Representatives from Spanish oil and gas explorer Repsol met with Guyana's President David Granger to seek an extension to continue exploratory work in the Kanuku Block, offshore the South American country, the Ministry of the President announced on 13 January.
The government said that Mikel Erquiaga, Repsol's Latin America exploration director, explained that the company needs an extension to complete the necessary preparatory work in order to drill a well. Repsol has faced several set backs, the government noted, including a legal dispute with CGX Energy that arose in 2012 over exploration activities in the Georgetown block. This dispute was resolved in 2014.
"We want a short extension in order to continue working in the block and eventually drill a well," Erquiaga said.
The Kanuku block is 50mi off Guyana, and covers an area of 6525sq km. Kanuku represents a high potential exploration opportunity with significant prospectivity mainly in Cretaceous strata in water depths ranging from shallow shelf to 200m, according to partner RWE DEA. Repsol operates the block with 40% interest. Its partners include Tullow (30%) and RWE Dea (30%).
Repsol is one of the first oil companies to discover oil in Guyana, the ministry said. In 2012, the Spanish company found hydrocarbons at the Jaguar-1 well, inside the Georgetown block. Jaguar-1 was a high pressure, high temperature well, spudded in February 2012 using the Atwood Beacon jackup rig.
Guyana has been notable as of late due to ExxonMobil's recent Liza discovery, which could be a play opener for the basin, containing some 700 MMboe of reserves.
Image: The Kanuku block map/Repsol
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