CGX Resources Inc. a wholly-owned subsidiary of CGX Energy Inc. (CGX) proposes to drill the Wei-1 exploration well in Corentyne block during the May to August 2022 period. This exercise is estimated to cost the company and its partner, Frontera Energy Corporation, approximately US$93M.
The site of the proposed Wei-1 well is approximately 200km from Georgetown in a North Easterly direction in the Atlantic Ocean. The area is bordered by the Stabroek and Kanuku blocks on the North and West, respectively and Suriname on the East.
CGX said the Wei-1 well will be drilled as a vertical well utilizing a semi-submersible rig. In this regard, it told the Environmental Protection Agency (EPA) which has to provide authorization for the project that it has secured an option to use semi-submersible rig Maersk Discoverer, a mobile offshore drilling unit (MODU) from Maersk Drilling.
CGX said the Maersk Discoverer was selected because it is designed to sustain extreme environmental conditions and is certified for offshore operations. CGX added that the rig is fully equipped to handle all the drilling operations effectively and safely as its blowout preventer (BOP) and well control systems exceed all well control requirements.
Guyana Standard understands that the project will involve onshore facilities and marine/aviation services in Guyana to support the exploration drilling and decommissioning activities.
Laydown areas, pipe yards, warehouses, fuel supply, heliport, and waste management facilities are planned to be part of the support but CGX said it will consider Trinidad and Tobago for back-up service activities if those are not available in Guyana.
CGX is of the firm view that based on the data in its possession, the reservoirs supporting the prospect “potentially contain an economic accumulation of hydrocarbons.”
It was keen to note that as it pursues drilling activities, it is fully prepared for spill response in the case of a large subsea release of crude oil from a well control event at Wei-1. The company cautioned that such an unfortunate event would likely impact the physical and biological marine environment as well as fishermen, coastal Guyanese, and Indigenous communities reliant on ecosystem services for sustenance and their livelihood.
The Canadian firm emphasized nonetheless that it has its own oil spill response resources and will contract any other required resources to protect Guyana’s environs and marine assets. In fact, the company said it has joined Oil Spill Response Ltd. (OSRL), the largest international industry-funded cooperative which exists to respond to oil spills, prior to starting the drilling operations.
Additionally, the company said it will ensure offsite equipment is mobilized for a timely response while reminding regulators that it is committed to regular oil spill response drills, simulations, and exercises that involve appropriate Guyanese authorities and stakeholders.
Furthermore, CGX said it has developed a detailed Oil Spill Contingency Plan (OSCP) to ensure an adequate and effective response to any unlikely oil spill event from minor to major. The OSCP it said is guided by the International Maritime Organization (IMO) Manual on Assessment of Oil Spill Risk and Preparedness and aligns with Guyana’s National Oil Spill Contingency Plan (NOSCP-Draft).
