Ghanaian oil company Cybele Energy has formally signed a production sharing agreement with the Government of Guyana, granting the firm permission to begin oil and gas exploration at an offshore block. The deal, confirmed by both Cybele representatives and Guyanese officials on Tuesday, marks a significant step in the country’s ongoing effort to expand its energy sector through competitive licensing rounds.
The block, awarded to Cybele following an open-competition auction, requires the company to pay a $17-million signing bonus. It is the second offshore area to move into the exploration phase after a similar agreement was finalised last month with a consortium led by TotalEnergies. Officials say these contracts form part of Guyana’s broader strategy to attract diverse operators while maintaining what they describe as fair and transparent bidding processes.
Guyana’s Ministry of Natural Resources said the contract with Cybele has been drafted with “modernised fiscal terms”, aimed at strengthening the country’s long-term returns from its offshore assets. The ministry confirmed that the agreement includes a 10 per cent royalty rate, a 10 per cent corporate tax rate, a lower cost-recovery ceiling than in older contracts, and a 50/50 profit-oil split between the state and the company. These terms reflect revisions introduced by the government to create what it maintains is a balanced framework for investors and the country.
Cybele Energy, which has been expanding its regional footprint in recent years, said in a statement that it intends to drill its first well at Block S7 within the next 12 months. According to the company, the block could hold as much as 400 million barrels of recoverable oil, a figure that, if confirmed, would add to the rapid development of Guyana’s offshore sector. The firm said the timeline for drilling will depend on regulatory processes and preparations currently underway.
The agreement places Cybele among a growing number of international companies exploring Guyanese waters, a frontier area that has seen major discoveries over the past decade. Government officials say further announcements on additional blocks offered under the same auction round are expected in the coming months as reviews continue.
