The Chief Executive Officer (CEO) of CGX Energy Incorporated, Kerry Sully, said that oil (commercial quantities) could be discovered offshore Guyana in the Guyana Basin within the next 12 months. He revealed how Guyanese could benefit from such a discovery. He made these statements at the 15th Annual Guyana Manufacturers and Services Association (GMSA) Dinner and Awards Ceremony on Thursday.
Sully explained that the Canadian oil exploration company started negotiations with Guyana in 1996.
Since that time, CGX has been making all the necessary preparations, and had surveys conducted to begin its operations, he said. Sully noted that after research and surveys conducted by the International Energy Agency and the United States Geological Survey indicated the presence of oil, CGX took the opportunity to explore the Guyana Basin.
“We think there is a tremendous amount of opportunities, not only in the exploration of oil but also the industry for gas for Guyana,” he said. Sully explained that in offshore Guyana, French Guiana and Suriname, there have only been 22 wells drilled, in a 52-year period, which generally have fully explored or penetrated the sea bed.
Best crude oil in the world offshore Guyana
“In 1975 there was a well drilled by Shell called the Abary Well, which had an in-well blow occurring beneath the surface of the earth and resulted in the discovery of some crude,” he stated. Sully explained that the crude found was of high quality, and it is considered the best that can be found in the world.
The CGX CEO explained that an oil find similar to that which occurred in Sierra Leone and Ghana some three years ago is likely here. Sierra Leone- Ghana find is one of the company’s largest discoveries. Sully noted that one of the world’s best oil explorers, currently in Suriname, has already indicated that there is a high possibility of oil and natural gas being found offshore Guyana.
He noted that CGX, which came to Guyana in 1998, was the first to bring the seismic technology, which produces clearer images of the earth below 10,000 feet of sea, giving a better picture of what to expect.
Sully said that, within the next 12 months, CGX will be drilling six wells offshore in the Guyana Basin of Takutu, and by November 28, drilling will take place in Suriname in rocks as old as a trillion years, which contained massive oil. Sully stressed that rock of the same age will be drilled via the Jaguar One well offshore Guyana. This will be done with the help of Repsol (a Spanish oil exploration company).
The company’s CEO stressed that even if oil is not found within the stipulated period, there is a higher chance of a discovery in the following year. “Right now, all eyes of agencies are on the Guyana Basin,” he noted. Sully also explained that Guyana is also recognised for its climate change initiative and as one of the leaders in the fight against climate change.
The world produces and consumes 88 million bar rels of oil each day, burning about a billion barrels of oil every 12 days.
It is predicted that the world will need to produce 100 million barrels of oil each day by 2035. He noted that there has been a decrease in the production of oil and natural gases, and therefore there is a great need for new sources. With the new ven ture to be taken by CGX, the Guianas will be able to fill the gap to reduce high oil prices.
Sully said also that he estimates that Guyana will be able to produce 50 million barrels of oil or 140,000 bar rels of oil each day. This will rank Guyana close to other oil producing countries like Colombia and Brazil. Guyana is expected to receive 50 per cent of the profits.
“Guyana’s 2007 revenue was GY$ 80.3 billion, but with my discovery, it is likely to increase that amount three or more times,” Sully noted.
He also said that because of Guyana’s small population, everyone is likely to benefit tremendously.
He added that the natural gases present could also help to boost the manufacturing sector of the country, allowing us to become major producers of many needed items. Most importantly, oil revenues can also be used to develop hydro power in the country.
Sully added that there will also be a possibility of an alumina complex opening up in Guyana, which will make more use of our bauxite.
With the alumina operations, Guyana should be able to produce aluminium to make wires, rods, roofing material, tables and chairs, wheels, auto parts, cables, rods and many other similar products.
In closing, Sully said that CGX has already bought a plot of land near the estuary of the Berbice River. This, he said, could be the site of a port, which could mean more opportunities to further develop Guyana.
CGX currently hold licences for three areas off shore – Corentyne 100 per cent, Georgetown 25 per cent, and Pomeroon 100 per cent.
CGX is managed by a team of oil and gas and finance pro fessionals from Canada, USA and the UK. The company has been wrapped up in the quest for oil here for nearly a decade. However, in June of 2000, its rig was chased out of Guyana’s waters by Suriname gunboats as it was about to drill a well in the most promising area.
This led to a diplomatic crisis between Guyana and Suriname and years of fu tile talks. The deadlock was broken when Guyana took its case to the International Law of the Sea tribunal and secured a ruling largely in its favour in 2007. Since then, expectations have been high that oil would be found when CGX resumes its search.