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GEORGE TOWN, Dec. 10 (AP) — Guyana began bidding for 14 new offshore oil and gas blocks on Friday, hoping to capitalize on interest in lucrative fields that promise to make the South American nation a major oil producer .
Guyana has one of the largest oil discoveries of the past decade. In 2019, two years after the discovery was announced, Exxon extracted its first oil from the seabed off the coast of Guyana. A consortium led by ExxonMobil has successfully drilled more than 30 wells near the block currently being auctioned.
President Irfan Ali said the bidding period will run from Friday until next May to give the company time to study the blocks.
After paying a $20,000 fee, companies have until April 14 to bid to gain access to a virtual data room that provides information on offshore areas. Bids must be submitted by mid-April, and results and awards must be made by the end of May next year.
“Of course, this will follow the negotiation and evaluation of the bids we have received in this bidding round,” Ali said in a live Facebook post.
Guyana’s cabinet has repeatedly said it will work to ensure the country gets the best possible deal on what is widely considered to be its last remaining and revenue-generating economic legacy – oil and gas.
Criticism of current arrangements, product sharing agreements and duty-free incentives with consortiums including Hess and CNOOC has come under constant attack from across Guyanese society.
The deal essentially allows ExxonMobil and its partners to recoup 75% of the cost of production while splitting the remaining 25% equally with Guyana, except for a 2% royalty. Activists want the royalty to climb to 10%.
The government has declined to renegotiate the arrangements, but said it will try to capitalize on the current agreement to offer new blocks. (Associated Press)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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