When ExxonMobil drilled the Liza-1 well in 2015, it confirmed the first major offshore oil discovery in Guyana — a find that reshaped the country’s future. Since then, the Stabroek Block alone has delivered more than 30 discoveries, placing Guyana among the world’s fastest-growing oil provinces. But as exploration expands and wells are drilled across a massive offshore area, another question naturally follows: what happens to the parts of offshore blocks that companies eventually relinquish — and what about the areas that remain?
The rule behind relinquishment
Under the Production Sharing Agreement (PSA) governing the Stabroek Block, ExxonMobil and its partners must return a portion of their contract area at a key interval. The agreement requires the consortium to relinquish 20% of the block’s acreage, excluding areas tied to discoveries, appraisal work, or production activity. In the case of the last relinquishment, areas under force majeure due to a territorial controversy between Guyana and Venezuela were also excluded from consideration.
This process is part of how exploration is structured globally. Companies hold large offshore areas at the start, but as drilling results come in, only the commercially viable discoveries are up for development. Contractors are required at set intervals to relinquish sections of their contract area that are not to be explored further or developed.
Exxon gives back portion of Stabroek Block to Guyana government | OilNOW
What is not relinquished
The most important point for Guyana’s future exploration story is what stays within the block. Areas linked to discoveries, including fields already producing or being evaluated, are excluded from relinquishment. That means the core of Guyana’s oil boom remains intact within the active portions of the block. These areas continue to see exploration drilling, appraisal wells, and major offshore development projects.
ExxonMobil’s operations offshore Guyana are still expanding rapidly, with multiple sanctioned developments expected to significantly increase production capacity in the coming years.
Regulators, ExxonMobil near completion of Stabroek Block relinquishment process | OilNOW
The bigger exploration picture
Relinquishment does not necessarily mean an area lacks value forever. In many oil provinces around the world, acreage returned by one operator is later re-evaluated and sometimes explored again with new technology or geological understanding.
In Guyana’s case, relinquished sections of blocks can be re-offered in future licensing rounds, potentially attracting new companies to explore those areas.
And that raises new possibilities for Guyana’s offshore future.
Who’s operating where: A snapshot of Guyana’s offshore oil blocks | OilNOW
