Pay or lose licence – Govt gives Ghanaian company ultimatum over US$17M oil block bonus

Government on Tuesday announced that after nearly six months of Ghanaian company Cybele Energy promising to pay the US$17 million singing bonus on the awarded Oil Block S7 and racking up nearly US$4 million in default interest, a warning has been issued to the company to pay up or forfeit its licence. In response, the company has promised to pay 30 per cent by the end of this week. “The last update is that our lawyers have written to them stating clearly that the signing bonus must be paid based on the agreement. They have made a commitment, that by the first week of June [2026] 30 per cent of that will be paid into the NRF (Natural Resource Fund). And then, I think it is about six weeks, if I recall clearly, that it will be the remaining amount,” Natural Resources Minister Vickram Bharrat told reporters on the sideline of the Local Content Summit which opened yesterday at the Sheraton Four Seasons Hotel, Heroes Highway. The Natural Resources Minister said that the delay has not come without financial consequences as the failure to meet the 30-day deadline has triggered penalties under the PSA the company agreed to when it signed the contract last year December. Bharrat said that based on the last letter that he saw from Guyana’s lawyers, “there is an accrued interest of, I think, about $4 million right now…which will take the signing bonus from US$17 to above US$20 million.” He warned about the consequences of further non-compliance. “Failure to pay the required sum in keeping with the newly agreed timeline could result in the company losing the oil block altogether,” he stressed.

The Minister emphasised that the Government is prepared to enforce the terms of the agreement to protect Guyana’s national interest but was quick to note that delay in paying the signing bonus isn’t tied to assuming a work programme for the company. “Cybele is the licensee that we would have signed with but they are seeking out presently an operator. Now fulfilling the work programme would ultimately hinge on the capacity of the operator,” Bharrat noted. He expressed optimism that once the signing bonus is paid, the company would not face difficulty in executing its obligations under the Petroleum Activities Act and the production sharing agreement (PSA). However, he stressed that the Government’s patience is not unlimited. “Now, fulfilling the work programme will obviously hinge on the capacity of the operator. So Cybele may very well, I am just using example here, may very well land an operator that is known worldwide with a good balance sheet. And they could fulfill the work programme based on the agreement signed. So that is why I say I won’t tie the signing bonus into the fulfillment of the work programme,” Bharrat explained. Guyana’s first‑ever auction of offshore oil blocks was unveiled in December 2022 by President Irfaan Ali. After several extensions and adjustments to the fiscal framework, the auction concluded with six bidders submitting 14 offers for eight of the 14 available blocks. Cybele Energy emerged successful in winning Block S7, a shallow‑water block located approximately 50 kilometres (km) from ExxonMobil’s prolific Liza 1 and 2 fields. The block is estimated to hold at least 400 million barrels of recoverable oil, with seismic data suggesting that the “oil fairway runs directly through S7 toward Suriname.”
Founded in 2012 and headquartered in Accra, Ghana, Cybele Energy is led by Chief Executive Officer (CEO) Beatrice Mensah‑Tayui, one of Ghana’s most influential businesswomen. The company has expanded operations beyond Ghana into Africa, the United States (US) and the Caribbean. Cybele describes itself as committed to sustainability, innovation and responsible energy practices. Its projects range from offshore exploration to integrated engineering solutions, with partnerships that include Well Expertise of Norway (acquired by Elemental Energies). At the signing last year, Mensah‑Tayui had emphasised the symbolic importance of the Guyana deal. “We are standing on history. Today, Guyana has made history. Today Guyana has taken a bold step in the advancement of women. Guyana has taken a bold step in its initiative for the girl child. And I want to applaud the leadership of this country,” she had said. “So, on behalf of Cybele Energy, I express heartfelt congratulations and appreciation for the leadership and the governance of a country that sees fit to put the talent of women on a platform in such an industry, as oil and gas,” she added.