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Guyana’s government plans to take back 20% of the Stabroek offshore oil block that has been responsible for a series of massive discoveries from an Exxon Mobil-led (NYSE:XOM) group and remarket it by next year, VP Bharrat Jagdeo told Reuters on Friday.
The consortium has missed investment deadlines for portions of the block not under exploration or development, Jagdeo reportedly said, and under terms of the license, Exxon (XOM) must relinquish a minimum of 20% of the contract area not retained under a exploration or production license.
The company and its Stabroek partners have said they are in compliance with all agreements, including acreage relinquishment requirements.
Guyana also is working on an auction of exploration licenses to 14 offshore blocks outside of Exxon’s (XOM) domains in what would be the country’s first competitive auction, and has proposed offering blocks to India, Qatar and the United Arab Emirates or national oil companies.
Jagdeo said he hopes to engage Brazil’s Petrobras (PBR) and the Brazilian government, where old political ally Luiz Inacio Lula da Silva has started his presidential term.
An Exxon (XOM) official said recently the company was working to more than triple Guyana’s oil production to 1.2M bbl/day by 2027.
