Page 4 - LatAmOil Week 06 2022
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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.



       P4                                       www. NEWSBASE .com                       Week 06   10•February•2022
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