Latest update March 27th, 2026 12:40 AM
No decision as yet on way forward for Kaieteur Block – Min. Bharrat
…says Govt. in discussion stage with Ratio
(Kaieteur News) – Minister of Natural Resources, Vickram Bharrat, says the Government of Guyana is in discussions with Ratio Guyana Limited (RGL), operator of the Kaieteur Block, regarding the way forward. A few months ago, Ratio notified the government of the portion of the 3.3-million-acre block it is prepared to relinquish while continuing its search for a new partner ahead of the November 2025 drilling deadline. Minister Bharrat stressed that the matter remains under discussion and that “no decision has been made as yet.”
Minister of Natural Resources, Vickram Bharrat.
According to an unofficial English translation of its announcement, the company said a request was submitted to the Ministry of Natural Resources for an extension of the exploration period. Before this, former operator ExxonMobil Guyana Limited (EMGL) had sought an extension citing the Coronavirus pandemic. After Exxon and its partner Hess withdrew, Ratio applied for another extension on similar grounds.
Notably, to date no portion of the 3.3 million-acre block has been relinquished. Under the Kaieteur Petroleum Agreement, when applying to enter the second extension period, RGL and Cataleya Energy Limited (CEL) were required to commit to drilling a well before relinquishing 20 percent of the block, or, if preferred, the entire contracted area.
Ratio had clarified that the deadline for the block partners to notify the state whether they intend to conduct further drilling or abandon the block is November 2025, not February 2026 as previously suggested by the oil company.
Ratio further disclosed that it is seeking to bring in another partner or several, with the intention of one becoming operator and leading future drilling. The company said it had contacted numerous energy companies since Exxon’s exit, and while several expressed initial interest and reviewed data, all ultimately declined because of geological risks and challenges related to achieving a commercial discovery.
Map of offshore Guyana showing Kaieteur Block.
Ratio warned that if no partner is found who can serve as an operator and conduct drilling in the block, and if no further extension is granted for the decision deadline, it will find it difficult to make a decision to proceed and commit to drilling. The company said, “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.”
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. In spite of a number of postponements, ExxonMobil had decided not to exercise its option to drill a second well on the block and subsequently pulled out from the Kaieteur Block.
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