Govt. gives Kaieteur Block operator 7 days to submit two-year work programme for oil block

Jun 16, 2026 News

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…Ratio to approach Min. Bharrat to request more time

(Kaieteur News) – The Government of Guyana has given Ratio Petroleum Energy seven days to submit its work programme and drilling timetable for the Kaieteur Block for the next two years.

Ratio Guyana Limited (RGL) which serves as operator of the Block has been at crossroads in relation to the 3.3-million-acre offshore block. Ratio Petroleum on Monday disclosed that on 12^th June, 2026, it received a letter from Guyana’s Ministry of Natural Resources stating that it is required, within seven days, to address the work programme and timetable relating to the next two years of the second extension period for the oil block, including the execution of an additional well in the Block area.

According to unofficial translation of the statement, Ratio said in light of the foregoing, it intends to approach the Minister of Natural Resources Vickram Bharrat to request an additional extension for providing its response while continuing negotiations regarding the update of the work programme and drilling schedule.

In December 2025, the ministry had asked Ratio and its partner Cataleya Energy Limited (CEL) to indicate whether they intend to make an additional investment or abandon the acreage.  Prior to the aforementioned disclosure, Ratio Guyana had notified the government of the portion of the block it is prepared to relinquish while continuing its search to bring in a new partner.

Back in April, Minister Bharrat told this publication that while there is no work programme in place for the Kaieteur Block, the prospecting licence held by Ratio remains valid until 2027. The absence of an approved work programme means there is no defined set of exploration or drilling activities scheduled for the block at this time.

For some time now, Ratio has been conducting discussions with the Ministry of Natural Resources, in order to postpone the deadline for notifying whether it intends to carry out an additional drilling operation in the Block, and to update the work programme and drilling schedule, including extending the term of the agreement with the State.

Kaieteur News had reported that after ExxonMobil Guyana Limited (EMGL), the former operator, and its partner Hess withdrew from the Kaieteur Block, Ratio submitted a request for an extension of the exploration period, citing similar grounds previously used by EMGL – the Coronavirus pandemic.

Under the Kaieteur Petroleum Agreement, when applying to enter the second extension period, RGL and Cataleya Energy were required to commit to drilling a well before relinquishing 20 per cent 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.

Since Exxon’s and Hess exit from the block, Ratio has been looking for a new partner.  The company had disclosed that it contacted numerous energy companies, 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 also 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.

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.

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 5,750 square kilometer (km2) and provided the foundation for a significant prospect inventory on the block.

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• Guyana Oil, Kaieteur Block, offshore Guyana, Ratio Petroleum Energy

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