UK-based oil company, Tullow Oil Plc, has made its first discovery of oil in commercial quantities offshore Guyana.
According to a release from the Public Affairs Unit of the Ministry of the Presidency, Director of the Department of Energy, Dr. Mark Bynoe, announced that Tullow Oil Plc, wholly owned subsidiary Tullow Guyana B.V. Jethro-1 exploration well , made the discovery in the Orinduik Block offshore Guyana.
The Jethro-1 well was drilled by the Stena Forth drillship to a total depth of 4,400 metres in approximately 1,350 metres of water.
Dr. Bynoe said the Jethro-1 well is the first discovery on the Orinduik Block and comprises high-quality oil-bearing sandstone reservoirs of Lower Tertiary age.
“This is a major development for the Co-operative Republic of Guyana (CRG) as it adds to the further de-risking of the deep and ultra-deep zone. Furthermore, it offers significant potential for the diversification of the CRG’s hydrocarbon production base,” Dr. Bynoe said.
He explained the well encountered 55m of net oil pay which supports a recoverable oil resource estimate that exceeds Tullow’s pre-drill forecast.
“The Department of Energy (DE) is encouraged by the prolific rate of discovery in the CRG and will continue to work assiduously and conscientiously to extract optimum value from these resources for all the peoples of our country,” the Director said.
Dr. Bynoe reiterated that this new discovery demonstrates the vastness of Guyana’s natural resources while reminding that Guyanese stand to benefit significantly from the oil discoveries and must therefore continue to be aspirational and focused with a transformational mind-set.
With this new find, Tullow will now evaluate the data from the Jethro-1 discovery and determine the appropriate appraisal activity.
He said that the Jethro discovery significantly de-risks other Tertiary age prospects on the Orinduik Block, which includes the shallower Upper Tertiary Joe prospect. Drilling should begin there later this month after the completion of operations at the Jethro-1 well.
The Carapa-1 well will be drilled later this year on the adjacent Kanuku licence. Tullow Guyana B.V. operates the Orinduik block with a 60 per cent stake. Total E&P Guyana B.V. holds 25 per cent stake while the remaining 15 per cent is being held by Eco (Atlantic) Guyana Inc.
Earlier this year , company spokesman George Cazenove , told the Guyana Chronicle that the company is injecting US$80M to drill three wells offshore Guyana.
“We know the potential of Guyana; we have seen what Exxon has done, we are obviously impressed with what they have done and see that potential but I think it is important to realize that the wells that we are dripping this year they are exploration wells,” he said at the time.
According to a Production Sharing Agreement (PSA) signed between the Government of Guyana, Tullow Guyana B.V and Eco (Atlantic) Guyana Inc, the country could benefit from as much as 60 per cent in oil profit, including a one per cent royalty once the explorations are successful and the companies start pumping for oil in the Orinduik Block.
