Govt. eyes Takatu Basin for future oil exploration

Feb 17, 2022 News

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… national oil company likely for remaining block – VP Jadgeo

Kaieteur News – The Guyana Government currently has a number of offshore oil blocks still available in the country’s offshore Exclusive Economic Zone (EEZ) with which it is looking at ways of utilising.
With oil exploration activities beginning in Guyana ever since the 1940s and 1950s, Minister of Natural Resources, Vickram Bharrat, yesterday announced that there is an interest by companies to return to exploring in Guyana’s Takatu Basin in Region Nine some two hours from the Brazilian Border.
Minister Bharrat was at the time addressing delegates gathered at the Marriott Hotel for the International Energy Conference and Expo 2022 when he disclosed that the administration has been in receipt of expressions of interest with a view to resuming oil exploration onshore Guyana.
Ever since 2015, Esso Exploration and Production Guyana Limited (EEPGL)—ExxonMobil Guyana—has seen in excess of 20 commercial discoveries of commercially viable hydro carbon deposits totalling more than 10 billion barrels of crude and trillions of cubic feet of natural gas.
According to Minister Bharrat, while in the 1940s and 1950s, there had been encouraging results, operators are now able to benefit from better technology and better infrastructure in terms of roads to access the Region Nine locale.
Bharrat’s assertion comes on the heels of an announcement by Vice President Bharrat Jagdeo on Day One of the Conference, when he stated that government was looking at its options regarding what to do with the remaining oil blocks.
To this end, he told delegates that the administration was currently mulling the establishment of a National Oil Company using the blocks.
Alternatively, he said, government could very well go to public tender, with or without additional seismic surveys being completed.
According to Jagdeo, a decision would be taken by the third quarter of this year.
Meanwhile Minister Bharrat, in addressing Energy Corridor and Cross-border oil field development and services, noted that Guyana is on the verge of becoming one of the largest oil producers per capita.
He was adamant that Guyanese companies are capable of becoming major players in the supply of goods and services for the industry.
To this end, Minister Bharrat noted that in order for the local private sector to be able to grow over time the administration has to ensure that a greater percentage of the value created by the industry stays in the country.
He said that it is with this in mind that government is looking to forge ahead with its plans to develop the country as a major player in the energy corridor, and pointed to the development of the gas-to-shore project.
According to Minister Bharrat, one of the country’s biggest problems continues to be power generation, its costs and reliability which he described as a hindrance to Guyana’s value-added industry
“For too long, Guyana has exported raw materials; it is time to develop a vibrant manufacturing sector.”
This, he said, would be possible with cheaper and more reliable electricity and this is why the administration has not only embarked on the project but it has already reached an advanced stage of development.
To this end, he outlined that government has already started to undertake geotechnical and geophysical surveys.
Additionally, the Minister disclosed that the route for the pipeline for the gas-to-shore project has already been identified and that the administration is presently at a stage of looking to go out to bids for the construction of the new gas fired electricity plant and related facilities.
“We are advancing at a pace because we realize how important it is.
He was adamant, that the gas-to-shore project will not only result in lower electricity bills but would redound to every Guyanese, through the building of a vibrant manufacturing sector.
Minister Bharrat told delegates that with the project in place, a thriving manufacturing sector would see savings had on foreign currency with reduced importation among other benefits to be had “from this single project; that is why we want to implement this project as fast as possible.”
He told delegates that as it relates to the energy corridor, the administration is working feverishly with Brazil and Suriname with the development of that corridor.
He noted too that Guyana offers shortest access for significant parts of northern Brazil and this, together with a road link to the deep-water harbour, “will serve both countries.”
The northern Brazilian market is available to Guyana, “that administration was looking to tap into “especially with energy.”
The energy corridor, he said, will see the three countries teaming up to share power using an interconnected grid.
According to Minister Bharrat, talks are ongoing between the three countries and “we are now in the drafting stage of developing a strategy that would work for our countries.”
With this in mind, he noted that the countries would also be working towards developing the necessary capacity in order to realise the energy corridor, in addition to a gas market.
He was adamant that in addition to the local market, there is huge demand in Northern Brazil that can be tapped by Guyanese businesses and that the opportunities that will present with the new sector has the potential to transform the country into not only a food, but an energy capital of the region.

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