EXXON’s unprecedented series of oil discoveries in the Stabroek Block has focused attention on the offshore geologic basin that stretches across the territorial waters of Guyana, Suriname and French Guiana. While Guyana remains the crown jewel, experts like Trinidad & Tobago’s Kevin Ramnarine are pointing to a larger emerging “Golden Corridor,” in light of recent discoveries in Suriname.

As discussed in last week’s column, this basin was a major topic of interest at this year’s Institute of the Americas La Jolla conference, a meeting of highly respected academics who study the region. A panel on the Guyana Basin’s development included Ramnarine, former minister of energy for T&T, who spoke at length about the region’s future.

The Stabroek Block, which covers a large section of Guyanese waters more than 150 km offshore, remains the most successful area to date, with 16 discoveries totaling more than 8 billion barrels of oil equivalent. Other blocks in Guyanese waters have had successful finds but nothing approaching the quantities found in the Stabroek.

But panelists noted the heightened interest in Suriname, especially as Apache Corp. has made two discoveries at the Maka and Sapakara sites over the past several months with third and fourth exploration wells in progress. Interest in these sites is high since they are both close to the maritime border with Guyana and the Stabroek Block.

Suriname’s elections last week appear to have gone off without incident. The newly elected Progressive Reform Party (VHP) has already announced that encouraging further oil exploration and development will be a key priority for their new coalition government. Meanwhile, in Guyana, the still unresolved elections process has slowed project approvals and spooked investors.

Total is also operating in Surinamese waters and Stabroek Block operator, Exxon, recently agreed to buy part of another block owned by Malaysian company, Petronas. Given the long development process for offshore deposits and the high risks and costs, Ramnarine and his colleagues believe that bringing production online would take five to seven years, especially considering low prices.

In Guyanese waters, attention continues to be focused on the Stabroek Block, but exploration is also ongoing in the Kaieteur and Canje blocks further out to sea. Exxon would be the operator in both blocks. Hess Corp., Cataleya Energy Ltd., and Ratio Petroleum also own shares in the Kaieteur Block while Mid-Atlantic, JHI, and Total all own part of the Canje Block. As of late last year, at least three exploration wells were planned for each block but it’s unclear whether those plans will proceed in this new environment.
Despite the enormous success overall, finds outside the Stabroek Block have been limited so far. Exploration on the Kaieteur and Canje is still in its early stages and discoveries in the Orinduik and Kanuku, closer to shore have been small in comparison to the finds in the Stabroek. Panelist Lisa Viscidi noted that the smaller discoveries in the Orinduik Block by Tullow, Total and Eco Atlantic will likely face long delays in development due to relatively poor geological results.

With oil prices likely remaining low for the foreseeable future, countries all around the world are seeing the same thing—it’s a tough time to attract investment, even in the most promising areas. Now that Guyana’s neighbors are drawing increased attention, it’s critical than ever that we keep our own investment climate as attractive as possible.