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Exxon’s search finds traces of oil, Govt. cautious
Guyana’s third major search for oil in recent years is showing encouraging results, Government announced yesterday.
It would spell good news, at least for the Government, with four days left before
President Donald Ramotar and Natural Resources Minister, Robert Persaud during a visit earlier this year to Exxon’s exploration vessel.
Guyana heads to early polls to choose a new Government.
According to the Ministry of Natural Resources yesterday, the Deepwater Champion located approximately 120 miles offshore Guyana, has encountered hydrocarbons. Hydrocarbons are organic compounds that are made of only hydrogen and carbon atoms. They are found in many places, including crude oil and natural gas and are strong indications that oil is there.
Minister of Natural Resources and the Environment, Robert Persaud, reflecting on the performance of the natural resources and environmental sector, warned that it is too early to confirm whether there are commercial quantities of hydrocarbons, specifically light crude.
“Minister Persaud revealed that a full evaluation of the results is underway from the exploration company.”
The Liza-1 well on the Stabroek Block is being drilled by Deepwater Champion, which was hired by Esso Exploration and Production Guyana Ltd. (EEPGL), an affiliate of ExxonMobil, which holds 45 percent interest. Hess Guyana Exploration Limited holds 30 percent interest and
The Deepwater Champion drilling vessel.
CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest in the venture.
The well is being drilled approximately 120 miles offshore Guyana.
“Further, the Natural Resources and the Environment Minister, remains optimistic of a hydrocarbon discovery of commercial quantities which will further transform Guyana’s economy for the benefit of all Guyanese,” a statement from the Ministry said .
News reports said that Exxon Mobile country manager, Jeff Simons, also confirmed that a bore hole in the Atlantic Ocean in an area claimed by Venezuela has produced positive results, though he declined to discuss specifics about what had been found.
“We have found hydrocarbons but we are still evaluating to see to what extent it is in commercial quantities,” Simons said. “We do not want to go too far down the road at this point. We will know after the testing and evaluation is done.”
Minister Persaud is set to meet with company officials and discuss the find.
Decades of exploration in Guyana have yet to locate a viable source of oil or gas despite the proximity of energy-rich Venezuela and Trinidad and Tobago.
Venezuela has long claimed about two-thirds of Guyana’s territory as well as the offshore area where Exxon Mobil began drilling in March.
In October 2013, the Venezuelan navy detained an oil research vessel operating under contract for U.S.-based Anadarko Petroleum Corp. Guyana Foreign Minister Carolyn Rodrigues-Birkett said in March, that the country would push ahead with exploration in the area despite protests by the Venezuelan government.
In May 2012, CGX Energy which has concessions, announced that it has failed in its bid to find oil during a drill in its Corentyne concessions.
That same year, another well being drilled in the Georgetown offshore concessions by Spanish-owned Repsol also failed in its attempt.
A large chunk of Guyana’s foreign currency earnings goes back to buying oil. With neighbouring countries like Suriname, Venezuela and Brazil already with large wells, it is widely expected that Guyana will also find oil in commercial quantities.
But territorial disputes first with Suriname and now with Venezuela have threatened to derail the explorations. The first attempt was delayed for years after a CGX rig was ejected in 2000 from what Guyana considered its waters. A UN resolution later saw the waters between the two countries being divided.
Venezuela, following the October 2013 removal of Anadarko Petroleum Corp has been expressing its unhappiness, but Government has insisted that the waters belong to Guyana, as ratified by various rulings over the years.
Guyana, with support from the US and other countries, has been preparing for the advent of full scale oil production, including managing the proceeds and dealing with the possibilities of a spill.
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