ExxonMobil Guyana President, Alistair Routledge, said the company is writing off its Kaieteur Block expenses, having decided last year to withdraw from the license.
In addition to the Stabroek Block, the company operates the Canje block and, up until last year, had operated Kaieteur. Israeli explorer Ratio has since taken over the operatorship.
“None of the costs associated with [Kaieteur and Canje] operations end up in the Stabroek Block… For Stabroek, we only put costs into that which relate to the petroleum operations that are associated with the Stabroek Block,” Routledge said during a February 6 press conference in Georgetown.
Having withdrawn from the Kaieteur Block, Routledge made it clear the company will have no ability to recover any of those costs. “…So, we’re writing those costs off,” he stated.
Routledge said this is the nature of the business, but that Exxon is hoping for a different outcome with the Canje Block. “…We are all hopeful that we can find some economic resources from the Canje Block to add to the country’s revenues and then we will be in a position where we can hopefully recover those costs.”
Exxon drilled three wells at Canje but did not find commercial resources. Exxon has since applied for approval to drill up to 12 wells in the block.
“We don’t have a well in this year’s work program budget [for Canje]. But that’s what the team has been working on; is identifying where are the prospects that we believe would be worthwhile drilling,” Routledge said.
At Canje, Exxon has a 35% stake, with TotalEnergies (35%), JHI Associates (17.5%) and Mid-Atlantic Oil & Gas (12.5%).