Latest update August 24th, 2026 10:25 AM
Latest News
- Grief, protests, and a G$1.4B abandoned wharf
- ‘Guyana is the place to be, world class mining area’ – new Australian gold firm
- Exxon shuts down operations on Liza Unity after small fire in laundry room
- ‘I know he’s dead’ – mother accepts loss of missing MV Barima crewman
- Chinese Landing residents hold firm in Tassawini standoff
Kaieteur Block faces abandonment
…as Ratio warns of extension approval deadlock
(Kaieteur News) – Ratio Petroleum Energy has disclosed that the Kaieteur Block could be abandoned if required extensions and approvals are not granted by the Government of Guyana. This is according to a December 1 disclosure filed with Israel’s Securities Authority and Stock Exchange.
In the notice, Ratio said partners in the 3.3-million-acre offshore block were asked in December 2025 to indicate whether they intend to make an additional investment or abandon the acreage. The company noted that any decision to continue operations depends on conditions set by the Government of Guyana and determinations by the Ministry of Natural Resources.
“As stated in section 1.1.2.2 of Chapter A of the Periodic Report, a partner that does not receive an extension during the extension period in order to make an additional investment in the Block is required to submit a request for extension as soon as possible, which request must be accepted and approved by the Government in order to allow continued operations in the Block. If such an extension is not obtained, the partnership will be required to abandon the Block.
Furthermore, after the expiration of the extension period, a partner that does not receive approval to demand the return of the Block will be required to abandon the Block. It is further clarified that any partner that does not find a suitable partner will be required to act in accordance with the conditions of the law, inter alia, to examine the possibility of abandoning the Block or part thereof, subject to additional sections, including section 1.1.2.2 of Chapter A of the Periodic Report,” the company said according to unofficial translation.
A few months ago, Ratio Guyana Limited (RGL), notified the government of the portion of the block it is prepared to relinquish while continuing its search for a new partner.
Ratio had submitted a request 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.
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 been 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.
Ratio had previously stated 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 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.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
hits
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
