ExxonMobil says it has been unable to explore parts of Guyana’s Stabroek Block because of the ongoing border controversy with Venezuela, which has restricted access to acreage in the northern section of the offshore concession.
Craig Kelly, Senior Director for International Government Relations at ExxonMobil, spoke about the issue during a panel discussion last week at the Offshore Technology Conference (OTC) in Houston, Texas.
Responding to a question about remaining exploration challenges in Guyana’s offshore basin, Kelly said geopolitical issues tied to Venezuela’s claim to Guyana’s Essequibo region remain a major obstacle.
“We currently have no access to the northern third of the Stabroek Block because [the] Venezuelan Navy has control in that area north of what they call the 70 degree line,” Kelly stated.
“It cuts off about a third of Guyana’s exclusive economic zone,” he added.
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Kelly said the restriction has prevented seismic and exploration activity in that portion of the block, noting, “That’s a large section of the Stabroek Block where we cannot do seismic.”
The Stabroek Block, operated by ExxonMobil, has so far yielded more than 11 billion barrels of oil equivalent. ExxonMobil holds a 45% stake in the block, Hess holds 30%, and CNOOC holds 25%.
The controversy between Guyana and Venezuela is currently before the International Court of Justice (ICJ) in The Hague. Guyana is seeking a final ruling confirming the validity of the 1899 Arbitral Award that established the land boundary between the two countries. Venezuela has continued to reject the court’s jurisdiction.
The case returned to oral hearings this month. Guyana told the court that Venezuela’s claim threatens more than two-thirds of its territory. Venezuela has intensified acts of aggression in recent years over offshore areas where ExxonMobil made major oil discoveries.
The controversy has already affected offshore operations in Guyana. In 2018, a Venezuelan naval vessel intercepted the Ramform Tethys seismic survey ship contracted by ExxonMobil while it was operating near the Ranger-1 well offshore Guyana. A Venezuela navy vessel also entered Guyanese waters last year and approached several vessels supporting offshore oil operations, including the Prosperity floating production, storage and offloading vessel.
Earlier this year, ExxonMobil Vice President Jim Chapman said the company sees the pending ICJ ruling as one of the “unlocks” for future activity in the affected area.
