ESSO exploration well, the Liza-1 on the Stabroek Block, using the drill-ship, ‘Deepwater Champion’ located approximately 120 miles offshore Guyana, has encountered hydrocarbons.This is according to Minister of Natural Resources and the Environment Mr. Robert Persaud, during an interview reflecting on the performance of natural resources and environmental sectors.
Minister Persaud, however, pointed out that it is too early to confirm whether there are commercial quantities of hydrocarbons, specifically light crude.

Crude oil, commonly known as petroleum, is a liquid found within the Earth comprised of hydrocarbons, organic compounds and small amounts of metal.
While hydrocarbons are usually the primary component of crude oil, their composition can vary from 50 per cent to 97 per cent depending on the type of crude oil and how it is extracted, leading oil and energy website ‘oilprices.com’ said.
The majority of hydrocarbons found on Earth naturally occur in crude oil, where decomposed organic matter provides an abundance of carbon and hydrogen which, when bonded, can catenate to form seemingly limitless chains.
Minister Persaud revealed that a full evaluation of the results is underway from the exploration company.
OPTIMISTIC
Further, the Natural Resources and the Environment Minister remains optimistic of a hydrocarbon discovery of commercial quantities which will further transform Guyana’s economy for the benefit of all Guyanese.
In the first half of 2015, Esso Exploration and Production Guyana Limited (EEPGL) drilled an exploration well, the Liza-1 prospect, on the Stabroek Block, using the drill-ship, Deepwater Champion.
Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil, holds 45 per cent interest. Hess Guyana Exploration Limited holds 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent interest.
In 2012, the United States (US) Geological Survey ranked Guyana as having the second most attractive under-explored basin in the world, with a potential of 15.2 billion barrels of oil and, were a discovery to be made, production targets would be estimated at 50 million barrels per year, which would be equivalent to 140,000 barrels per day.

PREPARING GUYANA
At a deep water exploration and energy governance and capacity initiative workshop held recently, Minister Persaud noted that Guyana has started a very elaborate and comprehensive process in preparing for the oil and gas economy.
He also commended the US Government for its continued technical and other forms of assistance in this regard, the Government Information Agency (GINA) reported.
“I want to commend the US Government and the staff for their abiding support over the years in facilitating workshops in building capacity as we prepare our oil and gas sector in all of its aspects in terms of how do we manage revenues and ensure transparency, and also how do we look at safety and technology and very critically how do we reach out for investment,” the Minister pointed out.
In addition, he emphasised that the US has been an important ally in ensuring that Guyana mobilise the investment and undertake the efforts to develop the country’s natural resources even in the face of some unjustified and unwarranted attempts by some external forces, who seek to push back Government’s efforts in developing the natural resources both off and on shore.
In January this year, the Natural Resources and Environment Ministry launched a policy on upstream oil and gas at a national stakeholders’ forum at the Herdmanston Lodge, Georgetown. (Tajeram Mohabir)