Page 8 - LatAmOil Week 07 2023

LatAmOil GUYANA LatAmOil

However, it has not been clear whether the bonuses of $20mn each for the deepwater blocks
company would seek to acquire access to addi- and $10mn each for the shallow-water blocks,
tional blocks in light of the less favourable terms plus annual rental fees of $1mn and annual
offered under the new PSAs. training fees of $1mn. Additionally, they must
Georgetown has said it will set royalty rates commit to paying a 10% income tax and a prop-
for the new blocks at 10%, compared to the 2% erty tax of up to 0.75%, while sharing profits on
rate that EEPGL is paying for Stabroek, and has a 50:50 basis.
also set cost recovery ceilings at 65%, down Guyana’s government was reported last week
from the 75% figure offered to the ExxonMobil to be planning to release its draft model PSA on
subsidiary. Additionally, the new blocks will be February 13, followed by a consultation period
subject to a 10% corporate tax, while Stabroek is lasting 15 days. The final terms of the contract
exempt from any such levy. are then slated to be published on March 8.
The current licensing round was launched Meanwhile, the bidding round will remain
in December by Guyana’s President Irfaan Ali. open until April 14. Guyana’s government will
It includes 11 shallow-water blocks and three then spend the period between mid-April and
deepwater concessions. Winners of the auc- May 5 evaluating the offers it receives before
tions will be expected to pay minimum signing announcing the winners on May 31. ™

SURINAME
APA reports successful drilling and flow

test at SPS-2 well offshore Suriname

TOTALENERGIES (France) and its US-based the subsequent pressure build-up indicated that
partner APA Corp. have successfully completed the well held more than 200mn barrels of oil in
the drilling and flow testing of the Sapakara place (OIP) in incremental connected resources.
South-2 (SPS-2) appraisal well at Block 58 off- John J. Christmann IV, the president and
shore Suriname. CEO of APA, expressed satisfaction with the
APA said in a statement dated February outcome of the drilling project.
10 that that SPS-2, the second appraisal well He commented: “Results from the SPS-2
drilled at the Sapakara South discovery, had drilling and flow tests are consistent with our
encountered around 36 metres of net crude oil pre-drill expectations, confirm our geologic,
pay in the Campano-Maastrichtian reservoir. It geophysical, and reservoir models and, impor-
described the reserves as “high-quality” and said tantly, add substantial resources towards a
the data it had collected during flow tests and potential development.”

SPS-2 is the second appraisal well drilled at Sapakara South (Image: APA)

P8 www. NEWSBASE .com Week 07 15•February•2023