Energy Dept. Head hints at reducing large offshore blocks

Oct 15, 2019 News

Before heading to the next licensing round, there are two key things, which have to be done says Energy Department Head, Dr. Mark Bynoe.
The official identified these to be a legislative review as well as the completion of a 2D/3D multi-client survey to improve the department’s understanding of the Guyana basin.

Energy Dept. Head, Dr. Mark Bynoe

But when this survey is done, Dr. Bynoe said consideration will be given to whether it would be in the nation’s interest to head to the licensing round with the blocks remaining the same size.
During a discussion on Kaieteur Radio’s, “Guyana’s Oil and You” programme, Dr. Bynoe said, “We are now the hottest destination… (And) we are on record indicating that we are looking to have 3D seismic survey done in the shallow continental shelf, in the relinquished areas and also in Block C.
“That will help determine whether to keep the blocks in the same shape and what prospectivity there would be before we move to another licensing round.”
The Energy Department Director noted that the survey will also help Guyana to offer packages that would retain more value than before.
Kaieteur News understands that there are six major blocks offshore Guyana, which will be up for renewal after first oil commences in 2020. They are the Roraima Block, which is operated by Anadarko; The Demerara Block operated by CGX Resources Inc.; The Kanuku Block operated by Repsol, Total and Tullow; The Orinduik Block led by Tullow, Eco Atlantic and Total; and the oil rich Stabroek Block which is operated by ExxonMobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL), Hess and CNOOC/NEXEN.
The foregoing blocks are up for renewal at different dates with some being in 2020 and others in 2022 and 2023. (The Chart attached to this article gives a breakdown of the different dates each block would be ripe for renewal and subsequent relinquishment.) When the licences are renewed, portions would have to be relinquished. The government can choose to auction those relinquished.
Furthermore, 20 percent of the Canje Block, which is in the hands of Mid-Atlantic, JHI Associates, Total and ExxonMobil’s subsidiary EEPGL was relinquished earlier this year.

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