In a landmark development for South America’s emerging energy hub, Guyana has inked a significant petroleum agreement with Ghana’s Cybele Energy Ltd., marking the first African energy company to secure an offshore oil block outside Africa. The signing ceremony, held Tuesday at Pegasus Suites in Georgetown, featured Natural Resources Minister Vickram Bharrat and Cybele CEO Beatrice Mensah-Tayui formalizing the production sharing agreement (PSA) for shallow water Block S7.
The $17 million signing bonus agreement follows Guyana’s standardized fiscal framework implemented since 2023, featuring 10% royalty on production, 10% corporate income tax, 65% cost recovery ceiling, and profit oil sharing between the state and operator. Minister Bharrat emphasized these terms strike an improved balance between investor incentives and national revenue compared to earlier contracts.
Block S7 represents a pure exploration play with no discovered reserves or existing production. The initial five-year phase will focus exclusively on seismic studies and geological evaluations, with no mandatory drilling requirements for the first three years. Drilling commitments will only trigger based on technical results from these preliminary assessments.
The agreement culminates three years of technical data analysis and market access negotiations by Cybele Energy. The achievement has been hailed in Ghana as a strategic breakthrough demonstrating the global expansion capabilities of African energy firms, particularly noteworthy as it’s led by a female CEO.
This partnership aligns with Guyana’s broader sector diversification strategy, complementing ExxonMobil’s deepwater operations by intentionally attracting new entrants and regional players to develop shallow water blocks. The approach aims to maximize both economic returns and opportunities for local enterprises in one of the world’s fastest-growing oil provinces.