Introduction
The Kaieteur News this past Wednesday reported Minister of Natural Resources Vickram Bharrat as stating that the Government has written ExxonMobil directing that it relinquish portions of the Kaieteur and Canje Oil Blocks. There are two issues which arise from the news report. Exxon is not the Contractor for either of these Blocks. Mid-Atlantic Oil and Gas Inc. holds the Canje Block and Ratio Energy Ltd. and Ratio Guyana Ltd. Exxon is the Operator.
It is not particularly clear on what the letter requires Exxon to do, and why Exxon in the first place. Relinquishments are a function of application for extensions of a Prospecting Licence. If there was no application for extensions, then the full Contract area should be returned to Guyana. Not 20%, not 25%, but everything. These omissions appear to have eluded Minister Bharrat. Mr. Bharrat’s statement raises questions whether he understands what relinquishment is and how the relevant provisions of the respective Petroleum Agreements operate.