French major Total said it has signed agreements to acquire interests in two exploration licenses offshore Guyana – the Canye Block and the Kanuku Block.
With the new blocks, Total will own exploration rights to an area covering over 12,000 square kilometers in the Guyana Basin once the relevant approvals are in place, the oil major said in a statement.
The deal comes after Total agreed last September to pay $1 million for an option to buy a 25 per cent stake in the Guyana offshore Orinduik Block, operated by Tullow Oil. The Block falls in an area close to where ExxonMobil made one of the largest discoveries of the last decade through Liza drilling campaigns which confirmed a world-class resource discovery in excess of 1 billion oil-equivalent barrels.
“Total is very pleased with this significant entry in the prolific Guyana Basin,” said Arnaud Breuillac, president, exploration and production at Total. “The Canje, Kanuku and Orinduik blocks are located in a very favorable 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 will buy a 35 per cent stake in the Canje Block, located in water depths of 1,700 to 3,000 meters, 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 per cent interest alongside operator ExxonMobil (35 per cent).
In the Kanuku Block, located in water depths of 70 to 100 meters, Total will acquire a 25 per cent interest, under the terms of the agreement signed with operator Repsol (37.5 per cent), and will be a partner alongside Tullow (37.5 per cent).
The Orinduik Block stake option was in a deal with an affiliate of Canadian company Eco Atlantic Oil & Gas Ltd, who will retain a 15 per cent interest following exercise of the option, alongside operator Tullow (60 per cent), Total said.