Guyana to set aside oil blocks for government-to-government partnerships

Guyana’s President Irfaan Ali says some of the oil blocks to be auctioned this year will be set aside for government-to-government partnerships in the future.

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“As you know, we have some blocks that we are going to auction off very soon…and we have some blocks that are set aside for government-to-government partnerships and we are looking at all of our strategic partners with these blocks,” Ali told a news conference.

He told reporters that a new policy mix vis-à-vis Guyana’s oil and gas resources is being pursued, alluding to the United Kingdom (UK) being a potential partner that will benefit from this arrangement. Ali, flanked by the United Kingdom High Commissioner to Guyana, Jane Miller, said the two countries are seeking to deepen cooperation in the energy sector.

Asked by reporters to provide additional details on this new initiative, Irfaan Ali said a “full elaboration” of the plan will be provided “at the appropriate time.

“That could be in a few days’ time,” he added.

The much-anticipated auction of the blocks was scheduled for the end of September but that has not materialized, and President Ali did not provide a new date for the auction.

The authorities have already indicated that blocks up for auction include those areas that have been relinquished by oil companies searching for oil offshore.

Meanwhile, Guyana earned nearly US$500 million in revenue from the oil and gas industry July to September, according to the Bank of Guyana (BoG) in its third-quarter report for 2022

The BoG said the Caribbean Community (CARICOM) country earned US$493.1 million which included profit oil of US$442.1 million and royalties amounting to US$51 million.

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The BoG said the increase in revenue was attributed to the additional Floating Production and Storage Offloading (FPSO) vessel, the Liza Unity, being in operation in the Liza Phase Two of the Stabroek Block.

Since oil production began in 2019, Guyana has recorded six lifts of profit oil which have brought in US$1.2 billion in profit oil revenue and US$153.1 million in royalty payments.

CMC/