Guyana aims to buy back 20% of Exxon oil block | – #Guyana #aims #buy #Exxon #oil #block
GEORGETOWN, Feb 17 (Reuters) – Guyana’s Vice President Bharrat Jagdeo told Reuters that the country will withdraw from a consortium led by Exxon Mobil Corp the giant Stabroek oil block, which is responsible for a series of massive discoveries. 20It plans to buy back % and put it back on the market next year.
11 to date in an area of 6.6 million acres (26,800 sq km). billion more than a barrel of oil and gas found. The group’s contract allows Guyana to return unexplored sections this year, Jagdeo said in an interview from the nation’s capital.
Jagdeo said Guyana is implementing a multi-pronged strategy to reduce the consortium’s impact on the country’s oil reserves and stimulate new oil production.
USA-The Chinese group produces 380,000 barrels of oil per day from two projects within the Stabroek block gas is producing and expects to increase production to 1.2 million barrels by 2027. The least developed country in South America 1.63 billion dollars expects to collect oil royalties. and payments this year.
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“We need more competition,” Jagdeo said in an interview during an energy conference in Georgetown.
A year ago, he said Guyana wanted to hire state-controlled oil companies to develop new fields. The decision to buy back existing Exxon blocks shows the urgency to accelerate development.
The withdrawal comes amid continued criticism that the original deal under the previous government was too one-sided for oil companies.
EXPIRY DATE
The Exxon group said it had missed investment deadlines for parts of the block not under exploration or development, and under the terms of the license, Exxon had a minimum contract area not held under an exploration or production license. 20must refuse %.
“Exxon can’t keep it, it would be illegal,” he said vice president.
Exxon said it and its Stabroek partners are in compliance with the Petroleum Agreement and the Petroleum Act, including their acreage waiver requirements.
Spokeswoman Meghan Macdonald said: “We are in ongoing discussions with the Government regarding these requests, both in terms of time and space.”
Separately, Guyana is working on an auction of exploration licenses for 14 offshore blocks outside Exxon’s domains, in what will be the country’s first competitive auction. It also goes to India, Qatar and the United Arab Emirates or national blocks to oil companies offer to do offer did.
Energy Minister Vickram Bharrat told Reuters that eight companies, including well-known oil producers, had paid to access geological data for areas to be auctioned next quarter. Exxon and QatarEnergy have announced their interest.
According to him, in parallel with the auction, Guyana is directly negotiating bilateral oil agreements with countries such as Qatar, India and the United Arab Emirates on terms different from those given to private oil producers.
“I believe that some of them are in 14 areas offer will give and still explore bilateral discussions.
(For a chart of the proposed 14 blocks of Guyana, visit: https://tmsnrt.rs/3K8P0xY)
Jagdeo also owns Brazil’s state-run Petroleo Brasileiro SA (PETR4.SA) and the former political of his ally Luiz Inacio Lula da Silva january hopes to attract the government of Brazil, where he begins his third presidential term in
“We want Petrobras to be involved here,” Jagdeo said, adding that integration between the two countries had developed during Lula’s previous presidencies. “We look forward to Lula settling in.
Guyana also has development sites outside Block 14, which will soon be auctioned, and is ready to offer them “on a bilateral basis to these countries”.
These include blocks closer to shore than production sites, two blocks returned to the government by Toronto-traded firms CGX Energy ( OYL.V ) and Frontera Energy ( FEC.TO ), and Guyana’s undeveloped Stabroek 20Aims to redeem %. , he said.
“If the bilateral talks do not go well, we will propose another round next year,” Jagdeo said. “The deal should be good for Guyana.”
In December, Guyana’s share of oil revenues between production and royalties increased from 14.5% to 27.5%, plus after-profits. 10He announced new financial conditions that increase the corporate tax by 10%.
Companies including Exxon are now waiting for the government to issue a new production sharing agreement (PSA) model that will set terms for proposed blocks as well as projects that have not yet begun development.
Jagdeo said the PSA draft will undergo public consultation till March 8 and is expected to be finalized before the April 14 auction.
Reporting by Sabrina Valle; Edited by David Gregorio
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2023-02-18 05:33:37
Source – reuters
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