Page 4 - LatAmOil Week 05 2022

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.

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