RELATED EVENTS
The following article covers Guyana’s recent announcement of draft Model Petroleum Agreements for both deepwater and shallow-water areas, as well as its inclusion in the indicative Guyana 2022 licensing round.
Introducing the new Model Petroleum Agreements
On March 6, 2023, the Ministry of Natural Resources of Guyana, on behalf of the government, announced the release of the draft Model Petroleum Agreements for both deepwater and shallow-water areas, and the commencement of a fourteen-day consultation period before finalization.
As stated by the Ministry, the draft Model Petroleum Agreements embody rigorous research and analysis by the Ministry’s internal team, and external consultants on all topics relevant to a modern petroleum agreement for Guyana. The process involved a comprehensive assessment of the current petroleum agreement and the identification of best practices relevant to every contractual aspect of a modern agreement grounded in the Guyana context.
According to the government, in order to ensure new investments are governed by a comprehensive framework of international best practices, the Model Petroleum Agreements will be followed by an overhaul of the 1986 Petroleum Act and Regulations.
Draft Model Deepwater Petroleum Agreement
To download the draft, visit:
https://petroleum.gov.gy/documents/draft-model-deepwater-petroleum-agreement
Draft Model Shallow Water Petroleum Agreement
To download the draft, visit:
https://petroleum.gov.gy/documents/draft-model-shallow-water-petroleum-agreement
The Guyana 2022 licensing round
The Guyana 2022 Licensing Round Schedule will be updated accordingly, which will reflect the new timeline for the publication of the finalized Terms and Guidelines, Model Petroleum Agreements, and process of bidding; all will be adjusted to facilitate maximum participation from global interest.
It is important to note that official Expressions of Interests (EoI) have been received for all 14 blocks for tender of the Guyana 2022 Licensing Round, demonstrating global interest in Guyana’s shallow and deepwater offshore acreage.
The Model Petroleum Agreements represent the PPP/C government’s commitment to its manifesto promise of establishing a model production sharing agreement (PSA), guided by industry standards and best practices. At the core, these are aimed at maximizing the socio-economic benefits of Guyana without disincentivizing foreign investors in the sector. Through these mechanisms, the government of Guyana remains committed to a new era of oil and gas development, characterized by a competitive and favorable investment climate.
Blocks for tender
Deepwater blocks
- Block D1 (2,880 square kilometres);
- Block D2 (3,054 square kilometres);
- Block D3 (2,921 square kilometres).
