Drilling for oil on the off shores of Guyana and Suriname will commence next year, President and Chief Executive Officer of CGX, Kerry Sully said yesterday.
During a press conference yesterday, Sully said that by the end of July the processing and interpreting of data complied will conclude.
He explained that once drilling commences and oil is discovered it will take about five years before full scale production.
Guyana, it is predicted, can earn up to $200B per year, he said.
In the agreement that Guyana negotiated with the company it was established that 53 percent of the proceeds would go to the state the remainder to the company.
However, despite some US$52M investment, CGX is yet to make any major discovery from its off shore reservation.
Because of the border dispute between Guyana and Suriname in 2000, CGX was forced to halt its drilling operations along the Corentyne offshore.
However, according to Sully it was decided that, following the arbitration ruling on the issue, not to resume operations immediately as it was in the best interest of all parties to enhance the studies by using new technologies.
During the press conference which was hosted at Pegasus, Sully predicted a very successful future for the company's operation. Once oil is discovered a number of local persons will be employed and extensive training programmes will commence.
Guyana's reservation, he added, amounts to 0.2 percent of the world's reservation however the probability for oil being discovered in Guyana is one in five. Sully explained that in the world of oil this is a good probability.
Only recently, Sully announced that the Canadian company's joint venture process for its 100 percent-owned Corentyne license offshore in Guyana was on hold.
We're now in discussions with Jefferies [Randall & Dewey] as to when is the right time to reopen the data room,said Sully. The process could resume in June or as late as mid-July, he added.
Jefferies recommended the process be put on hold due to the volatile crude oil price situation and until CGX has acquired depth images, according to the executive.
In December, a 505 square-kilometer (195 square-mile)3D survey was completed on Corentyne with processing and interpretation planned for this year.
CGX aims to team up with other companies exploring in the area to lower costs.
In Guyana, the company also holds a stake in the Georgetown offshore license.
On October 30 last, President Bharrat Jagdeo, along with Esso Exploration and Production Guyana Ltd, signed a supplement addendum to the existing Petroleum Prospecting Licence and Petroleum Agreement.
This agreement reaffirmed the mutual commitment to the exploration for petroleum in the offshore of Guyana within the contract area named Stabroek Block.’
Esso was first licensed in July 1999, and commenced its obligatory work programme of regional aeromagnetic and 2D seismic exploration in addition to other investigative processes.
The progress of this work programme was also interrupted by the Guyana/Suriname maritime boundary dispute, which has since been resolved in Permanent Court of Arbitration in accordance with the United Nations Convention on the Laws of the Sea.