Cybele Energy has signed a Production Sharing Agreement (PSA) with the Guyanese government for shallow-water Block S7, marking a significant milestone as the first award from Guyana's 2023 offshore licensing round. The Ghana-based company paid a signature bonus of $17 million, which is $7 million above the minimum requirement. This deal establishes Cybele as the first African-led and first woman-led upstream operator to secure acreage in Guyana.

Agreement Terms and Significance

The PSA terms include a 10% royalty rate, a 10% corporate tax, and a lowered cost recovery ceiling, with profit oil shared evenly between the government and the company. These terms represent a significant shift from the more criticized fiscal regime of the ExxonMobil-operated Stabroek block. The Guyanese government anticipates the project will create new private sector opportunities and jobs in the country.

Block Potential and Exploration Plans

Block S7 is estimated to hold at least 400 million barrels of recoverable oil. It is located approximately 50 kilometres from the prolific Liza field within a prospective trend known as the "Golden Lane." About 20% of the block overlaps the area of the previously drilled Carapa-1 well. Cybele Energy is targeting late 2026 to drill the block's first exploration well.

Additional Industry Activity

In related industry news, shipping group Bourbon Offshore has secured a five-year contract with ExxonMobil to provide maritime services in Guyana. The contract, set to begin in the first quarter of 2026 with the platform supply vessel Bourbon Calm, will cover product transport to the Stabroek block.