Tuesday, December 7, 2021

Tullow walks away from Suriname, holds onto Guyana with 200-million-barrel campaign planned next year

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UK-based multinational oil and gas exploration company Tullow Oil is calling it a day in Suriname. Drilling operations at the Goliathberg-Voltzberg North (GVN) exploration well at Block 47 failed to deliver commercial crude earlier this year after reaching total depth. The company said in its November Trading Update on Wednesday that following the GVN campaign, it decided to relinquish the license.

“Following the GVN-1 well result, the JV Partners have notified the Government of Suriname that they have elected not to enter into the next phase of Block 47, and Tullow will exit this licence on 31 December 2021,” the company said. Tullow is the operator of the block with a 50% stake. Petroandina Resources Corporation N.V. (Pluspetrol) holds 30% with Ratio Suriname Limited holding the remaining 20%.

Tullow said it has also decided to relinquish Block 54 at year end.

But even as the company exits Suriname, it plans to spud a new prospect offshore neighbouring Guyana next year that could potentially deliver over 200 million barrels (mmbbls ) of hydrocarbon resources.

Tullow looking to bring in partners, reduce capital exposure in Guyana

Tullow said it is looking to drill a new exploration well on the Kanuku license which is adjacent to the prolific Stabroek Block.

“In Guyana, the Kanuku JV Partners plan to drill the Beebei-Potaro commitment well in mid-2022, targeting in excess of 200 mmbbls gross mean unrisked prospective resources across two targets,” Tullow said.

Back in September, the company said 2021 is a transition year as the Group begins to deliver the 10-year business plan presented at its Capital Markets Day last November.

Chief Executive Officer Rahul Dhir told Reuters the company is looking to bring in partners and reduce its exposure in Guyana where it is the operator of the Orinduik block and holds a 37.5% stake in the Kanuku block.

Earlier this year, the Guyana government granted an extension to the term of the Orinduik license that will see the block partners maintain control of the acreage until 2023.

Tullow has made a total of three discoveries in Guyana – Carapa-1 at the Kanuku block and Joe and Jethro on the Orinduik block.

A company spokesman had told OilNOW Carapa is not commercial, but is an important technical discovery while pointing out that Joe and Jethro contain heavy oil and have high levels of sulphur.

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