GEORGETOWN, Guyana, (DPI) – The ministry of natural resources announced on Wednesday that ExxonMobil Guyana Limited (EMGL) has officially relinquished 20 pe cent of the Stabroek Block.
‘Relinquishment,’ outlined in the 2016 Production Sharing Agreement (PSA), refers to the giving up of sections of a block by a contractor after a stipulated amount of time has elapsed and no commercial discoveries have been made.
The 20 percent or 2,534 km² that is being relinquished excludes any area related to discoveries, appraisals, or production activities, the ministry’s release pointed out.
The ministry said that the Stabroek Block has been the catalyst for petroleum production, with massive oil finds in different parts of the block.
“The Stabroek block has been the site of multiple significant discoveries, which are now undergoing evaluation and appraisal to determine their commercial potential,” the ministry explained.
Notably, the relinquished portion is composed of various sections of the entire block and isn’t located in a single area.
The ministry reaffirmed its commitment to ensuring that the petroleum sector is properly managed by legal provisions and in the most prudent manner for the benefit of all Guyanese.
The press release says that the ministry of natural resources and the Guyana Geology and Mines Commission will “continue to work diligently to ensure that all petroleum operations executed by EMGL and its partners are conducted in keeping with the requirements of the [Petroleum Activities Act], the Stabroek Block Petroleum Agreement, and…international best practices.”
To date, more than 50 oil discoveries have been made in Guyana’s waters, with 46 of them being found in the Stabroek Block alone. There are currently six sanctioned projects. Three of them combined are producing approximately 600,000 barrels of oil per day. A fourth is scheduled for startup in August of this year.