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Guyana setting aside oil blocks for partnerships with other countries

Guyana setting aside oil blocks for partnerships with other countries
President of Guyana, Dr Irfaan Ali. (GP)

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Georgetown, Guyana – President Irfaan Ali on Tuesday said that some of the oil blocks to be auctioned this year will be set aside for government-to-government partnerships in the future.

“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 government-to-government partnerships and we are looking at all of our strategic partners with these blocks,” Ali told a news conference.

He told reporters that a new policy mix vis-à-vis Guyana’s oil and gas resources is being pursued, alluding to the United Kingdom (UK) being a potential partner that will benefit from this arrangement. Ali, flanked by the United Kingdom High Commissioner to Guyana, Jane Miller, said that the two countries are seeking to deepen cooperation in the energy sector.

Asked by reporters to provide additional details on this new initiative, Ali said that a “full elaboration” of the plan will be provided “at the appropriate time.

“That could be in a few days’ time,” he added.

The much-anticipated auction of the blocks was scheduled for the end of September but that has not materialised and President Ali did not provide a new date for the auction.

The authorities have already indicated that blocks up for auction include those areas that have been relinquished by oil companies searching for oil offshore.

Meanwhile, Guyana earned nearly US$500 million in revenue from the oil and gas industry during the period July to September, according to the Bank of Guyana (BoG) in its third-quarter report for 2022

The BoG said the Caribbean Community (CARICOM) country earned US$493.1 million that included profit oil of US$442.1 million and royalties amounting toUS$51 million.

The BoG said that the increase in revenue was attributed to the additional Floating Production and Storage Offloading (FPSO) vessel, the Liza Unity, being in operation in the Liza Phase Two of the Stabroek Block. (CMC)