Page 13 - LatAmOil Week 20 2022

LatAmOil GUYANA LatAmOil

The Canadian company and its partner (and Corentyne. Their next exploration drilling tar-
majority shareholder) Frontera Energy first get is Wei-1, which is about 14 km north-west
announced the discovery of hydrocarbons of Kawa-1.
at Kawa-1 in January of this year. They then Equity in the Corentyne block is split 66.67%
announced earlier this month that they had to CGX and 33.33% to Frontera. The partners
completed an integrated report confirming that have also split equity in Demerara, another
light crude oil and gas condensate had been block in Guyana’s offshore zone, along the same
found in the well. lines. ™
CGX and Frontera were asked during the vir-
tual presentation why they had let so much time
pass between its initial announcement of the
find and publication of a statement on the inte-
grated report. Regan Palsgrove, Frontera’s head
of exploration, responded by saying that Kawa-1
had been such a long and deep well that the part-
ners needed the extra time. She also pointed out
that the companies had needed to work with
third parties to integrate all of their data because
they had not collected any modular formation
dynamics (MDT) samples from the well.
“We had many pay zones, some of which
weren’t targeted, and we needed the time to
analyse all of that data,” Palsgrove commented.
She described the extra time as well spent, say-
ing that CGX and Frontera were now confident
about the hydrocarbon potential of each pay
zone within Kawa-1.
The two Canadian companies’ announce-
ment on the discovery of oil reserves in the
Kawa section of the Corentyne block earlier this
year marked the first major crude find in Guy-
ana’s offshore zone outside the Stabroek block
assigned to ExxonMobil (US). Since then, the
partners have said they intend to focus their
exploration efforts on the northern end of Kawa-1 contains both light crude oil and gas condensate (Image: CGX/Frontera)

BRAZIL
PetroReconcavo aims to sign direct gas

supply contracts with industrial clients

PETRORECONCAVO, the privately owned pipeline and that are in states that have already
Brazilian company, has said it is looking to start approved laws that permit acquiring gas directly
signing natural gas supply contracts with indus- from producers, he said.
trial customers. Moreira did not reveal whether PetroRecon-
Joao Vitor Moreira, the company’s director of cavo was targeting any specific companies. But
regulation and new business, explained to Argus he did state that the company was taking this
Media last week that PetroReconcavo had begun approach in a bid to attract customers by offer-
building its client portfolio last year, signing ing discounts in exchange for assuming some of
two- to five-year contracts with local gas distri- the risks inherent in buying gas directly from the
bution companies and beginning deliveries at producer rather than through a distributor that
the start of 2022. Now, he said, it wants to add operates in a regulated market
industrial organisations to the mix and will start PetroReconcavo has crafted this strategy
by courting businesses that are well positioned because a number of major Brazilian industrial
to take advantage of PetroReconcavo’s services. customers, including the fertiliser manufacturer
This includes industrial facilities in Unigel and the petrochemical producer Bras-
north-eastern Brazil that are in close proximity kem, have started procuring some of their gas
to the Transportadora Associada de Gás (TAG) from private-sector producers, he commented.

Week 20 19•May•2022 www. NEWSBASE .com P13