Guyana in talks with Qatar, UK, UAE and India over oil block

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PORT OF SPAIN – Guyana is in talks with Qatar, the United Kingdom, the United Arab Emirates and India over the possibility of direct allocation of offshore blocks for oil and gas exploration alongside this year’s bid, President Irfaan Ali said on Monday.

South America’s newest crude oil producer has become the world’s fastest-growing oil region, with more than 11 billion barrels of oil and gas discovered.

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Guyana has until mid-April to receive bids from energy companies for its competitive tender, which will offer 14 areas, including shallow and deep water areas. In addition, it has negotiated direct allocation areas with other countries.

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“We’ve been looking at multiple options,” Ali said on the sidelines of an energy conference in Trinidad and Tobago. “We’ve made a public bid, and we’re also looking at room for intergovernmental cooperation.”

Ali visited India earlier this month, where he encouraged companies to participate in the round and negotiated with the government on large allocations to state-owned companies and a possible oil supply contract with the Asian country.

When former British Prime Minister Boris Johnson met Ali last year, they discussed energy investment opportunities, the president said.

“In the environment we operate in, you have to keep as many cards as possible,” Ali added.

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Trinidad and Tobago Prime Minister Keith Rowley also said at Monday’s meeting that his government would consider direct negotiations with energy companies for oil and gas exploration, possibly moving away from the competitive bidding system.

“It’s not clear if the intergovernmental talks are related to the 14 exploration blocks that have already been announced, or if they’re talking about different areas,” said Andre Fagundes, vice president of research at Welligence Energy Analytics.

“It is important for Guyana to clearly communicate what these intergovernmental negotiations really are, and when they are being negotiated. Otherwise, they could seriously compromise the transparency of bids and alienate potential participating companies, especially non-state oil companies,” he added .

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regional alliance

Trinidad Energy Minister Stuart Young is proposing an energy alliance that would bring the oil and gas resources of Guyana, Venezuela and Suriname to Trinidad, Trinidad Energy Minister Stuart Young said at the Energy 2023 conference in Port of Spain Da, the country currently has spare processing and export capacity.

The COVID-19 pandemic and the war in Ukraine have shown the region must fend for itself, Young said. Combining the newly discovered resources of Guyana and Suriname with Trinidad’s capabilities offers the region the opportunity to play a greater role in global energy supply, he added.

Guyana’s Ali also called on the Caribbean to work together, saying some countries are pushing the renewable energy agenda without understanding the impact on producers like Guyana.

Ali pointed to the potential economic fallout and lack of support from multilateral institutions. (Reporting by Curtis Williams, writing by Marianna Parraga, editing by Marguerita Choy)