The government has given Ghanaian oil company Cybele Energy until the end of July 2026 to pay its outstanding US$17 million signing bonus, opting against an immediate cancellation of the petroleum agreement because the company has already established a local office, hired Guyanese staff and invested more than US$2 million locally.
But Natural Resources Minister Vickram Bharrat says that while government has shown flexibility after Cybele missed its original payment deadline, it is also protecting Guyana's interests through ongoing legal oversight with cancellation remaining on the table if the payment is not made.
The S7 shallow water block was awarded to Cybele following Guyana's first competitive oil block auction. The company signed its Production Sharing Agreement (PSA) under Guyana's revised petroleum fiscal framework, which significantly strengthens government revenues compared to the 2016 Stabroek Block contract.
The new model PSA requires companies to pay a 10% royalty, corporate taxes, limits cost recovery to 65% and includes substantially larger signing bonuses.
According to Bharrat, Cybele has already demonstrated some level of commitment by establishing a local office, hiring Guyanese staff, including a Guyanese woman as country manager, and paid more than US$2 million in licence fees, environmental bonds and other statutory charges to the Guyana Geology and Mines Commission.
Those investments, he explained, influenced government's decision to exercise patience rather than immediately pursue legal remedies.
However, the minister made it clear that the grace period is nearing its end.
Government lawyers are currently engaged with Cybele's legal representatives to ensure the company remains compliant with its contractual obligations.
"They indicated they need another two to three weeks," Bharrat said, adding that the end of July represents the "absolute cut-off."
The company has attributed the delay to problems involving one of its investors but has since informed government that a new financing agreement is being finalised, which should enable payment of the signing bonus, Bharrat said during an appearance on the Starting Point Podcast
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