Page 10 - LatAmOil Week 14 2022

LatAmOil GUYANA LatAmOil

CGX, Frontera file documents

outlining plans for Wei-1 well

CANADA’S CGX Energy and its partner and and Frontera informed the EPA that they were
majority shareholder Frontera Energy have already moving closer to signing contracts
filed documents with Guyana’s Environmental with some Guyanese service companies. They
Protection Agency (EPA) outlining their plans reported that they were in discussions with
to drill Wei-1, their second exploration well at G-Port Inc. on shore base services in George-
the Corentyne block. town, including standard offshore rig support
According to a report from OilNOW.gy, the logistics and platform supply vessel (PSV)
project documents state that the two Canadian mooring.
companies expect to spud Wei-1 between May Additionally, CGX and Frontera are in dis-
and August of this year at a site about 200 km cussions with Tiger Rentals Guyana on haz-
north-east of the capital city Georgetown. The ardous and non-hazardous waste management
cost of drilling the well has been estimated at and disposal services, as well as PSV mud tank
around $93mn. cleaning services, at facilities owned by Guyana
CGX and Frontera intend to use a semi-sub- Shore Base Inc. (GYSBI) in Houston, Guyana.
mersible rig to drill Wei-1 as a vertical well Furthermore, they are drawing up a com-
and have already secured an option to use the prehensive waste analysis for the Wei-1 drilling
Maersk Discoverer, the same rig used the drill project in order to develop profiles, process flow
Kawa-1, the first exploration well sunk at Cor- diagrams, safety data sheets and other relevant
entyne. In the project documents, the compa- documents covering the generation, transporta-
nies said they were looking to use this mobile tion, treatment, storage and treatment of waste
offshore drilling unit (MODU) because it was material and associated volumes from the Wei-1
capable of drilling Wei-1 safely and effectively, well.
was certified for offshore operations and could CGX and Frontera announced the discovery
tolerate local environmental conditions. of oil reserves in the Kawa section of the north-
To proceed with exploration drilling and ern Corentyne block earlier this year, marking
decommissioning operations, the partners the first major crude find outside the Stabroek
will need to secure access to onshore facilities block assigned to ExxonMobil (US). Since then,
in Guyana (including fuel storage depots, hel- the partners have said they intend to focus
iports, laydown areas, pipe yards, warehouses their exploration efforts on the northern end of
and waste management sites). They will also Corentyne.
procure marine and aviation services from Guy- Equity in the block is split 66.67% to CGX
anese providers. and 33.33% to Frontera, which is also the major-
If the Canadian companies cannot find what ity shareholder is the former company. The part-
they need in Guyana, the project documents ners have also split equity in Demerara, another
state, they will consider providers in Trinidad block in Guyana’s offshore zone, along the same
and Tobago as back-up options. However, CGX lines. ™

Wei-1 will be spudded between May and August of this year (Image: CGX/Frontera)

P10 www. NEWSBASE .com Week 14 07•April•2022