The excitement surrounding Guyana’s 2022 auction has caught up to investment firm Westmount Energy Limited and all eyes are on South America’s rising oil star.
“…the launch of the 2022 Guyana Licensing Round, under less benign fiscal terms, may bring renewed focus on the incumbent junior players and possible consolidation manoeuvres,” Westmount Chairman Gerard Walsh told investors in its interim result statement.
This is Guyana’s first ever auction. And currently ExxonMobil holds the monopoly with its hold on three offshore blocks, including the massive Stabroek Block. Close to 11 billion barrels have already been discovered there.
The auction is the perfect opportunity for new players to dip their fingers in Guyana’s offshore basin. A total of 25 billion potential barrels are at stake from 14 blocks; three in deep waters and 11 in the shallow area.
The sizes of the blocks on auction range from 1,000 to 3,000 square kilometres (sq. km.).
Guyana shares the basin with Suriname, and Westmound had said that it manifests the hallmarks of a prolific emerging hydrocarbon province.
Westmount said that it is well capitalised with a minimal cost base and investment exposure to the next round of high impact drilling opportunities offshore Guyana.
“While patience has been required, we anticipate that licence timeframes and relinquishment drivers should help to crystalise some drilling decisions from the second half of 2023,” the statement said.
Click here to get more details on the Licensing Round: https://oilnow.gy/glr2022/.