Govt., Exxon in talks to delay 20% relinquishment to 2024

Mar 10, 2023 News

– as Hess tells investors portion of Stabroek Block to be given up will not affect their pockets

Kaieteur News – ExxonMobil Corporation and its partners in the Stabroek Block are more than ready to relinquish 20 percent of the oil-rich concession located approximately 120 miles offshore Guyana.

Hess Corporation Head, John Hess

This was confirmed by Hess Corporation’s Chief Executive Officer (CEO), John Hess during his participation at the 51^st Annual Scotia Howard Weil Energy Conference. Hess was keen to assure investors at the event that the portion of the block being returned to the State will have zero effect on its exploration or development plans as it is not going to be in any prospective area.

He also stressed that the relinquishment should not be misconstrued to mean that government is forcing the company to do this. Hess said it is in keeping with arrangements enshrined in the Production Sharing Agreement (PSA) for the block.

Hess said, “In the PSA, there is a requirement for us to relinquish 20 percent of the block. It is therefore a normal course of business…There is some talk, potentially, having been with Vice President Jagdeo at CERAWEEK in Houston, that the 2023 date (for relinquishment) might be a 2024 date so we will see.”

He added, “But at the end of the day, our joint venture (which also includes CNOOC Petroleum Guyana Limited) is fully prepared to release that 20 percent. And it is important to know that the 20 percent is not going to be in the prospective area, it is not going to be where we have exploration planned or future exploration planned and it is not going to be where we have the developments in production.”

The official reminded investors that Guyana’s Stabroek Block holds some of the largest oil discoveries in the world, and some of the most significant in the last 10 years. He said more than 30 discoveries were made since 2015 and over 11 billion barrels of oil resources found. He said too that there are multibillion barrels more to go on the block.

Hess also noted that the partners have six drill ships on the Stabroek Block with three assigned for development drilling and three are for exploration and appraisal. He said too that the partners have planned about 10 exploration and appraisal wells. This is aside from the 35 multi-well programme they have planned for the block.

This newspaper understands that the exact locations of the 35 wells comprising the project have not been finalised. While some of the wells will be drilled for exploration purposes, it is also possible that some of the wells may be drilled as appraisal wells within the proximity of previously drilled exploration areas. Onshore logistical support facilities and marine/aviation services will be used to support the project.

EEPGL has also said it will use proven and good international industry practices and has incorporated many embedded controls into the overall project design to reduce environmental and socioeconomic impacts.

Kaieteur News understands that it could take several years to drill the wells, currently scheduled from the third quarter of 2023 through 2028.

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Corporation, ExxonMobil, Hess, John Hess, Stabroek Block

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