The way has been cleared for Canadian oil exploration company CGX to commence drilling one of two wells in its concession offshore Guyana with the arrival on Sunday, January 29, of the Ocean Saratoga, a semi-submersible drilling rig.
President Donald Ramotar in discussion with CGX officials, Natural Resources and Environment Minister Robert Persaud and Head of the Petroleum Division of the Guyana Geology and Mines Commission (GGMC) Noel Dennison
According to a release by the Government Information Agency (GINA), CGX President and Chief Executive Officer Stephen Hermestone made the disclosure after meeting President Donald Ramotar in the company of Vice President Dewi Jones and Chief Operating Officer Michael Stockinger. Natural Resources and Environment Minister Robert Persaud and Head of the Petroleum Division of the Guyana Geology and Mines Commission (GGMC) Noel Dennison were also part of the meeting. The Ocean Saratoga rig departed the Gulf of Mexico on January 1, en route to Guyana’s territorial waters, and on its way sojourned in neighbouring Trinidad and Tobago for refuelling.
Hermestone told GINA that the rig’s anchor lines were secured immediately after arrival and that drilling would be the next major operation. The CEO said he is hopeful of a good and safe operation and spoke with confidence about the cadre of operators conducting the drilling “We’ll see what the well results show us… we hope to find the oil … you always plan for success,” Hermestone said.
Drilling of the Eagle Well will last 60 days and the Jaguar well, 180 days. Drilling of the Jaguar well is being pursued through a joint venture of CGX; Repsol, a Spanish company; Tullow Oil of London, and YPF.
CGX recently announced that acclaimed Institute of Applied Science and Technology (IAST) head, Guyanese born Dr Suresh Narine has been appointed on the board of directors for CGX Energy Incorporated. Narine had expressed gratitude for the appointment, and spoke of some of the benefits of Guyana being an oil producing economy rather than of a fuel importer.
Guyana is the second most attractive under-explored basin in the world with a potential of 15.2 billion barrels of oil. If oil is to be found, production targets would be estimated at 50 million barrels per year.
President Ramotar has been keeping abreast with activities in the oil and gas sector, and in the past week, has met some of the main companies involved in offshore drilling, including Repsol and Exxon Mobile. Anadarko, America’s largest independent oil and gas company, has signalled to the Guyana government its interest in an offshore concession as it sees the South American country as one with a great deal of promise in the oil and gas industry.
Last September, Anadarko Business Development Vice President Ian J Cooling had met former President Bharrat Jagdeo with the proposal, and on January 17, international business developer of the company, Richard Lapin met Guyana’s new president with the same proposal.
A U.S. based Petroleum Company Prime Energy LLC – Caribbean proposed last year to construct a modular mini refinery locally, with a capacity to hold 20,000 barrels daily.
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