Total fails to submit farm-in details for Qatar Petroleum-Dr. Mark Bynoe

Sep 29, 2019 News

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By Kiana Wilburg

In late July, Qatar Petroleum announced in the media that it had bought 40 percent of the shares French oil major, Total, holds in the Orinduik Block. But up to Thursday last, the government is yet to receive the necessary documentation regarding this farm-in.
Confirming this, recently, was Energy Department Head, Dr. Mark Bynoe. During an interview on Kaieteur Radio’s radio p

rogramme “Guyana’s Oil and You,” Dr. Bynoe was asked if approval has been granted for the Qatar-Total deal. He answered in the negative.
The official said that truth be told; the government is still waiting on certain documents. “Until we have seen those, the government cannot adequately comment on what that arrangement is between the two.
“What I can say is that we are interested in seeing diversification in the basin but we must, at the same time, adhere to the laws of Guyana,” the Energy Department Head commented.
He further stated that it is not so much Qatar, but Total which promised to provide the information but is still to do so. Once this is done, he said that the Energy Department would have to vet the arrangement to see if it poses a security threat.
Dr. Bynoe said, “Remember we are dealing with a national entity. Now let me put to you the question, ‘If you have a company or the Venezuelan government seeking to farm into the Orinduik Block, how are you going to treat with that for example?’
“So in actual fact, we have to examine what are the issues around that before we are able to proceed…” Once that is done, Dr. Bynoe said that a recommendation would be made to the Ministry.
While the department is still waiting on the necessary documentation, Dr. Bynoe was reminded that various media reports show that Qatar Petroleum continues to be referred to as a partner in the Orinduik Block by other parties such as Eco Atlantic which holds a 15 percent interest in the offshore license.
To this Dr. Bynoe said, “Well, I am not aware but we met with Total and they said that they would submit the documents. Remember, any deal that is made between two (oil companies) would have to be consummated by the government…Until such time, it doesn’t matter what else is said out there; it does not exist.”
TWO FOR TWO
To date, Tullow Oil, which is the Operator of the Orinduik Block has already made two successful discoveries. The first was at the Jethro-1 well with the second being at the Joe-1 well.
The Jethro-1 exploration well was drilled by the Stena Forth drillship to a final depth of 14,331 feet (4,400 meters) in approximately 1,350 meters of water. The company said that evaluation of logging data confirms that the Jethro-1 comprises high quality oil bearing sandstone reservoir of Lower Tertiary age.
Further, the company said that it encountered 180.5 feet (55 meters) of net high-quality oil pay in excellent lower Tertiary sandstone reservoirs, which supports recoverable oil resources. It noted that the well has been cased, and is now awaiting further evaluation to determine the appropriate appraisal activity.
As for the Joe-1 exploration well, it was also drilled by the Stena Forth drillship but to a final depth of 7,176 feet (2,175 metres) in approximately 2,546 feet (780 metres) of water.
It was noted that wire line logging and sampling of the oil found confirms that Joe-1 comprises high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age. Joe is also the first discovery in the Upper Tertiary play and also de-risks shallow water exploration offshore Guyana.
ORINDUIK JV PARTNERS
It was in January 2016 that 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$12.5 M 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 year, the Government approved of the Total farm-in on the Orinduik Block, which has the potential for almost three billion barrels of oil equivalent.

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