Cybele Energy, a premier Sub Saharan African exploration and production company, signed a Petroleum Agreement with the Government of Guyana on Tuesday for the development of Shallow Water Block S7, becoming the first African led operator to be awarded an offshore block in the South American nation.
The signing marks a historic moment as the agreement also highlights the leadership of Cybele’s Chief Executive Officer (CEO), Beatrice Jones Mensah Tayui, who becomes the first African woman to lead an operating company entering the Guyana basin. The ceremony, held at Pegasus Corporate Suites in Georgetown, also saw the issuance of the Petroleum Exploration License for the Block and featured remarks from Honourable Vickram Bharrat, Minister of Natural Resources.
The agreement strengthens South South cooperation and adds new diversity to the cohort of operators participating in Guyana’s rapidly expanding offshore sector. Under the terms of the agreement, Cybele Energy will provide a 17 million dollar signing bonus to the Government of Guyana, exceeding the 10 million dollar ceiling set for shallow water assets by seven million dollars.
Minister Bharrat welcomed Cybele Energy’s entry into Guyana’s industry, highlighting the country’s commitment to attracting world class operators who prioritise safety, technical innovation, and local content. We engage our partners at all levels to be involved in Corporate Social Responsibility (CSR) activities in our communities and work along with us in government promoting and fostering greater local content, Bharrat said.
The minister noted that the signing shows Guyana’s presence is being marked globally and that the country’s work has been truly recognised around the world, so much so that it is attracting investments and interests globally and across continents. With the agreement, the country now has companies across all continents operating in the oil and gas sector, he added.
In her remarks, Jones Mensah Tayui underscored the significance of an African company, and one particularly led by a woman, participating in one of the world’s most dynamic petroleum provinces and reaffirmed Cybele’s commitment to responsible exploration and meaningful partnership with Guyana. She noted that the agreement, which advances the historic ties between Ghana and Guyana, marks the dawn of a new era for women.
I want to applaud the leadership and government of this country that sees it fit to put the talent of women on the platform in such an industry as oil and gas, she added. She described the process as one of the most seamless the company has been through and praised the Ministry of Natural Resources for its rigorous but transparent approach.
Block S7 is situated approximately 50 kilometers offshore and lies along the same prolific hydrocarbon fairway as ExxonMobil’s Liza 1 and Liza 2 discoveries. Current seismic interpretation suggests the block may contain over 400 million barrels of recoverable oil, positioning it among the most promising shallow water opportunities awarded under Guyana’s competitive licensing round.
According to Cybele Energy’s technical analysis, production potential is estimated at up to 160,000 barrels per day from a development concept of approximately eight production wells, supported by water and gas injector wells. Given its shallow water location, approximately 100 kilometers offshore, development may utilise an onshore Early Production Facility (EPF), reducing costs compared to deepwater Floating Production Storage and Offloading (FPSO) led developments.
Our technical evaluation of Block S7 demonstrates a highly attractive geological setting, said Segun Jebutu, Lead Geophysicist at Cybele Energy. The available seismic data shows continuity with the same fairway that feeds the Liza discoveries, which are among the most productive wells in the region. With support from Norway’s Well Expertise, our team is fully prepared to implement a disciplined, safe and environmentally responsible work programme, he added.
Cybele Energy reiterated its commitment to Guyana’s local content framework and the Production Sharing Agreement’s (PSA) requirements for training, capacity building, and community development. The company plans to work closely with local institutions and suppliers to support Guyana’s long term development goals. The vision is to uphold safety and to respect the environment that has been gifted to us. We will make sure we do right by Guyana, Jones Mensah Tayui stated.
The agreement features modernised fiscal terms, including a 10 percent royalty rate, a 10 percent corporate tax rate, a reduced cost recovery ceiling of 65 percent, and a 50/50 profit oil split between the Government of Guyana and the contractor. These terms align with the updated model PSA designed to secure greater long term value and transparency for the people of Guyana and represent significant improvements over the widely criticised 2016 Stabroek Block PSA.
Cybele is expected to drill its first exploration well within 12 months of the PSA becoming effective and to pay the 17 million dollar signing bonus into the Natural Resources Fund (NRF) within three weeks. The company already has local partners and is expected to commence work almost immediately.
This marks the second award arising from Guyana’s inaugural competitive licensing round, launched in 2022. The signing follows the recent award of Block S4 to a consortium comprising TotalEnergies, QatarEnergy, and Petronas, an agreement concluded only weeks ago.
Founded in 2012, Cybele Energy has grown from a small exploration startup into a diversified energy firm with three divisions: Cybele Exploration and Production (E&P), Cybele Engineering, and Cybele Aqua, covering oil and gas asset development, integrated technical and engineering services, and water resource engineering consulting, respectively.
Africa Legal Associates (ALPi Ghana) served as counsel to Cybele Energy since December 2022, working in close collaboration with its Guyana affiliate, ALA Strategic Consult Guyana Ltd, and the Ghana Chamber of Commerce Guyana. Nana Adjoa Hackman, Managing Partner of ALPi, said working with Jones Mensah Tayui and her committed team over the years has been an enriching experience.
Cybele’s entry into Guyana also represents an important milestone in the global expansion of African owned energy companies and strengthens emerging partnerships between Africa, the Caribbean, and South America. The African Energy Chamber views Cybele Energy’s entry into Guyana as a breakthrough for African upstream players and reinforces Africa’s position as a rising force in international exploration.
