Large oil companies head to Guyana’s rich oil, gas basin – By Bert Wilkinson

Large oil companies head to Guyana’s rich oil, gas basin

BY BERT WILKINSON

Three of the world’s largest oil and gas companies are preparing to bid for offshore blocks near to where United States oil giant ExxonMobil found large amounts of sweet light crude oil off the Caribbean Community nation’s coast two years ago officials said Friday.

Resources Minister Raphael Trotman said a high level team from California-based Chevron Corp is expected in the country next week to discuss an application for an offshore bloc while British Petroleum and Brazil’s Petrobras have also signaled plans to apply for blocs.     

Trotman said that “Chevron has made a very good application to government for its own offshore bloc but we will see about this as there are very few blocs left to give. There are not that many out there anymore,” he said.

This is as Exxon earlier this month applied to authorities to begin developing its Liza Phase Two bloc where it plans to drill at least 40 wells. It has drilled six successful large wells so far. Liza 1 will see 17 wells being drilled with nine working as producing wells and the others being used to pump gas and water to maintain pressure to bring up oil from the seabed to floating storage ships the company has said.

Trotman said a BP team is currently in Guyana talking with authorities while Chevron is due early next month.

“So the world needs to know that all the major players are headed to Guyana, indicating their interest in the basin. The cabinet sub committee will meet shortly to look at what is left in the basin and how these will be allocated.”

Exxon with partners Hess Oil and Nexen of China plan to begin production in 2020, producing more than 120,000 barrels of oil daily. The basin so far has proven reserves of more than three billion barrels of oil. Its gas potential is currently being assessed.

Other big names either bidding for blocs, buying into companies with concessions or planning to do so include Repsol, Tullow Oil of the UK ENI of Italy and TOTAL of France. TOTAL recent moved to invest into Eco Atlantic’s Orinduik field.

Posted 12:00 am, January 27, 2018 – Caribbean Life News

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Comments

  • Mark  On January 27, 2018 at 8:54 pm

    If oil is at $70 barrel by 2020, then 120,000 barrels a day for a year =$3 Billion in oil revenue; however I’m not sure what is left over after Net Profits and Gross Profits and the 50% share of profits for Guyana which would be roughly $500 Million or even lower.
    If you read the Financial Statements of Exxon Mobil, their Gross Profit to Revenue ratio is only at a consistent 20% to 26%, going lower every year. Exxon expenses largely on their Capital Machinery and equipment. If we use a very low expense ratio of say 50% of $3 billion in Revenue, that will equal 1.5 Billion profit, but Exxon still gets 50%, which leaves $750 Million.
    In other words, it will take a larger export of barrels and higher oil prices in order for Exxon to share larger profits.
    Guyanese should also ensure that the oil money benefits Guyanese and their community rather than private interests and corrupt dictatorships and oppression.

    • Persad  On January 30, 2018 at 10:45 pm

      Exxon, a Rockefeller oil company, and other American and white people oil companies are only going to share this to Guyana, like any other country in Africa or non-white South-Asia:

      • Mark  On February 5, 2018 at 7:26 pm

        Sorry Trini, I’m not into those ‘Rockefeller’ and ‘Rothschild’ oil company conspiracy theories because that’s way too much to handle for the average person.

    • Mark  On February 5, 2018 at 7:29 pm

      Estimates from Kaieteur News say that Guyana will collect $1 Million US Dollars a day for this oil, so that equates to US$365 Million a year, which is very low considering that it’s 120,000 to 250,000 barrels of oil are being drilled by 2020. Regardless, this oil money should be used to construct better washrooms at QC and Bishops, and re-innovate our Public Hospital where people die of non-risk illnesses that can be cured by nurses in remote areas of North America.

  • walter  On February 4, 2018 at 1:02 pm

    Reading the Oil discussions it would seem Guyana has a marketing problem above all. M101 states he who has the money (Oil) has the power. With all the brilliant lawyers, accountants, you would expect GUYANA to punch back a little harder. Downside Oil Company walks? We survived without oil, bauxite, etc. Upside oil in the ground, I am sure more companies would be happy to develop. Maybe when the Oil Company did their research of exploration in other third world countries, nasty fingerprints of bribery stained the report. I don’t think that this government is dishonest, naïve and inexperienced, not dumb or incompetent.
    By the way guys, gimmie a break, only my opinion.

  • Mark  On February 5, 2018 at 7:25 pm

    Ever heard of resource curse Walter? Oil caused countries like Nigeria, Equatorial Guinea and Cameroon to have their peoples worse off than when it didn’t have oil.

    It will not be surprising that after 10 years of oil in Guyana, that the washrooms of Queens’ College and Bishop’s High will not function, or that people will continue to die at Public Hospital for infections that even remote clinics in North America would treat without a hospital.

    What everyone is scared about is whether these oil revenues will be misused to enrich a few, or worse, use to hire mercenaries to terrorize political dissidents.

    Oil wealth can also be a curse if there is no oversight. The President of Equatorial Guinea owns mansions, poolsides and Italian sportscars in USA and Europe, but his people die of 18th century infections.

    Guyanese fear that, they don’t complain about incompetence, but about tyranny.

  • walter  On February 5, 2018 at 9:06 pm

    You may be right, give you that, can happen. Lets just say $10, we can do a whole lot better, or at least lots better than TRINIDAD?

  • Mark  On February 8, 2018 at 4:37 pm

    Guyana didn’t even extract one official barrel of oil, and this buffoon you have for a Minister says that Guyana will not depend on the oil revenues!|
    https://www.kaieteurnewsonline.com/2018/02/08/we-dont-intend-to-be-solely-dependent-on-oil-minister-trotman/

    By 2025, plantains will still sell more dearer than in colder countries which have to import food, and Exxon will continue to drain the oil fields so that racist Trump and his sidekick imperialist Rex Tillerson can increase profits for White America!

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