Ghanaian firm to ink deal for oil and gas search offshore Guyana

Dec. 9 (oilnow.gy) Ghana-based Cybele Energy Limited is set to sign a petroleum agreement on Tuesday, December 9, to explore for oil and gas offshore Guyana. This will be the second block awarded from the country’s first competitive offshore auction.

The ceremony will take place at the Pegasus Suites and Corporate Center in Georgetown, where the government will issue Cybele the shallow-water Block S7.

S7 follows the award of Block S4 in November to a consortium led by TotalEnergies, QatarEnergy and Petronas. Both contracts are based on Guyana’s new model petroleum agreement, which introduced a 10% royalty, a 10% corporate tax, a 65% cost-recovery ceiling, and a 50-50 profit-oil split with the state.

Cybele will enter a five-year exploration period divided into two phases, with the first running for three years. Advancement to the second phase is optional and would require drilling at least one exploration well.

The contract also carries a signing bonus of no less than US$10 million, a biddable item in the auction. The government is expected to disclose the exact amount at the signing.

Guyana has emerged as one of the fastest-growing oil provinces since ExxonMobil’s first major discovery in 2015. The auction was part of efforts to diversify operators in the basin beyond an existing consortium led by ExxonMobil. 

Cybele Energy is a leading Sub-Saharan African oil and gas exploration and production company.