Cabinet approves French firm for Guyana’s oil reservoir audit

…US company to handle mineral mapping

Cabinet has approved a contract for a French company to conduct an oil reservoir audit, in an effort to independently verify how much oil is actually in the Stabroek block offshore Guyana, held by United States (US) oil giant ExxonMobil.
This was revealed by Natural Resources Minister Vickram Bharrat, during a press conference on Wednesday. While Exxon provides the state with estimates on how much oil is in the Stabroek block based on their own exploration and assessments, having the audit done will ensure the government can independently verify how much oil is offshore Guyana.
“We got cabinet approval for a French company to do a reservoir audit. Something we should have done a long time ago. I’m happy we will start this soon. What we’re going to do as the government, is to have our independent consultant look at all the data that is available and then do an assessment of our resources offshore.”
“So, we too will be in a position to say yes, its 11.6 million barrels. Or its 10 or its six, or 13 or 15. So we’re going to do our independent assessment, in keeping with the license of course,” the Minister said.

Based on the information that was provided to the Ministry by Exxon, however, he revealed that there had been a marginal increase in resource estimates for how much oil Guyana currently holds offshore in the Stabroek block.
“We’ve had a minimal increase in resources. We’ve moved to 11.6 billion barrels of oil equivalent, offshore in the Stabroek block. And that by itself is a significant find. Namibia, they’re saying is a significant find. And I agree too, but its only about four to five billion. But they’re saying its significant.”
“Compare that with Guyana, 11.6 billion barrels. And counting. It will increase, because Exxon is still doing exploration. We will have exploration in the other blocks offshore Guyana. And we are going to issue the license to the bidders that bid during the bid round,” he further explained.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), holds 45 per cent interest in the block, Hess Guyana Exploration Ltd had had 30 per cent interest, which it recently sold to Chevron and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.

Mineral mapping
Meanwhile, Bharrat explained that the government also recently awarded a contract for mineral mapping, to a United States (US) based company from Virginia, Global Venture. He stressed the importance of Guyana formulating a mineral inventory as early as this year, noting the global trends and the length of time it has taken Guyana to do an updated inventory.
“In mining, the mineral inventory or mineral mapping has not been updated for decades. So today, if we point a miner in a direction and say there are minerals there, that data is old data that would have been acquired maybe 40, 50 years ago. And a lot has changed from then to now. The use of different technology. Advanced technology in the surveying and discovery of minerals, by way of technology, would have changed from then to now.”
“This hasn’t been done in a long time. And I would want to think the cost is why we didn’t do it. Today I think we’re in a better position as a country, especially with our commitment to the Low Carbon Development Strategy, it is important and necessary that we start the mineral inventory process in Guyana this year.”
According to Bharrat, the project will be a multi-year one and will help the country to not only keep its Low Carbon Development Strategy (LCDS) commitments, but help the mining sector as a whole.
“We will start with specific mining districts, especially the Mazaruni, Potaro, North West, Cuyuni mining districts. Those are the four main mining districts. We will focus on those four for now, because we have a larger amount of our small and medium scale miners, concentrated in those four mining districts.”
“So, this is a project that will help us to identify not only where our gold deposits are, but all minerals. And you know, in keeping with all that is happening around the world, especially in the transitioning phase from fossil to renewable, critical minerals are critical. They are heavily in demand.”
Bharrat gave the example of lithium, as one mineral that is heavily sought after, particularly in South America which has lithium producers. According to the Minister, it is believed that Guyana does have traces of lithium.
The government has already been seeking investors to develop lithium, which is a chemical element that is derived from stone. Said to be the lightest known metal, it is used in rechargeable batteries found in mobile phones, laptops, digital cameras, electrical vehicles, pacemakers, toys and clocks.
Lithium’s uses extend far beyond rechargeable batteries, but many predict that this application will dominate demand for the metal in coming years. Given the growing importance of energy metals and lithium-ion batteries, securing a consistent supply of lithium is a top priority for technology companies around the world.
Back in 2017, Australian company, Greenpower Energy, and Canada-based Guyana Strategic Metals (GSM) Incorporated, had done some exploration for rare earth minerals and lithium in Region Seven (Cuyuni-Mazaruni), to see if the area has enough deposits to make it profitable for mining. (G3)