In this promising region, operators are now challenged to transition from an exploration/assessment model to best practices for development and production.
Recent discoveries in the Guyana-Suriname Basin demonstrate an estimated 10+ Bbbl of oil resources and over 30 Tcf of natural gas.1 As with many oil and gas successes, this is a story that begins with early onshore exploration success, followed by a prolonged period of coastal-to-shelf exploration disappointment, culminating in deepwater success.
The eventual success is a testament to the perseverance and exploration success of the governments of Guyana and Suriname and their oil agencies and the use of IOCs in the African conversion fringe to the conjugated South American conversion fringe.Successful wells in the Guyana-Suriname Basin are the result of a combination of factors, most of which are technology-related.
Over the next 5 years, this area will be the pinnacle of oil and gas, with existing discoveries becoming an evaluation/development area; several explorers are still seeking discoveries.
Onshore exploration.In Suriname and Guyana, oil seeps were known from the 1800s to the 1900s.Exploration in Suriname discovered oil at a depth of 160 m while drilling for water at a campus in the village of Kolkata.2 The onshore Tambaredjo field (15-17 oAPI oil) was discovered in 1968.The first oil began in 1982.Satellite oil fields to Kolkata and Tambaredjo were added.The original STOOIP for these fields is 1 Bbbl oil.Currently, the production of these fields is about 16,000 barrels per day.2 Petronas’ crude oil is processed at the Tout Lui Faut refinery with a daily output of 15,000 barrels for the production of diesel, gasoline, fuel oil and bitumen.
Guyana has not had the same onshore success; 13 wells have been drilled since 1916, but only two have seen oil.3 Onshore oil exploration in the 1940s resulted in a geological study of the Takatu Basin.Three wells were drilled between 1981 and 1993, all dry or non-commercial.The wells confirmed the presence of thick black shale, the Cenomanian-Turonian age (known as Canje Fm), equivalent to the La Luna Formation in Venezuela.
Venezuela has a thriving history of oil exploration and production.4 Drilling success dates back to 1908, first at the Zumbaque 1 well in the west of the country, 5 During the First World War and during the 1920s and 1930s, production from Lake Maracaibo continued to rise.Of course, the discovery of tar sands 6 in the Orinoco Belt in 1936 had a major impact on oil reserves and resources, contributing 78 Bbbl of oil reserves; this reservoir ranks Venezuela’s current number one in reserves.The La Luna formation (Cenomanian-Turonian) is the world-class source rock for most of the oil.La Luna7 is responsible for most of the oil discovered and produced in the Maracaibo Basin and several other basins in Colombia, Ecuador and Peru.The source rocks found offshore Guyana and Suriname have similar characteristics and are of the same age as those found in La Luna.
Offshore Oil Exploration in Guyana: The Continental Shelf Area.Exploration work on the continental shelf officially began in 1967 with 7 wells Offshore-1 and -2 in Guyana.There was a 15-year gap before Arapaima-1 was drilled, followed by Horseshoe-1 in 2000 and Eagle-1 and Jaguar-1 in 2012.Six of the nine wells have oil or gas shows; only Abary-1, drilled in 1975, has flowable oil (37 oAPI).While the lack of any economic discoveries is disappointing, these wells are important because they confirm that a well-functioning oil system is producing oil.
Petroleum Exploration Offshore Suriname: The Continental Shelf Area.The story of Suriname’s continental shelf exploration mirrors that of Guyana.A total of 9 wells were drilled in 2011, 3 of which had oil shows; the others were dry.Again, the lack of economic discoveries is disappointing, but the wells confirm that a well-functioning oil system is producing oil.
The ODP Leg 207 drilled five sites in 2003 on the Demerara Rise that separates the Guyana-Suriname Basin from French Guiana offshore.Importantly, all five wells encountered the same Cenomanian-Turonian Canje Formation source rock found in the Guyana and Suriname wells, confirming the presence of the La Luna source rock.
