Canadian company expects new Orinduik oil deal by September
Eco (Atlantic) Oil & Gas said it is negotiating with Guyana’s Ministry of Natural Resources for a new Production Sharing Agreement covering the offshore Orinduik Block. It expects talks to finish in Q3 2026. The new PSA would set a 10% royalty and 10% corporate tax, with a lower 65% cost-recovery ceiling. Orinduik’s prospecting licence expired Jan. 14, 2026.
How this was made
The 30-second read
Why it matters
The proposed PSA terms (10% royalty, 10% corporate tax, cost recovery ceiling reduced to 65%) represent a material change versus the prior Orinduik PSA (1% royalty, 75% cost recovery, no corporate income tax). The company expects negotiations to complete in Q3 2026.
Market read
A contract-terms reset for Orinduik could change project economics; the disclosed fiscal parameters and Q3 2026 negotiation target provide a concrete catalyst window.
What to watch
The article doesn’t quantify expected production/appraisal outcomes, partner economics (Navitas), or how tax payment mechanics from profit oil will affect cash flow timing—these could dominate the fiscal-term impact.
Background
Orinduik Block licence expired Jan 14, 2026; Eco says it is negotiating a new Production Sharing Agreement with Guyana’s Ministry of Natural Resources.
Ticker impact
Eco (Atlantic) Oil & Gas says it expects completion of negotiations for a new Orinduik Block PSA in Q3 2026, after the prior licence expired.
Near-term sentiment likely modest unless the PSA terms materially shift NPV; watch for follow-on confirmation of final PSA terms and timing.
The article discloses specific proposed PSA fiscal terms and a negotiation timeline, but does not provide Eco’s financial guidance, production volumes, or a confirmed signed agreement.
Market effects
Guyana offshore fiscal-term renegotiations can reset economics for heavy-crude shallow-water projects and influence regional upstream risk premia.
Signals continued regulatory/contracting momentum in Guyana’s offshore licensing framework after licence expiry.
Limited direct global impact, but contributes to the broader narrative of fiscal tightening/contract renegotiations in frontier offshore basins.
Counterpoint
Even with higher royalty/tax and a lower cost-recovery cap, the new PSA could still be acceptable if reservoir quality and appraisal upside justify the economics; the market may discount the fiscal deltas until the PSA is finalized.
Key entities
- companyEco (Atlantic) Oil & Gas
Canadian firm negotiating a new PSA for the offshore Orinduik Block; expects completion in Q3 2026.
- companyNavitas Petroleum LP
Eco’s partner in talks with Guyana’s Ministry for the new Orinduik PSA.
- governmentGovernment of Guyana (Ministry of Natural Resources)
Counterparty negotiating the new PSA; confirmed the expired Orinduik prospecting licence was not extended.
- government_officialVickram Bharrat
Minister of Natural Resources who stated the Orinduik licence expired and a new licence is required under the new PSA.
