ExxonMobil will relinquish at least 9% of the vast Stabroek Block in Guyana as required by its petroleum agreement, according to the Ministry of Natural Resources.
The Stabroek Block, spanning 26,800 square kilometers, is the centerpiece of Guyana’s deepwater oil boom. Exxon and its partners Hess and CNOOC have made over 30 discoveries on the block since 2015. Contractors are required at key intervals to relinquish portions of their contract area not under exploration or development.
The government said Thursday, “a minimum area of 2,534 km² was agreed between [the Ministry and Exxon] to be relinquished.”
That figure represents just under 9.5% of the Stabroek acreage.
The relinquishment was due in October 2024. The delay, based on the Ministry’s statement, stems from the need to assess which parts of the block are exempt from the requirement to relinquish.
All discoveries to date are undergoing appraisal to determine their commercial potential, the ministry said. Discoveries deemed potentially commercial and production areas are excluded from relinquishment. Non-commercial discoveries must be relinquished.
Acreage subject to force majeure due to a territorial controversy with Venezuela also has to be factored out.
Exxon to return portion of Stabroek Block to State: here’s what’s not included | OilNOW
Exxon has provided updated technical data and a map of the discovery area to both the Ministry of Natural Resources and the Guyana Geology and Mines Commission (GGMC), and the relinquishment process is in the final stages, the Ministry said.
Guyana has become one of the world’s fastest growing oil provinces, with oil production averaging 631,000 barrels per day in the first quarter. The relinquished acreage, expected to be highly coveted, could be made available for future licensing rounds.
