Guyana’s Vice President Bharrat Jagdeo announced new rules for upcoming oil block auctions. These rules focus on safety, data, and reducing carbon footprint.
Jagdeo shared this in a press briefing.
“Bidders need to use the latest tech to lessen environmental harm,” Jagdeo said. He also clarified that the Stabroek Block won’t follow these new guidelines.
President Irfaan Ali expects Stabroek to yield 1.2 million barrels daily by 2027. Delays led to two deadline extensions for the bidding process.
This happened because of pending laws and new shared production guidelines.
The auction includes 11 shallow and three deep-water blocks. Ten major companies like Shell and Petrobras are interested.
Guyana has more than 11,000 million barrels of proven oil. This places it 17th worldwide and third in Latin America.
Global interest in Guyana has grown since the 2015 discovery of offshore oil. ExxonMobil exploits the primary block.
New contracts aim to give the government a bigger role than with current ExxonMobil agreements.
Background
Guyana’s oil sector has become a hot topic since the 2015 offshore discovery. This interest has surged, especially from big players in the oil industry.
ExxonMobil currently dominates the scene, operating the major Stabroek block. The new auction aims to diversify operators and increase government control.
Guyana’s focus on safety and the environment in the auction is noteworthy. It reflects global concerns about climate change and responsible extraction.
Historically, oil-rich nations have faced challenges balancing growth and sustainability.
Guyana seems to be learning from past examples, aiming for a more balanced approach.