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Repsol seeks fresh licence to continue exploration – Jagdeo confirms
After 10 years with Kanuku Block…
Kaieteur News – Spanish oil company Repsol wants to keep the Kanuku block, which it has operated for a decade. Vice President, Dr. Bharrat Jagdeo, confirmed that Repsol has, in fact, sought a fresh licence for the block. However, he noted that such a renewal is not automatic.
Though the original term for the Kanuku block agreement was slated to end in May, the clock ticks into August 2023 with Repsol still firmly holding on to the block. While the government has not decided on the application yet, this extended tenure can be attributed to a specific provision in the newly minted Petroleum Activities Act 2023, recently signed by President Irfaan Ali. This Act states that if a licensee applies for renewal of an exploration licence before the expiration of its original term, the licence remains active until the minister reaches a final decision.
Map showing the Kanuku block offshore Guyana
In the wake of this development, Repsol’s ongoing activities, such as environmental surveys highlighted by Guyana’s Maritime Administration Department, are legitimate. Thanks to the provisions of the Petroleum Activities Act, they can rightfully continue operations until the administration decides.
Since becoming an operator in May 2013, Repsol has embarked on a 10-year exploration journey, studying the block’s potential through drilling and research. However, the past decade did not lead to any commercial discoveries.
Repsol drilled the Beebei well in 2022. The company was optimistic about uncovering 200 million barrels of recoverable oil equivalent. Though their drilling operations revealed good-quality reservoirs at both primary and secondary targets, the discovery turned out to be water-bearing, not oil-bearing. The Noble Regina Allen rig drilled the Beebei-Potaro well to a depth of 4325 metres in 71 metres of water and the well has been plugged and abandoned. The find was a considerable setback for Repsol.
Previously, the company made a discovery at Carapa-1 in 2020. Although it only found four meters of net oil pay, making it commercially non-viable, the find was still significant from a technical perspective. Tullow, Repsol’s partner, has said the results suggest the extension of the Cretaceous oil play from the ExxonMobil-operated Stabroek block southwards into the Kanuku licence.
Repsol is the operator of the Kanuku block, with a 37.5% working interest. Tullow Oil also holds a 37.5% interest, while the remaining 25% is shared in a joint venture between TotalEnergies and Qatar Petroleum.
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