The successful exploration of Africa’s transition fringes began with the discovery of Tullow oil in 2007 at the Jubilee field in Ghana.Following its success in 2009, the TEN complex was discovered west of Jubilee.These successes have prompted equatorial African nations to offer deepwater licenses, which oil companies have annexed, prompting exploration from Côte d’Ivoire to Liberia to Sierra Leone.Unfortunately, drilling for these same types of plays has been very unsuccessful in finding economic accumulation.In general, the further west you go from Ghana along the fringes of Africa’s transition, the more the success rate drops.
As with most of West Africa’s successes in Angola, Cabinda and the northern seas, these deep-water Ghana successes confirm a similar gaming concept.The development concept is based on a world-class mature source rock and associated migration pathway system.The reservoir is mainly slope channel sand, called turbidite.Traps are called stratigraphic traps and rely on solid top and side seals (shale).Structural traps are rare.Oil companies discovered early on that, by drilling dry holes, they needed to differentiate the seismic responses of hydrocarbon-bearing sandstones from wet sandstones.Each oil company keeps its technical expertise on how to apply the technology secret.Each subsequent well was used to adjust this method.Once proven, this approach can significantly reduce the risks associated with drilling evaluation and development wells and new prospects.
Geologists often refer to the term “trendology”.It’s a simple concept that allows geologists to transfer their exploration ideas from one basin to another.In this context, many IOCs that have had success in West Africa and the African transition fringe are determined to apply these concepts to the South American Equatorial Margin (SAEM).As a result, by early 2010, the company had obtained licenses for deepwater offshore blocks in Guyana, Suriname and French Guiana.
Discovered in September 2011 by drilling Zaedyus-1 at a depth of 2,000 m offshore French Guiana, Tullow Oil was the first company to find significant hydrocarbons in SAEM.Tullow Oil announced that the well found 72 m of net pay fans in two turbidites.Three appraisal wells will encounter thick sand but no commercial hydrocarbons.
Guyana succeeds.ExxonMobil/Hess et al.The discovery of the now-famous Liza-1 Well (Liza-1 Well 12) was announced in May 2015 in the Stabroek license offshore Guyana.The Upper Cretaceous turbidite sand is the reservoir.The follow-up Skipjack-1 well drilled in 2016 did not find commercial hydrocarbons.In 2020, Stabroek’s partners have announced a total of 18 discoveries with a total recoverable resource of over 8 barrels of oil (ExxonMobil)!Stabroek Partners Addresses Concerns About Seismic Response Of Hydrocarbon-bearing vs Aquifer Reservoirs (Hess Investor, Investor Day 2018 8).Deeper Albian-aged source rocks have been identified in some wells.
Interestingly, ExxonMobil and its partners discovered oil in the carbonate reservoir of the Ranger-1 well announced in 2018.There is evidence that this is a carbonate reservoir built up on top of a subsidence volcano.
The Haimara-18 discovery was announced in February 2019 as a condensate discovery in a 63 m high-quality reservoir.Haimara-1 borders the border between Stabroek in Guyana and Block 58 in Suriname.
Tullow and partners (Orinduik license) made two discoveries in Stabroek’s ramp channel discovery:
ExxonMobil and its partner (the Kaieteur Block) announced on November 17, 2020, that the Tanager-1 well was a discovery but was considered non-commercial.The well found 16 m of net oil in high-quality Maastrichtian sands, but fluid analysis indicated heavier oil than in the Liza development.High-quality reservoirs were discovered in the deeper Santonian and Turonian formations.Data is still being evaluated.
Offshore Suriname, three deepwater exploration wells drilled between 2015 and 2017 were dry wells.Apache drilled two dry holes (Popokai-1 and Kolibrie-1) in Block 53 and Petronas drilled a Roselle-1 dry hole in Block 52, Figure 2.
Offshore Suriname, Tullow announced in October 2017 that the Araku-1 well had no significant reservoir rocks, but demonstrated the presence of gas condensate.11 The well was drilled with significant seismic amplitude anomalies.Results from this well clearly demonstrate the risk/uncertainty surrounding amplitude anomalies and illustrate the need for data from the well, including core data, to resolve seismic resolution issues.
Kosmos drilled two dry holes (Anapai-1 and Anapai-1A) in Block 45 in 201816, and the Pontoenoe-1 dry hole in Block 42.
