Indian, European oil companies evaluating bids for Guyana blocks |
HOUSTON/NEW DELHI, 16 january (Reuters) – An upcoming tender round for Guyana’s offshore fields has drawn interest from top energy companies from Asia to Europe, with the government continuing to work out the terms, according to people familiar with the matter. auction.
The South American country wants to rapidly expand its oil industry and hire developers to balance the consortium led by Exxon Mobil Corp ( XOM.N ), which currently controls all production. The Exxon group has discovered 11 to date billion announced plans to install at least seven vessels to extract more than a barrel of oil.
ONGC Videsh ( ONVI.NS ), the overseas investment arm of India’s Oil and Natural Gas Corp ( ONGC.NS ), is the country’s offer is considering bids for some of its 14 exploration blocks. Indian Oil Refining Corporation ( IOC.NS ) also wants to work in Guyana in partnership with ONGC Videsh, two people close to the talks told Reuters.
President of Guyana Irfaan Ali to India this month trip and encouraged energy companies to participate in the auction, extending the same invitation to Chinese firms a few days later. Guyana may consider allocating territories to strategic partners through the government for government talks, officials said.
“ONGC Videsh continues to review, evaluate and process several global business opportunities,” the spokesperson said. “For confidentiality reasons and as a matter of policy, we do not comment on specific opportunities until definitive agreements are reached.”
The IOC did not respond to a request for comment.
Guyana each on average 2000 square kilometers (722 sq mi) in three deepwater and 11 shallowwater blocks offer does. Offers April is expected to open in Georgetown.
Several in recent months, according to two other people familiar with the matter Europe The company also investigated the conditions of the auction.
Exxon is reviewing bids for the blocks, said Alistair Routledge, the company’s country manager for Guyana. “Of course we will look at it,” Routledge told Reuters in an interview.
Many of the tender decisions are related to Guyana clarifying the terms of a new production sharing agreement (PSA) for the 26,800 sq km Stabroek block, which differs from the one signed with the Exxon consortium.
FIRMS ARE WAITING
Oil analysts and experts are 31 amid pending contract language for the new PSA model, legislative changes needed to reflect the new framework, and work to organize the auction. january they do not expect to reach the date.
Guyana’s Finance Minister Ashni Singh said on Monday that the licensing round will be open until April 14 and successful bids will be awarded by the end of the first half of the year.
USAIHSMarkit firm was chosen as the leading consultant of the auction last year.
Guyana companies to auction more companies offer has not limited the amount of blocks it can make, but will limit rewards to three per company.
Winners will be required to submit work programs as part of their proposal and provide a guarantee for those programs. If the winners do not fulfill their investment programs as required, the government can impose fines or repossess the acreage for future auctions.
“We want more turnover,” Gaia vice president Bharrat Jagdeo said in November. “It’s trying to solve a lot of the problems we have with other areas where people just sit and give up after a long time.”
Last year, Exxon, Hess Corp ( HES.N ) and China’s CNOOC ( 0883.HK ) boosted oil production and exports with a second production vessel. The surge in output came just before global demand picked up following Russia’s aggression against Ukraine and the resulting sanctions.
Reporting by Marianna Parraga in Houston and Nidhi Verma in New Delhi; Additional reporting by Neil Marks in Georgetown, Guyana Editing by Matthew Lewis
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Marianna Parraga
2023-01-17 06:22:35
Source – reuters
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