Repsol, a Spanish oil and gas drilling company, set up office in Guyana on Friday. Known for its expertise in the field of oil drill ing, the company will be exploring for oil offshore the Guyana Basin. It is expected to manage a section of the project that CGX has already been contracted to begin at around the same time next year. Repsol has a track record of being the most successful oil and gas exploration company in Latin America over the last five years.
Exploration Manager Allan Kean, at the opening ceremony, said that Repsol is glad to be associated with Guyana, and has already set up a competent team of engineers and consultants to begin operations next year.
Kean explained that Repsol will transport its rig from Suriname to begin that process.
He stated that Repsol has developed a relationship with the Guyanese state from conducting re search through its affiliates in Guyana since 1995.
Kean added that Repsol currently has operations in Argentina, Mexico, Peru, Trinidad and Tobago, Colombia and Brazil, among several other countries. The company’s exploration manger said that Repsol’s risk capital exceeds US$ 600 million.
Because of the company’s commitment and legacy of oil exploration, Repsol has become expert in that field. Kean added that he hopes Repsol’s office in Guyana is here to stay.
According to Kean, the exploration is an attempt at finding oil, and it will cost the company millions of dollars. He said that while there may be a positive result once oil is found, that may be a challenge, but it is one Repsol is ready to take on. Added to that, he noted, Repsol will ensure that proper security measures are in place to prevent any mistakes, as it has hired some world- class consultants for the project. Kean explained that this will ensure that nothing like the Gulf of Mexico oil spill will occur in the Guyana Basin.
Meanwhile, during his presentation, Spanish Ambassador to Guyana, Joaquin M De Aristegui, said he is pleased to visit Guyana for the second time to open up Repsol Guyana.
The Spanish ambassador recalled presenting his credentials to President Bharrat Jagdeo and speaking with both the president and Prime Minister Samuel Hinds on the possibility of having Repsol establish a presence in Guyana, which he believes would foster greater ties between Spain and Guyana.
De Aristegui said that Repsol has proven to be one of the private Spanish companies that have shown its support in the social and economic development of its country. He said this can be identified specifically in en gineering, infrastructure, engineering and finance and a few.
“Repsol is a top- quality agency, not only in the energy sector, but also in the international business community. Repsol, for us means reliability, innovation, efficiency, and environmental and social commitment,” she stated. The Spanish ambassador said Repsol’s contribution to society has significantly helped to tackle poverty and create major investments in the countries in which it currently operates.
Acting president, Prime Minister Samuel Hinds, in his feature address, explained that Guyana is happy to welcome Repsol on board, as it will play a key role in the oil exploration operations to take place early next year.
Hinds said he hopes there will be success in the operations Repsol will undertake come 2011. The prime minister stressed, however, that while geological studies have indicated it is highly probable that the Guyana Basin has oil and gas offshore, it may not be definitely true.
He explained that while exploration will take place, it does not guarantee that much, if any, employment will be created for Guyanese. Hinds said this does not mean that if Repsol and CGX become successful, there would not be better opportunities for Guyanese, both socially and economically. Hinds said that Guyana’s Gross Domestic Product per annum is approximately G$ 2 billion; and if oil is found, the agreed sharing will benefit Guyana substantially.
The prime minister, however, noted that there have been 20 wells drilled in Guyana thus far.
Repsol Guyana will initiate drilling in the second quarter of 2011 with its vertical exploratory well called Jaguar 1. It will test cretaceous sandstone for oil within the Georgetown Block, located in the offshore Guyana Basin in Guyana. The site is located some 130km northeast of the nearest shoreline, in the vicinity of Port Mourant, and 160 km eastnortheast of the capital, Georgetown. The drilling operations will be carried out by the Atwood Beacon, a jack- up rig that will go some five to six miles below the surface of the earth.