Hess Corporation has increased its stake in Guyana’s Kaieteur Block located in ultra-deep waters. Following its acquisition of a 5 percent working interest from Cataleya Energy Limited (CEL), it now has a 20 percent stake in the offshore concession. As for the interest held by its other partners, Ratio Guyana Limited and ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), this is split 20 percent and 35 percent respectively. CEL is now left with 20 percent following the transaction.
The market was informed of the farm down by Westmount Energy Limited, an investment holding company for a group of subsidiaries, which operate in the oil and gas-related industries. The company provides the financing of, and investment in several emerging oil and gas exploration schemes, including production projects. It also holds an indirect share in the Kaieteur, Canje, and Orinduik blocks offshore Guyana.
Westmount’s Chairman, Mr. Gerard Walsh is of the firm conviction that Hess’ move to increase its working interest reflects confidence in the prospective resource potential of the Kaieteur Block and bodes well for the continuing exploration of the area despite disappointing results from Tanager-1, the first well drilled on the block.
“We are very encouraged to see Hess, one of the Stabroek Block partners and a leading player in the Guyana-Suriname Basin, increase its WI (working interest) in the Kaieteur Block on the back of the 2020 Tanager-1 oil discovery,” Walsh said in a statement.
Guyana Standard had reported that the Tanager-1 well was considered to be non-commercial as a standalone development.
Tanager-1 encountered 16 meters of net oil pay in high-quality sandstone reservoirs of Maastrichtian age and confirmed the extension of the Cretaceous petroleum system and the Liza play fairway outboard from the prolific discoveries on the neighboring operated Stabroek Block. High-quality reservoirs were also encountered in Tanager-1 at the deeper Santonian and Turonian intervals though interpretation of the reservoir fluids was reported to be equivocal and requiring further analysis.
