Guyana - Payara Field Petroleum Production License (Esso - CNOOC - Hess) - 30 September 2020
Country
Year
2020
Summary
PETROLEUM PRODUCTION LICENCE
THIS DEED IS MADE this 30th September 2020, between Honourable Vickram Bharrat, the Minister of Natural Resources being the Minister Responsible for Petroleum of the Co-operative Republic of Guyana (hereinafter referred to as "the Minister") of the one part;
-and-
Esso Exploration and Production Guyana Limited, a company incorporated in the Bahamas and registered in Guyana as an external company pursuant to the Companies Act, 1991, with a registered office at 99 New Market Street, Georgetown, Guyana (hereinafter referred to as "Esso"), CNOOC Petroleum Guyana Limited, a company incorporated in Barbados and registered in Guyana as an external company pursuant to the Companies Act, 1991, with a registered office at 62 Hadfield And Cross Streets, Werk-en-Rust, Georgetown, Guyana, and Hess Guyana Exploration Limited, a company incorporated in Bermuda and registered in Guyana as an external company pursuant to the Companies Act, 1991, with a registered office at 62 Hadfield And Cross Streets, Werk-en-Rust, Georgetown, Guyana, all together hereinafter referred to as the "Joint Venture Licensees" or the "Licensee" as appropriate) of the other part.
WHEREAS pursuant to the Petroleum (Exploration and Production) Act No. 3 of 1986 (hereinafter referred to as the "Act") and the Regulations made thereunder, the Licensee has applied to the Minister for the grant of a Petroleum Production Licence in respect of the block or blocks constituting the production area described and identified in the Schedule hereto and shown on the map in the said Schedule:
AND WHEREAS, the area so described and identified in the Licensee's said application for the grant of a Petroleum Production Licence includes parts of reservoirs which are also within the production area described and identified in and subject to Petroleum Production Licence No. 971/2017, dated 15th day of June 2017 at the "Liza Petroleum Production Licence"), granted to the Joint Venture Licensees for the Stabroek Block Liza Production Area (the "Liza Production Area"), such parts of reservoirs being further described, identified and shown on the map in the Schedule hereto (the "Cross Licence Reservoirs");
AND WHEREAS Section 44 of the Act allows for the co-ordination of operations for the recovery of petroleum being carried on, or to be carried on, in a production area, in which part of the reservoir is located with operations for the recovery of petroleum being carried on, or to be carried on, in any other area in which another part of the same reservoir is located;
AND WHEREAS for the purpose of securing more effective recovery of petroleum from such Cross Licence Reservoirs, the Licensee desires to co-ordinate operations for the recovery of petroleum being carried on, or to be carried on, in the Payara Production Area with operations for the recovery of petroleum being carried on, or to be carried on, in the Liza Production Area;
AND WHEREAS, the Licensee has included with the said application the Licensee's detailed proposals for the construction, establishment and operation of certain facilities and services for and incidental to the recovery, processing, storage and transportation of petroleum from the Payara Production Area and the Liza Production Area, which proposals constitute the proposed Development Plan: Payara Project document number GYPY-BPFDP-00-0001, Rev dated 20 July, 2020, as such plan may hereafter be amended from time to time with the approval of the Minister, (the "Development Plan");
AND WHEREAS after conducting due examination of the details and data contained in the Licensee's said application for the grant of a Petroleum Production Licence over an area that includes the Cross Licence Reservoirs, such details and data being in keeping with the provisions of the Act and the Regulations made thereunder and contained in the Payara Project Field Development Plan GYPY-BPFDP-00-0001, Rev 1 dated 20 July, 2020, and in furtherance of the Government of the Cooperative Republic of Guyana's responsibility to prudently manage Guyana's petroleum resources for the benefit of all Guyanese, present and future, through the employment of a international oilfield practices, the Minister is satisfied that the Cross Licence Reservoirs may be better developed in keeping with the said application for the reason more fully set out and described, in the Development Plan.
AND WHEREAS by virtue of all the foregoing, the said application by the Licensee for the grant of Petroleum Production Licence over an area that includes the Cross Licence Reservoirs is duly made pursuant to the Act and the Regulations made thereunder;
AND WHEREAS, the Minister has approved the Development Plan pursuant to the notice issued to Licensee dated 25 September 2020;
NOW, THEREFORE in exercise of the powers conferred upon the Minister by section 35(1) of the Act, I, Honourable Vickram Bharrat, Minister of Natural Resources and the Minister Responsible for Petroleum, do hereby grant to the Joint Venture Licensees for a period of twenty (20) years next after the date hereof, this petroleum production licence (the "Licence") in respect of the block or blocks constituting the production area (the "Area") described and identified and shown on the map in the Schedule hereto, conferring on the Licensee, subject to the said Act and the Regulations, and conditions specified hereunder or to which the Licence is otherwise subject, exclusive rights --
(a) to carry on prospecting and production operations in the production area;
(b) to sell or otherwise dispose of petroleum recovered; and
(c) to carry on such operations and execute such works in the production area as are necessary for, or in connection with, any matter referred to in paragraph (a) or (b) above.
2. This Petroleum Production Licence is granted subject to the following conditions: --
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