Saturday, July 2, 2022

Stabroek Block partners hopeful for extension on exploration license

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ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited (EEPGL) has approached the Guyana Government for an extension on its Stabroek Block exploration licence due to the COVID-19 pandemic. This is according to Hess Corporation which holds a 30 percent working interest on the prolific offshore concession.

During the participation of Hess Executives in Bank of America’s Global Energy Conference this week, the officials said the licence still has four and a half years left before it expires. Between now and 2026, Hess said the partners have a clear line of sight on several wells to be drilled to improve the understanding of the resource base and the potential that exists in certain fields.

Hess’ Chief Operating Officer, Greg Hill noted to moderator and Research Analyst at Bank of America, Doug Leggate, that the partners are of the view that they have adequate time to figure out what they have on the block and how it would underpin developments. “And obviously that is based on what turns out to be successful, but we feel confident that with the active programme being 12 exploration wells next year and 12 this year and continuing this pace, we can definitely prosecute most of what we want to on the block,” Hill stated.

While the relinquishment provisions of the Stabroek Block Production Sharing Agreement (PSA) come into effect in 2026, Hill said the partners are hopeful that an extension would be possible.

“The operator has applied for an extension due to COVID-19…and we will see if we actually get that but there could be an extension to the exploration licence,” expressed the Chief Operating Officer.

Exxon has made over 20 discoveries at the Stabroek Block since 2015 amounting to approximately 10 billion barrels of oil equivalent and aims to develop these resources with around 10 FPSOs in the coming years.

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