The Ministry of Natural Resources (MoNR) yesterday announced the release of the draft Model Petroleum Agreements for both the deepwater and shallow-water area, and the commencement of a fourteen-day consultation period before finalisation.
According to a statement from the ministry, “The draft Model Petroleum Agreements embodies rigorous research and analysis by the ministry’s internal team, and external consultants on all topics relevant to a modern petroleum agreement for Guyana. It added, “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.”
MoNR explained that 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. The ministry also informed that anyone one wishing to give feedback on the draft model agreements should address their letters to the Minister of Natural Resources at licensinground2022@petroleum.gov.gy and copied to the Permanent Secretary at jmckenzie@nre.gov.gy.
Further, the release noted that the indicative Guyana 2022 Licensing Round Schedule will be updated at www.petroleum.gov.gy/guyana-offshore-licensing-round-2022 and www.nre.gov.gy. It will reflect, it explained, the new timeline for the publication of the finalised Terms and Guidelines, Model Petroleum Agreement and process of bidding – all adjusted to facilitate maximum participation from global interest.
It was pointed out that Official Expressions of Interests (EoI) have been received for all fourteen blocks for tender of the Guyana 2022 Licensing Round, demonstrating global interest in Guyana’s shallow and deepwater offshore acreage.
The release highlighted that the Model Petroleum Agreements represent government’s commitment to establishing a model production sharing agreement (PSA), guided by industry standards and best practices. It added that at the core, “these are aimed at maximising the socio-economic benefits for our nation without disincentivising foreign investors in the sector.”
The Government of Guyana reminds its citizens that it “remains committed to a new era of oil and gas development, characterised by a competitive and favourable investment climate,” the release added.
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 maximising the socio-economic benefits for our nation without disincentivising foreign investors in the sector. The Government of Guyana remains committed to a new era of oil and gas development, characterised by a competitive and favourable investment climate, the release said.
