ExxonMobil rules out renewal of expired Canje Block Licence – Routledge

President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge has said that the United States (US)-based oil major will not be renewing the prospective licence for the Canje Block offshore Guyana. “We exceeded the commitments that were laid out in the petroleum agreement and the prospecting licence for Canje,” the Exxon country manager told reporters during a press conference on Thursday last at its Ogle, East Coast Demerara (ECD) Headquarters. The exploration licence for the Canje Block expired earlier this month on March 4, 2026 and is subject to on-going extension discussions with the Guyana Government.

The operator of this block is ExxonMobil with a 35 per cent interest, while its coventurers include TotalEnergies which also has a 35 per cent, JHI with a 17.5 per cent and Mid-Atlantic Oil & Gas Inc. with the remaining 12.5 per cent interest. According to Routledge, “ExxonMobil’s evaluation is that remaining prospectivity is not competitive in our portfolio and so we do not plan to try to pursue that acreage for any renewal.”

However, Routledge said he could only speak on behalf of his company and not on the block partners. “It’s for them to determine whether they would like to pursue that [renewal] or not.” This comes just a week after it was announced that JHI’s 17.5 per cent interest in the Canje Block was acquired by Toronto-based exploration company, Eco (Atlantic) Oil & Gas Ltd, which had already owned parts of JHI. According to Eco, it acquired all issued and to-be-issued shares of JHI Associates Inc. in a US$ US$52.3 million deal signed on March 10.

This acquisition has expanded the company’s exposure offshore Guyana. President and Chief Executive Officer (CEO) of Eco Atlantic, Gil Holzman said, “this transaction represents a further transformational milestone in Eco’s strategic evolution and reinforces our disciplined approach to assembling high-quality Atlantic Margin acreage alongside best-in-class operating partners.” Eco also currently holds the Orinduik licence with a 100-per cent working interest following the exit of previous partners: Tullow Oil, TotalEnergies, and QatarEnergy. However, the second renewal term of the Orinduik licence ended on January 14, 2026, and Eco is now in active discussions with the Guyana Government to retain rights to the 2019 Jethro-1 and Jeo-1 discoveries.

The Canje Block lies about 180 kilometres (km) offshore Guyana in deep to ultra-deep waters with an area of approximately 4800 square km – adjacent and directly Northeast of the prolific Stabroek Block, which is also operated by ExxonMobil. The block hosts multiple prospects identified through modern 3D seismic data, supported by high-quality AVO (Amplitude Versus Offset) and/or DHI (Direct Hydrocarbon Indicator) indicators, highlighting a large inventory of prospects with significant potential. In 2021, three exploration wells were drilled targeting nearly 2 billion barrels of gross mean recoverable resources in the Canje Block. All three wells confirmed an active hydrocarbon system, but none encountered commercial volumes. Bulletwood-1, the first well in the Canje Block, was safely drilled during 2021 in 2,846 metres (9,337 ft) of water by the Stena Carron drillship to its planned target depth of 6,690 metres (21,949 ft). The possible 0.5 billion barrels of oil were assessed as non-commercial.

Meanwhile, the Jabillo-1 well was drilled in the Canje Block in mid-2021 to a depth of 6475 metres, and it was found not to have commercially viable oil. It was announced that the well would be plugged and abandoned. The Sapote-1 well was drilled in late 2021 to a depth of 7658 metres and while some oil was found, it was non-commercial. There were plans to drill other wells in the block but these activities were not done, paving the way for the relinquishment of the acreage to the Government if none of the other Canje coventurers seek a renewal.

Back in September 2024, Vice President (VP) Bharrat Jagdeo had stated at a press conference that the Canje Block would be fully repossessed by the State if there are no advancements in its development. “There was a first relinquishment. There should have been a second relinquishment of another two wells,” Jagdeo had noted, adding that the final relinquishment is expected by 2026. “…By 2026, I think the Canje block would be back with the Government, should there be no progress on announcing a development.”