Guyana is hopeful about its offshore oil and gas future

Part of Guyana’s serious border problems were resolved in 2007, when a Permanent Court of Arbitration (PCA) tribunal ruled in the country’s favor in its maritime dispute with Suriname. Toronto-based CGX Energy, whose offshore rig was forced off by Surinamese gunboats in 2000, was delighted by the ruling.

CGX has three licenses offshore Guyana and 9.8 million acres in the country. Spain’s Repsol YPF, has a 75% interest in the 2.8 million-acre Georgetown license, with CGX holding 25%.

The United States Geological Survey’s World Petroleum Assessment 2000 estimates offshore Guyana housing as much as 42Tcf of gas and 15.2 billion barrels of oil.

Khalil Bendib’s view of the boundary conflict between both countries. (CorpWatch)

“It’s a very good ruling,” CGX President Kerry Sully told SAEM. “It works well for us and it is going to allow a lot of exploration to proceed on both sides of the boundary.” He said the ruling “fully preserves” the Georgetown area largely preserves the company’s Eagle target,  where the company plans to renew drilling.

Even though there is still a dispute with Suriname over an uninhabited area of land in the country’s southeast called the New River Triangle, Venezuela claims to the west about two thirds (159,000 square kilometers) to the Essequibio River. One of the reasons why there have been no bids for Plataforma Deltana Block 5 in Venezuela in 2003 was most probably due to the boundary dispute with Guyana.

For more information see Guyana’s bright oil and gas future published by SAEM in June 2007.

Here is a video clip on Guyana reaction to the PCA tribunal ruling.