Guyana’s Minister of Natural Resources Vickram Bharrat announced Wednesday that the Dominican Republic has been given a six-month deadline, requiring the Caribbean nation to launch on-the-ground oil and gas exploration operations in the country’s Berbice Block before the end of 2025. This timeline mandates that all preliminary site preparations and initial exploration activities get underway within the half-year window, closing a chapter of prolonged negotiations between the two nations.
The Berbice Block, a 3,300-square-kilometer exploration area predominantly made up of onshore territory, was originally held by a joint venture between Canadian energy firm CGX Energy and ON Energy. The partnership relinquished all rights to the block in 2022 after failing to meet exploration commitments, opening the door for new stakeholders to acquire the exploration license. In a recent bilateral agreement struck last month between government representatives of Guyana and the Dominican Republic, the block was officially reassigned to the Dominican state, with Guyana retaining majority ownership of the asset.
Under the terms of the finalized deal, the Dominican Republic’s state-owned national oil refining company Refineria Dominicana de Petróleo S.A. (Refidomsa) will hold a 10% non-operating stake in the exploration project. A key highlight of the agreement is that the Dominican side is not required to contribute any upfront capital investment toward exploration costs. If commercial volumes of oil or natural gas are discovered in the block, the Dominican Republic will secure long-term access to extracted hydrocarbons at preferential pricing, a provision designed to support the country’s energy security and deliver sustained economic benefits for its domestic market.
Industry analysts note that the agreement marks a strategic expansion for the Dominican Republic’s national energy portfolio, while also allowing Guyana to leverage international partnership to advance under-explored acreage in its onshore basins, complementing the rapid growth of its offshore oil industry that has turned the South American nation into one of the hemisphere’s newest major oil producers.