Repsol applies to EPA to drill multiple wells in Kanuku Block

…EPA cites possible environmental impact from drilling

Spanish oil company Repsol Exploration Guyana has applied to the Environmental Protection Agency (EPA) to drill more wells in the Kanuku Block, one month after it was announced that the oil found in the previous well it had drilled would not be commercialised.
According to the EPA, Repsol applied to drill and appraise multiple exploration wells in the Kanuku Block. It was noted that the exercise can affect air and water quality, as well as wildlife. As such, the Agency noted that an Environmental Impact Assessment (EIA) is needed.
“The proposed project will be undertaken in the marine offshore environment within Guyana’s jurisdiction and would require land-based activities at marine shore bases. As a result of the intended developmental activities, possible effects to the environment may include impacts on marine water quality, air quality, marine fauna, socio-economic resources, among others,” EPA said on Saturday.
According to the Agency, in keeping with the Environmental Protection Act, an EIA is required for this offshore multi-well project before any decision to approve or reject this proposed project is taken since this development may have significant impacts on the environment.
The EPA went on to urge members of the public to submit written questions to the Agency that they want to be answered or considered in the EIA within 28 days of the notice. The submissions must be addressed to the EPA’s Executive Director, Vincent Adams.
In September of last year, Repsol had started drilling the Carapa-1 well in the Kanuku Block. That well alone was reported to cost US$20 million and was drilled using the Valaris EXL II jack-up rig. However, while approximately four metres of net oil pay was found, British-owned Tullow Oil, which owns a stake in the Kanuku Block alongside Repsol, had announced that it would not be commercialising the well.
Repsol is the operator of the Kanuku Block with a 37.5 per cent stake. Tullow Guyana BV also holds an equal 37.5 per cent stake while Total E&P Guyana BV has the remaining 25 per cent. When it comes to Tullow, Carapa was its third oil find offshore Guyana.
However, in November, the company revealed that samples from its previous discoveries at the Jethro-1 well in August and Joe-1 well in September in the Orinduik Nlock showed heavy crude with high sulphur content – a variety of oil that is less economically viable than the light, sweet crudes found by United States oil giant ExxonMobil right offshore Guyana in the neighbouring Stabroek Block.
The British-owned oil company’s troubles continued to the end of 2019. In fact, its shares dropped to a 20-year low of 72 per cent as the group cut its oil production forecasts for the coming years and announced the resignation of its Chief Executive Officer Paul McDade as well as its Exploration Chief Angus McCoss. It was also recently reported that Tullow would be cutting jobs.