UK-based Tullow Oil said on Wednesday it is still processing data from the discoveries it made last year at the 1,800km2 Orinduik block offshore Guyana.
The block partners had found oil at the Jethro-1 and Joe-1 wells, both of which were drilled within budget by the Stena Forth drillship. The Jethro-1 discovery comprised high quality oil-bearing sandstone 55m reservoir of Lower Tertiary age while the Joe-1 discovery comprised high-quality oil-bearing sandstone 16m reservoir with a high porosity of Upper Tertiary age.
Analysis of the results from both of the wells had confirmed that the samples recovered from Jethro-1 and Joe-1 are mobile heavy crudes with high sulphur content.
In announcing its 2020 half-year results, Tullow said, “data reprocessing and evaluation continues in Guyana,” while plans are on stream to drill the Goliathberg-Voltzberg North well in Block 47 offshore Suriname next year. The company said it was also awarded a new exploration acreage in Peru.
The company posted a $1.3 billion loss after being forced to write down $1.4 billion due to falling oil demand.
“Despite the very tough conditions in the first half of this year, we have successfully delivered reliable production and major, sustainable reductions to our cost base,” Rahul Dhir, Chief Executive Officer said.
He stated that the company is close to completing the sale of its interests in Uganda, noting that the quality of Tullow’s assets remains robust.
“Since my arrival as CEO, we have been developing new plans for our business, with the support of our Joint Venture Partners and expert advisors. These plans will deliver enhanced value from our assets to benefit all our stakeholders including our host countries and investors,” he said.
Eco Atlantic Oil and Gas, Junior partner on Orinduik block, has said the heavy oil discovered in 2019 is similar in quality to crude being produced and commercialized in several parts of the world, including the US Gulf of Mexico, North Sea and Brazil’s Campos Basin.
“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,” Gil Holzman, Eco Atlantic’s Chief Executive Officer had said.
Tullow operates the Orinduik block with a 60% stake, while Total and Eco Atlantic each hold 15% and Qatar Petroleum has the remaining 10%.