Guyana: Manatee oil exploration on the verge of completion
On Monday, the U.S. government said it had granted the oil company Keremek a permit for the first phase of a $4.9 billion exploration project that could yield oil at a cost of $40 per barrel.
The approval marks the first such permit granted by the Obama administration in the U;S.
offshore and offshore oil and gas fields, which are already home to about $30 billion in production.
The project would be the first to drill in Guyana’s deepwater Bight, and would be among the largest in the country.
The drilling is scheduled to begin next year, and is expected to produce about 1.5 million barrels of oil a day.
The Keremaek project is one of several oil and natural gas exploration projects being carried out by the U of S. offshore.
Some of the US.’s biggest offshore projects, including the $17 billion Keystone XL Pipeline, are in the works.
Guyana has been trying to get into the offshore oil industry since 2005, when President George W. Bush’s administration signed a deal with Russia to develop oil and other natural gas in the Bight.
The U.N. World Court last year ordered Guyana to halt the extraction of gas, oil and coal, but the country has been able to extract the gas, which is extracted in a process known as hydraulic fracturing, or fracking.
The company that holds the drilling rights, the Dutch firm Noble Energy, said last month that it expects to start the drilling by the end of this year.
The first phase is expected start in 2020.
“It is our goal to start drilling this year, which would be our first project in Guyan,” said Guyana Prime Minister David Alves.
Guyan’s Minister of Natural Resources, Daniel Guay, has been leading the effort to develop offshore oil fields in the area, including oil and shale gas.
In an interview last month with Reuters, Guay said the country was committed to developing the Bickley Basin, and to exporting oil.
“We believe that the Biketown project can provide significant development opportunities for Guyan, particularly as Guyan is already a major producer of natural gas,” he said.
“And the Bitchley Basin project is a great opportunity to expand production potential for Guyans own natural gas resource, and also to expand the export potential of Guyan to other countries.”
In a statement, Guyana said it is pleased with the U .
S. decision to grant permits for the two phase of Kerematek’s project.
“In the last year, the United States has been committed to ensuring that Guyana is one step closer to having an oil and oil shale resource in the deep waters of the Bitties Basin, a critical resource in Guyanas oil production and export plan,” the statement said.
The World Bank said the permits “could enable Guyana and other countries to diversify their energy portfolios, further expand oil and liquefied natural gas production and contribute to the sustainability of the Guyana economy.”
Guyana was one of five countries awarded $20 million in U.A.E. loans and a $10 million loan from the World Bank.
Guyaneans foreign minister, Ricardo Barros, welcomed the announcement, saying it will boost the countrys economic and social development.
Guyanes Prime Minister has also been working on a joint exploration agreement with Dutch oil company Noble Energy.