Minister of Natural Resources Vickram Bharrat announced that the process for ExxonMobil Guyana to relinquish 20% of the Stabroek Block is in its final stages.
The Petroleum Sharing Agreement (PSA) governing the Stabroek Block requires Exxon to relinquish 20% of the 6.6 million-acre block. Originally set for October 2023, the deadline was extended by one year.
“I’m happy to say that between the ministry, the Guyana Geology and Mines Commission (GGMC) and Exxon, we have already agreed in principle to the relinquishment of the acreage, the submission of the report on this and the acreage that will be relinquished,” Bharrat said at a Jan. 14 press conference.
The petroleum agreement governing operations at this block dictates that Exxon should relinquish at least 20% of the contract area minus a series of exclusions. According to the Stabroek Block petroleum agreement, those exclusions are discoveries, appraisal, and production areas.
Exxon has racked up more than 30 significant discoveries offshore Guyana in the past decade and has brought several fields to production already. These areas are concentrated at the southeastern end of the Stabroek Block.
“It’s a producing block…we need to take out the production area, we need to take out the appraisal area and the area where there is potential commercial interest. That’s in the PSA; we can’t go against that so once we exercise that out of the acreage then whatever is left you relinquish the 20% of that,” Bharrat explained.
A detailed report on the relinquished acreage will be shared when the process has been finalized. Bharrat confirmed the work is well advanced and near completion.
The Block is operated by Exxon, which holds a 45% stake. Its co-venturers are Hess (30%) and CNOOC (25%).
