Evaluation of bids for oil blocks’ seismic survey to be completed this year

…contract to be awarded by year end

The Government is moving to finalise the evaluation of companies that expressed interest in conducting seismic surveys of offshore oil blocks in June 2024, and there are plans to award the contract by the end of this year.
In an effort to encourage more companies to explore for oil and bid for blocks, the Government had announced plans to undertake a 3D seismic survey. As a matter of fact, the Government had, in June 2024, issued a tender seeing expressions of interest from companies to do the survey. According to the 2024 Mid-Year Report, of the eight companies that expressed an interest, seven were asked to submit proposals to the Government.

The report states that the evaluation of these seven proposals is expected to be completed in the second half of this year. It goes further to state that the contract is also expected to be awarded by year-end.
It had been explained in the notice issued by the Natural Resources Ministry (MNRE) that the state is seeking a reputable and experienced firm to conduct a “3D Multi-Client Seismic Survey” in the Exclusive Economic Zone (EEZ) offshore Guyana. According to the Government, the firm that is eventually contracted would be required to acquire, process, and interpret the 3D seismic data with a view to paving the way for exploration and development of oil and gas resources offshore.
Additionally, the firm would be required to ensure “high-quality seismic data is available for effective evaluation during future bidding and licensing rounds.”
The MNRE had also noted that, for a firm to be eligible for the assignment, it must “be an internationally recognized firm with prior experience successfully completing three similar assignments/contracts at least 12 years prior to the application submission deadline.”
At a previous press conference, Vice President Dr Bharrat Jagdeo had said that once the prequalification process is completed, the bidders must submit proposals for the project. He had also assured that the study would come at no cost to the Government.
“We went out the last auction without any 3D seismic study, so we didn’t have much data for the areas. When you have less data, people don’t put in great bids, so they don’t know what is there, they can’t interpret the data,” he had said. “We are hoping that [for] all of the unallocated areas, we may have the 3D seismic studies done by these people. They do it, we don’t have to pay for it, because it’s a very costly exercise, and they can share the data with us and sell it to the clients,” Jagdeo had further explained.

Repository
Meanwhile, arrangements for a data repository, to hold all historical and current data on Guyana’s oil industry, is also expected to be finalized by this year- end. American firm Haliburton had submitted a US$1.8million bid for this contract.
Currently, Guyana stores its oil sector data overseas. Once in country, however, the Government would have greater autonomy over the sale of data to companies for purposes such as the oil bid rounds.
Earlier this year, Natural Resources Minister Vickram Bharrat had explained that hosting the data repository in-country would not only provide job opportunities, but also generate revenue for the country.
“Many countries producing oil don’t have a data repository in their own country after four or five years. After four years [of producing oil], we are already moving towards establishing our own data repository in the country,” Bharrat had said.
“It’s a very lucrative investment or assignment that we’re taking on, because it’s not only spending money to set up the data repository; it is about getting our people to work there, and to sell that data to companies that will come and seek to do exploration in Guyana. It’s worth a lot of money.”
A petroleum data repository is a centralized storage and management system that hosts data for exploration, production, and distribution of petroleum and natural gas. It serves as a hub for various types of oil-related information, including seismic data, drilling records, and reservoir engineering data.
Both the seismic survey and the repository are important elements of future bid rounds. At present, Government is finalizing the bid round that occurred last year. Last year’s auction concluded with 14 oil blocks on offer within the country’s shallow and deep-water areas.
During the bidding round, eight blocks were shortlisted based on the bidders’ ability to meet the criteria of the expected work programme and the required financial commitments. Six companies were awarded oil blocks, among them a woman-owned Guyanese company, Sispro Inc., which secured two blocks. (G3)