Keron Oil Development, US Oil Developers to Develop Gasfield in Guyana
Keron, the largest oil field in Guyan Province in the west of Guyana, will have an estimated annual production of 4,000 barrels per day, according to the US State Department’s Oil and Gas Development Administration (OGDA).
Guyana is the first of a number of countries in Central and South America to become oil exporters, and the country is expected to become a major exporter of oil by 2020.
Guyana’s oil and gas development is already well underway.
A $1.6 billion, 25,000-barrel-per-day field has been established at the site of the old port.
In addition, an additional 4,500 barrels per week is expected from Keron.
The new fields have been approved by the US government for use as a storage tank, with a total capacity of 2.5 million barrels per year.
In the short term, the Keron fields will be used as oil storage tanks.
Oil exploration is expected for the fields.
In the long term, Keron is expected see a boom in the production of US oil and natural gas as countries move from a reliance on imports of crude oil and the production and marketing of petroleum products.
According to US State Secretary of State John Kerry, Guyana will be the second-largest producer of US crude oil after Saudi Arabia, and will become a regional energy exporter by 2023.
Guyana has already become a key part of the US shale boom, exporting oil and producing shale oil.
Kerry said the US exports oil and its natural gas to Guyana in excess of 100 million barrels a day, and expects to double that amount by 2020, with exports of crude to Guyan and natural-gas to the Caribbean Islands of Guyan, Guadalajara, and Antigua on track.
The US has exported more than 300 million barrels of oil to Guyans natural-reserve.
Guyan and Guadalagas shale fields are currently the largest in the world.
They were first discovered in 1884, producing 1.7 million barrels oil per day.
In 2012, Kerontos oil fields, which will include the new fields, were estimated to produce 4,700 barrels per well, or 4,600 barrels per hour, depending on the production rate of the field.
The fields will produce between 1.5 and 2 million barrels an hour, Kerry said.
Keron Oil Projects, a joint venture between Keronto Energy Corporation, and Shell, is responsible for the construction of the fields, and it has begun work on the first 2,500-barrelled wells.
Shell is also in the process of developing a 5,000 barrel-per day field at the nearby Fort Worth, Texas, port.
Kerry described Kerontas field development as an opportunity for Guyan to become an energy superpower.
Kerrontos has signed a memorandum of understanding with Guyan on its partnership with Shell, and a partnership agreement with Shell will be signed later this year.
Kermontos field is expected produce between 3.3 and 3.7 billion barrels per annum, with 1.2 to 1.3 billion barrels of reserves, depending upon the oilfield’s production.
It is expected that Keronts production will grow by 10-15% per annu.