Guyana can benefit as Suriname launches major offshore drilling – Staatsolie

…shared gas plans move closer to reality
With plans being developed for shared gas development between Guyana and Suriname, the Dutch-speaking nation’s state-owned oil company Staatsolie has described the exploration drilling programme, which will kick off with drilling on its Macaw-1 well, as potentially beneficial for Guyana as well.
Staatsolie on Monday announced the start of drilling on one of five exploration wells planned for 2025. According to Staatsolie in a statement, French oil company TotalEnergies will start drilling at the Macaw-1 well in Block 64 by the middle of this month. Staatsolie also noted that Macaw-1, which is being drilled by the Stena DrillMAX, is the first of five exploration wells that are scheduled to be drilled this year.
“The National Environmental Authority granted TotalEnergies a permit to drill the Macaw-1 well at the end of April. TotalEnergies has contracted Stena Drilling to carry out the drilling, using the Stena DrillMAX drill ship,” the state-owned company said.
“The vessel previously drilled in Guyana for ExxonMobil. Following its work in Guyana, Stena DrillMAX underwent maintenance and safety checks in Curaçao. After passing an acceptance test, the vessel is scheduled to depart for Suriname on 15 May and begin drilling on 19 May.”
Most importantly, the state-owned company noted that this drilling programme, once successful, could benefit both countries as it will lead to new oil and gas plays in Suriname-Guyana basin over the long term.
“Macaw-1 is the first of five offshore exploration wells scheduled for drilling this year. If successful, the exploration drilling program could potentially lead to new oil and gas plays in the Suriname-Guyana over the long term,” the company said.
“The Macaw-1 well is a significant part of the exploration work program for this year in Block 64. It is the first of five exploration wells planned to be drilled in different blocks this year. This represents an unprecedented number of exploration wells drilled in Suriname’s offshore area by international oil and gas companies within one year.”
Staatsolie also stated that three of the five wells, including the Macaw-1, are located outside the areas designated as the “golden lane.” The “golden lane”, according to Staatsolie, refers to an area with similar subsurface characteristics, also known as a “play,” which in geology indicates regions where there is an increased likelihood of discovering oil and gas.
There has been talk for some time on how Guyana and Suriname could collaborate in the realm of oil and gas. In one instance, President Dr Irfaan Ali has previously spoken of the need for the two countries to work together on a joint gas project.
Only earlier this year, Staatsolie head Annand Jagesar had visited Guyana, during which he had also spoken of the opportunities for collaboration. The Managing Director of Staatsolie subsequently told the Guyana Times that gas development needs volume and it makes sense for Guyana and Suriname to combine their resources to meet that scale. He further explained that while there is a rush to develop these resources given the climate window, this has to be done in a well-thought-out manner.
According to Jagesar, the two countries have to work out key issues including the economics of such a collaboration, and also work along with their respective oil companies on a favourable model that would ensure profitability.
In the Stabroek Block, which US oil major ExxonMobil and its co-venturers are operating, some 17 trillion cubic feet of gas has already been found with the Pluma and Haimara wells being proven gas fields. The People’s Progressive Party/Civic (PPP/C) Government is seeking to develop this gas.
US energy firm, Fulcrum LNG Inc has been selected to work in a tripartite arrangement with the Guyana Government and ExxonMobil to develop a potential gas project. There is also the model Gas-to-Energy (GtE) initiative that is currently under construction at Wales, West Bank Demerara.
The GtE Project will include a Natural Gas Liquids (NGL) facility and a 300-megawatt power plant utilising the rich natural gas from the Liza Fields in the Stabroek Block, offshore Guyana. A second GtE project is also in the pipeline.