ExxonMobil expected to relinquish part of Stabroek Block next year- Jagdeo

Last Updated on Friday, 16 December 2022, 16:21 by Denis Chabrol

ExxonMobil will next year have to relinquish 20 percent of the Stabroek Block offshore Guyana and that area would eventually be auctioned, Vice President Bharrat Jagdeo said on December 9.

“Exxon has this huge area and so next year I think they have to relinquish 20 percent of that,” he told a news conference. 

ExxonMobil is the operator in the 6.6 million acres (26,800 square kilometres) Stabroek Block along with joint venture partners Hess Corp and CNOOC International. 

Jagdeo said government planned to take that area that ExxonMobi would relinquish and offer it to other investors who are interested. “The 20 percent that Exxon has to relinquish will probably be as big as the 14 areas (blocks) that we are auctioning now so we have to go out and auction that too in the future,” he said. He said that would see Guyana having “a lot more blocks” that would be available in the Stabroek area.

His announcement coincided with the launch of Guyana’s first ever competitive bid round for 14 blocks- 11 in shallow waters and 3 in deep waters.

President Irfaan Ali  had announced that prospective bidders would have to pay a $20,000 participation fee that would also allow them access to the virtual data room.

If oil is found in commercial quantity, he said the companies would have to pay a minimum $20 million signature bonus for deepwater finds and $10 million for shallow water discoveries. 

Guyana currently produces about 360,000 bpd from the Liza 1 and Liza II wells in the Stabroek Block.

CGX-Frontera is planning to spud an exploration well at Wei-Wei in the Corentyne Block by January 31, 2023 because it could not meet the November 27, 2022 deadline due to the unavailability of the rig which is working in Trinidad waters.