More oil? Producers interested in Takutu Basin

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By Vishani Ragobeer

Vishani@newsroom.gy

More oil could be produced from Guyana with the renewed interest in the Takutu Basin located in southern Guyana, primarily in the Region Nine area, and part of Brazil, Minister of Natural Resources Vickram Bharrat said on Wednesday.

Since Guyana first struck oil in 2015, all of the country’s profitable oil discoveries have been found in blocks offshore Guyana. To date, the country boasts of more than 10 billion oil-equivalent barrels – a substantial amount with further exploration still ongoing.

For decades, however, there has been some interest in areas on land that may also contain profitable oil reserves.

“There has been some interest in the Takutu Basin,” Bharrat said while speaking at the International Energy Conference at the Marriott Hotel in Kingston, Georgetown.

He added: “…(this) is something our government is discussing presently along with how we move forward with the other blocks offshore.”

Previously, wells were drilled in this basin as producers searched for oil. According to reports from the Guyana Geology and Mines Commission (GGMC), there were unsuccessful finds.

Even so, Bharrat noted that new technology and equipment may be contributing to the renewed interest in this basin.

And with the government already committed to utilising remaining oil blocks, including at this Takutu basin, a decision may be made to either auction off blocks at this Takutu basin or use them to form a national oil company.

ENERGY CORRIDOR

Meanwhile, Bharrat also talked up the ongoing plans to establish a Guyana-Suriname-Brazil energy corridor. This Takutu basin may be a consideration in the creation of that basin because it straddles both Guyana and Brazil.

A section of the gathering on Day Two of the International Energy Conference (Photo: Avidesh Narine/News Room/February 16, 2022)

As has been talked about before, Bharrat spoke about the increasing cooperation agenda between Guyana and Suriname which includes efforts at boosting training for locals and creating a joint natural gas strategy.

But the areas of cooperation between the three South American neighbours include infrastructure, the environment, investment and market expansion.

While Guyana’s President Dr. Irfaan Ali and Suriname’s Chandrikapersad Santokhi have met on numerous occasions, Brazil’s President Jair Bolsonaro joined them in Paramaribo on January 21, 2022, where these discussions were advanced.

The tri-nation energy corridor will allow the three countries to potentially power parts of South America, Latin America and the Caribbean while boosting business opportunities. Because of Guyana’s strategic location at the northern edge of South America, Bharrat posted that Guyana can become a key regional hub.

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