Guyana’s second oil auction could be next year

A second auction for oil blocks offshore Guyana could be held in 2026, according to Vice President Dr. Bharrat Jagdeo.

However, the government wants to complete seismic surveys offshore before that auction. Several companies are interested in conducting these surveys, and on Thursday, the Vice President said the government may allow multiple companies to do the surveys.

“Now if we can (complete the seismic surveys), we expect that you will have some really serious bids for the new auction,” Jagdeo, who is the General Secretary for the People’s Progressive Party Civic (PPP/C), said.

These surveys are used to identify potential hydrocarbon reservoirs. If these new seismic surveys are done offshore, Guyanese authorities would have a better understanding of what other oil reserves exist offshore.

Guyana’s proven oil reserves are estimated at 11 billion barrels.

Guyana launched its first oil blocks auction in 2022. A total of six firms were awarded eight different blocks in 2023; a total of 14 blocks (11 shallow and three deepwater blocks) were up for grabs. Negotiations are still ongoing and it is not likely that any agreements will be inked until the country’s elections, slated for September 1, are completed.

Already, the government finalised a new model petroleum agreement and updated legislation for the petroleum sector. These are prerequisites that the government said it wanted ahead of the award of blocks in the first auction and before another auction.

Oil blocks auction: Gov’t hopes to finalise awards by year end