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Operators estimate four billion barrels of oil in Orinduik Block
…say with Venezuela shutdown, US refineries are thirsty
Operators of the Orinduik Block—where the Jethro and Joe exploration wells recently struck oil—are eyeing as much as four billion barrels of recoverable hydrocarbons in the area.
As such, they are modifying plans with the aim of even more exploration wells to be spud in the near future, with as many as 20 prospects.
According to reports, the operators—Tullow, Total and Eco Atlantic Oil and Gas Ltd—believe that in Orinduik’s Tertiary Sandstone, there could be up to two billion barrels of oil, while the deeper Cretaceous layer might contain another two billion barrels.
Speaking recently to the discoveries, Eco Atlantic’s Chief Executive Officer (CEO), Gil Holzman said, “…the issue is the relative challenge of surfacing the oil. In our case, we see many supporting ingredients that suggest the oil is commercial and producible.”
Speaking to the need for an accelerated plan, he spoke to the growing demand by refineries on the market for the type of oil that was discovered at the two wells.
Tullow recently saw a 25 percent drop in its shares, given the results of the analysis of the hydro carbons since the oil—closer to shore from the nearby Stabroek Block—is heavier.
Eco Atlantic’s Chief Executive Officer, Gil Holzman
Undaunted, Holzman recently told investors that “with the shutdown of the Venezuela heavy crude industry, basically, many US Gulf Coast refineries are actually very thirsty for this kind of crude; some have sent idle and some have paid premium to Brent price in order to get this heavy oil… There is very big demand.”
It was noted however that the company would need a higher capital expenditure, but there are chances to tap into the market gap left by Venezuela, where production has tanked, leaving many refineries on the US Gulf Coast thirsty for its heavy oil.
The operators had hit pay-dirt with discoveries in the Guyana licence at the Jethro-1 well, where they encountered 55 metres of net high-quality oil, while the Joe-1 well encountered 16 metres of continuous thick sandstone.
Further analysis revealed the reservoir to have a heavier grade than expected, with high levels of sulphur, making it more expensive to be extracted and to be refined.
Eco Atlantic owns a 15 percent stake of the Orinduik licence offshore Guyana, where the Orinduik Block is being developed with French giant Total and Irish explorer Tullow Oil.
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