Giants Bid On Guyana’s Long-Awaited 14-Block Oil Auction

With production hurtling towards 1.2 million barrels per day from a series of major discoveries and new projects in development, Guyana has now opened up bidding for 14 more offshore exploration blocks, with six companies and groups competing. 

Bidding for the 14 blocks was postponed three times to give prospective bidders additional time to evaluate existing data, as well as to finalize a new Production and Sharing Agreement (PSA). 

The government is expected to begin negotiations with bidders next month, after an evaluation process. 

According to Stabroek News, the number of bidders at six fell below the government’s expectations. 

Exxon, Hess and China’s CNOOC are reportedly among the bidders, based on media reports citing Guyana’s National Procurement and Tender Administration Board. French TotalEnergies has reportedly bid in partnership with Qatari and Malaysian companies. 

To date, Exxon has drilled more than 30 wells offshore Guyana. 

The first massive oil discovery by Exxon in Guyana was in 2015 in the Stabroek Block, with production now at around 400,000 barrels per day, with much more in development. The block consortium is led by Exxon, with Hess holding a 30% interest and CNOOC holding a 25% interest. 

A total of six projects for the consortium have been approved so far. Two of those–Liza Phase 1 and Liza Phase 2–are complete.

Guyana is estimated to have nearly 14 billion barrels of oil reserves offshore, along with 32 trillion cubic feet of natural gas. To date, the Exxon-led consortium is responsible for the discovery of at least 11 billion barrels of recoverable oil and gas. 

The country is now on track to be producing 1.2 million barrels per day by 2027, according to Hess estimates. Hess also believes the 11-billion-barrel discovery estimate is conservative. 

By Charles Kennedy for Oilprice.com

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