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CGX, other oil explorers urged to speed up work
As the price of oil continues to hit the highs, Guyana has urged CGX Energy to speed up the process and to start actual drilling as early as possible.
Speaking to reporters at his New Garden office yesterday, President Bharrat Jagdeo also disclosed that another major exploration company operating in the Takatu and Rupununi areas has signaled an intention to start drilling by this year end or early next year.
The global oil situation has taken even greater significance with one of the world’s largest producer, Saudi Arabia, unable to guarantee that it will meet demands.
CGX has assured it is moving quickly and other groups who have been granted off-shore exploration permits have also promised to speed up their work to reach the drilling stage. Within months the company would concentrate on what is called 3d seismic surveys to determine even more deposits.
According to the President, rising energy costs and the continuing harsh effects on the cost of living will be one of the main issues to be raised in a CARICOM Heads of Government Meeting next week.
So far, to directly tackle the fuel prices government has erased the taxes on diesel, kerosene and cooking gas and on gasoline to seven per cent from 50 per cent a year ago.
Speculations in the oil market coupled with the declining value of the US dollar are all contributing to a harsh situation, Jagdeo said.
CGX Energy Inc. is a Canadian-based oil and gas company focused on exploring for oil in the Guyana-Suriname basin.
In 1996, the founders of CGX began negotiations with the Government of Guyana to acquire an offshore concession to explore for oil. CGX and others view the Guyana-Suriname Basin as attractive for high-risk exploration for hydrocarbons.
The United States Geological Survey (USGS) has identified the Guyana-Suriname Basin as having the second highest resource potential after Greenland among unexplored oil basins in the world. The USGS estimates mean recoverable oil reserves of 15.2 billion barrels and gas reserves of 42 trillion cubic feet.
In June 1998, CGX Resources Inc., a wholly owned subsidiary of CGX, was granted the 10-year Corentyne Licence by the Government of Guyana. That area covers 3.8 million acres, most of it offshore.
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