Ghana's oil firm Cybele Energy on Tuesday signed a production sharing agreement that will allow the company to explore and produce oil and gas at an offshore block in Guyana, the company and government officials said.
The area, for which Cybele must pay a $17-million signing bonus, is the second to receive government's greenlight to begin the exploration phase following a similar agreement last month with a consortium led by TotalEnergies. The blocks had been offered in an open-competition auction.
Guyana’s Ministry of Natural Resources stated the agreement includes "modernised fiscal terms", among them a 10 per cent royalty rate, a 10 per cent corporate tax rate, a reduced cost-recovery ceiling, and a 50/50 profit-oil split between the government and the contractor.
Cybele expects to drill its first well at Block S7, where up to 400 million barrels of recoverable oil could be confirmed, in 12 months, the company said in a release.
(Reporting by Kemol King, Editing by Marianna Parraga)
