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GEORGETOWN, Guyana (GINA) -- As Guyana moves closer to realising its hydro-electric potential, developments in oil and gas exploration augur well for the future of the nation’s energy sector.

This is according to Prime Minister Samuel Hinds, in an interview with representatives of several media entities where he responded to questions about the status of exploration in the off-shore Corentyne Coast and reports of activity in the Rupununi, Region 9.

Guyana Prime Minister Samuel Hinds

He noted that according to the Guyana Geology and Mines Commission (GGMC), there are four companies licenced to undertake exploratory work in Guyana; Exxon-Mobil, REPSOL/YPF, Century Guyana Limited and CGX Energy Incorporated (Inc) and outlined that there are large areas in the Atlantic Ocean and Takutu Basin, available for investment for oil exploration. Equipment is currently in the Rupununi to drill for the Takutu Gas Company, in 2011. REPSOL/YPF will also endeavour to commence the drilling of a well in the first quarter of 2011.

The Prime Minister also pointed out that the GGMC has found marsh gas/biogenics during its exploratory works, with some activity on Wakenaam and Leguan Islands and in the Pomeroon area. It is believed that the use of new technologies will help to find hydro-carbons in Guyana.

In 2007, there was an award in the arbitration between Guyana and Suriname, over the maritime boundary of the two countries. Since, discussions were held with oil stakeholders on the resumption of exploration activities and there has been the advancement of new talks between the governments of the two countries towards more coordination and collaboration with Suriname President, Desi Bouterese, recently stating that “We need to get beyond border talks, and move towards greater coordination and collaboration in the future.”

Collaborative efforts are being undertaken at the corporate level as well, with CGX Energy Inc., which commenced offshore exploration in 2001 in the Corentyne River, now working with REPSOL/YPF, to finance the massive cost of importing necessary rig equipment from the North Sea and Africa.

The operation will require an initial investment of US$50-$100 million. The Guyana basin is a proven petroleum system with five potential oil bearing layers, available to depths of 23,000 feet and holds the potential to produce 50 million barrels per year.

New Spanish Ambassador to Guyana Joaquin Maria de Aristequi, who presented his letters of credence to President Bharrat Jagdeo on August 23, has high hopes in developing Guyana’s energy sector through strengthened cooperation between Guyana and Spain.

He noted that the energy sector is critical to the future well being and economic growth of Guyana and reference to REPSOL’s presence in Guyana as a good signal of economic opportunities, highlighting that the company holds the reputation as a leading international oil exploration entity.

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