Jagdeo confirms Exxon’s Stabroek Block exploration agreement extended by one year

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Guyana’s Vice President, Dr. Bharrat Jagdeo has confirmed that the exploration agreement for the Stabroek Block, initially set to expire in 2026, has been extended by one year. Jagdeo confirmed that the extension aims to account for the challenges faced by the ExxonMobil-led consortium during the COVID-19 pandemic.

During the J.P. Morgan 2023 Energy, Power & Renewables Conference, John Hess, Chief Executive Officer of Hess Corporation, said there are ongoing discussions with the government.

Hess said the measures associated with the COVID-19 pandemic affected the movement of workers into the country and operating three exploration rigs. Due to these challenges, exploration drilling was temporarily paused.

“The force majeure that was given to them in the COVID period extends the relinquishment provision,” Dr. Jagdeo said, explaining that the extension allows for Exxon to postpone its relinquishment of 20% of the Stabroek Block to 2027.

The extension of the exploration agreement provides an opportunity for continued exploration activities and the potential for further discoveries.

The Stabroek Block, located off the coast of Guyana, has been a significant area of exploration for ExxonMobil and its partners. Since the discovery of the Liza field in 2015, the consortium has made over 30 additional commercial discoveries, establishing Guyana as a promising oil-producing nation in the region. 

The Block is operated by Exxon, which holds a 45% stake. It is supported by Hess (30%) and CNOOC (25%).

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