Guyana to Sign New Offshore Oil Deal With Ghana’s Cybele Energy

Guyana will sign a new offshore oil exploration agreement on Tuesday with Cybele Energy, a Ghanaian firm, further expanding the South American nation’s strategic energy partnerships. The deal underscores Guyana’s rapid emergence as a major offshore hydrocarbon province.

The Production Sharing Agreement (PSA) for Block S-7 mirrors terms set in a November pact with a consortium of TotalEnergies, QatarEnergy, and Petronas. It mandates a 10 percent royalty, 65 percent cost recovery ceiling, and an even 50-50 profit split thereafter.

Cybele Energy will also pay a US$15 million signing bonus upon finalization.

Guyana’s Minister of Natural Resources confirmed the signing, noting Cybele will partner with a major Nigerian operator. This marks the second PSA finalized from Guyana’s 2022 licensing round, which awarded eight blocks across six companies.

Negotiations continue with other awardees, including groups led by ExxonMobil, Delcorp, and Sispro Inc. A third agreement is anticipated before year-end.

Since commencing production in late 2019, Guyana’s output has surged from 80,000 barrels per day in 2020 to approximately 930,000 bpd, driven by ExxonMobil’s operations in the Stabroek Block. The new PSAs aim to diversify its operator base and accelerate development of its estimated 11 billion barrels of recoverable resources.