Guyana Production Sharing Agreements Accepted
October 17, 2024
Energy firms TotalEnergies, Qatar Energy, Petronas, Cybele Energy, Delcorp and International Group Investment have reached agreements with Guyana over terms of production sharing deals to explore five oil and gas offshore blocks, the energy ministry said on Wednesday.
A tender launched in 2022 for areas in shallow and deep waters led to offers for eight blocks, part of the government's effort to diversify its energy industry dominated by a consortium led by Exxon Mobil.
The Exxon group, which also is in talks with the government over terms to explore offshore area S8that is part of the tender, is interested in assessing carbon capture and storage opportunities within the block, the ministry said in a release.
A production sharing agreement for that block is under review, the ministry added, without elaborating.
A government official said in May that Guyana's cabinet had approved a bid by Qatar Energy, TotalEnergies and Petronas for exploring shallow water block S4 and negotiations over non-fiscal terms had begun.
By then, the government had also initiated separate talks with Exxon, Hess Corp and CNOOC over their bid, Exxon's head for Guyana said.
Final documents for the areas have not been signed.
Guyana's energy ministry also said in the release that a response from local energy company Sispro is pending related to its offers for two of the blocks.
Guyana's tender board said separately this month that local group VHE Consulting won a $1.5 million contract to audit Exxon's expenses and Guyana's profit oil share for the 2021-2023 period.
(Reuters - Reporting by Kemol King; Writing by Marianna Parraga; Editing by Richard Chang)
