Guyana Orinduik Block Licence Decision Looms in 2026
Energy
Key Facts
—The players. Eco Atlantic and partner Navitas Petroleum are seeking a new licence over Guyana’s offshore Orinduik block.
—The timing. They are in advanced negotiations with Guyana’s Ministry of Natural Resources, expected to conclude in the third quarter of 2026.
—The prize. The block holds the Jethro and Joe oil discoveries; Navitas holds 80% and Eco 20%.
—The neighbor. Orinduik sits right next to ExxonMobil’s giant Stabroek block.
—The terms. Eco’s 20% stake is carried, capped at about US$11 million net.
Not every barrel in Guyana belongs to Exxon. A small explorer is racing to lock in rights next door to the majors, and a decision on its Orinduik block is due within weeks.
Guyana has become one of the world’s hottest oil frontiers, but the story is almost always about ExxonMobil and its huge Stabroek block. Alongside it sits a smaller, less-watched prospect.
That is the Orinduik block, held by Canada’s Eco Atlantic and Israel’s Navitas Petroleum.
To understand why this matters, it helps to know what a production-sharing agreement actually is. In simple terms, it is a contract between a government and an oil company that sets out who pays for exploration and how any oil found will be split.
The company typically covers all the upfront costs, and if it strikes oil, it recovers those costs from production before sharing the remaining profit with the state. For a country like Guyana, these agreements are the legal backbone of its entire oil boom.
A New Licence in the Works
The pair’s previous licence reached the end of its second renewal term in January, and they have applied for a new appraisal and exploration licence over the block, which contains the Jethro and Joe discoveries.
Eco and Navitas are in advanced production-sharing-agreement talks with Guyana’s Ministry of Natural Resources, which they expect to complete in the third quarter, with a deal anticipated by September.
The shift from an old licence to a new one is not just paperwork. An appraisal licence specifically allows the companies to study existing discoveries more closely—drilling new wells to map the size and quality of the reservoirs—rather than simply hunting for brand-new fields.
That makes it a more targeted, lower-risk phase of work.
The Exxon Neighbor
Orinduik’s appeal is partly geography: it borders Stabroek, where Guyana recently approved Exxon’s seventh project, Hammerhead. That proximity has revived interest in Orinduik’s Jethro find.
Under the partners’ arrangement, Navitas holds 80% and operates, while Eco keeps a 20% carried interest capped at about US$11 million net, limiting its cash exposure.
A carried interest is a common funding structure in oil exploration. It means Eco’s share of certain costs is paid by its partner, Navitas, up to that agreed cap.
This protects a smaller company from having to raise huge sums of cash before any oil is produced, but it also means Eco’s ownership stake could be adjusted if costs run beyond the cap.
Why It Matters
For Guyana, a new deal would extend exploration beyond the Exxon-led consortium and test how much more oil the country’s waters hold.
For Eco and Navitas, securing the licence is the gateway to appraising discoveries that sit tantalizingly close to one of the industry’s biggest recent successes.
The broader significance goes beyond two companies. Guyana’s government is under pressure to show that its oil wealth benefits more than just the supermajors.
A successful deal with a smaller, independent partnership would signal that the country’s offshore basin is open to a wider range of players, potentially accelerating exploration across other blocks.
What to watch next is whether the final terms of the new licence differ from the old one. Governments often use licence renewals to negotiate a larger state share or stricter work commitments, especially when oil prices are high.
Another open question is how quickly the partners can move from signing a deal to drilling an appraisal well, and whether the Jethro discovery can be proven large enough to justify a standalone development. The outcome will also be read as a signal by other companies holding neighboring blocks, who are watching to see if Guyana is willing to keep smaller explorers at the table.
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Frequently Asked Questions
What is the Orinduik block?
It is an offshore oil block in Guyana held by Eco Atlantic and Navitas Petroleum, containing the Jethro and Joe discoveries, and bordering ExxonMobil’s giant Stabroek block.
When will the licence decision come?
Eco Atlantic and Navitas are in advanced production-sharing-agreement talks with Guyana’s Ministry of Natural Resources, expected to conclude in the third quarter of 2026, with a deal anticipated by September.
Who owns the Orinduik block?
Navitas Petroleum holds 80% and operates, while Eco Atlantic holds a 20% carried interest capped at about US$11 million net.
Sources
- Kaieteur News – Canadian company expects new Orinduik oil deal by September
- World Oil – Eco Atlantic engages Guyana on Orinduik Block licence continuation
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Sources: Eco Atlantic; Navitas Petroleum; Guyana's Ministry of Natural Resources.
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