Latest update March 20th, 2025 5:10 AM
Latest News
- Guyana’s oil growth boosting regional economies– CDB Director of Economics
- Suspected outbreak of Hand, Foot and Mouth Disease in Region Four
- Israel launches first ground offensive since Gaza ceasefire collapse
- Sod turned for $665M expansion of St. Stanislaus College
- Pensioner jailed for raping child
ExxonMobil could have accelerated its work programme before old licence expired – Int’l law firm
The Government made the decision to grant a new licence to oil companies in 2016 for exploratory operations in the 6.6 million-acre Stabroek Block. This was not allowed for by the Petroleum (Exploration and Production) Act.
After ExxonMobil’s first Stabroek Block discovery, it convinced Government to let them keep the entire acreage
But Government did it anyway because it wanted to give the consortium more time to explore.
The Lead Operator on that block is ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), with 45 percent interest. Its partners are Hess Guyana Exploration Limited (30 percent interest) and CNOOC Petroleum Guyana Limited (25 percent interest).
A report commissioned by Cabinet, and conducted by British law firm, Clyde and Co, stated that the oil companies could have accelerated the exploratory programme under the licence, alongside production in the Liza field.
However, it was reportedly concluded that this would not be the most effective or beneficial approach and “would not do justice to the potential of the blocks under the 1999 Licence.”
The contractors reportedly wanted to gather more information.
“Without full information from the new data set or time to gather information from each new exploration well, an accelerated programme would not target the right prospects or the correct location within a prospect, thereby creating additional work and wasting resources,” the report’s authors said.
Hence, while relinquishment should have occurred as prescribed by law, it did not.
According to the report, Guyana Geology and Mines Commissioner, Newell Dennison, said that the Bridging Deed was the discussed and accepted mechanism to “deal with this situation”.
The Government decided it would be more appropriate to give the oil companies more time so that they could explore the behemoth block “by issuing a new petroleum prospecting licence and signing a new production sharing agreement on the same general terms as the new previous agreement.”
That agreement would turn out to be a hotly discussed controversial agreement, criticised as lopsided and unfair.
Global Witness stated that the deal is set to make Guyana lose about US$55B, and has advised for a renegotiation.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
No immigrant should feel safe in America today
Peeping Tom… Kaieteur News- There was a time when an illegal immigrant in America could live in the shadows with some... more
If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?
Antigua and Barbuda’s Ambassador to the US and the OAS, Ronald Sanders By Sir Ronald Sanders Kaieteur News- In the latest... more
Weekend Cartoon
