Tullow has no immediate plans to continue drilling for oil here this year as it is still to further assess the results from three wells drilled last year, which the company has also written off.
“The next steps in Guyana will be to integrate the three well results into updated geological and geophysical models, with a focus on the high-grading of the Cretaceous portfolio where better quality oil is expected across both the Kanuku and Orinduik blocks,” the company’s 2019 Full Year Results report, released on March 12th, stated.
In giving an overview of its operations here last year, the company said that it had completed a three-well exploration campaign, drilling the Jethro-1 and Joe-1 wells in the Tullow operated Orinduik licence and the Carapa-1 well in the non-operated Kanuku licence.
“In the Orinduik Block, the Jethro-1 and Joe-1 wells discovered 55 metres and 14 metres of net oil pay, respectively in Tertiary-age reservoirs. Full analysis of the oil found indicated both deepwater discoveries contained heavy oil with high sulphur content. In the Kanuku block, operated by Repsol, the Carapa-1 well drilled in a water depth of 80 metres discovered four metres of net oil pay containing good quality low sulphur oil, but in poorly developed reservoirs of Cretaceous age. The Carapa-1 well confirmed the extension of the prolific lighter oil hydrocarbon play in the Stabroek Block which is adjacent to Tullow’s acreage,” the report stated.
The same report said that the company had fully written off its oil exploration licence for the Walton-Morant Basin offshore Jamaica, on which it has taken a US$36 million hit.
The three wells here were also listed as write-offs but Tullow said that it continues to assess the Guyana operations.
“The total exploration cost write-offs for the year ended 31 December 2019 were $1,253 million (2018: $295 million),predominantly driven by a write-down of the value of the Kenya and Uganda assets due to a reduction in the Group’s long-term accounting oil price assumption from $75/bbl to $65/bbl,” the report said.
“The remaining write-offs include Jethro, Joe and Carapa well costs in Guyana as a result of drilling results and Kenya Block 12A, 12B and 10BA, Mauritania C3, PEL37 Namibia and Jamaica licence due to the levels of planned future activity or licence exits,” it added.
Tullow’s partners here include France’s Total, which has a 25 per cent stake, and Eco Atlantic, whose shares are listed in both the UK and Canada and which owns 15 per cent. The remaining 60 per cent is held by Tullow.
