New Players Are Entering The Race In Guyana’s Offshore Oil Production

New Players Are Entering The Race In Guyana’s Offshore Oil Production

Guyana1With Exxon Mobil reporting new discoveries in Guyana’s offshore blocks. It is starting to have some positive ripple effects for Guyana. New players are starting to show some interest into the area. It has been reported Total is set to acquire 25% working interest in the Orinduik Block, located offshore of Guyana from Eco Atlantic (Guyana) Inc. A wholly owned subsidiary of the Eco (Atlantic) Oil & Gas Ltd. The option to exercise was received by Eco before the delivery of the final 3D seismic data due to be delivered to Total, which would have triggered a 120-day exercise window for the option.

Total must meet all the regulatory requisites for approval including by the government of Guyana for the transfer of the 25% working interest to Total. Upon the final approval and meeting all the requirements The Orinduik Block will be divided as follows:

Tully: 60% (Operator), Total: 25%, Eco Guyana: 15%

With the terms of option, Total is set to pay a fee of $12,5 million to the company upon receipts of all requisite approvals for the transfer of the working interest. It is forecasted that the option exercise payment will provide adequate funding to meet Eco’s share of the costs to drill at least two wells on the Orinduik Block including the cost recovery of the new completed expanded 3D seismic survey.

On Sept. 11, 2018, the Company announced the completion of a technical report on the Orinduik Block, produced by Gustavson Associates LLC, which reported Gross P50 (Best Estimate) 2,913.3 MMboe and Net (40%) 1,165.3 MMboe, identified across a total of 10 Leads on the Orinduik Block

The rising interest along the coastline of Guyana is starting to emerge with potential of new findings, we are going to see an increase of new players entering the game. Guyana has emerged to become a strong player in the oil industry. The upstream of new findings will provide new cash flow and independence for this country by becoming self-reliant.