CGX Energy has announced that the construction of its wharf platform for the Berbice Deep Water Port (BDWP) is scheduled to commence in September and operationalisation of the offshore oil and gas support shore base is set for mid-2022.
In a statement, CGX said that work is on-going on the access road and connecting bridge, relocation of utilities, and major construction of the site along the Berbice River, and noted that through its wholly-owned subsidiary, Grand Canal Industrial Estates Inc (GCIE), the company has been engaged in civil works related to the construction of the BDWP on 30 acres of land on the eastern bank of the Berbice River, adjacent to Crab Island.
“Construction of the wharf platform and access trestle are currently scheduled to begin in September 2021. The facility is designed to have a wharf platform of 220m length and 30m width, accessed by a 50m trestle. An approved dredging program is intended to ensure continual unencumbered access to supply and cargo vessels. Depth is targeted to be maintained at a 7m (23 ft) low-tide draft within the berth area and access channel that leads to the BDWP pier,” the statement informed.
Co-Chairman of CGX, Gabriel de Alba, stated that the company is pleased to continue with the advancement of activities in one of the world’s most important new oil and gas blocks in the last decade while Executive Co-Chairman of CGX stated that he is proud of the team and that progress made in the development of the Berbice Port.
According to the statement, CGX also owns and operates a 16-acre laydown yard in Berbice at Bramfield. This facility, located along the main Corentyne Highway, is fully permitted and operational as a logistics base and will also service the BDWP, which is located 3.2 km from the Bramfield Logistics Yard. CGX said that the capital cost for the project to 2023 is currently estimated at US$70 million, with a further expansion to construct heavy lift and fabrication facilities being contemplated.
Further, it was stated that work is on schedule for the operationalisation of the offshore oil and gas support shore base by mid-2022 and for the operationalisation of containerised cargo, agricultural cargo, and specialised cargo terminal by the end of 2023.
“The BDWP intends to service growing offshore demand in the oil and gas sector and significantly shorten supply routes, simplify logistics, and reduce cost and operational risk,” the statement noted before adding that the port will enable provisioning of operators and vendors in territorial waters of both Guyana and Suriname.
It was also disclosed that CGX has commissioned an independent market assessment study for the BDWP, to be conducted by Maritime & Transport Business Solutions (MTBS) of Rotterdam, The Netherlands.
According to the MTBS marketing report, the BDWP is expected to service the demands of one offshore well in 2022 following start-up; growing to 7-12 offshore wells/year beginning in 2023. The report also said that the BDWP is positioned to play a leading role in the expansion of the oil and gas sector in Guyana and Suriname and predicts revenue generation from 2022 related to offshore oil and gas services reaching approximately US $37 million by 2025 and steadily increasing thereafter.
Meanwhile, CGX stated that the BDWP’s containerised, specialised, and agricultural cargo operations are targeted to be fully operational by the end of 2023 and that the MTBS marketing report predicts that by 2030, the port will handle over 835,000 tonnes of cargo, with 64% of this related to the export of rice.
According to CGX, “Approximately 30 – 50% of the rice grown in Guyana is produced in regions 5 and 6 and the BDWP will provide important support to this industry and service its expected growth. The MTBS report predicts revenue generation from the cargo handling operations of the port to reach approximately US$28 million by 2025 with steady growth predicted, reaching approximately US$37 million by 2030.”
Apart from that, the Kawa-1 well in the Corentyne Block offshore Guyana is expected to be spudded within the August 1 to 15 time period and will reach total depth in approximately 85 days.
The primary target for the Kawa-1 well is a Santonian age, stratigraphic trap. This well is located in the northeast quadrant of the Corentyne block approximately 200 km offshore Georgetown. The water depth is approximately 355 meters (1,174 ft) and the expected total depth of the well is 6575 meters (21,700 ft).
As previously announced by CGX, Kawa-1 will be drilled by the Maersk Discoverer, a sixth-generation semi-submersible currently working in Trinidad for another operator.
The statement noted that CGX Resources Inc, a wholly owned subsidiary of CGX and operator of the Corentyne block, has secured all necessary contracts for the drilling of Kawa-1 and is now commencing operational activities to meet the targeted spud window. The current cost estimated to drill and evaluate Kawa-1 is between US$80-$85 million, which CGX expects to finance from one or more options that are currently being considered by the company.
