…says ‘making good progress’ in negotiating new PSA
(Kaieteur News) – Canadian oil and gas company Eco (Atlantic) Oil & Gas says negotiations with the Ministry of Natural Resources for a new Production Sharing Agreement (PSA) for the offshore Orinduik Block are progressing well, despite the company’s earlier expectation that a deal would be secured by September.
The Orinduik prospecting licence expired on January 14, 2026, and Natural Resources Minister Vickram Bharrat has made it clear that Eco Atlantic must apply for a new licence under the current PSA framework.
According to Eco, for months, itself and partner Navitas Petroleum LP, an Israeli company have been in talks with the ministry to secure the new PSA. While Eco had expected the negotiations for the new PSA to be completed by September, Minister Bharrat on Wednesday confirmed that no new PSA has been issued to Eco Atlantic as of date.
Map showing location of Orinduik Block.
Meanwhile, in its latest statement, Eco Atlantic’s President and Chief Executive Officer Gil Holzman, stated, “More broadly, we continue to make good progress towards completing the other strategic transactions announced earlier this year, including the acquisition of JHI, the farm down of our Namibian licences to BP.”
Holzman disclosed that negotiations are also making good progress as it relates to a new PSA for the Orinduik acreage. “Each is progressing well and remains on track for finalisation as guided during 2026, further strengthening and advancing Eco’s portfolio across the Atlantic Margin,” he added.
The new PSA which was introduced by the current administration, features improved fiscal terms from the Stabroek and previous Orinduik PSAs. The new PSA mandates a 10% royalty rate and a 10% corporate tax and it lowers the cost recovery ceiling from 75% to 65%.
The PSA that previously signed for the Orinduik Block features a low royalty rate of 1% on crude oil produced and sold, a 75% cap on cost recovery and no corporate income tax. Similar to the Stabroek Block deal, the Minister of Natural Resources is required to pay the companies income tax from its share of profit oil.
The Orinduik Block is situated in shallow water, 170 km offshore Guyana. Eco holds a 100% working interest in the 1,354 square kilometers (km2) Orinduik Block and an indirect working interest in the 4,800 km2 Canje Block, through JHI Associates.
In 2019 two oil discoveries were made, Jethro-1 and Joe-1, both wells encountered high quality reservoirs containing mobile heavy crude. Notwithstanding the expiration of the licence for that block, Eco had outlined that the provisions under the Petroleum Act allow it to retain rights to its Jethro-1 and Joe-1 discoveries while its appraisal programme was under review. In relation to this, the company had shared that both the ministry and Guyana Geology and Mines Commission (GGMC) had received the relevant joint submissions in relation to the proposed appraisal work.
Source: Kaieteur News
