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LatinNews Daily - 03 January 2020

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In brief: New oil finding in Guyana less than expected

* The British energy company Tullow Oil (Tullow) has announced that the Carapa-1 exploration well, drilled on the Kanuku licence offshore Guyana, has encountered approximately four metres of net oil pay based on preliminary interpretation. According to a Tullow press release, rig site testing has indicated that the oil is 27 degrees American Petroleum Institute (API) gravity with a sulphur content of less than 1%. The same statement notes that net pay is lower than pre-drill forecasts and the well will now be plugged and abandoned. Tullow’s Chief Operating Officer Mark MacFarlane described the Carapa-1 result as “an important exploration outcome with positive implications for both the Kanuku and Orinduik blocks” and said that while “net pay and reservoir development at this location are below our pre-drill estimates, we are encouraged to find good quality oil which proves the extension of the prolific Cretaceous play into our acreage”. Spain’s Repsol is the operator of the Kanuku block with a 37.5% stake. Tullow holds a 37.5% stake with France’s Total holding the remaining 25%.