Ratio at crossroads

Sep 22, 2025 News

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…signals partial relinquishment of Kaieteur Block
…says drilling decision deadline is Nov. 2025
…to return block if no partner by deadline or no extension granted

Kaieteur News – Ratio Guyana Limited (RGL), operator of the Kaieteur Block, says it has notified the Government of Guyana of the portion of the block it is prepared to relinquish, even as the company hunts to secure a new partner ahead of a critical November 2025 drilling deadline.

A few months ago, this publication reported that no part of the 3.3 million acres block had yet been relinquished. Under the Kaieteur Petroleum Agreement, upon applying to enter the second extension period, the oil companies RGL and Cataleya Energy Limited (CEL) had until February 2025 to commit to drilling a well before relinquishing 20 per cent of the block, or if they wished, the entire contract area.

It was reported that on November 17, 2024, Ratio Petroleum announced a one-year extension was granted for the drilling decision date. An unofficial English translation of its announcement stated that a request was submitted to the Ministry of Natural Resources (MNR) for an extension of the exploration period. Previously, ExxonMobil Guyana Limited (EMGL), the block’s former operator, had sought an extension citing the coronavirus pandemic. After Exxon and the other block partner Hess withdrew, Ratio applied for another extension on similar grounds.

According to a recent report published by Ratio, the revised deadline is in fact November 2025, not February 2026, as previously suggested by the oil company. “On November 17, 2024, the partnership announced that the Guyanese Ministry of Energy approved the request. Accordingly, the deadline for the partners in the block to notify the state whether they intend to conduct further drilling in the block or abandon it was also postponed by one year, until February 2026 (the actual notification date is November 2025),” the document clarifies.

To this end, it was stated, “Ratio Guyana has notified the state of the area it is willing to relinquish. The partnership will report in accordance with the law after the state approves the decision.” Under the Kaieteur Block agreement, partners must relinquish 20% of the block’s area.

Further, the company also disclosed that it is seeking to bring in another partner or several, with the intention of one becoming the operator and lead future drilling.

Ratio said it has contacted many energy companies since Exxon’s exit. While several expressed initial interest and reviewed data, all ultimately declined due to geological risks and the challenges of achieving a commercial discovery.

Importantly, Ratio added, “If no partner is found who can serve as an operator and conduct drilling in the block in the coming months and who will be willing to commit to conducting drilling and the associated costs, and if no further extension is granted for the decision deadline stipulated in the Guyana agreement for further drilling in the block, Ratio Guyana will find it difficult to make a decision to proceed and commit to drilling by the deadline stipulated in the Guyana agreement.”

In light of this, the company said if no drilling decision is made by November 2025 and no extension is granted, the state may demand the return of the block. “It should be clarified that if no suitable partner is found within the relevant deadlines, the partnership will be forced to consider how to proceed under the law, including the possibility of returning the block or parts of it to the state,” Ratio explained.

The agreement for the Kaieteur Block was signed in 2017, under the condition that the oil companies were only allowed to conduct oil exploration in 40 per cent of the block, to steer clear of aggressive tactics from Venezuela.

A 3D seismic survey acquired for the southern portion of the block covered 5,750km2 and provided the foundation for a significant prospect inventory on the block.

Notably, a single prospect has been drilled to date, which resulted in a sub-commercial oil discovery. The ExxonMobil-operated Tanager-1 well, which was drilled in August 2020, encountered 16 metres of net oil pay, a discovery of approximately 65 million barrels of oil in the prospect area, based on independent estimates by Netherland, Sewell & Associates Inc. (NSAI). However, this discovery was considered to be non-commercial as a standalone development.

However, in spite of a number of postponements, the operator at that time, ExxonMobil, had decided not to exercise its option to drill a second well on the block. Exxon subsequently pulled out from the Kaieteur Block.

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• Drilling, ExxonMobil, Kaieteur Block, oil, Ratio Guyana

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