Page 4 - LatAmOil Week 05 2022
P. 4

COMMENTARY Y
      LatAmOil                                      COMMENTAR                                             LatAmOil















































                                                                                                     (Image: CGX Energy)


       Discovery at Kawa-1







       CGX and Frontera have become the first companies to find hydrocarbons in

       commercial quantities outside the Stabroek block in Guyana’s offshore zone



                         UNTIL earlier this week, Guyana’s upstream   Other international oil companies (IOCs)
                         oil sector had only one real large-scale success   have tried to replicate ExxonMobil’s success
       WHAT:             story to report – that of the Stabroek block, oper-  in Guyana, but so far to no avail. Canada’s Eco
       Two Canadian firms have   ated by the US super-major ExxonMobil and its   (Atlantic) Oil & Gas found oil in the Jethro and
       made a find in Kawa-1,   partners Hess, a US- based independent, and   Joe sections of the Orinduik block in 2019, but
       a well at the Corentyne   state-controlled China National Offshore Oil   the sites appear to contain heavy, high-sulphur
       block.            Corp (CNOOC).                        crude that is far less valuable than the light sweet
                           True, Stabroek is a success on a very large   variety in Stabroek’s fields. Repsol (Spain) and
       WHY:              scale indeed. The block is home to more than   its partners in the Kanuku block revealed in
       Kawa-1 is Guyana’s first   20 confirmed discoveries that hold at least 10bn   early 2020 that they had found non-commer-
       commercial discovery   barrels of oil equivalent (boe) in recoverable   cial quantities of crude oil in Carapa-1 and are
       outside Stabroek.
                         reserves, and the partners have yet to wrap up   hoping for better results from their next well,
                         exploration. It may yield as much as 1mn barrels   Beebei-Potaro-1.
       WHAT NEXT:        per day (bpd) of light sweet crude oil before the   Even ExxonMobil has not been able to repeat
       The partners may seek
       to team up with another   end of the decade, and ExxonMobil has agreed   its own feats at Stabroek. It found only non-com-
       investor before launching   to make associated gas from the field available   mercial quantities of oil in the Tanager-1 well at
       development operations.  for power generation in Guyana, where electric-  the Kaieteur block and has not yet said whether
                         ity supplies are far from adequate.  it will sink a second exploration shaft.



       P4                                       www. NEWSBASE .com                       Week 05   03•February•2022
   1   2   3   4   5   6   7   8   9