Shell confirms deepwater oil discovery offshore French Guiana; first deepwater well offshore French Guiana
09 September 2011
As part of a Tullow-operated joint venture, Shell confirmed an oil discovery in the Guyane Maritime permit approximately 150 kilometers offshore French Guiana. The GM-ES-1 well is being drilled in a water depth of more than 2,000 meters (6,562 feet) and to date has drilled to a depth of 5,711 meters (18,737 feet).
The well has encountered over 70-meters of net oil pay in two objectives. The joint venture plans to drill ahead to the planned target depth.
We are pleased with the preliminary results of this first ever deepwater well offshore French Guiana. 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.
—Dave Lawrence, Shell's executive vice president Exploration and Commercial
Shell acquired an initial equity interest of 33% in the joint venture in 2009 and increased its equity interest to 45% in 2010, subject to government approval. The joint venture is currently operated by Tullow (27.5%) with additional equity interest held by Total (25%) and Northpet (2.5%), a company owned 50% by Northern Petroleum plc and 50% by Wessex Exploration plc.
Five miles down and oil is well, but will it be under $10/gallon when it reaches the victim.
Posted by: kelly | 09 September 2011 at 03:08 PM
Obama's screw-the-poor-with-expensive-energy policy, and the exploding demand in China and India will create pressure on global prices, but these new oil finds around the world and Iraq ramping up production should keep prices relatively stable. The only wildcard would be new major unrest and/or war in the middle east.
Posted by: ejj | 09 September 2011 at 04:08 PM
But even with the uncertainty in the middle east.
1. Ihese new oil finds help keep prices stable.
2. If it costs $10/g to produce, the oil cos lose.
3. Reduced drilling and the Keystone delays screw-the-poor.
Posted by: ToppaTom | 10 September 2011 at 10:53 AM