Latest update April 3rd, 2026 12:35 AM
Pres. Ali hopeful other Chinese companies bid for oil blocks
Kaieteur News – President Irfaan Ali is hopeful that other Chinese companies would get involved in Guyana’s oil and gas sector by bidding for one of the oil blocks that will be up for auction.
The President made those comments during an interview with Chinese state media entity CGTN. President Ali led a delegation to China for a one-week trip. During the interview, President Ali said, “So over the years, we have seen the contribution of China’s development in Guyana in various areas. If you look, for example, at the oil and gas sector, we have CNOOC (China National Offshore Oil Corporation) as part of the consortium in the Stabroek Block that is with Exxon, Hess, CNOOC and the government.”
ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is the operator of the lucrative Stabroek Block. For the Stabroek Block development, Guyana is chained to an exploitative deal that gives it a paltry 2% royalty and a 50% share of the profit oil after costs are recovered up to a ceiling of 75%. The Stabroek Block, in which ExxonMobil maintains a 45% operating stake, is supported by co-venturers Hess and CNOOC, holding stakes of 30% and 25%, respectively.
President Irfaan Ali during the interview on CGTN
During the interview with CGTN, Ali said: “now, we have 11 billion barrels proven reserve. We have just gone out to auction for 14 more blocks. We are hoping that not only CNOOC but more Chinese company would participate in this auction.”
Recently, the Ministry of Natural Resources announced that the Guyana 2022 Licensing Round’s bid submission deadline has been pushed back to September 12, 2023. The government said in a statement that continuous efforts to streamline and improve the petroleum regulatory framework and the resultant comprehensive feedback received from stakeholders led to this necessary extension.
Whilst recognising the new era of oil and gas development and investors’ confidence in economy, the government said it is working to ensure that this competitive licensing bid and future rounds are governed by a modern regulatory framework with improved technical and institutional capacities.
Map showing the blocks part of the licensing round
Against this backdrop, the government said it will soon complement the model Production Sharing Agreements (PSAs) with a new Petroleum Activities Bill 2023, which will not only enhance the management of the sector but also provide improved economic measures for all licensees in the bidding round, as well as future development and production operations in Guyana’s petroleum sector. The bid round, officially launched on December 9, 2022, continues to receive strong global interest
Last Friday, President Ali met with President Xi Jinping in Chengdu, capital city of southwest China’s Sichuan Province.
According to a joint statement by the two countries, Guyana and China welcomed the signing of a Memorandum of Understanding (MoU) on the establishment of an Investment and Economic Cooperation Working Group. The two countries expressed satisfaction with the positive development of bilateral relations and reaffirmed their commitment to further strengthening bilateral relations and expanding collaboration in a number of areas. President Ali thanked President Jinping for China’s support in Guyana’s economic development, including in the area of infrastructure. Both sides committed to deepening economic ties, including enhanced trade and investment promotion, and to expanding cooperation in areas such as infrastructure development, agriculture, health, energy and education.
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