Page 4 - LatAmOil Week 06 2022

COMMENTARY Y
LatAmOil COMMENTAR LatAmOil

(Image: CGX Energy)
Kawa-1 discovery

raises questions

Guyana’s first commercial crude discovery outside of the Stabroek block has inspired
calls for the creation of a new contract model that is more favourable to the government

THE first discovery of crude oil in commercial He went on to say that the Canadian com-
quantities outside the Stabroek block appears to panies were still working to expand their
WHAT: have come as something of a relief to the Guy- understanding of the northern section of the
The Kawa-1 find has de- anese government, headed by President Irfaan Corentyne block and would carry out further
risked Guyana’s offshore Ali. appraisal operations. Once these have been
zone while raising ques- Natural Resources Minister Vickram Bhar- completed, he said, CGX and Frontera will be
tions about PSA terms. rat gave voice to that relief last week, telling Oil- able to issue an official notice of discovery. In
NOW.gy in an interview that the oil found by turn, he said, this notice should help pave the
WHY: CGX Energy and Frontera Energy in the Kawa-1 way for commercial development of Corentyne,
Guyana’s share of rev- well at Corentyne had shown that ExxonMobil’s which will benefit the country’s economy and
enue from the Stabroek success at Stabroek was not a fluke. society.
deal is relatively low.
“The positive announcement is significant Bharrat did make some cautionary state-
for the people of Guyana, as it further de-risks ments about the need to ensure that the new
WHAT NEXT: the Guyana basin and deepens our knowledge reserves found in Kawa-1 were brought to mar-
The executive and
legislative branches of on how the oil and gas resources are spread,” ket in a way that kept environmental risks and
the government will have he explained. “Under the PPP/C leadership, carbon emissions under control.
time to debate the matter all discovered resources would only add to the However, he also told OilNOW.gy that the
while CGX and Frontera transformational wealth and prosperity to be government’s policy agenda addressed these
proceed with exploration. catapulted exponentially by 2025 and beyond.” needs.

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