Tullow Oil to Spend US$80 Million on Drilling Wells Offshore Guyana

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GEORGETOWN, Guyana, Friday October 18, 2019 – This year, Tullow Oil plc is expected to expend approximately GUY$17 billion (US$80 million) on drilling wells in Guyana’s offshore basin.

This was disclosed by the oil company’s Head of Communications George Cazenove yesterday, during a Skype interview with members of Guyana’s media corps.

“In 2019, we are going to spend US$80 million on the wells we are drilling this year,” Cazenove said.

Tullow Oil commenced its search for oil in the Orinduik Block in June 2019 and struck liquid goal two months later. The Jethro-1 well was drilled on August 12 and one month later, the Joe well was drilled. The Communications Head stated that drilling will soon commence on the Carapa well in the Kanuku license.

He noted that the seismic exercises which were conducted previously had a separate cost attached to it. It was disclosed that the company has not yet outlined a budget for operations in 2020.

Cazenove explained that “next year’s programme would be materially defined by what happens and what does not happen with the Carapa well… when we think about next year, we need to think about the wells we have drilled on the Orinduik license and also the well on the Kanuku licence”.

Touching on revenue, the Communications Head stated that several areas have to be considered.

“We have to be clear that we have developed the prospects in the oil discoveries that we have made, we need to do more appraisal and work on drilling wells to test them as well,” he explained.

To drive home this fact, he referred to ExxonMobil who is set to commence pumping first oil five years after their initial discovery.

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