Clearly, by early 2019, the outlook for Suriname’s deep waters is bleak.But this situation is about to improve dramatically!
In early January 2020, at Block 58 in Suriname, Apache/Total17 announced the discovery of oil at the Maka-1 exploration well, which was drilled in late 2019.Maka-1 is the first of four consecutive discoveries that Apache/Total will announce in 2020 (Apache investors).Each well encountered stacked Campania and Santonia reservoirs, as well as separate hydrocarbon condensate reservoirs.According to reports, the quality of the reservoir is very good.Total will become the operator of Block 58 in 2021.An appraisal well is being drilled.
Petronas18 announced the discovery of oil at the Sloanea-1 well on December 11, 2020.Oil found in several Campania sands.Block 52 is a trend and east that Apache found in Block 58.
As exploration and appraisals continue in 2021, there will be many prospects in the area to watch.
Guyana wells to watch in 2021.ExxonMobil and partners (Canje Block)19 just announced on March 3, 2021 that the Bulletwood-1 well was a dry well, but the results indicated a functioning oil system in the block.Follow-up wells in the Canje block are tentatively scheduled for Q1 2021 (Jabillo-1) and Q2 2021 (Sapote-1).20
ExxonMobil and partners in the Stabroek block plan to drill the Krobia-1 well 16 miles northeast of the Liza field.Subsequently, the Redtail-1 well will be drilled 12 miles east of the Liza field.
At the Corentyne block (CGX et al), a well may be drilled in 2021 to test the Santonian Kawa prospect.This is a trend for Santonian amplitudes, with similar ages found in Stabroek and Suriname Block 58.The deadline to drill the well was extended to November 21, 2021.
Suriname wells to watch in 2021.Tullow Oil drilled the GVN-1 well in Block 47 on January 24, 2021.The target of this well is a dual target in the Upper Cretaceous turbidite.Tullow updated the situation on March 18, saying the well reached TD and encountered a high-quality reservoir, but showed small amounts of oil.It will be interesting to see how this good result affects future NNE wells from the Apache and Petronas discoveries to blocks 42, 53, 48 and 59.
In early February, Total/Apache drilled an appraisal well in Block 58, apparently dipping up from a discovery in the block.Subsequently, the Bonboni-1 exploration well at the northernmost tip of Block 58 may be drilled this year.It will be interesting to see if the Walker carbonates in Block 42 in the future will be like the Ranger-1 discovery at Stabroek.carry out testing.
Suriname Licensing Round.Staatsolie has announced a 2020-2021 licensing round for eight licenses extending from Shoreline to Apache/Total Block 58.The virtual data room opens on November 30, 2020.Bids will expire on April 30, 2021.
Starbrook Development Plan.ExxonMobil and Hess have published details of their field development plans, which can be found at various locations, but Hess Investor Day 8 December 2018 is a good place to start.Liza is being developed in three phases, with the first oil appearing in 2020, five years after discovery, Figure 3.FPSOs associated with subsea development are an example of their attempt to cut costs to get early production — and even prices — at a time when Brent crude prices are low.
ExxonMobil announced that it plans to submit plans for Stabroek’s fourth major development by the end of 2021.
challenge.Just over a year after historically negative oil prices, the industry has recovered, with WTI prices over $65, and the Guyana-Suriname Basin emerging as the most exciting development of the 2020s.Discovery wells have been documented in the area.According to Westwood, it represents more than 75% of the oil discovered in the past decade and at least 50% of the natural gas found in clastic stratigraphic traps.twenty one
The biggest challenge is not the reservoir properties, as both the rock and fluid appear to have the required quality.It’s not technology because deepwater technology has been developed since the 1980s.It is likely to take this opportunity from the outset to implement industry best practices in offshore production.This will enable government agencies and the private sector to develop regulations and policies to achieve an environmentally friendly framework and enable economic and social growth in both countries.
Regardless, the industry will be watching Guyana-Suriname closely for at least this year and the next five years.In some cases, there are many opportunities for governments, investors and E&P companies to participate in events and activities as Covid allows.These include:
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