ExxonMobil and its partners in Guyana have relinquished 2,534 square kilometers of the Stabroek offshore oil block to the government, fulfilling a contractual obligation to return a portion of the licensed area at a key juncture, the Ministry of Natural Resources said on Wednesday.
“The 20% relinquished area excludes any areas related to discoveries, appraisals, or production activities,” the Ministry said in a press release.
Non-commercial finds were counted in the relinquishment, while potentially commercial discoveries were retained.
Minister of Natural Resources, Vickram Bharrat, explained last year that the relinquishment also needed to factor out a section of the block Exxon could not explore due to the territorial controversy with Venezuela.
The relinquished area represents roughly 9% of the block’s 26,800-square-kilometer area.
“The legal aspect of the renewal is also complete,” the Ministry said in a statement, noting that final compliance checks and regulatory instruments were concluded in collaboration with the Guyana Geology and Mines Commission (GGMC).
Exxon had submitted updated discovery data and technical documentation, the Ministry added, ahead of the renewal. The government said all actions were in accordance with the Petroleum Activities Act and the Stabroek Block Petroleum Agreement.
The U.S. oil major and co-venturers Hess and CNOOC have been unlocking more resources in the Stabroek Block since their first commercial find in 2015, accumulating more than 11 billion barrels of proven oil and gas resources to date.Guyana, the newest oil producer in South America, is seeking to diversify exploration activity across its side of the Guyana-Suriname Basin and is likely to hold a second offshore auction to offer up new acreage, including the relinquished portion of the Stabroek Block. The first auction, concluded in 2023, had resulted in the announcement of winning groups, but awards have stalled.
