Elaine Maslin
UK-listed Tullow Oil said yesterday a South American exploration well had proved the area could open up a new oil region.
The oil and gas operator said its Zaedyus well offshore French Guiana had confirmed that the geology in the area was similar to that off west Africa, where Tullow and others have made large discoveries.
It is thought the rock formations were formed before Africa and South America separated millions of years ago.
Tullow exploration director Angus McCoss had previously said the Zaedyus well and another well in Liberia, Africa, also being drilled this year, were the most important Tullow had drilled since it made the first discovery at what is now its west African Jubilee field in 2007.
The Zaedyus well is 27.5% owned by Tullow as operator.
Mr McCoss said yesterday: “The discovery at Zaedyus has proved the extension of the Jubilee-play across the Atlantic and made an important new discovery in French Guiana.
“Tullow has built a commanding and unique acreage position in South America and this result marks the start of a significant and potentially transformational long-term exploration and appraisal campaign in the region.”
The firm said the Zaedyus discovery, drilled by Ensco’s 8503 deepwater semi-submersible, had opened up a new hydrocarbon basin off French Guiana, off the northern Atlantic coast of South America.
Dave Lawrence, executive vice president exploration and commercial at Shell, 45% owner of the field, said: “We are early in the evaluation, but the initial results are encouraging for this new play.
“The joint venture will continue to drill ahead, evaluate the well results, and determine next steps.”
Drilled in 6,500ft of water, it had found 236ft of net oil pay and “good quality reservoir sands”.
Drilling operations are to continue with the well to be deepened to more than 19,685ft. It is then likely to be sidetracked to gain samples from across the reservoir, said the firm.
The other partners in Zaedyus are Total, with a 25% stake and Northpet, with 2.5% ownership.
Tullow, which is listed on the London, Irish and Ghanaian stock exchanges, has interests across 22 countries but focuses on Africa, Europe, South Asia and South America. Its UK interests are mainly gas in the UK Southern North Sea.