From the Dutch-speaking shores of Suriname to the island nations in the Caribbean Sea, mega oil discoveries in Guyana is fueling renewed hope for crude across the region.
Norway-based Rystad Energy says the industry has high hopes after the prolific success of ExxonMobil’s Stabroek block off the coast of Guyana and more recent discoveries by other operators in the region, which have led to a surge in offshore exploration in the Caribbean.
Activities have been ramping up in Suriname, Jamaica, Bahamas, Dominican Republic and Grenada while seasoned petroleum producers such as Brazil and Trinidad and Tobago continue efforts to expand their hydrocarbon industries.
“We estimate the annual number of wells drilled could increase slightly to 25 wells in 2020, as more operators join the Caribbean exploration circuit,” says Santosh Kumar, an exploration analyst at Rystad Energy.
More acreage is being made available for bidding, with some countries conducting their first-ever licensing rounds in 2019 and 2020. Offshore drilling activity has been on a steady rise in recent years, with 23 new exploration wells expected in 2019. Rystad said by comparison, only seven offshore wells were drilled in 2013.
The Dutch-speaking country of Suriname remains confident of finding oil offshore with head of the state oil company, Staatsolie Maatschappij, predicting ‘one find after another’ in reference to the mullti-billion barrel discoveries that have been made off the Guyana coast since 2015.
“I expect that, like Guyana, we will get one find after another…For Staatsolie, but also for Suriname, there are very exciting times ahead,” Staatsolie Chief Executive Officer, Rudolf Elias is quoted as saying in an August 15 Reuters report.
Discovered resources in Guyana currently exceed 6 billion barrels of oil equivalent. US oil major ExxonMobil has made 14 discoveries to date at the Stabroek Block, while London-headquartered Tullow Oil has made 2 at Orinduik.
