Cybele Energy, a Ghanaian company, is facing a final warning from the Guyana Government concerning its failure to pay the signing bonus for the S7 offshore oil block. Natural Resources Minister Vickram Bharrat stated that the company has until the end of July to settle the payment. He emphasized, “I say safely, the ending of July will be the absolute cut-off date,” during an appearance on the Starting Point podcast.
Cybele was awarded the S7 block following Guyana’s first offshore oil block auction and signed a Production Sharing Agreement with the Government in December 2025. As per the agreement, the company was required to pay a US$17 million signing bonus within 30 days. However, Cybele missed this deadline, resulting in penalties under the agreement.
Last month, Minister Bharrat informed reporters that the company had accrued nearly US$4 million in default interest, increasing the total amount owed from US$17 million to over US$20 million. He noted, “There is an accrued interest of, I think, about $4 million right now… which will take the signing bonus from US$17 to above US$20 million.”
The Government had previously extended the deadline at the company’s request but warned that failure to meet the new timeline could lead to suspension or cancellation of the agreement. Cybele had submitted a work programme with guarantees from potential investors and the African Export-Import Bank, but later reported difficulties with one of its investors.
According to Bharrat, Cybele has indicated that it is finalizing a new agreement with another investor and expects to be in a position to pay the signing bonus. He mentioned, “They would have indicated to us that they’re having a few issues with their investor, but they’ve also indicated recently that they are signing a new agreement.”
The Minister stated that Guyana’s legal team is engaging with the company to ensure compliance with the agreement. If Cybele fails to comply, the Government may have to suspend or cancel the deal. Bharrat noted, “They have indicated to us that they need about two to three weeks more. We have been very lenient.”
He defended the Government’s decision to grant Cybele additional time, highlighting that the company has established a local presence in Guyana. Cybele has set up an office and hired several local employees, including a young woman as country manager. The company has also paid its license fee and environmental bond to the Guyana Geology and Mines Commission and the Environmental Protection Agency, totaling over US$2 million in required fees.
These factors influenced the Government’s decision to show leniency while maintaining investor confidence in Guyana. Guyana’s first offshore oil block auction was announced in December 2022 by President Irfaan Ali. After several extensions and changes to the fiscal framework, six bidders submitted 14 offers for eight of the 14 available blocks. Cybele Energy won Block S7, which is located about 50 kilometers from ExxonMobil’s Liza One and Liza Two fields and is estimated to hold at least 400 million barrels of recoverable oil.
Cybele Energy, founded in 2012 and headquartered in Accra, Ghana, is led by CEO Beatrice Mensah-Tayui and operates across Ghana, Africa, the United States, and the Caribbean, focusing on sustainability, innovation, and responsible energy practices.
Source: hgptv.com
