Latest update March 29th, 2024 12:59 AM
Jun 21, 2019 News
By Kiana Wilburg
The Petroleum Prospecting Licence for the Canje Block which was awarded to Mid-Atlantic Oil and Gas Inc. on March 4, 2015, by former President, Donald Ramotar, is more than three months passed its time for renewal.
According to the Production Sharing Agreement (PSA), the contractor is expected to carry out a minimum work programme in the initial four-year period of having the licence. That four-year period is divided into two phases.
Phase one consists of 18 months and requires the contractor to get all available geological data and conduct research at the local and regional level to better understand the complex features of the Guyana-Suriname basin. In addition to this, a minimum of 1500 line km of 2D seismic is to be acquired, processed, and interpreted to define possible prospects.
Phase Two consists of 30 months. During this time, the contractor is expected to acquire, process, and interpret a minimum of 500 square kilometres of 3D seismic to identify drilling targets and complete a geotechnical/pre-drilling survey.
The Canje Block PSA states that at the end of the initial four years, the Contractor shall elect either to relinquish the entire contract area or relinquish 20 percent of the contract area which spans 6021 km. That is comfortably, more than two times the size of Region Four (Demerara-Mahaica).
Mid-Atlantic, since acquiring the block in 2015, got several companies to buy into the block. The first to cut a deal was JHI Associates Inc. Like Mid-Atlantic, JHI has zero experience in the oil industry. It has 17.5 percent interest in the Canje Block. French oil major Total was able to buy 35 percent of the working interest. ExxonMobil, which is the lead operator on the Stabroek Block, was able to get a 35 percent interest in the Canje concession too. This works out in Exxon’s favour as Canje is strategically located next to the oil-rich Stabroek Block. Mid-Atlantic continues to hold on to a mere 12.5 percent.
Yesterday, this newspaper contacted Janelle Persaud, Exxon’s Public and Government Affairs Advisor to ascertain if the American multinational has been in contact with government on how it will proceed with relinquishment as stipulated in the contract.
Persaud only said, “We have followed and will continue to follow, all processes per our agreements, including relinquishment.”
Kaieteur News also contacted Commissioner of the Guyana Geology and Mines Commission (GGMC), Newell Dennison on this matter, and as far as he is aware, there has been no relinquishment for the Canje block. He acknowledged that indeed, the contract is up for renewal and the provision in question would kick in. Dennison said that the Department of Energy should be able to provide more information, if needed. Calls to the Department’s Head, Dr. Mark Bynoe were unfortunately, unsuccessful.
OIL BLOCKS PROBE
The State Asset Recovery Agency is currently investigating the circumstances under which former President, Donald Ramotar, signed away two oil blocks offshore Guyana days before the general elections. One of the oil blocks is the Kaieteur Block. The other is the Canje Block which was granted to Mid-Atlantic Oil and Gas. That firm was incorporated in Guyana on April 8, 2013. Komal Dookie is listed as the company’s beneficial owner.
As for its initial partner, JHI Associates Inc., this company was only registered in Guyana on May 4 and bought into the block on May 15. It seems JHI was created from nothing as its archived website only started working and listing managers, including John Cullen, on June 10. This is almost one month after Guyana held its General and Regional Elections on May 11, 2015.
But what is significant to note is that the Canje Block is the only asset that Mid-Atlantic and JHI have to their name. Also, both firms have never explored for oil in any corner of the world. They don’t have the wherewithal to do so.
Additionally, JHI and Mid-Atlantic, which participated in Guyana’s reporting process for the Extractive Industries Transparency Initiative (EITI), failed to submit audited financial statements which were requested for review.
JHI also failed to submit information on its beneficial owners.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
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