Guyana’s VP Bharrat Jagdeo declared the primary oil block public sale a “success,” as the federal government acquired affords for eight out of the 14 accessible blocks.

Jagdeo mentioned they’d overview all bids by the top of the yr.

In response to him, the eight blocks attracted 14 bids from six corporations. Jagdeo additionally talked about that the world is shifting in the direction of net-zero emissions.

He famous this might have an effect on the oil trade.

Guyana lately elevated its royalty charges from 2% to 10%. A ten% company tax was additionally launched.

Jagdeo believes these new guidelines make the blocks much less interesting to international corporations. Regardless of this, ExxonMobil and 5 different corporations nonetheless bid.

The bidders included SISPRO INC, a neighborhood firm, and a world consortium with corporations from Qatar and Malaysia.

The public sale started in December 2022. It was supposed to finish in April 2023 however acquired prolonged.

The federal government mentioned this was as a consequence of delays in finalizing new legal guidelines and agreements.

Huge oil corporations like Shell and Chevron had proven curiosity however didn’t bid in the long run. Guyana sits on greater than 11 billion barrels of oil, rating it third in Latin America.

Background

The historical past of oil exploration in Guyana goes again a number of years. Nevertheless, main discoveries didn’t occur till lately.

These findings have shifted the nation’s financial prospects. Earlier than this, Guyana primarily relied on agriculture and mining.

Its financial system now has a brand new vital pillar: the oil sector.

ExxonMobil made the primary huge discovery in 2015. The discover was within the offshore Stabroek Block.

Since then, curiosity in Guyana’s oil potential has surged. This new focus has led to a number of rounds of talks and negotiations.

The federal government has been eager on balancing advantages and environmental issues.

When it comes to governance, Guyana has taken steps to handle its newfound wealth. They established the Pure Sources Fund in 2019.