Guyana’s government has given Ratio Petroleum Guyana seven days to outline its plans for the Kaieteur Block offshore Guyana, prompting the company to seek additional time as it continues discussions on future drilling activities.
Ratio Petroleum Energy said in a June 15 filing that it received a letter from Guyana’s Energy Minister on June 12 requiring a response on the work program and timetable for the next two years under its petroleum agreement with the government.
According to an unofficial translation of the filing, Ratio intends to ask the minister for an extension while negotiations continue on revisions to the work program and drilling schedule.
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Ratio Guyana, the operator of the Kaieteur Block, has been in talks with Guyana over postponing a decision on whether it will drill another exploration well in the block. The discussions also cover updates to the work program and drilling timelines, including the possibility of incorporating an additional well into the block’s second extension period.
The filing did not disclose the length of the extension being sought.
The Kaieteur Block lies offshore Guyana, where 11 billion barrels of oil equivalent have been discovered to date, although no commercial discovery has been made at the Kaieteur acreage.
Ratio said it would provide a further update after receiving a decision from the ministry.
The company cautioned investors that there is no certainty Guyana will approve the requested extension or that its plans for additional drilling will proceed as currently contemplated.
According to the filing, Ratio Guyana and Cataleya Energy are expected to each hold a 50% interest in the block once a proposed transfer of interests receives approval from Guyana.
ExxonMobil and Hess withdrew from the Kaieteur Block in 2023.
