Guyana approves Orinduik stake sale

LONDON, October 31, 2018 – Guyana’s president, David Granger, has approved the sale of a 25% stake in the offshore Orinduik block to Total, seller Eco Atlantic Oil & Gas announced on Wednesday.

“We are very glad to be able to move ahead so effectively and swiftly in Guyana, significantly ahead of our committed licence schedule,” Gil Holzman, the CEO of Eco Atlantic, said in a statement to the London Stock Exchange. “We look forward to drilling at least one well on Orinduik alongside our partners in 2019.”

Total purchased an option to farm into the block in September 2017 and exercised it in September 2018, after Eco Atlantic announced new estimates that the block has 2P reserves of 2.91 billion boe, including 2.5 billion barrels of recoverable oil and 69.4 bcm (2.45 tcf) of associated gas.

The original option cost Total USD 1 million, and the super-major will pay an additional USD 12.5 million for the stake.

Tullow Oil will remain the operator of the block with a 60% stake in it alongside partners Total (25%) and Eco Atlantic (15%).

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