Guyana has began the 12 months with an exploration disappointment as a associate within the ExxonMobil-operated Canje block final week revealed that the primary wildcat within the license didn’t ship. However, Rystad Energy expects exploration exercise within the nation to rebound with an annual document of 16 wells, together with on the Stabroek block, additionally operated by ExxonMobil.
The 12 months’s first accomplished properly, Bulletwood-1 within the Canje block, encountered high quality reservoirs however non-commercial hydrocarbons, in response to Westmount Energy, which holds a stake in Canje associate JHI Associates. The properly was concentrating on greater than 500 million barrels of imply potential assets in a prospect just like Liza within the neighboring Stabroek block.
Guyana’s exploration exercise will likely be spearheaded by ExxonMobil as operator of the Stabroek and Canje blocks. Having set an formidable divestment goal of $15 billion by offloading mature property in Asia, Europe, and Africa, the US supermajor is anticipated to prioritize investments in high-value property corresponding to Stabroek.
The firm’s drilling exercise will deal with firming up assets within the southeastern a part of the Stabroek block, the place the operator recognized deeper performs beneath the present discoveries and is now eyeing the unexplored northwestern components of the block. In addition, work is lined up on the Canje block.
“Rystad Energy knowledge means that near 300 million barrels of oil equal has been found on common for every exploration properly (wildcat and appraisal) drilled within the nation over the previous six years. With round 16 exploration wells deliberate, together with some in riskier frontier areas, 2021 holds loads of promise,” says Santosh Kumar, analyst with Rystad Energy’s upstream staff.
ExxonMobil’s fleet of contracted drillships in Guyana is about to extend to 6 with the arrival of the Noble Sam Croft in April. The Rystad Energy Offshore Rig tracker reveals that three drillships are at present situated within the larger Liza space performing improvement drilling exercise. The not too long ago arrived Stena DrillMAX already initiated drilling actions on the Longtail-2 appraisal properly, whereas the Stena Carron drillship, which not too long ago concluded drilling Bulletwood-1, has now spud the Jabillo-1 exploration properly within the Canje block.
The operator and its companions plan to deploy 4 floating manufacturing, storage and offloading items (FPSOs) to develop the present assets throughout the block. However, the supermajor is anticipated to ramp up drilling actions, because it plans to have a minimum of 5 FPSOs on-line by 2026. Success at this 12 months’s Mako-2 and Uaru-2 wells on the Stabroek block might probably agency up the Mako/Uaru space as a candidate for the subsequent FPSO location. On the Canje block, plans are in place to drill two wells in 2021 along with the uncommercial Bulletwood-1 discover, with the Jabillo properly already in progress. No additional exploration plans are anticipated for the Kaieteur block.
Canada-based explorer CGX Energy operates the Demerara and Corentyne blocks with 66.67% pursuits, with Frontera Energy as its consortium associate. The plan for 2021 consists of as much as two exploration wells, at a mixed estimated price of about $90 million.
There are not any drilling plans reported for this 12 months as but on the Repsol-operated Kanuku block and Tullow Oil’s Orinduik block. However, 3D seismic reprocessing is scheduled to mature prospects for future drilling.
Meanwhile, in japanese Guyanese waters there are solely two unallocated blocks: Block C, which lies east of the Kaieteur block and north of Stabroek, and a smaller 1,325 sq. kilometers block, which was relinquished by the Canje consortium.
(Source: Rystad Energy – Image: Stena Carron drillship)
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