Georgetown: United States-based oil company ExxonMobil’s oil exploration ship, the Deep Water Champion commenced its US$200 million oil exploration project on Thursday at the Stabroek Block off Guyana’s Essequibo Coast and according to Natural Resources and Environment Minister Robert Persaud, the operations were off to a smooth start.
This is even as the company remained locked in what could be a possible showdown with Venezuelan authorities who have issued a warning for it not to proceed with the drilling, which was sanctioned by the Guyana Government.
“Exxon has begun its operations and so far there has been no conflict or hiccups in that,” Persaud told the Guyana Times.
Venezuela has repeatedly laid claim to the area to be explored, ignoring an 1899 Arbitral Tribunal Award, which was declared as the full and final settlement of the boundary between the two South American nations. With Venezuela’s insistence on its position, Guyana is considering judicial settlement of the boundary.
Following Venezuela’s warning, Guyana’s Foreign Affairs Minister, Carolyn Rodrigues-Birkett, dispatched a diplomatic note to her Venezuelan counterpart, warning against any action to prevent the oil rig from carrying out its work in an area of the Stabroek Block known as Liza.
The total area allotted to Exxon for exploration covers 26, 806 square kilometres. The company intends to drill at a depth of 1750 metres. The project is expected to be executed over a 10-year period.
The Guyana-Suriname Basin has the second largest unexplored oil potential in the world after Greenland, according to the US Geological Survey. And there is much optimism that oil will be found in commercial quantities.
ExxonMobil joins other investors such as CGX Energy, Repsol, Anadarko Guyana Co, and Gas and Nabi Oil and Gas in exploring for oil in Guyana’s offshore.
You must be logged in to post a comment.