Tullow Oil said on Wednesday it is working with its partners offshore Guyana to develop plans for unlocking value from the Kanuku licence. The company also announced that drill results from the Goliathberg-Voltzberg North well at Block 47 in neighbouring Suriname are expected soon.
In January 2020, the Carapa-1 well was drilled and determined to be uncommercial on a standalone basis. The results suggest the extension of the Cretaceous oil play from the ExxonMobil-operated Stabroek licence southwards into the Kanuku acreage.
“Tullow is now working with its joint venture partners on the overall prospect inventory and developing plans to unlock value from this acreage,” the company said in announcing its 2020 full year results.
While net pay was determined to be lower than pre-drill forecasts, the company has said the 27-degree API oil supports the significant potential of the Cretaceous play on both the Kanuku, and adjacent Orinduik licences, where it had made two previous discoveries at the Joe and Jethro prospects.
“Carapa is not commercial in itself but it is an important technical discovery,” George Cazenove, Head of Communications at Tullow Oil had told OilNOW. “Joe and Jethro continue to be evaluated but, as previously disclosed, the oil is heavy and has high levels of sulphur which has to be taken into account when deciding if they are commercial,” he had pointed out.
Meanwhile in Suriname, the company said drilling operations are continuing at the Goliathberg-Voltzberg North well and is targeting two prospective intervals in a Cretaceous turbidite play in approximately 1,900 metres of water.
“The well is being drilled by the Stena Forth drillship and a result is expected in the second quarter of 2021,” Tullow stated.
Chief Executive Officer, Rahul Dhir, said after a year of significant change for Tullow, the company is now executing a robust, cash generative business plan which is focused on its most productive assets.
“We have transformed our cost base, implemented rigorous capital discipline and are well placed to benefit from higher oil prices,” he said. “We will start a multi-year, multi-well drilling programme in Ghana next month to deliver sustainable and profitable production growth. Our self-help initiatives will deliver c.$1 billion, including over $700 million from asset sales in the past year.”
Dhir said strong business delivery, increased liquidity and improving commodity prices support constructive refinancing discussions.
“Importantly, we are also announcing today that we intend to be Net Zero by 2030 as part of our commitment to sustainability,” the CEO pointed out. “This commitment is in line with our desire to work closely with Host Communities and Governments and our investors to deliver a long-term and sustainable business.”
