During the Trinidad and Tobago Energy Conference, there was a very stimulating conversation about local content. The perspectives that were explored ranged from global to local. One perspective that was very pertinent was the Guyana perspective which was highlighted by Nicholas Deygoo Boyer, President of the Georgetown Chamber of Commerce and Industry (Georgetown Chamber).

In February, the new crude oil producing nation Guyana, opened a bid process to market the Government’s share of crude produced from Exxon’s Liza development. The process was supposed to be concluded in March but was extended to into April. Through the process, 34 companies submitted bids for the one year contract.

Apache Corporation announced a significant oil discovery at the Sapakara West-1 well drilled offshore Suriname on Block 58. The well was drilled using the Noble Sam Croft with Apache as operator holding a 50% working interest and Total holding a 50% working interest.

Apache announced that the company will be taking multiple actions being taken in response to the current oil price environment. The changes include adjustments to its 2020 capital investment plan which drops to a range of $1.0 billion to $1.2 billion from a previous range of $1.6 billion to $1.9 billion.

The Network of Caribbean Chambers of Commerce (CARICHAM) notes with significant concern the current situation in Guyana.

Exxon announced its first discovery for 2020 in Guyana. The latest discovery was at the Uaru exploration well.

Maersk Drilling has announced that it been awarded a contract for the 7th generation drillship Maersk Valiant. The contract was awarded by US-based, Noble Energy and will be utilised for a one-well campaign offshore Colombia.

United Oil & Gas (UOG) one of the project partners on the Walton Morant Basin has announced that the Production Sharing Agreement has been amended to extend the initial exploration period during which a drill-or-drop decision is required for a further six months. Tullow Jamaica is the majority stakeholder with 80% interest and is the operator.

Ever since Exxon and their partners began their string of unprecedented exploration success offshore Guyana, industry watchers have kept a close eye on the neighbouring deepwater blocks offshore Suriname.   At the beginning of 2020, Apache and Total made the long-awaited announcement of a significant oil discovery at the Maka Central-1 in Suriname’s Block 58.  This was much welcomed news for Suriname and for its state-owned oil company, Staatsolie.

Apache Corporation and Total S.A. today announced a significant oil discovery at the Maka Central-1 well drilled offshore Suriname on Block 58. The well was drilled using the drillship Noble Sam Croft with Apache as operator holding a 50% working interest and Total holding a 50% working interest.

Tullow has announced that the Carapa-1 exploration well, drilled on the Kanuku licence offshore Guyana, has encountered approximately four metres of net oil pay based on preliminary interpretation, and has extended the prolific Cretaceous oil play into the Group’s Guyana acreage.     

Exxon announced that oil production has started from the Liza field offshore Guyana ahead of schedule and less than five years after the first discovery of hydrocarbons, which is well ahead of the industry average for deepwater developments.

ExxonMobil has announced that it made an oil discovery offshore Guyana at the Mako-1 well southeast of the Liza field, marking the 15th discovery on the Stabroek Block.

The drilling activity in Guyana has moved on from being solely focused on Exxon to now include Tullow and also Repsol. Tullow recently successfully drilled the Jethro-1 well and has spud the Joe-1 well. Repsol, however, is approaching the same stage and is expected to spud a well in this quarter. 

SBM Offshore has indicated that it kicked off its scope for the construction phase of Liza Unity following a final investment decision (FID) by ExxonMobil in May 2019. Unity will be the second FPSO for the Liza project in Guyana.

The US oil major is now lining up exploration activity in the neighboring Canje block for 2020.

Comment

Hess announced yet another discovery at the Tripletail-1 well on the Stabroek Block offshore Guyana. This discovery is the 14th made by Exxon and partner Hess.

Tullow confirms second discovery and has announced that the Joe-1 exploration well has successfully opened a new Upper Tertiary oil play in the Guyana basin.