…heavy focus on local content strategy, oil discovery impact on Guyana

THE Guyana International Petroleum Business Summit (GIPEX 2018) opens today to showcase Guyana’s oil-and-gas potential to the world and to facilitate networking and partnership opportunities as the country prepares not only for continued exploration, but for production in early 2020.

The summit which will take place at the Guyana Marriott Hotel in Georgetown, will be the first of its kind to be hosted in Guyana. It is expected to bring together many local and overseas companies and individuals in the oil-and-gas sector, according to official host, the Ministry of Natural Resources, in a press release.

The ministry said the potential for networking cannot be overstated, as capacity-building and local content are some of the foundations of the summit. “The summit is not only expected to showcase Guyana as a vibrant investment destination in oil and gas and energy-related fields, but also highlight opportunities for knowledge transfer and partnerships which can be to the benefit of local and regional entities who provide services in the oil-and-gas sector.

According to the release, the Ministry of Natural Resources sought to be a part of this event “as it was believed that the timing was opportune and our local companies will be better prepared in the long term for the new economic sector.”

The ministry noted that international attention is being placed on Guyana as the new oil “Mecca” and that bookings for participation in GIPEX 2018 are full. The release noted that the interest came not only from foreign companies, but also from their local counterparts.
The GIPEX 2018 agenda is packed with presentations from industry voices – both national and international. Following the welcoming remarks from the Guyana Office for Investment (Go-Invest) and the business community, there will be an overview of oil-and-gas development in Guyana and a presentation on building a successful local content strategy.

Later in the day, there will be presentations on the impact of the oil discovery on Guyana, on subsea technology in Guyana, on managing expectations and preparing for the new reality and on effective management of Guyana’s oil-and-gas resources, among others.
Participants at GIPEX 2018 include ExxonMobil, Repsol Exploracion S.A., HESS, CNOOC Nexen, CGX Energy Inc. Schlumberger, JHI, GBTI, GTT, Baker Hughes, Siemens, ECO Atlantic, Tiger Tanks, Oceaneering, DAI, EDO, Clariant, TechnipFMC, Scotiabank, Macorp, Bristow, VSH, ERM, and Laparkan.

Today’s summit comes at a time when Guyana is gearing for first-oil in 2020. Early last month, ExxonMobil announced its sixth oil discovery offshore Guyana, adding to its previous world-class discoveries since 2015.

The company said then that its Ranger -1 well encountered an approximate 230-ft high-quality, oil-bearing reservoir some 60 miles northwest of its Liza Phase One project within the Stabroek Block. Exxon said that the new discovery provides a new play concept for the 6.6 million-acre Stabroek Block.

“The news of an additional find of this magnitude, particularly at the start of the new year, can be seen as a further blessing, and underscores the richness and diversity of Guyana’s natural resources,” the Guyana Government said through the Department of Public Information (DPI). According to Exxon, the Ranger-1 well discovery adds to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep and Turbot, which are estimated to total more than 3.2 billion recoverable oil-equivalent barrels.

The company said that its affiliate, Esso, began drilling the Ranger-1 well on November 5, 2017 and encountered approximately 230 feet (70 metres) of high-quality, oil-bearing carbonate reservoir. The well was safely drilled to a depth of 21,161 feet (6,450 metres) in 8,973 feet (2,735 metres) of water. “This latest success operating in Guyana’s significant water depths illustrates our ultra-deepwater and carbonate exploration capabilities,” said Steve Greenlee, president of ExxonMobil Exploration Company.

“This discovery proves a new play concept for the 6.6 million-acre Stabroek Block, and adds further value to our growing Guyana portfolio,” Greenlee added. Following completion of the Ranger-1 well, the Stena Carron drill-ship will move to the Pacora prospect, four miles from the previous Payara discovery. Exxon said that additional exploration drilling is planned for the Stabroek Block for 2018, including potential appraisal drilling at the Ranger discovery.

Several companies have advanced their seismic data collection and are expected to drill in 2018. The government has repeatedly called on all stakeholders to act responsibly and patriotically as Guyana continues its thrust into this new sector and as news and events continue to unfold about the extent of the oil reserves offshore and the manifold opportunities and benefits for the Guyanese people.

Late in December, the government released the full petroleum agreement with ExxonMobil at a high-level forum held at the Ministry of the Presidency. During presentation on the contract, it was disclosed that Guyana stands to gain some US$7B over a 20-year period from the LIZA Phase One well alone.