MINISTER of Governance, Mr Raphael Trotman said yesterday that the government is inclined to look favourably upon a request for a six-month extension on their contract by the oil exploration firm, REPSOL. The request was made during a courtesy call on Minister Trotman by REPSOL executives, Messrs Allan E. Kean and Giancarlo Ariza.
Minister Trotman’s role at the meeting was to deputise for the President, who has portfolio responsibility for the petroleum sector.
The purpose of the requested extension is to continue gathering seismic data on the Kanuku Block, where the firm is currently conducting exploratory work.
REPSOL is currently required to either commit to drilling or relinquishing exploratory rights by mid-November, 2015. A six month extension would give them up to May, 2016 to make a decision on drilling just one year before the projected drill date, which will remain at the middle of May, 2017.
Acting Commissioner of the Guyana Geology and Mines Commissionn Mr Newell Dennison, who was also present at the meeting, is tasked with presenting a report to the President before the request can be granted.
According to Minister Trotman, the President is eager to fast-forward the development of Guyana for all Guyanese, and sees the extractive sector as one that can provide “the fuel that can take Guyana from zero to 100 fast.” He also noted that the President is keen on expanding investments in the petroleum sector. REPSOL also applied two years ago for exploratory rights for Ultra Deep water Block C.
The company boasts being the first to discover oil in Guyana in July 2012, when they began drilling at the Jaguar-1 Well and found the presence of hydrocarbons. Though that drill site did not produce oil in economic quantities, REPSOL was able to gather significant seismic data that will be useful for future exploratory work.
During the REPSOL ‘reps’ visit, Minister Trotman was presented with a sample of the hydrocarbons found at the Jaguar-1 drill site by the company. (GINA)