More oil discoveries offshore the South American country of Guyana are expected to be made as exploration continues on the back of an already discovered 3.2 billion recoverable barrels.
Industry Analyst Wood Mackenzie believes that globally, the most-favoured plays will be deepwater sweet spots promising high resource density, rapid commercialisation and breakeven prices below $50/barrel.
Most of the best of these are around the Atlantic margins. Basins are a mix of the proven – such as Guyana, Mauritania, and the US Gulf of Mexico – and unproven frontiers, including Nova Scotia, South Africa, and Namibia, the analyst says.
Wood Mackenzie’s Julie Wilson, Research Director, Global Exploration, says Latin America is currently the “hottest region in the world” in terms of exploration and Guyana is seen as a major player. Potential for more discoveries continue to be high as much attention is also being placed on other drill campaigns outside the Stabroek Block.
“ExxonMobil has been hogging the spotlight with the Stabroek Block but there are other operators in the area who are moving ahead with their plans. So we are waiting to see some of those spud this year and we await those results expectantly…” Ms. Wilson said.
Tullow Oil plc has said that preparations are underway for drilling offshore Guyana possibly in late 2018. The company said that it is currently processing seismic data with a view to determining drilling prospects. The company has a 30% interest in the Kanuku block and a 60% interest in the Orinduik block offshore Guyana.
Meanwhile, CGX Energy Inc. recently renegotiated its work commitments for the Demerara, Corentyne and Berbice Petroleum Prospecting Licenses in Guyana and expects to recommence exploration activities in 2019.