ENERGY Caribbean newsletter (April 2014 • Issue no. 72)
The final edition of the ENERGY Caribbean newsletter
The final edition of the ENERGY Caribbean newsletter
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SURINAME<br />
Major exploration<br />
programme is under way<br />
And the next round of bidding is in progress too<br />
Staatsolie, Suriname’s national<br />
petroleum company and only oil<br />
producer, confidently expects<br />
a<strong>no</strong>ther wave of offshore exploration<br />
after March 2015, when it will award<br />
yet more blocks based on the outcome<br />
of the “<strong>no</strong>mination” process <strong>no</strong>w under<br />
way.<br />
The company has adopted a new<br />
approach to acreage awards, which<br />
mimics what Trinidad and Tobago has<br />
done for some time in relation to the<br />
deep water: potential explorers indicate<br />
which open blocks specifically interest<br />
them, and that information is used to<br />
decide which ones will be offered for<br />
auction.<br />
Fifteen demarcated offshore blocks<br />
are available, their 1.2 million acres<br />
representing about 66% of the marine<br />
area under Suriname’s control, so<br />
the exploration potential is clearly<br />
substantial.<br />
So far, blocks <strong>no</strong>rthwest of Suriname’s<br />
coastline have proved of most interest<br />
to companies <strong>no</strong>w operating there,<br />
which leaves most of the 15 on the<br />
<strong>no</strong>rtheast of the marine area, abutting<br />
the delimitation line with French<br />
Guiana, open for bids. Staatsolie will be<br />
hoping that the offshore discoveries in<br />
that French department will be a spur to<br />
the <strong>no</strong>mination, and subsequent takeup,<br />
of acreage.<br />
More to come<br />
So far, the belief that the geology of<br />
AUCTION SCHEDULE<br />
February <strong>2014</strong><br />
March <strong>2014</strong><br />
June 1, <strong>2014</strong><br />
July <strong>2014</strong><br />
August <strong>2014</strong><br />
January 30, 2015<br />
March 2015<br />
4th quarter, 2015<br />
EXPLORATION<br />
Company Block Wells Timeframe<br />
Inpex 31 1 <strong>April</strong> 2015<br />
Kosmos/Chevron 42 1 tba<br />
Kosmos/Chevron 45 2 2015<br />
Tullow Oil 47 1 <strong>2014</strong> Q4–2015 Q1<br />
Murphy Oil 48 1 tba<br />
Petronas (Malaysia) 52 1 <strong>April</strong> 2015<br />
Apache/Kepsa 53 1 by <strong>April</strong> 2015<br />
Tullow Oil/Statoil (Norway) 54 tba tba<br />
the Guyana/Suriname/French Guiana<br />
basin mirrors that of west Africa, where<br />
Tullow Oil made its famous Jubilee<br />
discovery in Ghana, has been proved<br />
correct only in the case of French<br />
Guiana itself, with the Zaedyus find of<br />
about 840 million barrels in 2011.<br />
The four wells drilled in Suriname’s<br />
blocks 37 and 31 in 2011, by Murphy<br />
Oil and Japan’s Inpex respectively,<br />
were <strong>no</strong>t successful. Nor was recent<br />
exploration offshore Guyana.<br />
But the possibilities have <strong>no</strong>t been<br />
exhausted by any means, and there is an<br />
ongoing drilling programme by existing<br />
block holders in Suriname which will see<br />
extensive offshore exploration activity<br />
(see box). And there will be much more<br />
to come, towards 2017 and beyond.<br />
Nominations from companies for<br />
blocks of interest to them began in<br />
February. On the basis of US$50,000<br />
data packages, they will have until June<br />
1 to put forward their choices. Staatsolie<br />
Block <strong>no</strong>minations open<br />
Data packages<br />
Deadline for <strong>no</strong>minations<br />
Nominations evaluated<br />
Selected blocks an<strong>no</strong>unced; bids open<br />
Bids close<br />
Successful bidders an<strong>no</strong>unced<br />
Seismic acquisition begins<br />
requires companies to “briefly indicate<br />
the reasons” for their selections, but if<br />
a company declines to <strong>no</strong>minate, it can<br />
still bid in the subsequent auction.<br />
Process<br />
In July, Staatsolie will be evaluating<br />
the acreages <strong>no</strong>minated, including<br />
whatever leads/prospects may<br />
have been identified, and will assess<br />
companies according to their technical<br />
expertise, resource management record,<br />
and health, safety and environmental<br />
reputation.<br />
The selection of blocks for production<br />
sharing contracts will be governed by<br />
their commercial potential, strategic fit<br />
with Staatsolie’s vision, the information<br />
available, and the degree of interest that<br />
has been expressed.<br />
The blocks chosen for auction<br />
will be an<strong>no</strong>unced on August 1, and<br />
will be open for bids until January<br />
30, 2015. Successful bidders will be<br />
revealed in March 2015, and are likely<br />
to be companies that have offered a<br />
participating interest to Staatsolie,<br />
with maximum work obligations,<br />
which have a good operating record<br />
and demonstrate a sound grasp of the<br />
geology.<br />
Staatsolie expects the companies<br />
chosen to get moving on exploration<br />
activity quickly and begin seismic<br />
acquisition by as early as the fourth<br />
quarter of 2015.<br />
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