…studies promising, but no guarantees – Exploration Manager
SPANISH oil conglomerate Repsol, which will be partnering with CGX Energy Inc and Tullow Inc to drill for oil during the second quarter of 2011, has opened its offices in Guyana and has gathered its team of experts with a view to a successful drill campaign following promising data from studies done. The drill site is located 130 kilometres northeast of the nearest shoreline near Port Mourant, and 160 kilometres east/northeast of Georgetown. Water depth at this location is approximately 230 feet and the well is proposed to reach a total depth of 21,450 feet – or four miles – below the seabed. Drilling is to commence in April 2011.
The well will be the deepest ever drilled in the region and drilling operations will be carried out by Atwood Beacon, a jack-up rig capable of drilling beyond 25,000 feet in depth. The company noted that the Atwood Beacon rig has already arrived in the region and it will be towed to Guyana to start drilling, according to Repsol.
The company said to properly support the drilling of the exploratory well, Repsol have initiated works with local contractors to set up an operations shore base, as well as a helicopter base at one of Guyana’s international airports.
Allan Kean, Repsol’s Atlantic Basin Exploration Manager, said the opening of the office is a culmination of much effort and the company looks forward to a “great” operation. He said that the drill rig is soon to be released from its commission in Suriname and will then make its way to Guyana to commence drilling.
Kean said the company has been in Guyana since 1995 through its affiliates. He said the company has done studies over the past 12 years, and two years ago shot 3D seismic on which the decision was made by the company to drill for oil.
According to Kean, all of the studies and the 3D seismic were done to reduce geological risk. “We take this gamble with no guarantee of return on our investment,” he said.
He said it will be challenging and difficult, but was confident that the company will fare well because of the calibre of people on the payroll.
“We have done everything possible to design the well for a worst case scenario and to avoid a disaster like that of the Gulf of Mexico,” he said.
Caribbean Regional Director of Repsol, Alvaro Racero, said the company has in place the calibre of people to overcome any potential challenges of the project. He said Repsol is very active in Colombia and in Trinidad and Tobago. “We have three supply vessels and a contract for three helicopters,” he said.
He noted that the company will drill for oil in a manner that is consistent with the highest environmental and operational standards. He said it was a pleasure to see that the project has become a reality and the company is very good at what it does.
Spain’s Ambassador to Guyana, Joaquin de Aristegui, said the presence of Repsol in Guyana is an avenue to further bilateral relations between Spain and Guyana. He noted that the two countries share a history and that Spain, through its embassy here, will take steps to reduce the knowledge gaps in the relations. He noted too that Spain is proud to be one of the top investors in Latin America and that his Government stands ready to offer support to Guyana and Repsol in the oil exploration venture. “Mr. Prime Minister, we will be with you and Repsol all the way,” de Aristegui said, addressing Hinds.
Prime Minister Hinds, who delivered the feature address, emphasised Guyana’s pleasure at having Repsol and hopes that the company finds oil. He noted that Guyanese have been waiting for a significant oil find in Guyana.
Hinds highlighted that although the country has seen improvements in its Gross Domestic Product and per capita income over the past 20 years, there is need for partnership in achieving development.
He said Guyana is pleased that it has found partners to help the country maximize its natural resources, particularly petroleum. “We are utilising standard documents in these arrangements, production sharing documents, production sharing approach and production sharing model… “These days we have to make specific arrangements so that the group of taxes for which oil is received in exchange is established in the proper ways in accord with the series of new laws which we put into place,” Prime Minister Hinds said.
Prime Minister Hinds noted that Guyana is working towards fostering closer ties with Spanish countries and referred to the upcoming UNASUR Summit that will be held in Guyana this week.
Repsol Guyana is the operator of the Georgetown licence with 15 percent participating interest, and the joint venture partners are Repsol’s affiliate YPF, Tullow Oil plc and CGX Resources Inc.
On Monday, a delegation from Tullow Oil, a London-based Company met President Bharrat Jagdeo to share with him their excitement about commencing the drilling for oil in the Guyana basin.
Prospecting for oil in Guyana dates back to the 1920s, and since then the Rupununi has been one area to give favourable indication of oil. According to the Prime Minister, government will continue to collaborate with companies for the exploration of oil in Guyana to aid the advancement of the lives of Guyanese.