Guyana’s Minister of Natural Resources, Vickram Bharrat on Tuesday disclosed that while the October 2024 deadline has passed for ExxonMobil Guyana to relinquish 20% of the 6.6 million-acre Stabroek Block, he noted that the process has started and will be finalized soon.
“With regards to the relinquishment, I’m happy to say that between the ministry, the Guyana Geology and Mines Commission (GGMC) and Exxon, we have already agreed in principle to the relinquishment of the acreage, the submission of the report on this and the acreage that will be relinquished,” Bharrat said.
In accordance with the Petroleum Sharing Agreement (PSA) governing the Stabroek Block, Exxon is the operator of that block and is required to relinquish a portion of same. The initial deadline was October 2023, however, former President, David Granger had granted the company a one-year extension, making the new deadline October 2024.
It should be noted that there are a few exceptions to what should be relinquished by the oil company. Exxon is not required to relinquish areas of the block producing, where they have made discoveries or appraised.
Minister Bharrat underscored, “It’s a producing block…we need to take out the production area, we need to take out the appraisal area and the area where there is potential commercial interest. That’s in the PSA we can’t go against that so once we exercise that out of the acreage then whatever is left you relinquish the 20% of that.”
He continued, “It’s not as simple as it may seem, it is very complex especially with blocks that are producing.”
However, the minister stated that once the exact acreage is finalised, a full report will be provided on the area returned to the State. Minister Bharrat noted that the process is advanced and near completion.
