An ExxonMobil-led consortium is still locked in discussions with the Government of Guyana for a shallow water block offshore the country where there have been prolific oil finds over the past decade.
The consortium comprising ExxonMobil, Hess, and CNOOC won shallow block S8 in Guyana’s first auction which was launched in 2022.
The fiscal terms in the new Production Sharing Agreement (PSA) are not up for discussion but the consortium has been engaging the government on other terms. ExxonMobil Guyana President Alistair Routledge said there is interest in oil production at the block; the company also wants to explore whether S8 is a good location for a carbon capture and storage project.
Oil Blocks Auction: Gov’t expects to sign at least four agreements this year
He did not disclose how well the discussions are going, however.
“… We continue to work diligently with the government to try and conclude an agreement,” Routledge said at a press conference held at the company’s Kingston, Georgetown office.
He later added, “The important thing is that we continue to have that discussion in a collaborative way to try to find an agreement that works for all parties
“It has to be an agreement that incentivises the investment which is what the country wants but also then returns a reasonably sharing of any profits that may flow in the future should there be economic discoveries.”
The consortium was among the six firms that were awarded eight different blocks in 2023; a total of 14 blocks (11 shallow and three deepwater blocks) were up for grabs. The companies all went into negotiations with the government.
Guyana’s Natural Resources Ministry, in a statement issued earlier this month, close and sign agreements for at least four oil blocks this year. The S8 block awarded to ExxonMobil-led consortium was not among the four blocks listed.
