GUYANESE-OWNED company, Sispro Inc., which is led by four women, was able to secure two oil blocks following the conclusion of the International Licensing Round 2022.
People’s Progressive Party (PPP) General Secretary, Dr. Bharrat Jagdeo, on Thursday during a press conference at Freedom House, commended the local company for their efforts in the competitive oil and gas market.
The company was awarded oil blocks S3 and D2. Sispro Inc. was founded by Dr. Melissa Varswyk, Ayo Dalgety-Dean, Abbigale Loncke-Watson and Omadele ‘Dee’ George.
TotalEnergies EP Guyana B.V. in consortium with Qatar Energy International E&P LLC and Petronas E&P Overseas SDN BHD were awarded S4. Additionally, S5 was awarded to International Group Investment Inc.
The S7 block was snagged by Liberty Petroleum Corporation and Cybele Energy Limited, while oil giant ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited were awarded S8.
Additionally, S10 was awarded to International Group Investment Inc. and Delcorp Incorporated, while Watad Energy and Communications Ltd and Arabian Drilling Company won D1.
According to Dr. Jagdeo, the companies have already confirmed that they have the resources to pay the signing bonus which is US$10 million for each shallow-water exploration blocks, and US$20 million for each block in the deep-water exploration.
He said: “Now that the award has been made, we now have to meet with the parties to which the blocks have been awarded to have a negotiation on the contracting that is to move towards the completion of the award.”|
The country had planned to open its auction in May of this year; however, this was extended to September to allow it to critically examine the regulatory framework, which included a new production-sharing agreement which sees it benefitting more.
Still, the new contract will ensure that Guyana “remains one of the most competitive countries in the world,” even with these changes.
Guyana’s economy has undergone a radical transformation after ExxonMobil Corp.’s 2015 discovery of massive tranches of oil offshore.
From producing no crude at all, Guyana produces an average of some 400,000 barrels of oil per day. This is expected to increase to 600,000 barrels per day by 2024.
Guyana’s total recoverable oil reserves stand at more than 11 billion barrels of oil, with crude oil reserves ranking at number 17 in the world and third in Latin America and the Caribbean.
PSA STAYS THE SAME
And as Guyana moves ahead with its lucrative resources, Dr. Jagdeo reiterated the government’s position of not changing Guyana’s new Production Sharing Agreements (PSA).
The fiscal terms of the PSA for the Stabroek Block have been the subject of debate and contention for some time. There has also been considerable misinformation – some wilful and intentional – around profit-sharing, royalty rates cost recovery, Guyana’s obligations, and those of the Stabroek Block co-venturers, to advance the narrative proffered by some that Guyana is getting a bad deal.
But the government despite some of the challenges that come with a rapidly expanding oil sector and economy, has heeded the advice of experts, bi-lateral partners and consultants in and outside of Guyana to create a framework to maximise the gains from production for Guyanese.
See original Article Here:
https://guyanachronicle.com/2023/10/27/women-owned-local-company-secures-two-oil-blocks/