CGX Energy announced an oil discovery in Guyana that would rival the ExxonMobil consortium that controls production off the country’s coast.
The Canadian company found oil in an exploration well in an area where the presence of oil was not confirmed by known methods, such as seismic studies. The discovery is expected to be commercially viable outside of the prolific Stabroek Square, according to Upstream Online.
The Y-1BB1 exploration and appraisal well is located in the Corentine block, about 200 km offshore from Georgetown, Guyana, and about 14 km northwest of the Kawa-1 light oil and condensate project, according to information seen. It has a specialized power platform.
An oil discovery in Guyana
CGX Energy revealed the details of an oil discovery in Guyana; It explained that the exploration and appraisal well “Y-1 BB1” has reached a total depth of 20.45 thousand feet.
The original well, Y-1, reached a depth of 19,14,000 feet in the northern part of the Corintyn Square; A side well, Y-1 BB-1, was then drilled at a total depth of 18.76 thousand feet.
Prior to the lateral well, the well encountered a total net thickness of approximately 71 feet in the secondary target reservoirs, according to a press release issued by the Canadian company, which was seen by Specialized Energy Platform.
The well was drilled by CGX, which owns a 32% participating interest in the Corentine block, offshore Guyana, and Frontera Energy, which owns the remaining 68%.
The following chart – prepared by the specialized energy platform – shows the developments of oil production in Guyana:
Exploration well drilling plan
CGX believes the results are encouraging and in line with pre-drill expectations, with the well confirming the company’s geological and geophysical assessment of the block.
The two companies revised the total cost estimate for the Y1BB-1 well, to $190-195 million, from the previous increase of $10-175 million, to complete well monitoring, end well operations, and launch the rig.
The additional costs are primarily due to the missing sampling tool and drilling of the lateral well, the statement said.
Originally, CGX and Frontera disclosed a plan to spend up to $130 million in February 2022 on the second exploration well in the Corentine Block, called Y-1, and made the decision to drill the well in October. October 2022, using the semi-submersible drilling rig Marsec Discoverer (now Noble Discoverer).
By November 2022, the two companies had reviewed the drilling plan for the Y-1 well, after the Noble Discoverer platform experienced delays in its mission with Shell in Trinidad and Tobago, Offshore Energy reported.
As a result, drilling operations in Guyana were expected to begin between December 2022 and late January 2023; In line with this, the Y-1 well was drilled in January 2023.
Guyana oil production
The ExxonMobil-led consortium made profits of $5.8 billion in 2022 from oil production in Guyana, according to a disclosure of the alliance’s profits in light of the legal dispute over breach of insurance obligations against oil spill risks.
Last year (2022), ExxonMobil got $2.74 billion from its stake in the alliance’s offshore oil production, Hess got $1.53 billion, and SinoC got $1.55 billion, according to the financial statements.
In total, the alliance has about $19 billion in assets in Guyana.
The alliance aims to pump 1.2 million barrels of oil and gas per day into Guyana by 2027, according to Hess, nearly 3 times last year’s production (2022).
The coalition found about 11 billion barrels of oil and gas; Guyana estimates that its fields could contain 25 billion barrels, and aims to produce 1.64 million barrels per day by the end of the decade.
Guyana is working to increase its oil production to 1.64 million barrels per day by 2030; This prompted it to search for foreign investments to boost the hydrocarbon sector.
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