Upstream – The Guyanese government has signed a new production sharing agreement (PSA) for one of its offshore blocks, expanding the country’s portfolio and signalling continued investor confidence in the energy sector.
Ghana-based player Cybele Energy on 9 December finally signed the PSA for shallow-water Block S7 after paying a signature bonus of $17 million, approximately $7 million more than the minimum required.
The Block S7 deal positions Cybele as the first African-led operator in Guyana and the first woman-led upstream group to secure acreage outside Africa.
Guyana’s Natural Resources Minister Vickram Bharrat said the signing of the PSA is expected to create new opportunities for local private sector and jobs in the South American nation.
The agreement entails a 10% royalty rate, a 10% corporate tax and a lowered cost recovery ceiling, even though profit oil sharing will continue to be split evenly between the government and the company.
The new terms differ significantly from the ExxonMobil-operated Stabroek block, which faced widespread public criticism.
Cybele estimates Block S7 to hold at least 400 million barrels of recoverable oil. The permit lies about 50 kilometres from the Liza field in Guyana and within the so-called “Golden Lane” that trends toward Suriname.
About 20% of Block S7 overlaps the Carapa-1 well that was previously drilled by Repsol in Guyana. The first exploration well in Block S7 is tentatively scheduled for late 2026.
New contract in Stabroek block
Elsewhere in Guyana, shipping group Bourbon Offshore has signed a five-year contract with ExxonMobil to provide maritime services in the country.
The agreement will start in the first quarter of 2026 with the commissioning of the platform supply vessel Bourbon Calm and covers the transport of products to the Stabroek block.
