Exxon officials, GGMC discuss work programme
Officials of the oil exploration company Exxon Corporation were in Guyana recently to hold discussions with officials of the Guyana Geology and Mines Commission (GGMC) on their work programme. "Exxon had taken out a petroleum licence for an offshore area. In the course of that programme they meet from time to time with GGMC officials to discuss how they are proceeding with their work," Prime Minister Samuel Hinds told this newspaper when contacted on Thursday. He gave the assurance that these were normal discussions in keeping with customary procedure. The Exxon officials met government officials on Thursday and left the country the following day. Contacted afterwards, Manager of GGMC's Petroleum Division, Newell Dennison, described the meeting as "very routine". He explained that as per contractual arrangement, the company met the government twice yearly to report on its work programme. "In this instance, it was one of those scheduled meetings to discuss operational matters and those of a technical nature," he said. The GGMC official disclosed that Exxon had conducted an aeromagnetic survey in the first quarter of this year and was processing the results. One year has passed since the company signed an agreement with the Government of Guyana to prospect for oil in an offshore concession. On June 14 last year, Exxon's Guyana affiliate, Esso Exploration and Production Guyana Ltd (EEPGL) had signed a production sharing contract (PSC) with the Government of Guyana. The new PSC covers the Stabroek Block, which Exxon was awarded during 1998. The Stabroek Block is located 160 to 320 kilometres offshore in 200 to 3,000 metres of water and covers approximately 15 million acres. This will be the first exploration activity in the deep water area off Guyana. Exxon holds 100 per cent interest in the block. Since 1997, there has been renewed interest in the search for petroleum on the continental shelf and continental slope off Guyana. In November 1997, Maxus Guyana Ltd, a subsidiary of the Argentine oil and gas company YPF, was granted a concession in the Georgetown Block which is located approximately 80 kilometres off Guyana in water depths ranging from 30 to 200 metres, and covering an area of 13,100 square kilometres. Eni SPA, an Italian oil and natural gas company, through its affiliate Agip Guyana B.V., signed an agreement with Maxus Guyana Ltd during September 1999 to acquire a 25 per cent stake for exploration in the Georgetown Block, off Guyana. In June 1998, the Canadian-based CGX Energy Inc was granted a concession in the Corentyne Block adjacent to that of Maxus. The block covers an area of 3.8 million acres in water depths up to 250 metres. CGX and Maxus commenced seismic surveys in their adjoining offshore blocks during May 1999. The surveys were conducted by Western Geophysical Incorporated of Houston, Texas. During October 1999, CGX announced plans ahead of schedule, to drill the Eagle target in the Corentyne Block on the basis of the seismic survey conducted during May 1999. The target is part of a turbidite fan and the depth of water at the target site is 82 metres. Century Guyana Ltd, which holds a concession in the Pomeroon Block west of the CGX and Maxus concessions off the Essequibo coast, was expected to begin drilling on its concession this year. This company and CGX had previously agreed to coordinate their operations to tackle the drilling of two separate wells but Century had to abort plans because of a shift of target selection by CGX. The rig CGX employed had greater specifications than what was required by Century. Century had completed its site survey and arrangements were in place to begin drilling in the first half of 2000. No word was had on Century's plans and Dennison declined to comment when asked about the company. Century was to begin drilling since 1998 but encountered some constraints including low oil prices. The government granted it an extension on its licence. The company has less than a year for the licence to mature. CGX had set drilling to commence on June 3, 2000 but was halted as a result of the maritime boundary dispute with Suriname. CGX began drilling in the Horseshoe West target area off the Berbice coast, west of the disputed area, on 19 June, 2000. CGX Energy Inc announced in a press release on 10 July, 2000 that oil was not found in its Horseshoe #1 well. The Horseshoe well was drilled to a depth of 12,750 feet. Preliminary sample and log analyses suggested that the positive amplitude and AVO anomalies at the Horseshoe West target were generated by thin carbonate beds in a dominantly sandstone and shale sequence. CGX began demobilising its rig from the Guyana/Suriname basin yesterday after talks between the two countries failed to resolve the dispute. Last year, the Venezuelan government, too, had protested to the Guyana government and the UN Good Officer charged with finding a means to a solution to the border controversy between the two countries, about granting a licence to Century to operate in Venezuelan waters. Reports in the Venezuelan daily El Nacional claimed that Century's operations had penetrated the maritime area off the Delta Amacuro. The Guyana government had said incorrectly placed markers delineating the marine boundary between Guyana and Venezuela might have resulted in this action.
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