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No extension granted for Canje, Orinduik blocks – Min. Bharrat
…firms have to apply for new licence subject to terms of new PSA
(Kaieteur News) – Minister of Natural Resources, Vickram Bharrat has disclosed that no extension was granted for the Orinduik and Canje oil blocks licence, and that the oil companies will be required to apply for new licences, that will be subject to the terms of the new Production Sharing Agreement (PSA).
Canadian firm, Eco (Atlantic) Oil & Gas holds a 100% working interest in the 1,354 square kilometers (km2) Orinduik Block and an indirect working interest in the 4,800 km2 Canje Block, through JHI Associates.
Minister of Natural Resources, Vickram Bharrat.
The Orinduik licence expired on January 14, 2026 and the licence for the Canje block expired on March 4, 2026.
In a May 18 statement, Eco’s President and Chief Executive Officer (CEO) Gil Holzman disclosed that Eco and JHI “remain engaged with the Government of Guyana with respect to a potential extension or reissuance of JHI’s Canje block offshore, in parallel to Eco’s ongoing discussions with the Ministry on the terms of the Orinduik Block offshore.”
Minister Bharrat had previously confirmed that the Orinduik licence has come to an end and that government was in talks with Eco and its partner Navitas Petroleum LP, an Israeli company, on the way forward. However, when contacted on Thursday for an update on the oil blocks, the minister disclosed that no extension was granted. “They have to apply for new licence under the new PSA,” Minister Bharrat said.
Map showing location of Canje Block.
Map showing location of Orinduik Block.
Similar to ExxonMobil’s Stabroek Block PSA which has been heavily criticised, the Orinduik PSA is in similar nature. The Orinduik PSA features a low royalty rate of 1% on crude oil produced and sold, a 75% cap on cost recovery and no corporate income tax. Similar to the Stabroek Block deal, the Minister of Natural Resources is required to pay the companies income tax from its share of profit oil.
Meanwhile, the new PSA which was introduced by the current administration, features improved fiscal terms from the Stabroek and Orinduik PSAs. The new PSA mandates a 10% royalty rate and a 10% corporate tax and it lowers the cost recovery ceiling from 75% to 65%.
The Orinduik Block is situated in shallow water, 170 km offshore Guyana. In 2019 two oil discoveries were made, Jethro-1 and Joe-1, both wells encountered high quality reservoirs containing mobile heavy crude. Notwithstanding the expiration of the licence for that block, Eco had outlined that the provisions under the Petroleum Act allow it to retain rights to its Jethro-1 and Joe-1 discoveries while its appraisal programme was under review. The company had shared that both the ministry and Guyana Geology and Mines Commission (GGMC) had received the relevant joint submissions in relation to the proposed appraisal work.
ExxonMobil was the operator of the Canje Block with a 35% stake, with partners TotalEnergies with 35%, JHI Associates with 17.5%, and Mid-Atlantic Oil & Gas with 12.5%.
ExxonMobil Country Manager, Alistair Routledge during a recent press conference related that the company does not plan to apply for a renewal or extension to its licence to explore the Canje Block. He explained, “We are not planning to apply for any extension or renewal of the Canje licence. We believe, we exceeded the commitments that were laid out in the Petroleum Agreement and the prospecting licence for Canje.”
Canje Block is located 180km offshore Guyana in deep to ultra-deep water (1,700m-3,000m), and contains prospectivity in both continental slope and basin floor targets. Canje Block lies adjacent and directly Northeast (outboard) of the prolific Stabroek.
Eco recently announced its plans to expand its presence offshore Guyana through a US$52.3 million acquisition of JHI Associates Inc. This deal will allow Eco to acquire all remaining shares in JHI it does not already own. Through the acquisition, Eco would gain JHI’s 17.5% participating interest in the Canje Block. However, Eco had stated that the acquisition of JHI is not conditional on the Canje licence Extension.
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