Sadhna Petroleum Awarded License in Guyana
The Government of Guyana (G.O.G) has granted a Petroleum Prospecting License to Sadhna Petroleum And Production (Guyana) Inc. and, pursuant to that License, has signed a Production Sharing Agreement with Sadhna. Signing for the Government of Guyana was H.E. Bharrat Jagdeo, President of the Cooperative Republic of Guyana and Minister Responsible for Petroleum. Mr. Krishna Ramlogan, President of Sadhna was the other signing party.
Sadhna Petroleum and Production (Guyana) Inc. is a subsidiary of Sadhna Petroleum Services Company Ltd., a Trinidad based petroleum services company which conducts petroleum operations in Trinidad and Suriname. The contract area is approximately 2,000 square kilometers and is located in the coastal and near-shore environment immediately west of the ON Energy Contract Area in Berbice.
Sadhna will rely on regional scale, remote surveys to develop a focused program for the newly awarded Contract Area. Technical Works is continuing to add to the geoscientific database so that the proposed exploration well could be drilled as early as 2nd Quarter 2006.
Discussions and negotiations between the Government and Sadhna resulted in terms and conditions agreeable to both parties and the Petroleum Prospecting License awarded is initially for up to four (4) years. The Production Sharing Agreement pursuant to the License is based on provisions of the Government's mining and petroleum policy; consistent with petroleum legislation; and provides for compliance with the provisions of the Environmental Protection Act of Guyana
As with all companies exploring for petroleum in Guyana, rentals, fees and charges are receivable annually during the License term. In the event of a commercial discovery leading to production, the Government shall receive 50% of the profit share. There will be employment opportunities, goods and services to be provided by Guyanese when work activities commence.