GEORGETOWN, Guyana (GINA) -- Guyana's Minister of Natural Resources and Environment, Robert Persaud on Thursday announced that offshore drilling activities by REPSOL commenced on February 7, while CGX, another oil giant, is set to start its operations by the end of next week.

The Jaguar-1, a deep well being drilled by REPSOL’s Atwood Beacon jack-up rig, could take up to six months to reach the targeted depth; while the CGX’s Eagle well is being drilled by the Ocean Saratoga semi-submersible rig and is expected to be completed in two months at about 14,200 feet.

Persaud said that, based on the most recent reports, all activities are proceeding according to plans. He explained that the Jaguar 1 is approximately 107 miles offshore; and is being drilled to a depth of 6,500 meters to test the turonian geologic zone. Meanwhile, the Eagle operation is within the same vicinity but at a safe distance away.

With regard to measures to safeguard against spills and other such mishaps that could affect the environment, the minister said, “We have put a lot of emphasis on the issue of safety and safeguards, when the representatives of the companies met with the president, it was an issue that was flagged and we have been assured that there is a robust plan in this regard.”
Chief operations officer, CGX Drilling, Mike Stockinger assured that his company has an emergency response and oil spill contingency plans that will be activated should the need arise.

Moreover, a workshop will be held on February 14 to bring all relevant stakeholders up to date with the issues, implications, measures and precautions with regards to this new development.

The drilling process is a very comprehensive and costly programme. In the case of REPSOL, nearly US$52 million has already been spent on its operations thus far, with an envisaged overall expenditure of US$180 million. CGX on the other hand, is expected to expend about US$55 million, as their well will be much shallower.

Persaud said that, once oil is found, the government will be guided by the legislative framework that is in place with regard to the next step. However, at present, the focus is primarily on exploration and technical capacity building.

To this end, a team from the Commonwealth is expected to arrive in Guyana shortly to share technical expertise and a workshop will be held by the US government to look at revenue streams and other mechanisms.

In a release on Thursday, the CGX president and chief executive officer said that this will be the deepest well drilled to date in the Guyana-Suriname Basin.

CGX Energy is a Canadian-based oil and gas exploration company. It is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the United States and the United Kingdom.

REPSOL on the other hand, is an integrated Spanish oil and gas company with operations in a number of countries. It is the 15th largest petroleum refining company, employing over 40,000 people worldwide.