Page 9 - LatAmOil Week 04 2023

LatAmOil GUYANA LatAmOil

The Canadian company is using the Noble Dis- immediately adjacent to the northern section of
coverer, a semi-submersible drillship, to sink the Corentyne block. The joint venture is grate-
the new exploration well. The vessel arrived in ful for the government of Guyana’s ongoing
Guyanese waters last week after completing an support as we worked towards spudding Wei-1
assignment in Trinidad and Tobago. in accordance with the previously agreed terms,
Suresh Narine, the executive co-chairman of and we look forward to potentially delivering
CGX’s bord of directors, expressed satisfaction another discovery for our shareholders and the
with his company’s progress at Corentyne. “The Guyanese people.”
joint venture is pleased to announce that it has CGX is holds the licence for Corentyne via a
spud the Wei-1 well, offshore Guyana and that joint venture with Canada’s Frontera Energy, its
the government of Guyana has approved the own parent company. The partners confirmed
joint venture’s appraisal programme,” he said. the discovery of light crude oil and gas conden-
“Wei-1 will appraise both the Kawa-1 discov- sate in the Kawa-1 well last year, saying they had
ery, as well as explore additional opportunities encountered 69 metres of net pay in the Maas-
within the Corentyne block. The Wei-1 well trichtian, Campanian, Santonian and Coniacian
is on-trend and well positioned for success horizons of the well, which was also drilled with
with both Kawa-1 and recent peer discoveries the NobleCorp Discoverer. ™

Guyanese PM provides breakdown

of costs and budgeting for GTE project

GUYANA’S Prime Minister Mark Phillips
offered a detailed breakdown of the projected
costs and funding plans for the Gas-to-Energy
(GTE) project that the government is carrying
out in cooperation with a subsidiary of the US
super-major ExxonMobil.
In response to questions from an opposition
member of Parliament on January 20, Phillips
stated that the total cost of the scheme was
expected to amount to around $1.8bn. He indi-
cated that the largest portion of this figure, or
$1bn, would be used to cover the cost of building
the pipeline that will carry associated gas from
offshore oilfields to shore.
ExxonMobil Guyana had estimated in April
2022 that this part of the project would carry a
price tag of $1.3bn, OilNOW.gy noted. It did not ExxonMobil will lead the offshore portion of the GTE project (Image: ExxonMobil)
comment on the reasons for the lower figure but
noted that the company had pledged last year to contract awarded to Engineers India Ltd (EIL).
provide a final cost estimate at a later date. The EPC contract will cover services related to
Phillips went on to say that the remaining an integrated complex that includes a natural
costs of the GTE project would be accounted for gas liquids (NGLs) unit and a thermal power
separately from the pipeline. plant (TPP), he said.
He was apparently making a reference to the He went on to say that ExxonMobil intended
agreements between ExxonMobil and George- to pay its part of the bill with cost oil. This means
town that provide for the former to assume it will carry the cost of the pipeline and recover
responsibility for the offshore portion of the its outlays by selling the crude oil it extracts from
GTE system (that is, the field gas-gathering the same fields that supply associated gas for
systems and trunk pipeline) and the latter for GTE, he explained.
the onshore portion (that is, the gas-processing The Guyanese government, meanwhile, will
plant, gas-fired power station and other down- allot budget funding to cover part of its share of
stream facilities). GTE costs during the period between 2022 and
According to the prime minister, the remain- 2025, he continued. Georgetown made some
ing costs amounted to $759.88mn for an engi- GYD20bn ($95.72mn) available for this pur-
neering, procurement and construction (EPC) pose under the 2022 budget and has budgeted
contract awarded to the US-based CH4/Lind- another GYD43.3bn ($207.23mn) for the pro-
sayca consortium and a $23mn supervision ject in 2023, he said.

Week 04 25•January•2023 www. NEWSBASE .com P9