Heavy oil at Orinduik Block becoming more attractive as Venezuela’s supply dwindles – Gil Holzman

Must Read

South America’s emerging deepwater oil giants pledge strategic alliance

Following discussions over the last 24-hours between the newly elected Presidents of Guyana and Suriname, the two leaders announced...

Stena Carron set to arrive at Tanager-1 today as search for more oil in Guyana continues

The hunt for more hydrocarbons continues offshore Guyana, this time outside of the prolific Stabroek Block, as ExxonMobil prepares...

Liza and Kwaskwasi are giants in the prolific Guyana-Suriname basin

The Guyana-Suriname basin has been the subject of much discussion since US oil major ExxonMobil made its world class...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Even though the oil discovered in the Jethro and Joe wells at the Orinduik block turned out to be heavier than expected, one of the partners of the offshore license, Eco Atlantic, is convinced that the attractiveness of the find has increased given the narrowing supply from Venezuela.

Addressing this issue during an interview with Proactive Investors, one of the UK’s leading sources of financial news, was Eco Atlantic’s Chief Executive Officer (CEO), Gil Holzman.

The CEO reminded that the sanctions imposed by the USA have narrowed the supply of oil from the Spanish speaking South American country. In fact, international media outlets reported two days ago that oil tankers carrying at least 18.1 million barrels of Venezuelan oil are idling at sea across the world as a result of being unable to find buyers. Holzman noted as well that some Iranian oil fields have shut down and there is a decline in Mexico’s production too. In light of this, he noted that the oil in the Jethro and Joe wells have more appeal.

The CEO said, “…The outlook for (heavy) oil going from 2024 onwards is very promising. Many Gulf Coast and European and Chinese refineries are very thirsty for this kind of heavy oil and we see a narrowing supply due to the sanctions on Venezuela…We therefore forecast that the price for heavy oil will get better and better.”

In terms of assessments, Holzman said that the partners, Tullow and Total included, have to assess two main ingredients on determining the way forward for Orinduik’s oil. The first ingredient he said is the ability to actually produce the oil and the second relates to the commercialization of the asset.

Holzman said, “…From both aspects, we see very positive indicators. In terms of its producibility, all the reservoir ingredients are very positive, the permeability and porosity are high. We have an overpressure in the reservoir and the temperature is high. It is now 94 degrees Celsius and that means the oil is mobile and the potential is there for it to flow to produce.”

In terms of the economics, Holzman said he expects the forecast to improve based on the market conditions he earlier explained with Venezuela. When the two ingredients are put together for analysis, Holzman said that the partners will determine CapEx and OPEX along with getting a good price.

He concluded, “One thing I can tell you for sure is that no one can write off these oil discoveries. It’s like you have a diamond, some diamonds are flawless, and others are flawed but still, they are worth a lot of money…”

- Advertisement -

Latest News

South America’s emerging deepwater oil giants pledge strategic alliance

Following discussions over the last 24-hours between the newly elected Presidents of Guyana and Suriname, the two leaders announced...

Liza and Kwaskwasi are giants in the prolific Guyana-Suriname basin

The Guyana-Suriname basin has been the subject of much discussion since US oil major ExxonMobil made its world class Liza discovery in 2015 at...

Stena Carron set to arrive at Tanager-1 today as search for more oil in Guyana continues

The hunt for more hydrocarbons continues offshore Guyana, this time outside of the prolific Stabroek Block, as ExxonMobil prepares to conduct a new drill...

Principles for natural gas agreement with the Government of Guyana

The Guyanese government under the contract is likely to have its own share of profit hydrocarbons to lift, including natural gas. A state-owned oil...

Oil giants’ production cuts come to 1 million bpd as they post massive write-downs

(Reuters) - The world’s five largest oil companies collectively cut the value of their assets by nearly $50 billion in the second quarter, and...

More Articles Like This