Hess to return 94% net undeveloped acreage in Guyana, Suriname within next 3 years

Apr 23, 2025 News

…as 20% relinquishment of Stabroek Block now 7 months behind deadline

Kaieteur News- American oil company Hess Corporation has disclosed that 94% of its net undeveloped acreage in Guyana and Suriname is scheduled to expire within the next three years. This revelation comes as the relinquishment of 20% of the Stabroek Block is delayed by seven months.

Hess to return 94% net undeveloped acreage in Guyana, Suriname within next 3 years

American oil company Hess Corporation Chief Executive Officer (CEO) John Hess

This information was revealed in Hess’ 2024 Annual Report, released earlier this month. “At December 31, 2024, 94% of our net undeveloped acreage, primarily in Suriname and Guyana, is scheduled to expire during the next three years pending results of exploration activities,” Hess stated.

In Guyana’s prolific Stabroek Block, Hess holds a 30% stake alongside operator ExxonMobil Guyana Limited (EMGL) who hold a 45% interest and CNOOC with a 25% interest. The block, which spans 6.6 million acres, is estimated to hold 11.6 billion barrels of oil equivalent, according to information from the government.

Notably, the overdue relinquishment of 20% of the Stabroek Block remains a sticking point. Hess reported that the end of the first renewal period of the exploration licence in October 2024, which requires the relinquishment of 20% of the acreage not held by discoveries, “…is pending approval by the Government of Guyana.”

Guyana’s Minister of Natural Resources, Vickram Bharrat

Under the terms of the 2016 Production Sharing Agreement (PSA), Exxon is required to return acreage where no commercial discoveries have been made, in production, appraised or areas where there is potential commercial interest. Exxon was required to return a portion of the Block to Guyana since October 2023; however, former President David Granger had granted the company an extension in 2020 to conduct further exploration activities. This extended the deadline to October 2024.

During a February 2025 press conference, ExxonMobil’s President Alistair Routledge attributed the delay of the 20% relinquishment to ongoing administrative formalities and competing priorities for both the company and the Government of Guyana.

Routledge had assured that Exxon had met all requirements and was awaiting final approvals. He said, “We complied with all the deadlines, all the submissions have been made, we are really just in the finalisation of paperwork.”

Despite the delay to finalise the relinquishment, Routledge had underscored that discussions between Exxon and the government have remained constructive. Routledge added, “So I’m sure the government will announce when all of that has been completed, but all of the work to make the calculation to access the areas has been done.”

The Stabroek Block

Notably, the last update from the government on the relinquishment is dated January 2025. This came from Minister of Natural Resources, Vickram Bharrat. At that time, he had said that the process was in its final stages and that an agreement had been reached in principle between the government and Exxon. Minister Bharrat had also explained the technical challenges involved in finalising the relinquishment process. However, since then, there has been no other update from the minister or his ministry on the progress made, even though it is now seven months behind the deadline for 20% of the block to be handed back to the state.

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Exxon Vickram Bharrat, Hess, relinquishment, Stabroek Block

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