Bidding period for oil blocks further extended

Bidding period for oil blocks further extended

The bidding period for the 14 Oil Blocks offshore Guyana will now come to an end on September 12, the Government has announced.

In announcing the new deadline, the Ministry of Natural Resources explained that while the bidding round has been receiving strong global interest, the extension was necessary.

“The government’s continuous efforts to streamline and improve the petroleum regulatory framework and the resultant comprehensive feedback received from our stakeholders have led to this necessary extension,” the Natural Resources Ministry said.

The bidding round for the new oil blocks opened last December and was expected to close at the end of April, but it has since received two extensions.

In the interim, the Government said it has been working to modernize the legal framework governing the Oil and Gas Industry, and simultaneously finalize the model Production Sharing Agreements (PSAs), that will guide the operation of the new blocks.

In the statement today, the Natural Resources Ministry said it received insightful feedback during the consultative periods of the indicative terms and guidelines, the draft model PSAs and the draft Petroleum Activities Bill.

“Whilst recognizing the new era of oil and gas development and investors’ confidence in our economy, the government is working to ensure that this competitive licensing bids and future rounds are governed by a modern regulatory framework with improved technical and institutional capacities. Against this backdrop, the government will soon complement the model PSAs with a new Petroleum Activities Bill 2023, which will not only enhance the management of the sector but also provide improved economic measures for all licensees in the bidding round, as well as future development and production operations in Guyana’s petroleum sector,” the Natural Resources Ministry said.

Despite the repeated extensions, the Natural Resources Ministry said the Government remains committed to the successful execution of the country’s licensing round, and the strengthening of the nation’s fiscal and legal petroleum management frameworks.

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