbon intensity and new energies growth during its annual investor meeting.