Fossil Energy – Guyana
A signing bonus of US$17 million will be paid to Guyana for the S7 Block, awarded to Ghana’s Cybele Energy, exceeding the ceiling set for shallow-water assets by US$7 million.
Cybele’s Chief Executive Officer (CEO) Beatrice Mensah‑Tayui signed a new Petroleum Exploration License (PEL) with the Government of Guyana.
Ghanian Cybele Energy estimates Guyana’s shallow S7 Block holds a conservative estimate of 400 million barrels of recoverable oil. Block S7, according to information from Cybele, is located 50 kilometres from ExxonMobil’s Liza 1 & 2 fields with an oil fairway that runs towards Guyana’s neighbour, Suriname.
Cybele is the first African-led operator in Guyana and the first woman-led Exploration and Production company to secure a Block outside of Africa.
This PEL and petroleum agreement is the second signed under the Guyana government’s new fiscal regime. It entails a 10% royalty rate, a 10% corporate tax, and a lowered cost recovery ceiling, while profit sharing remains a 50/50 split between the government and contractors. These terms differ from the widely criticized Stabroek Block Petroleum Sharing Agreement (PSA).
