The Orinduik Block... Eco Atlantic to sell interest once oil is found-CEO

The Orinduik Block… Eco Atlantic to sell interest once oil is found-CEO

Mar 14, 2019 News

By Kiana Wilburg

Once Eco Atlantic and its other partners in the Orinduik Block, Tullow and Total, find oil, Eco intends to sell its interest. This is according to its Chief Executive Officer (CEO), Gil Holzman. He made these remarks during a recent interview that was posted on the company’s website.
Holzman said, “Having Tullow and even Total which is the second largest super major, they don’t need us in the long future in the producing field. We are not in the business of being oil producers for the next 25 years.
“Let’s be honest; we are very good at what we do, to identify opportunities, very good in exploring and hopefully we will prove to the market that we are very good in discovering oil.”

Eco Atlantic CEO, Gil Holzman

The CEO added, “But we are not a downstream kind of company …We will simply be bought out for the oil that we have in Guyana by one of the big players who is looking to continuously register more oil on their balance sheet …Even guys in the region, Exxon, Total, Repsol, Tullow, they know exactly what is the environment.
They understand the amazing fiscal terms that we have and as I said, let us first drill, discover some oil and then we will see…”
Holzman stressed that he is not going to be sitting on an oil rig for the next 25 years.

ORINDUIK JV PARTNERS
In January 2016, Eco signed a Petroleum Agreement and became party to a Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana.
Tullow Oil as the Operator of the Block, paid past costs and carried Eco for the first 1000km2 of the 2550km2 3D Survey. Further, Tullow contributed an extensive 2D seismic data set and interpretation.
The Company’s 2550 km2 3D seismic survey was completed in September 2017, well within the initial four-year work commitment the Company made for the initial 1000km2.
In September 2017, Eco announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total, a wholly owned subsidiary of Total S.A. Pursuant to the option.
Total paid an option fee of US$1 million to farm-in to the Orinduik Block. An additional payment of US$12.5M was made when Total exercised its option to earn 25 percent of Eco’s working interest in September 2018.
Following the exercise of the option by Total, the Block’s working interests became: Tullow – 60% (Operator), Total – 25% and Eco – 15%. In October, last, the Government approved of the Total farm-in on the Orinduik Block, which has the potential for almost three billion barrels of oil equivalent.