With oil industry still caught in the COVID-19 pandemic’s chokehold and a string of failed commercial discoveries, British oil explorer Tullow is now looking to limit its capital exposure in its Guyana concessions.
This was noted in the company’s latest financial statements. In those documents, Tullow said it is focusing its exploration expertise on unlocking additional value from its asset base. In Ghana and Côte d’Ivoire, Tullow said its team is maturing prospects around the Deepwater Tano and its FPSO as well as in the adjacent block, CI-524.
In the emerging basins of Guyana and Argentina, “Tullow is focused on limiting its capital exposure from historical work commitments of c.$50 million in 2022, through farm-downs. These include the Beebei-Potaro exploration well on the Kanuku Block in Guyana which will target the prolific Cretaceous light oil play of the Guyana-Suriname Basin, as well as a seismic acquisition over Block MLO 122 in Argentina…”
Guyana Standard had reported that Tullow has interests in two neighbouring licences offshore Guyana with a 60% operated interest in the Orinduik block and a 37.5% non-operated interest in the Kanuku Block.
Tullow’s position in Guyana dates back to 2008 when the Group farmed into the then-named Georgetown licence, operated by Repsol. In 2013, Repsol re-secured the newly defined Kanuku block, and Tullow secured a 30% interest. In early 2018, Tullow agreed to increase its equity share in the Kanuku license from 30% to 37.5% in a farm-in deal with Repsol.
In early 2016, Tullow increased its Guyana position after being awarded a 60% operated interest in the Orinduik license which is a 1,776 square kilometre offshore block.
In August 2019, Tullow announced its first oil discovery in Guyana, with the Jethro-1 well on the Orinduik Block. The well encountered 55m of net oil pay in a high-quality oil-bearing sandstone reservoir in the Lower Tertiary play. This discovery was followed in September by the Joe-1 discovery in the Upper Tertiary play. The quality of the oil is heavy, however, and has high sulphur content.
The Cretaceous Carapa prospect in the non-operated Kanuku license was the final well in the 2019 program.
In January 2020, Tullow announced that the well encountered approximately four metres of net oil pay, extending the Cretaceous oil play into the Group’s Guyana acreage.
Tullow is now working with its Joint Venture Partners on the overall prospect inventory and developing plans to unlock value from this acreage.
