Tullow Oil’s second discovery, at the Joe-1 exploration well in the Orinduik Block, is poised to have a favourable impact on the development economics for operators.
According to Director of New Ventures at Ramps Logistics, Javed Razack, the well, which was drilled in shallow waters, would mean cheaper development costs to be incurred and recovered from cost oil.
The Director noted that the most thrilling thing about this well is that it is the first Upper Tertiary discovery in Guyana, and it serves to de-risk this play type too. Razack also noted that all Exxon’s fields have been found in Cretaceous (older) reservoirs. Tullow’s first well, Jethro-1, was the first Lower Tertiary discovery.
While Joe-1 may not be as large as Liza-One in the Stabroek Block, Razack said that it will function similarly to encourage exploration in Guyana’s shallower reservoirs. Further to this, the Director noted that Tullow’s partner Eco Atlantic has already said that they have over a dozen prospects of this type in Orinduik. The Director said too that shallower Tertiary plays essentially means that drilling will be faster and cheaper than in Exxon’s Stabroek’s Block.
Ramps, which is the integrated logistics provider to Tullow and ExxonMobil, said that the Joe-1 discovery also bodes well for Repsol which will drill the Carapa-1 well in the Kanuku block towards the end of September using the jack-up rig EXL II. “They will now have all the learnings of Tullow, who is a non-operating partner in Kanuku,” Razack noted.
Following the announcement of the oil find in the Orinduik Block, Tullow’s CEO, Paul McDade said the company will be drilling at least three more exploration wells in 2020.
The Joe-1 was drilled using the Stena Forth drillship. Fourteen metres of net oil pay was encountered in Upper Tertiary sandstone reservoirs. No estimate of resources has been released yet.
Just minutes after Tullow’s news broke on Monday morning, ExxonMobil also announced discovery number 14 at Tripletail in the Stabroek Block. Tripletail-1 was drilled by the Noble Tom Madden drillship in 2000m of water and met 33m of oil-bearing sandstone. This well is located in the Turbot area.
The Ramps Logistics Director of New Ventures expressed thanks to its various teams across Guyana and Trinidad who would have played major roles in the execution of the foregoing wells.
