Ghana’s oil firm Cybele Energy has signed a production sharing agreement that will allow the company to explore and produce oil and gas at an offshore block in Guyana, with the company required to pay a 17 million dollar signing bonus for Block S7.
The area is the second to receive government approval to begin the exploration phase following a similar agreement last month with a consortium led by TotalEnergies. The blocks had been offered in an open-competition auction. Guyana’s Ministry of Natural Resources stated the agreement includes modernized fiscal terms, among them a 10% royalty rate, a 10% corporate tax rate, a reduced cost-recovery ceiling, and a 50/50 profit-oil split between the government and the contractor.
Cybele expects to drill its first well at Block S7, where up to 400 million barrels of recoverable oil could be confirmed, within 12 months. The agreement represents a significant expansion for the Ghanaian company into one of the world’s hottest exploration regions, where major discoveries by ExxonMobil and partners have transformed Guyana into a rapidly emerging oil producer.
Source: bairdmaritime.com