The Canje Block offshore Guyana is still with operator ExxonMobil and co-venturers TotalEnergies, JHI Associates and Mid-Atlantic Oil & Gas. Vice President Bharrat Jagdeo confirmed this at a press conference on Thursday, pointing out that 20 percent of the license has been relinquished with another portion pending.
He explained that Exxon had invoked force majeure during the COVID-19 pandemic and secured a one-year extension.
OilNOW understands that the application for a second relinquishment of 20% of the acreage is under review. Following the relinquishment, the Canje license is expected to be renewed to enter another phase.
“By 2026, the Canje Block would be back with the government, should there be no progress on announcing a development,” the Vice President stated.
In the final phase, the Canje petroleum agreement requires the drilling of one exploration well.
At Canje, Exxon has a 35% operating stake, with TotalEnergies (35%), JHI Associates (17.5%) and Mid-Atlantic Oil & Gas (12.5%).
The extension also pushed the expiration of the petroleum agreement for the Canje Block from 2025 to 2026. Jagdeo confirmed that a similar extension applies for the Kaieteur Block to 2026. This means that for both blocks, the operator would be required to return the entire license area to the government at the end of the license period unless they discover enough oil or gas to develop it commercially.
ExxonMobil and Hess announced last year their decision to withdraw from the Kaieteur Block. However, ExxonMobil is still waiting for the government’s approval of its application to withdraw.
Jagdeo said the Ministry has written to the company on the matter, adding “We’re awaiting additional information in the review before the approval is given.”
Israeli explorer, Ratio, is set to assume operatorship of the Kaieteur Block.
