South America: Others

SOUTH AMERICA

Stuart Wilkinson, Contributing Editor

Others

No wells were drilled last year in the Falkland Islands, and there was no production or proven reserves. No wells are forecast for 2000. Consortia retaining licenses in the region, such as Desire and Argos Evergreen, are seeking farm-in partners for future drilling and perhaps additional seismic-survey data. The government plans to offer licenses for other areas under out-of-round licensing rules. It is hoped that, by offering companies exclusivity over areas adjacent to and outside of North Falkland basin, additional data will be acquired that will lead to a fuller understanding of the of the area’s geology.

In addition to exploration within the Falkland zone, an area has been set aside southwest of the islands – known as the Special Cooperation Area – to be jointly licensed with the Argentine government. Progress continues in formulating a licensing regime for the area.

In late August 1999, Burlington Resources entered into an agreement with the state oil company Staatsolie to explore in deepwater areas off Suriname. Burlington (35%) was to operate the 18,500-sq-mi block with partners Shell (35%), TotalFina (15%) and Korea National Oil Corp. (15%).

In March of this year, Koch Petroleum Canada signed a production-sharing contract with Staatsolie. The 20-year contract encompasses 140,000 acres in the Wayombo area and will focus on heavy oil. An affiliate of Koch intends to acquire seismic, starting in the third quarter of this year. It is anticipated that 15 to 20 test wells will be drilled during the first year.

In June 2000, CGX Energy drilled a dry hole on its Horseshoe prospect, offshore Guyana. On June 3, 2000, the drilling rig was forced off the company’s Eagle prospect by two Suriname gunboats. A maritime border dispute between Suriname and Guyana has existed since the eighteenth century and was the primary subject during a summit meeting this summer. Resolution of the dispute does not appear imminent.

Last September, Agip Guyana BV signed an agreement with Maxus Guyana Ltd. to acquire a 25% stake for exploration in the Georgetown Block. The block is about 50 mi offshore Guyana. It lies in water depths from 100 to 650 ft. About 2,200 mi of 2-D seismic were acquired during 1999, and another 625 mi are to be surveyed in 2000. Two offshore wells are to be drilled this year.

The Woodbourne lease area, offshore Barbados, is being exploited by Conoco and the Barbados government. However, the government would welcome any additional investment for onshore exploration outside the Woodbourne area. Oil output averaged 1,986 bpd last year. About 4,971 mi of 2-D seismic offshore are slated for 2000, plus eight onshore wells.