Guyana’s burgeoning oil and gas sector celebrated a significant milestone on Tuesday with the signing of a Production Sharing Agreement (PSA) between the Government of Guyana and Ghanaian oil company Cybele Energy for shallow-water Block S7. The agreement, which includes a US$17 million signing bonus, signifies a robust confidence in the new oil management framework.
Under Guyana’s updated regulations for shallow blocks, the minimum signing bonus stands at US$10 million. This new fiscal regime was first highlighted last month when a consortium comprising TotalEnergies, QatarEnergy, and PETRONAS signed the inaugural PSA for Block S4. The enhanced model, introduced in the 2022 licensing round, raises royalties from 2% to 10%, limits cost recovery to 65%, and implements a 10% corporate tax, while allowing for a 50/50 split of profit oil post-cost recovery.
The signing ceremony, hosted at the Pegasus Corporate Suites in Georgetown, was notable not only for its economic implications but also for its representation of gender progress, as Beatrice Mensah Tayui, Founder and CEO of Cybele Energy, became the principal signatory. This event marked the first time an African woman-led company secured a petroleum block outside of Africa, symbolizing a significant advancement for women in the energy sector.
“Today, Guyana has made history. Guyana has taken a bold step in the advancement of women,” Tayui remarked, expressing her gratitude toward Guyanese leadership for recognizing female talent in a predominantly male-oriented industry. She described the negotiation process for the PSA as seamless and underscored the symbolic significance of this partnership between Ghana and Guyana.
Touching upon her vision for Block S7, Tayui detailed the robust opportunities it presents, with an estimated 400 million barrels of recoverable oil equivalent located just 50 km from ExxonMobil’s Liza Phase 1 and 2 fields. She pledged that Cybele Energy would commit to world-class standards in environmental responsibility and uphold strong corporate social responsibility initiatives.
Highlighting her ambition to support women and young people in STEM fields, Tayui emphasized, “Engineering and the oil industry are not often talked about for women, but we will actively participate. We may make history today with this signing, but I must not be the last.” She envisions a future where young women in Guyana can aspire to become lead engineers and country managers.
In his remarks, Minister of Natural Resources Vickram Bharrat noted that with this agreement, Guyana has successfully attracted companies from every continent to its oil and gas sector, showcasing the nation’s growing global influence. He emphasized that the ongoing signing of PSAs creates numerous opportunities for the local private sector, leading to direct and indirect job creation for Guyanese.
Cybele Energy is recognized as an African-owned exploration and production company with operations across Africa, the United States, and the Caribbean. It partners with Norway-based Well Expertise, reputable for its expertise in shallow-water operations. The company’s geological leadership includes Segun Jebutu, a former lead subsurface scientist for over 25 ExxonMobil wells offshore Guyana.
Block S7 was awarded during Guyana’s first competitive auction in 2023 and is situated within a crucial oil fairway extending toward Suriname. The first exploration well is anticipated within 12 months of the PSA signing.
