President, Dr. Irfaan Ali disclosed yesterday that his government has set aside certain oil blocks which would be used for government-to-government partnerships.
The Head of State made the disclosure during a press conference that was held yesterday with British High Commissioner, Jane Miller. Ali refused to divulge further details on which specific blocks were set aside as well as what special purpose vehicle would be used to represent the State’s interests in such matters. He did pledge however to distill such details at the appropriate time.
In the meantime, the President said this development followed engagements that were had earlier this year with former UK Prime Minister, Boris Johnson as regards energy security.
Ali said, “The specific discussion I had with Boris was in relation to energy security for the UK. 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 what is termed government to government partnerships. We are looking at all our strategic partners with these blocks.”
The President added, “We also have some natural gas fields. We have not completed the national gas strategy as yet but in that strategy, more opportunities will be opened up.”
Ali said over all that his intention is to ensure the UK is able to play a role in Guyana’s energy transformation while continuing with efforts that will place the new oil producing State as a global leader on climate change, energy and food security.
The Ali-led administration had earlier this month said it is in the process of finalizing new fiscal terms and conditions for the country’s first bid round for offshore exploration and production of hydrocarbon blocks.
The bid round will be open for several months and is expected to give interested companies sufficient time to prepare their competitive packages and bid to win the available acreages offshore; which will be done in an open and transparent manner.
Since the discovery of Liza in 2015, the Guyana offshore basin has seen unprecedented development, with Guyana setting a new paradigm for expeditious development of oil and gas resources. According to S&P Global, “the four-and-a-half-year time frame from discovery to first production places Guyana first among global deepwater jurisdictions in terms of the average time to bring major discoveries on stream.”
With the upcoming bidding round, the Government of Guyana expects to chart a new path as the Guyana offshore areas emerge as a potential super basin with over 11 billion boe (barrels of oil equivalent) discovered to date. With substantial exploration activities ongoing, this figure is expected to increase significantly.
In light of this, Cabinet said it is concluding a definitive terms of reference for the competitive licensing round which will foster a conducive investment environment while maximising value for the people of Guyana.
In this process, the government said it will seek to ensure the country gets a fairer share of revenues from oil and gas resources through improved fiscal arrangements to benefit the people of Guyana.
Further, government said it will safeguard the safety of people and the environment by following international best practices in offshore oil and gas development.
It also said that it intends to maintain a competitive position in the region and globally as key to continued success.
Additionally, government said it will be embarking on an intensive promoting campaign with all necessary technical data and requirements which will ensure that the competitive bidding round is successful for the future development of the offshore exploration and production of hydrocarbons for Guyana’s economy.
Further, it said this process will be done in keeping with international best practices for transparency and accountability.kaieteurnewsonline.com 10 18 2022
kaieteurnewsonline.com 10 18 2022
