Thursday Vice President Bharrat Jagdeo announced the Government of Guyana (GOG) received eight bids for 14 of the oil blocks upon the conclusion of Guyana’s first round of competitive offshore oil and gas licensing auction. Jagdeo, who also holds responsibility for the petroleum sector, expressed the government is very pleased with the offers received.
The bids received are for the D3, S1, S2, S6, S9 and S11 oil blocks offshore Guyana. Jagdeo said the government received bids for eight of the 14 blocks “and there were 14 offers in total from six bidders … that means, some of the blocks are very competitive.”
With new Production Sharing Agreement (PSA) the royalty rate moved from two to 10 per cent while a 10 per cent corporate tax has been implemented. The Government through the Ministry of Natural Resources launched the first-ever competitive offshore oil and gas licensing round in December 2022 with an April 2023 deadline. This was later extended to June, July, and then September 12.
Of the 14 blocks, ranging from acreages of 1,000 square kilometres to 3,000 square kilometres, 11 are located in shallow water, while the remaining three can be found in ultra-deep water.
