Argus Media – May 11, 2021
Guyana is changing how it concludes agreements with international oil companies for hydrocarbon exploration and will now launch bidding rounds for offshore and onshore acreage. Until now, exploration and production contracts granted to several oil companies so far have been based on direct negotiations by the government with interested firms. But in a surprise announcement this week, President Irfaan Ali said there will now be “a public and open bidding process in which we will be looking for the best offers,”
The first bidding round will be launched by “early 2022” after the government completes a revision of the terms of current production sharing contracts. Additionally, the government announced that its launch of the bidding rounds will be preceded by a change in the regulatory structure of the country’s oil sector, with the creation of a petroleum commission that will be the country’s main oil authority.