News Source Guyana Reports | The Government of Guyana, through the Ministry of Natural Resources, is set to sign a Production Sharing Agreement (PSA) with Cybele Energy, a petroleum company based in Ghana, for exploration activities in Block S 7. Minister of Natural Resources Vickram Bharrat announced that the signing is scheduled for Tuesday at 9 AM.
Minister Bharrat stated, “Cybele has really advanced the negotiations with us to a stage where we would have finalized the agreement with them, and we are very happy to have them in the country. They will be bringing a partner from one of the major operators in Nigeria as their operator.”
The PSA will mirror the agreement signed with TotalEnergies in November, alongside its co-venturers Qatar Energy and Petronas. Key features of the PSA include:
- A 10% royalty on all petroleum produced and sold by the contractor.
- 50-50 profit-sharing provisions after cost recovery.
- A 65% cost recovery allowance.
Upon signing the agreement, Cybele Energy will be required to pay a signing bonus of US$15 million to the Government of Guyana.
The earlier agreement with TotalEnergies and its partners covers the shallow water Block S4, and was the first PSA signed among the six bidders from the 2022 Licensing Round. TotalEnergies holds a 40% share in Block S4, while Qatar Energy and PETRONAS each have a 30% share. Block S4 covers approximately 1,788 square kilometers, located 50 to 100 kilometers off Guyana’s coast with water depths ranging from 30 to 100 meters.
Minister Bharrat further noted that negotiations are ongoing with other companies awarded blocks in the 2022 Licensing Round, which include:
- Sispro Inc.
- International Group Investment Inc. and Montego Energy
- ExxonMobil, Hess, and CNOOC
- Delcorp Inc., Watad Energy, and Arabian Drillers
“A third PSA is expected to be signed before the end of the year,” he added, stating that currently, only ExxonMobil and its partners are actively operating in the Stabroek Block.
Guyana began oil production in December 2019 and has seen significant growth, escalating its production from an average of 80,000 barrels of oil in 2020 to an average of 930,000 barrels per day in the Stabroek Block. The upcoming agreements are anticipated to further enhance the nation’s burgeoning oil sector.
