Page 9 - LatAmOil Week 11 2023

LatAmOil GUYANA LatAmOil

Some critics of the deal have called for renego- In any event, the Stabroek PSC is anticipated
tiation of the PSC, arguing that the contract is to remain unchanged. Meanwhile, Hess also
overly favourable to ExxonMobil and its part- stressed that the areas of the block designated for
ners. The US major has countered, however, relinquishment would not be in the “prospective
that it has been bearing 100% of expenses for areas, [would not] be where we have exploration
exploration in a frontier basin and splitting net [plans] ... [and would not] be where we have the
revenues from oil sales on a 50:50 basis. And for developments in production.”
its part, now that the hydrocarbon potential of Georgetown has indicated that it may make
the offshore zone has been established, Guyana’s the areas that the joint venture surrenders avail-
government has responded by imposing terms able to other investors, he added, but it will not
that are less favourable for investors on the sites take producing fields away from ExxonMobil
offered in its first competitive licensing round. and transfer them to another company. ™

Guyana mulls another bidding round

GUYANA’S Vice President Bharrat Jagdeo
revealed last week that his country might carry
out another offshore licensing round as early as
next year in a bid to sustain interest in its nas-
cent oil and gas industry. The South American
country launched its maiden licensing round in
December 2022, offering three deepwater and
11 shallow-water fields up to international oil
companies (IOCs).
In an interview with Bloomberg on March 8,
Jagdeo said: “We have a ton of decisions to make
now so that we do not slow down the pace of
development.” He did not identify any specific
sites that might be included in a second bidding
round but noted that Guyana’s offshore zone had
enough areas of interest to justify another set of
auctions.
Currently, all of the commercial discoveries
made in Guyanese waters have been within or
close to the “Golden Lane,” a dense and nar-
row band of crude oil and natural gas fields at
the south-eastern end of the Stabroek block
operated by ExxonMobil (US). Additionally, oil
has been found in the Kawa-1 and Wei-1 wells
drilled at the Corentyne block, operated by CGX
Energy (Canada), and in the Joe and Jethro
fields within the Orinduik block, operated by
Tullow Oil (UK/Ireland).
However, the size of the Corentyne finds
has yet to be established and the Orinduik finds
were initially thought to be sub-commercial.
(Additionally, the crude discovered at Joe and The current bidding round includes 14 offshore blocks (Image: petroleum.gov.gy)
Jethro is heavier and therefore less valuable than
the light oil contained in ExxonMobil’s fields at Thus far, at least 10 well-known IOCs have
the Stabroek block.) shown interest in participating in Guyana’s off-
Thus far, then, Stabroek is the only licence shore licensing round. Sources close to the mat-
area to have achieved commercial production. ter told Reuters last week that Chevron (US),
ExxonMobil and its partners have succeeded Shell (UK) and Petrobras (Brazil) were also con-
in bringing the Liza-1 and Liza-2 projects on sidering submitting bids. Guyana’s government
stream, and these two fields are currently yield- has also encouraged Indian firms to partici-
ing about 380,000 barrels per day (bpd) of crude pate in the auctions, and sources close to talks
oil. The third development project, Payara, is between New Delhi and Georgetown told Reu-
due to come on line before the end of the year ters in January that ONGC Videsh Ltd (OVL)
and will produce another 220,000 bpd. It will be had shown some interest in bidding, both indi-
followed by the fourth development project, the vidually and in combination with Indian Oil
250,000 bpd Yellowtail, in 2025. Corp. (IOC). ™

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