The Guyanese government has signed an agreement with Anadarko Guyana Company to explore for oil inside the country's exclusive economic zone (ECZ).
Anadarko Guyana, a subsidiary of United States-based Anadarko Petroleum Corporation, has been negotiating for the licence since last year.
"The discussions resulted in an agreement to commence studying available data for the concession acreage, which will be referred to as the 'Roraima Block', in greater detail with a view to identify leads that could result in prospects favourable for drilling to locate potential resources of petroleum," said the government news agency GINA.
Anadarko is among the world's largest independent oil and natural gas exploration and production companies with approximately 2.54 billion barrels of oil equivalent in proved reserves at year-end 2011.
Approved a proposal
GINA said the signing of the agreement comes as the government has awarded a licence to NABI Oil and Gas Inc to undertake drilling on the coast of Guyana.
In addition, the Cabinet has approved a proposal by the Ministry of Natural Resources and the Environment to establish a Petroleum Advisory Board to overlook the oil and gas sector, while the Commonwealth Secretariat is reviewing Guyana's regulations governing the petroleum sector to make it more investor friendly to ensure Guyana benefits from the opportunities of finding oil.
Guyana is also collaborating with a number of external partners, including the US, Canada, and Trinidad & Tobago to enhance its capabilities in the development of the oil and gas sectors.