Guyana and Repsol ink Petroleum Deal

Guyana and Repsol ink Petroleum Deal

The Government of Guyana announced on Tuesday that it has signed an Agreement with Repsol Exploracion S.A. (Repsol) to undertake oil exploration in the Shelfal waters of Guyana’s Exclusive Economic Zone. Repsol is one of the largest Spanish Oil exploration companies.

President Donald Ramotar who is the Minister Responsible for Petroleum signed on behalf of the Guyana Government while the Authorized Company Director Jose A. Murillas signed on behalf of Repsol.

According to a statement from the Ministry of Natural Resources, Repsol will engage in petroleum exploration and production operations in the Guyana concession acreage which will be referred to as the “Kanuku Block”.

The Ministry said discussions between Repsol and the Ministry of Natural Resources and the Guyana Geology and Mines Commission (GGMC) commenced in mid 2012 in anticipation of the expiration of the Petroleum Prospecting Licence. repsol-logo_12e6d

The new Petroleum Prospecting Licence and its accompanying Production Sharing Agreement are in respect of an area approximately 6,525 sq. km. within the sedimentary basin offshore Guyana and approximately 100 miles seawards of the mouth of the Berbice River.

The statement added that “Repsol is anxious to commence work obligations which include new 2D and 3D marine seismic acquisition in the first phase, to be followed by an exploration well in the second phase of the Licence which has been granted for an initial period of four (4) years.”

The Guyana Government is pleased with the agreement and has said that Repsol is considered among the top international petroleum companies which has an operational office in Guyana.  The company has committed to contributing to education, transfer of technology and the building of capacity as the petroleum sector in Guyana develops.

According to the Government of Guyana, “the award of Petroleum Prospecting Licence and Agreement comes at a time when drilling on several fronts have occurred in Guyana recently and on the heels of the award of new licences offshore for concession acreage to Anadarko Guyana Company and CGX Resources Inc. and at a time when there has been a sustained interest in the potential for commercial petroleum discoveries in Guyana’s maritime areas.”

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