Drill results for 200 million barrels search in Kanuku oil block by end of 3rd Quarter

Jul 15, 2022 News

Kaieteur News – French oil exploration company Repsol has spud the Beebei-Potaro exploration well at Guyana offshore block Kanuku, according to partner Tullow Oil and is awaiting the results of the exploration activity by the end of the third quarter.

In an update on Tuesday, the London-based junior confirmed that results from the search are expected this quarter and that the prospect is estimated to hold 200 million barrels of crude.

The well is a follow-up to the Carapa light oil discovery made in 2020 and is targeting the Cretaceous light oil play.

Noble Corporation was contracted earlier this year to spud the well, as was indicated earlier this year when it gave a fleet status report disclosing that the Noble Regina Allen would have undertaken a one-well deal in the fourth quarter of 2021 with that rig starting work.

The offshore driller had also won a conditional award under the Commercial Enabling Agreement (CEA) with ExxonMobil for four rigs in Guyana.
The three jack-ups in question are the Noble Regina Allen, Noble Tom Prosser, and the Noble Lloyd Noble.
As it relates to Repsol, its activity in Guyana is focused on the Kanuku Block some 150 kilometres offshore Guyana.
Repsol operates the Block with a 37.5 percent working interest, which is located in an area near existing oil and gas discoveries.
Repsol initially signed a contract with the government of Guyana for the Kanuku Block in 2013.

As it relates to the Exxon projects, Noble Corp said the CEA includes approximately 7.4 years of additional contract term and reallocates all existing terms evenly across the four rigs in Guyana.
The rigs in question are Noble Tom Madden, Noble Sam Croft, Noble Bob Douglas, Noble Don Taylor.
“It must be said that the additional contract term is subject to government approval and final project sanction for the Yellowtail development project. Once finalised, the conditional award will extend the contracted term into the fourth quarter of 2025.”
Importantly, it was noted that at the end of December 2021, the company’s estimated revenue backlog totalled approximately $1.2 billion, excluding the CEA conditional award.
The Company noted too that there is already a trend developing with increases in rig day rates. In its fleet status report, Borr Drilling CEO, Patrick Schorn, said that it was becoming increasingly evident that the supply of rigs ready to go to work within six months was far less than the market previously anticipated.
“Therefore, [Borr maintains] the view that day rates will increase based on the current tender activity and available jack-up rig supply,” Schorn added.

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Drill results for 200 million barrels search in Kanuku oil block by end of 3rd Quarter

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