Women-owned Guyanese company secures key offshore oil blocks

A local company, Sispro Inc., led by four Guyanese businesswomen, has successfully secured two offshore oil and gas exploration blocks in a competitive auction.

General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo, announced this achievement during a press conference at Freedom House on Thursday, highlighting the significance of locals organising and collaborating with foreign companies in this high-risk sector.

“This is a very risky sector, and I am extremely pleased that the locals have been able to organise themselves, to work with some foreign companies, ad to put in their bids. Now that the award has been made, we now have to meet with the parties to which the blocks have been awarded to have a negotiation on the contracting, to move towards the completion of the award,” Dr Jagdeo noted.

In preparation for negotiations with the awarded parties, Dr Jagdeo emphasised the government’s commitment to firm fiscal terms outlined in the Product Sharing Agreement (PSA), prioritising transparency and accountability.

While open to minor adjustments in the PSA, the GS asserted that the essential fiscal terms would remain unchanged.

The negotiations are set to commence next week, with a focus on achieving a balanced division of revenue between the government and contractors.

The GS underscored the minimum signature bonus requirements of US$10 million for shallow water and US$20 million for deep water blocks.

Addressing the possibility of challenges in finalising arrangements with all companies, Dr Jagdeo stated, “If their demands are extreme, then we will simply not proceed with the signing in that regard.”

Out of the eight bids submitted, six companies have been awarded the exploration blocks.