Exxon returns Stabroek land to Guyana: Government

The Ministry of Natural Resources announced on Wednesday that an Exxon Mobil led oil consortium had returned 2,534 sq km of the Stabroek Block to the Guyana government.

This relinquishment was part of an obligation for Exxon in order to begin the final exploration phase of the Stabroek Block. The block contains one of the largest oil discoveries of recent decades.

The original deadline was October but discussions between Exxon, the government and other stakeholders slowed down the process. Exxon’s final exploration phase for the Stabroek Block will end in 2027. The block has helped Guyana become one of the fastest-growing economies in the world and has generated profits for Exxon Hess CNOOC.

Exxon didn't immediately respond to an inquiry for comment.

Calculations show that the returned areas are equivalent to about 9% the total area of the Stabroek block.

According to the Ministry, the relinquished parts do not include any production or discoveries.

The government also stated that the concession was needed to exclude a part of the block Exxon couldn't explore due to an ongoing territorial dispute between Guyana, Venezuela and Venezuela.

Guyana wants to sell the relinquished land to other companies at a future auction. Reporting from Kemol King, Georgetown; Writing by Sheila Dang and Editing by Franklin Paul

(source: Reuters)