HGP Nightly News – Ghanaian company Cybele Energy is facing a final warning from the Guyana Government over its failure to pay the signing bonus for the S7 offshore oil block.
Natural Resources Minister Vickram Bharrat says the company has until the end of July to settle the payment.
“I say safely, the ending of July will be the absolute cut-off date,” Bharrat said during an appearance on the Starting Point podcast.
Cybele was awarded the S7 block after Guyana’s first offshore oil block auction and signed a Production Sharing Agreement with the Government in December 2025.
Under the agreement, the company was required to pay a US$17 million signing bonus within 30 days.
But Cybele missed the deadline, triggering penalties under the agreement.
Last month, Bharrat told reporters that the company had already accumulated nearly US$4 million in default interest.
That means the amount owed has moved from US$17 million to more than US$20 million.
“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,” Bharrat had said.
The Minister explained that the Government had extended the deadline at the company’s request, but warned that failure to meet the new timeline could result in suspension or cancellation of the agreement.
Bharrat said Cybele had submitted a work programme with guarantees from potential investors and the African Export-Import Bank.
However, the company later informed the Government that it was facing difficulties with one of its investors.
According to Bharrat, Cybele has since indicated that it is finalising a new agreement with another investor and expects to be in a position to pay the signing bonus.
“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,” he said.
The Minister said Guyana’s legal team is now engaging the company to ensure it complies with the agreement.
If it does not, he said, the Government may have no choice but to suspend or cancel the deal.
“They have indicated to us that they need about two to three weeks more. We have been very lenient,” Bharrat stated.
He defended the Government’s decision to give Cybele extra time, saying the company has already established a local presence.
According to Bharrat, Cybele has set up an office in Guyana and hired several Guyanese, including a young Guyanese woman as country manager.
The company has also paid its licence fee and environmental bond to the Guyana Geology and Mines Commission and the Environmental Protection Agency.
Bharrat said Cybele has already paid more than US$2 million in licence and other required fees.
He said those factors influenced the Government’s decision to show some leniency, while also preserving 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, a shallow-water block located about 50 kilometres from ExxonMobil’s Liza One and Liza Two fields.
The block is estimated to hold at least 400 million barrels of recoverable oil, with seismic data suggesting that the oil fairway runs through S7 toward Suriname.
Cybele Energy was founded in 2012 and is headquartered in Accra, Ghana. It is led by Chief Executive Officer Beatrice Mensah-Tayui and says it operates across Ghana, Africa, the United States, and the Caribbean.
The company describes itself as focused on sustainability, innovation, and responsible energy practices.
