October 30, 2008

President Jagdeo, ESSO official sign agreement

GEORGETOWN, GUYANA - As efforts continue for oil exploration activities to recommence in the Guyana/Suriname basin, President Bharrat Jagdeo and Area Manager, Jan Claire Phillips of ESSO Exploration and Production Guyana Limited today signed a supplement and addendum to the existing Petroleum Prospecting Licence and Petroleum Agreement which have reaffirmed the parties’ commitment to this exploration.

Officials of ESSO Exploration and Production Guyana Ltd at the petroleum prospecting signing agreement ceremony at OP-October 30, 2008.

The Agreement was signed in the credentials room at the Office of the President.  The contract area is known as the ‘Stabroek Block’ and the key aspects to which the Agreement speak are the alignment of the said area to conform with the Guyana/Suriname maritime boundary and the rescheduling of the Licence term during which the ESSO work obligations will be expected to be undertaken.

President Bharrat Jagdeo and ESSO's Area Manager Jan Claire Phillips signing the oil exploration agreement at OP-October 30, 2008.

A release from the Guyana Geology and Mines Commission (GGMC) today noted that ESSO is required to now immediately acquire a regional 2D seismic target area.  

“These surveys may be followed with 3D imaging methods that will include 3D seismic, all in an effort to identify possible targets for drilling. The decision point for drilling will be made if any suitable targets are identified,” GGMC added.

President Bharrat Jagdeo greeting officials of ESSO Exploration and Production Guyana Limited during the agreement signing ceremony at OP-October 30, 2008.

ESSO got its licence in July 1999 for exploratory works and commenced its programme of regional aeromagnetic and 2D seismic exploration along with other investigative procedures. These operations were discontinued as a result of the Guyana/Suriname maritime boundary dispute which has since been resolved in the Permanent Court of Arbitration in accordance with the United Nations Convention on the Laws of the Sea.        

President Jagdeo and ESSO's Area Manager Jan Claire Phillips shake hands after reaffirming their commitment to oil exploration-October 30, 2008.