Considerations are in place for the formation of a national oil company that will manage the resources of unauctioned oil blocks.
Vice President Dr Bharrat Jagdeo says the PPP/C administration is looking to establish a National Oil Company to manage oil resources if new areas of exploration are not sold to investors.
He made this revelation Tuesday while participating in a Policy Dialogue as part of the 2022 Bloomberg NEF New York Summit.
According to Dr Jagdeo, there still are several unallocated areas available for the production and exploration of oil.
At the moment when it comes to partnering with investors, Guyana works on a 'first come, first serve' basis. However, with the increase in interest in Guyana’s oil supply, and the need for more oversight of this non-traditional resource, the Government is looking for ways to improve partnerships and secure better deals.
According to the Vice President, "We’ve decided now that we want to either auction it or we’re exploring now whether we can vest these in a national oil company but play a very passive role, as a passive investor, and get a strategic developer to work within the company to take shares and operate the company for us."
The Vice President also revealed that a decision on the auctioning of the available blocks will be made by September.
With this new system in place, the company that decides to offer the most money for the identified area will be allowed to operate there.
Meanwhile, Middle Eastern investors have already indicated being Guyana's strategic partner should the Government choose to establish the national oil company. A further partnership with ExxonMobil also remains on the table.