Guyana inks rich Block S7 oil deal with Ghana’s Cybele Energy

Guyana’s oil industry has taken another significant step forward with the government’s signing of a new Production Sharing Agreement (PSA) for the shallow-water Block S7, expanding the country’s portfolio of offshore partnerships and signalling continued investor confidence in its energy sector.

The deal, inked on Tuesday at the Pegasus Corporate Suite between the government and Ghana-based Cybele Energy Ltd, comes with a US$17 million signing bonus, approximately US$7 million above the ceiling set for shallow-water assets.

Shallow-water assets usually refer to operations in water depths of 300 metres or less, a zone often regarded as cost-efficient and attractive for exploration.

The Block S7 agreement positions Cybele as the first African-led operator in Guyana and the first woman-led exploration and production company to secure a block outside Africa.

Minister of Natural Resources Vickram Bharrat described the deal as further evidence of Guyana’s growing international profile. He said the agreement is expected to create new opportunities for the local private sector and jobs for Guyanese.

“It shows that our work…has been truly recognised around the world, so much so that it is attracting investments and interests globally and across continents…The future looks bright for Guyana and Guyana’s partners,” he noted.

Cybele Energy’s Founder and Chief Executive Officer, Beatrice Mensah Tayui, also signed a new Petroleum Exploration Licence (PEL).

This PEL is the second signed under the government’s new fiscal regime, which includes a 10 per cent royalty, 10 per cent corporate tax, and a reduced cost-recovery ceiling.

Profit oil sharing will also continue to be split evenly between the government and contractors. The new terms differ significantly from the Stabroek Block PSA, which has faced widespread public criticism.

Tayui praised the government for what she called one of the most seamless and rigorous negotiation processes her team had undertaken.

She also described the moment as a symbolic bridge between Ghana and Guyana.

“Today I stand as a symbol, uniting the nation of Ghana and the nation of Guyana…with ancestral ties bound, signed, sealed, and delivered,” she said.

Cybele estimates that the S7 Block holds a “conservative” 400 million barrels of recoverable oil. The block sits about 50 kilometres from ExxonMobil’s Liza Phase 1 and 2 fields and lies within an oil fairway that trends toward Suriname.

Tayui pledged that operations in Block S7 will be executed responsibly, noting that her company remains open to Guyanese, seeking training and employment opportunities. She spoke of her intentions to promote opportunities for women and young people in science and engineering.

Cybele Energy operates across Africa, the United States and the Caribbean, and partners with Norway’s Well Expertise. It is recognised for its shallow-water capabilities.

Its geological team includes Segun Jebutu, who previously served as lead subsurface scientist for more than 25 ExxonMobil wells offshore Guyana.

Block S7 was awarded during Guyana’s first competitive oil auction in 2023. An estimated 20 per cent of the block overlaps the Repsol Catapa-1 3D seismic survey, and the first exploration well is anticipated within 12 months of the PSA signing.