Total eyes Guyana block

GEORGETOWN, September 26, 2017 – Total has purchased an option to buy a 25% stake in Orinduik block offshore Guyana for USD 12.5 million, licence partner Eco Atlantic announced on Tuesday.

The French super-major will pay USD 1 million for the option, which it can exercise within 120 days of the processing of 3D-seismic data from a survey completed on September 5, the press release added.

“The deal not only validates the quality of the Orinduik block as a highly prospective licence, it also validates Eco’s long-term strategy – to identify highly prospective assets in frontier basins, with favourable petroleum agreement terms, and with world-class partners,” said Eco Atlantic’s president and CEO Gil Holzman. “In the event that the option is exercised by Total, the deal proceeds will recoup all our expenses on the expanded 3D programme and fund us for drilling a minimum of two wells based on current well costs.”

Tullow Oil has a 60% operating interest in the block, which is situated near the massive Liza discovery that ExxonMobil made in 2015. Eco Atlantic’s Guyana subsidiary currently holds the remaining 40% of the licence, though its share would go down to 15% if Total exercises the option.

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