Guyana is considering holding a second open bid round as soon as this year that could include relinquished portions of the prolific Stabroek Block, according to Guyana Vice President Bharrat Jagdeo.
Exxon Mobil and partners Hess and CNOOC are contractually obligated to give up some 20% of the surface area in the 6.6 million acre (26,800 square kilometer) block as part of the license renewal process. The relinquished acreage will not include areas currently under exploration or development.
The consortium previously received a one-year extension on their full license due to delays stemming from the Covid-19 pandemic, but will now be moving forward with the renewal process “later this year,” according to an Exxon spokeswoman.
“We are grateful for the extension,” she said. “It increases our investment confidence, helping us to continue exploration activities in Guyana to help further increase Guyana’s discovered resource.”
The Exxon-led consortium has discovered more than 11 billion barrels of oil equivalent in resources in the Stabroek Block and expects production to reach 1.2 million barrels per day by 2027. The trio started up the 220,000 b/d Payara floating production, storage and offloading (FPSO) unit — its third in the block — in November, and another three FPSOs are in the works.
“The relinquishment of the Stabroek Block, which we are hoping will be part of the next auction, will happen in October,” Jagdeo told reporters. “We have to examine whether, outside of the Stabroek Block, we can sustain an auction with the properties that we have now. These are things that we have to decide on.”
Jagdeo said that progress toward a second bid round will have to wait until the conclusion of Guyana’s current round. Bids from companies including Exxon and TotalEnergies as well as local operators were announced in September, but negotiations over awards are ongoing.
“[Bidders] have … until this end of this month to submit some additional information,” Jagdeo said. “Thereafter we should decide whether the agreements are going to be signed up or not. … We also are going to talk to our advisors to see what’s happening in the world of auctions and what’s the right timing. They’re more attuned to what’s happening globally.”
He added that Guyana’s proposed federal budget for next year — a record 1.1 trillion Guyanese dollars (US$5.2 billion) amid booming oil revenues and related economic developments — includes plans to gather data from existing seismic surveys to help inform future bid rounds.
Jagdeo said that Guyana’s government is not planning to carry out additional seismic work, at least for now. (Energy Intelligence)
