opportunities here are endless. Our story in Guyana is much larger than oil and gas…Oil and gas is a catalyst for many other opportunities for development in the country. I want you to put Guyana on your radar,” Upstream Online reported.

President Ali further stated, “There are a lot more blocks that will go up for auction. We are also looking at the government-to-government collaboration and all the other spin-offs that come from the industry. But because of our vast natural resources, there are many other opportunities. And tourism- a tremendous opportunity. If you’re looking to diversify your own business portfolio, Guyana is the place that you must be.” Currently, oil is only being produced from the Stabroek Block, which is operated by America’s top oil producer, ExxonMobil. Oil production is over 600,000 barrels per day from three developments in that block. Since oil production commenced in December 2019, Guyana’s economy has recorded tremendous growth. Notably, for the government’s inaugural auction, 11 of the oil blocks on auction are located in the shallow area and three are in the deepwater zone. They range between 1000 square kilometres to 3000 square kilometres with the majority of them being close to 2000 square kilometres.

The oil companies will be expected to pay a 10 percent royalty and a 10 percent corporate tax to the government of Guyana. In the meantime, the cost recovery will be capped at 65 percent in a given year, while profits will be shared 50/50 between the parties. Last month, the Ministry of Natural Resource, shared the list of companies and blocks for which Production Sharing Agreements PSAs are expected to be signed this year. These include blocks S4  TotalEnergies, Qatar Energy, and Petronas; S5  International Group Investment Inc. S7  Cybele Energy; and S10  International Group Investment Inc,” the Ministry said in its statement. (Kaieteur News)