Govt releases draft model PSAs for deep...

“The expatriate employee of the contractor, affiliate companies and the subcontractor shall be liable to pay personal income tax in Guyana on income earned in Guyana. Guyana (represented herein by the Minister) shall cause the proper authorities to issue appropriate tax certificates to expatriate employees when required,” the agreements state.

Schedule

The Government meanwhile revealed that it will be amending the bid round schedule. Previously, the Government had been aiming to keep the competitive bidding round open until April 14, 2023, after which evaluations and negotiations would follow. gy/guyana-offshore-licensing-round-2022 and www. nre.gov.gy which will reflect the new timeline for the publication of the finalised Terms and Guidelines, model Petroleum Agreement and process of bidding — all adjusted to facilitate maximum participation from global interest.”

The Government had set a timeline for awards in May 2023. However, this will now be extended. The Government also revealed that all 14 blocks have received Expressions of Interest (EoI) from bidders.

“The indicative Guyana 2022 Licensing Round Schedule will be updated at www.petroleum.gov.

“Official Expressions of Interest (EoI) have been received for all fourteen blocks for tender of the Guyana 2022 Licensing Round, demonstrating global interest in Guyana’s shallow and deepwater offshore acre- age,” the Ministry further explained.

Last year, Guyana received a ranking of 10th among the oil and gas jurisdictions in the world for competitiveness in exploration and production by internationally respected business intelligence firm IHS Markit.

The Guyana Government launched the current oil block auction in December 2022, putting 14 areas offshore up for grabs – 11 in the shallow area and three in the deep-sea area. Natural Resources Minister Vickram Bharrat had previously disclosed that more than 20 renowned oil and gas companies have indicated their interest in buying oil blocks, and have already submitted bids.

He had also indicated that given the overwhelming interest in the auction, the Government is mulling an extension of the April deadline for submissions of bids. The sizes of the 14 oil blocks on auction range from 1000 to 3000 square kilometres (sq.km).