ExxonMobil is set to relinquish a portion of the 6.6-million-acre Stabroek Block in October, as it moves on to the final phase of the exploration period.
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 Areas
- Production Areas
ExxonMobil 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.
Minister of Natural Resources, Vickram Bharrat, also said during a recent press conference that “an area being affected because of the issue with Venezuela” is also to be excluded from the relinquishment process. A survey vessel utilized by ExxonMobil was intercepted by the Venezuela military in 2018. The company has therefore focused its exploration activities on the southeastern end of the block, leaving vast expanses unexplored on the western side.
Discussing the imminent relinquishment, Bharrat said, “It is not 20% of the entire Stabroek Block… Those areas [stated above] must be excluded… So, our team is working out the acreage that will remain after that, and then 20% of it will have to be relinquished and comes back to the state.”
The relinquishment date is October 7, 2024. Following this, Exxon will commence the final phase of exploration, which is due to end in 2027. The Block is operated by Exxon, which holds a 45% stake. Its co-venturers are Hess (30%) and CNOOC (25%).
Exxon has so far added three oil developments, which are producing over 600,000 barrels per day (b/d). It has a line of sight to add four more projects, which could end up producing 1.5 million b/d by 2029.
