Anadarko is facing an indefinite suspension of its operations in the 19,440 km(sq) Roraima block, pending the outcome of the Guyana/Venezuela border controversy case before the International Court of Justice (ICJ).
The unfolding events of the fiscal year 2021, as detailed in the Guyana Extractives Industries (EITI) report, shed light on Anadarko’s situation.
It is important to note that the parent company, Anadarko Petroleum Corporation, was acquired by Occidental Petroleum Corporation for $38B in 2019. The deal was ranked one of the largest oil mergers and acquisitions (M&A) of the past few years and saw Occidental taking over the company’s operations and assumption of Anadarko’s debt.
The 2021 EITI report noted the issuance of a Petroleum Agreement (PA) and Petroleum Prospecting Licence (PLL) to Anadarko on June 25, 2012, for the Roraima Block located northwest offshore Guyana’s waters. The licence enabled the company’s exploration efforts. However, the situation took a critical turn on October 10, 2013, when Anadarko’s operations were impeded by actions initiated by the Bolivarian Republic of Venezuela.
In 2013 when Anadarko Petroleum was conducting exploration research offshore Guyana, the Venezuelan navy intercepted and seized its research vessel, halting operations within the Roraima Block. The boat was forced to the Venezuelan island of Margarita and sparked a robust protest from Guyana’s government.
These actions were a manifestation of Venezuela’s attempts to assert control and hinder petroleum operations in the context of the ongoing border controversy.
The subsequent First Amendment to the Block’s Petroleum Agreement, inked on December 31, 2015, became a pivotal document. Article III of the amendment acknowledged the prevailing circumstances as the rationale for deferring Anadarko’s work obligations under the prospecting licence and petroleum agreement. The extension of deadlines under the PLL was deemed indefinite until a resolution in the Venezuela-Guyana border dispute materialized.
Article IV of the First Amendment, enacted since October 10, 2013, further underscores the complexity of the situation. It declared that all work obligations in the Prospecting Area under the prospecting licence would remain deferred until Anadarko and its contractors could safely resume unhindered access, free from Venezuela’s interference.
As of October 2023 when the EITI’s reporting concluded, the ongoing controversy was in the thick of tensions and Anadarko’s operations has since remain suspended.
With a pending case at the International Court of Justice (ICJ) that may see a final judgment until 2026, the trajectory of Anadarko’s endeavors in the Roraima Block hangs in the balance.
