SBM signs new MOU with Exxon
SBM continues its relationship with ExxonMobil through the signing of a new MOU.
SBM Offshore has announced the signing of a Memorandum of Understanding (MOU) with ExxonMobil Guyana for construction of a multi-purpose floater hull for use on a future floating production storage and offloading (FPSO) project.
ExxonMobil and SBM Offshore have a long history of working together, with multiple FPSO projects underway.
Exxon has previously indicated that at least six FPSOs will be in service by 2027. They have also signaled that the resource base in Guyana has the potential to support up to 10 FPSOs.
The International Energy Conference and Expo hailed as key player in Guyana’s development of its oil and gas resources
As the 2023 International Energy Conference and Expo came to a close, the government hailed the occasion as a huge success, with the Finance Minister, Dr Ashni Singh noting that it provided a platform for local, regional, and foreign businesses and investors to network and even form partnerships in the Energy Field. He indicated that not only did the event bring together Heads of Government, policymakers, academics, and industry professionals but also businesses, entrepreneurs and investors, who were presented with the ideal opportunity to network and explore opportunities for development within the Energy Sector.
“The expo presented a fantastic opportunity to showcase the rapidly changing face of the Private Sector of Guyana because you had not only the traditional big names and the traditional big players who you would expect to be there but you saw a number of companies, some of which are completely new, some are local, some regional, some are international being able to convey here again to this audience and a much wider audience, what they are already doing in Guyana and with Guyana,” Dr Singh said.
“A lot of people clearly took advantage of the opportunity to introduce themselves to potential partners, potential clients and customers, and I would want also to characterize that as an extremely positive thing.
I know that many people met new counterparts for the first time, they were able to introduce themselves, talk about what they’re doing, explore possible opportunities for partnerships, and I think the conference, and in particular, the activities on the margins of the conference, whether it was the coffee breaks, or the receptions that were held in the evenings, or the privately arranged bilateral contacts that the people engaged in, I think that was also hugely successful stream of engagement,” he said.
The Minister of Natural Resources, Vickram Bharrat also applauded the organizers behind the International Energy Conference and Expo, as he too dubbed it one of the biggest Energy Conferences in Latin America and the Caribbean.
Minister Bharrat said he was pleased to see local companies rising to the bar, and competing with and regional and international companies in the Energy Sector, and he was happy with the focus on clean and affordable energy.
“We have no issue with that, as a country we are fully committed to achieving that, we’re working towards achieving that. But the big question is, how are we going to truly finance that? Renewables, costs money; moving to net zero, costs money; cutting emission, costs money. So, how are we going to truly achieve that? If we’re going to sit by and wait on help to come our way, we might be waiting for a long time. So, it speaks towards Guyana as a country sustainably and responsibly exploring and developing its natural resources, at the same time, we are maintaining our environmental credentials,” the Natural Resources Minister said.
Referencing to the need for a balance and efficient energy mix, Minister Bharrat also stated that developing countries such as Guyana should be at the forefront of the supply chain.
“We strongly believe that fossil will not disappear completely. They will still remain even if it’s a small demand for fossil, it will still be there, the need for it will still be there. But the big question, is who will be able to supply it?… We are saying that small developing countries like Guyana, like Suriname, like Trinidad, like the African countries…who have made new discoveries, that we should be able or we should be allowed to supply that small demand that remain,” Minister Bharrat said.
Overall the Conference and Expo saw close to 1,000 delegates in attendance and more than 200 exhibitors on show.
CGX and Frontera set to spud Wei-1 and construction begins at deepwater port in Berbice
Canadian based CGX Energy along with Frontera Energy Corporation have indicated their readiness to spud (begin drilling) the Wei-1 well in the Corentyne block offshore Guyana.
The partners have issued a press release stating their commitment to drill the Wei-1 well and that final preparations are complete in advance of spudding the Wei-1 well.
The well will be spudded no later than January 31, 2023 utilising the NobleCorp Discoverer semi-submersible mobile drilling unit.
The Wei-1 well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana
To go alongside this activity, CGX intends to support the Government’s effort to accommodate increased vessel activity in Guyana. According to a statement from the partners, in-river construction activity has begun for a deepwater port at Berbice.
Work has already begun at the Berbice Deepwater Port (BDWP) on a 50 x 12 metre access trestle from the quayside yard westward into the Berbice river, together with the necessary dredging of the river.
Construction of the wharf, perpendicular to the trestle, will follow.
The cargo terminal aspects of the BDWP are targeted to commence in mid-2023 and operation of oil and gas support base in late-2023, subject to construction schedules and supply chains.
In collaboration with the Government of Guyana, CGX has shifted the immediate focus of the Port to service expected demand for aggregates and building materials to support the Government’s infrastructure development in Berbice which must be imported into the region from elsewhere in the country and offshore.
Photo credit: www.noblecorp.com
APA Corporation Announces First Discovery in Block 53 Offshore Suriname
APA Corporation has announced an oil discovery offshore Suriname at Baja-1 in Block 53. The company also provided an update on recent drilling operations at Dikkop-1 in Block 58.
Baja-1 was drilled to a depth of 5,290 meters (17,356 feet) and encountered 34 meters (112 feet) of net oil pay in a single interval within the Campanian. Preliminary fluid and log analysis indicates light oil with a gas-oil ratio (GOR) of 1,600 to 2,200 standard cubic feet per barrel, in good quality reservoir. The discovery at Baja-1 is a down-dip lobe of the same depositional system as the Krabdagu discovery, 11.5 kilometers to the west in Block 58. Evaluation of open-hole well logs, cores and reservoir fluids is ongoing.
“Our success at Baja marks the 6th oil discovery we have participated in offshore Suriname, and the first on Block 53,” said John J. Christmann, APA CEO and president. “This result confirms our geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of both Blocks 53 and 58.”
APA recently received regulatory approval regarding an amendment to the Block 53 Production Sharing Contract (PSC), which provides options to extend the exploration period of the PSC by up to four years. The company is currently progressing the formalization of the election of the first one-year extension, for which all work commitments are complete.
APA is operator and holds a 45% working interest in Block 53, with Petronas holding a 30% working interest and CEPSA holding a 25% working interest. Baja-1 was drilled using the Noble Gerry de Souza in water depths of approximately 1,140 meters (3,740 feet). The drillship will mobilize to Block 58 following the completion of current operations, where it will drill the Awari exploration prospect, approximately 27 kilometers (north) of the Maka Central discovery.
APA also announced that operations have concluded on the Dikkop exploration well in Block 58. The well encountered water-bearing sandstones in the targeted interval and has been plugged and abandoned. TotalEnergies is the operator with a 50% working interest, and APA holds the remaining 50% working interest. The drillship Maersk Valiant will be moving to the Sapakara field to drill a second appraisal well at Sapakara South, where the joint venture conducted a successful flow test late last year.