…as Guyana poised to become Oil & Gas powerhouse- Wood Mackenzie
French oil company Total said on Monday it signed agreements to acquire interests into two exploration licences offshore Guyana, the Canje Block and the Kanuku Block.
This is according to a news article from Offshore Energy Today, which posited that Total, prior to the two licences recently granted, also sought and got approval for the nearby Orinduik Block.
Subject to the approval of relevant authorities, Total will thus own exploration rights to an area covering over 12,000 square kilometers in the Guyana Basin.
According to Offshore Energy Today, Total will acquire a 35 per cent working interest in the Canje Block, located in water depths of 1,700 to 3,000 meters, under the terms of the agreement signed with an affiliate of Canadian company JHI Associates, Inc. and Guyana-based company Mid-Atlantic Oil & Gas, Inc. These two companies will retain a shared 30 per cent interest alongside operator ExxonMobil (35 per cent).
Moreover, the article noted that Total will buy a 25 per cent working interest in the Kanuku Block, located in water depths of 70 to 100 meters, under the terms of the agreement signed with operator Repsol (37.5 per cent), and will be a partner alongside Tullow (37.5 per cent).
Arnaud Breuillac, President, Exploration & Production at Total said that the company is “very pleased with this significant entry in the prolific Guyana Basin,” while adding that the “Canje, Kanuku and Orinduik blocks are located in a very favorable petroleum context, evidenced by the Liza discovery in 2015. Acquiring interests in these highly prospective licenses is in line with the new exploration strategy in place since 2015.”
Total also holds an option to purchase a 25 per cent working interest in the Orinduik Block, located in water depths of 70 to 100 meters, under the terms of the agreement signed in September 2017 with an affiliate of Canadian company Eco Atlantic Oil & Gas Ltd, who will retain a 15% interest following exercise of the option, alongside operator Tullow (60%).
Oil powerhouse
Meanwhile, energy analytics company Wood Mackenzie has since posited that Guyana is poised to become an oil and gas powerhouse in the region, in the near future.
According to Offshore Energy Today, while the country is currently not producing any oil Wood Mackenzie predicts 350,000-400,000 barrels per day of oil production by 2026, making Guyana one of top oil producers in Latin America.
Wood Mackenzie expects big production numbers by 2026, however, first oil is not expected before 2020, when Exxon plans to bring the first phase of the Liza development online, using an FPSO supplied by SBM Offshore.
In Guyana, ExxonMobil added another 1 billion barrels of oil equivalent of recoverable resources through its 2017 large discoveries like Payara, Turbot and Snoek.
Exxon estimates its discoveries offshore Guyana could hold more than 3.2 billion recoverable oil-equivalent barrels, excluding its recent Ranger discovery.
