With a target to spud its first exploration well next year, the Madrid, Spain headquartered oil company Repsol will tomorrow begin offshore works in the Kanuku Block.
Scheduled to last some two months, Guyana’s Maritime Administration Department last week announced that the company will tomorrow commence a geophysical, seismic and environmental baseline survey within the Kanuku Block.
Repsol told Stabroek News that it was advancing its exploration activities here in preparation for the 2019 drilling.
“We are continuing to advance our exploration program for the Kanuku Block, with a target to spud the first exploration well in 2019,” Country Manager Ryan Ramjit, through Repsol’s Madrid representative Christina Shafer told Stabroek News.
She said that her company is proud to be operating in Guyana, where it has been present for more than 20 years.
The company is in a partnership with the United Kingdom-headquartered Tullow Oil and French major Total in the Kanuku Block where working interest stakes are divided as follows: Repsol and Tullow 37.5% each while Total has 25 percent.
Under the contract and an amendment signed between Guyana and Repsol Exploracion S.A, Guyana stands to gain a higher percentage of profits with increased production as compared to that of the one signed with Esso Exploration and Produc-tion Guyana Limited (EEPGL) and partners.
Repsol, Tullow Oil and Eco (Atlantic) Oil and Gas, agreed to government’s profit split going as high as 60%, depending on the barrels of oil produced per day [BOPD].
The contract with Repsol and its addendum were released in May of this year. Then, the Minis-try of Natural Resources noted that Repsol, which has been present in Guyana since 1997, is currently focused on the Kanuku block, 150 kilometres offshore Guyana and had said that the company would begin drilling in 2019.
“The company is targeting an oil prospect in the Kanuku block, where it plans to drill the first exploration well in 2019 to determine if hydrocarbons are present. The internal and external ESHIA (Environmental, Social and Health Impact Assessment) process will begin in 2018,” MNR had said in a release.
It was also noted that on May 23rd, Repsol’s Director of Global New Ventures Mikel Erquiaga and a team from the company had met with Minister of Natural Resources Raphael Trotman and they reiterated the company’s commitment to its Guyana operations and an aggressive programme of activities that would move swiftly from seismic surveys to exploratory drilling.
Erquiaga had also met with Minister of State Joseph Harmon and said that his visit to Guyana was a demonstration of the company’s recommitment to its investment in the country. “Our meeting was to reinforce Repsol’s continued support to Guyana, our commitment to continue having a strong relationship with the country and our commitment to continue investing in exploration activities offshore Guyana,” he said.
All oil contracts here that have been brokered with exploration companies gives Guyana a 1% royalty of the gross earnings, save for the agreement with ExxonMobil and its affiliates, which sees a 2% royalty being earned. The cost recovery limit is also set at 75% for all companies.
The companies that have blocks in the deep water area, offshore Guyana, are: Repsol and Tullow Oil (the Kanuku Block); Tullow (the Orinduik Block); Anadarko (the Roraima Block); Ratio Oil (the Kaieteur Block); Esso, CNOOC Nexen and Hess (the Stabroek Block); Esso, Mid Atlantic and JHI (the Canje Block; CGX (the Demerara and Corentyne blocks); ON Energy; and Nabi.