Guyana (Commonwealth) _ Frontera Energy and CGX Energy stated on Monday that they want to make a definitive investment decision by 2026 on developing a viable offshore block in Guyana, with the possibility of first oil extraction by 2030.
Following an Exxon Mobil-led collaboration, the Frontera-CGX joint venture may be the next organization to progress an oil and gas exploration project in Guyana. This year, the group started producing in 2019 and is currently turning oil about 400,000 barrels per day.
In order to help Frontera and CGX “pursuing options” for a prospective agreement to identify partners for exploiting the Corentyne block’s potential, they have hired the U.S. investment banking company Houlihan Lokey, they announced in a release.
It is anticipated that the evaluation of the entire region would be completed by 2025. The partnership would proceed to topsides construction for a floating production, storage, and offloading (FPSO) vessel, drilling, and subsea architecture in the event that a favorable final investment decision is reached.
The corporations and their subsidiaries have exploration permits for many big blocks in Guyana; however, in 2022, they decided to concentrate on Corentyne after consulting with the government of Guyana. International and local businesses have submitted bids to Guyana for eight additional blocks that will shortly be allocated.
According to what was revealed during the presentation, the joint venture hired Subsea Integration Alliance, an oilfield services organization run by SLB’s OneSubsea and Subsea7, to finish a conceptual field development plan for Corentyne.
According to Mark Zoback of CGX’s board of directors, the companies detected medium sweet oil in the Wei-1 exploratory well and used that data to create a schedule for Corentyne’s growth. However, they have not yet calculated the area’s entire potential.
In the Maastrichtian horizons alone, the company has estimated gross probable resources of 514 million to 628 million barrels of oil and gas. Additional potential has been found in the deeper Campanian and Santonian levels.
“We are working on the deeper zones, it’s high priority,” Zoback stated. According to Frontera and CGX, the rock quality found in the Maastrichtian horizon is comparable to the Liza discovery made by Exxon.
The Wei-1 well on the Corentyne block, about 124.3 miles (200 kilometers) offshore from Georgetown, Guyana, has yielded 114 feet (35 meters) of net pay, as previously disclosed by joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation.
According to the JV, the rock quality found in the Wei-1 well’s Maastrichtian horizon is comparable to what was found in the Liza Discovery on the Stabroek block. The joint news statement from the two businesses stated, The two firms stated in a joint press release that the JV has found total net pay of 342 feet (104 meters) on the Corentyne block to date. The results further illustrate the possibility for a standalone shallow oil resource development across the Corentyne block.
According to the announcement, the NobleCorp Discoverer semi-submersible mobile drilling unit safely drilled the Wei-1 well at a water depth of around 1,912 feet (583 meters) to a total depth of 20,450 feet (6,233 meters). Wei-1 test findings in the Maastrichtian portion verified 13 feet (4 meters) of net pay in a premium sandstone reservoir. The JV reported that log analysis and fluid samples taken from the Maastrichtian indicated the presence of sweet medium crude oil with a gas-oil ratio (GOR) of about 400 standard cubic feet per barrel.
The building of a deep-water port at Berbice, Guyana, and the search for oil in the Guyana-Suriname Basin are the primary goals of CGX, a Canadian oil and gas exploration business.
In addition to associated assets in both upstream and midstream infrastructure, Frontera is a publicly traded business based in Canada that is engaged in the exploration, development, production, transportation, storage, and sale of oil and natural gas.
