Govt. offers no timeline for completion of 20% relinquishment

Apr 27, 2025 News

…agrees to accept a minimum of 2,534 km² out of the Stabroek Block total 26,709 km²

Kaieteur News- Days after it was highlighted that the 20% relinquishment of the Stabroek Block by ExxonMobil Guyana Limited (EMGL) was seven months past the deadline, the government issued a statement noting that the requirements are expected to be completed “shortly” without offering a specific timeline for completion.

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.

Recently, Kaieteur News reported that in January 2025, Minister of Natural Resources Vickram Bharrat said that the process was in its final stages and that an agreement had been reached in principle between the government and Exxon. It was noted in the article that since then, neither Minister Bharrat nor his ministry has provided any update on the progress made in relation to the relinquishment.

In response to the article, the Ministry of Natural Resources (MNR), in a statement, largely reiterated what was already reported without providing a timeline for completion. The ministry reiterated that it is still finalizing the review of the relinquishment.

Kaieteur News reported that Minister Bharrat had explained the technical challenges involved in finalizing the relinquishment process.

Stabroek Block

The ministry outlined that it is collaborating with the Guyana Geology and Mines Commission (GGMC) to assess discovery areas and finalize the relinquishment. However, it did not explain why the process has taken seven months beyond the October 2024 deadline.

“EMGL has provided an updated discovery area and other technical requirements to the MNR and GGMC, and this is currently being finalized…The MNR and GGMC continue to work diligently in assessing the extent of these discovery areas in order to finalize the relinquishment requirements, and this will be completed shortly, all while following the requirements of the Petroleum Activities Act and the Stabroek Petroleum Agreement,” the ministry said.

Importantly, the ministry disclosed that it has agreed with Exxon that a minimum area of 2,534 km² (square kilometer) has been agreed to be relinquished. The Stabroek Block spans approximately 6.6 million acres, about 26,709 km² (square kilometer), making the agreed relinquishment a minimum of 9.5% of the total block area.

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.”

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