-Other oil exploration agreements on pause
Vice President Dr Bharrat Jagdeo has announced that the government will not sign any gas development agreement with Fulcrum LNG before the People’s Progressive Party/Civic (PPP/C) ends its term in office.
Fulcrum LNG, a United States-based energy company, has been selected by the Guyanese Government to design, finance, construct, and operate a gas project that will develop and monetise Guyana’s untapped natural gas reserves.
Dr Bharrat Jagdeo
The government had publicised a Request for Bids (RFB) for the design, financing, construction, and operation of essential gas infrastructure to support upstream developments in Guyana and out of 17 companies, Fulcrum LNG was identified as the most responsive and compliant bidder, ranking No.1.
When asked by reporters for an update on Fulcrum’s involvement in developing these gas reserves, Dr Jagdeo said it would be unethical to sign an agreement for a major project of this nature before the September 1 general and regional elections are held.
Dr Jagdeo, who is also the People’s Progressive Party (PPP) General Secretary, informed reporters on Thursday that, “those negotiations would go on autopilot…because our attention is focused more on the elections. We have about 80-something more days for the elections, and thereafter, we will return to it with vigour.”
This undertaking is critical, since the government plans to use and profit from all the associated gas resources in the Stabroek Block to bring in more revenue for the country and offer new opportunities for the people of Guyana.
It has the potential to transform the lives of all citizens through wealth creation and industrialisation opportunities.
Dr Jagdeo underscored that, “its impact will be transformational, especially for Region Six and Region Six,” but maintained, there will be no agreements anytime before the 2025 polls.
Similarly, VP Jagdeo stated that no agreements for prospecting licenses for oil and gas development will be inked before the 2025 polls.
In 2022, the government launched a competitive and rigorous oil auction where 14 blocks were up for grabs. That process wrapped up in 2023, and six companies were selected, among them a woman-owned Guyanese company, Sispro Inc., which secured two blocks.
Other blocks were awarded to Total Energies, in collaboration with Qatar Energy International and Petronas, International Group Investment Inc. and Montego Energy, Liberty Petroleum Corporation, Cybele Energy Limited, Stabroek Block partners: ExxonMobil Guyana Limited, Hess New Ventures Exploration Limited, and CNOOC Petroleum Guyana Limited, as well as Delcorp Inc. Guyana, which comprises Watad Energy and Communications Limited and Arabian Drilling Company of Saudi Arabia.
Last year, Minister of Natural Resources, Vickram Bharrat, had revealed that the government aims to enter into agreements with four companies, namely: Total Energies, in collaboration with Qatar Energy International and Petronas, International Group Investment Inc., and Cybele Energy Limited.
However, “I doubt that we will sign any of those in the next maybe two or three months. If they have not been signed as yet, I think we should wait after the elections to do that,” the vice president noted.
Also, Dr Jagdeo in 2024 had said that the government will not be hosting a second oil auction before the 2025 polls.
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