French oil company farms in on existing oil concessions offshore Guyana

Last Updated on Monday, 5 February 2018, 7:21 by Denis Chabrol

The French oil company, Total, has signed agreements to acquire interests into two exploration licenses offshore Guyana, the Canje Block and the Kanuku Block.

These agreements come after entering into an option agreement for the nearby Orinduik Block. Subject to the approval of relevant authorities, Total will thus own exploration rights to an area covering over 12 000 km2 in the Guyana Basin.

“Total is very pleased with this significant entry in the prolific Guyana Basin,” says Arnaud Breuillac, President, Exploration & Production at Total. “The Canje, Kanuku and Orinduik blocks are located in a very favourable petroleum context, evidenced by the Liza discovery in 2015. Acquiring interests in these highly prospective licenses is in line with the new exploration strategy in place since 2015.”

Total acquires a 35% working interest in the Canje Block, located in water depths of 1700 to 3000 m, under the terms of the agreement signed with an affiliate of Canadian company JHI Associates, Inc. and Guyana-based company Mid-Atlantic Oil & Gas, Inc. These two companies will retain a shared 30% interest alongside operator ExxonMobil (35%).

Total acquires a 25% working interest in the Kanuku Block, located in water depths of 70 to 100 m, under the terms of the agreement signed with operator Repsol (37.5%), and will be a partner alongside Tullow (37.5%).

Total holds an option to purchase a 25% working interest in the Orinduik Block, located in water depths of 70 to 100 m, under the terms of the agreement signed in September 2017 with an affiliate of Canadian company Eco Atlantic Oil & Gas Ltd, who will retain a 15% interest following exercise of the option, alongside operator Tullow (60%).