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Drilling for oil by REPSOL in its Jaguar well location offshore Guyana couldREPSOL set to start oil drilling by next week in its concessions offshore Guyana.start by next week, officials said yesterday.According to officials of the Ministry of Natural Resources and Environment, the rig is already in position with critical materials and divers in place.A Global Orion Diving Vessel arrived on location Sunday along with a ROV (remote submarine) conducting work since Monday.REPSOL, based in Spain, has operations in more than 35 countries in the field of exploration, production, refining and marketing.The start of drilling will come after several delays faced by REPSOL and CGX Energy, another company which has concessions in waters offshore Guyana. CGX is also set to start drilling in a number of weeks with a rig on its way to Guyana.Already, REPSOL has committed to spend around US$150M for the drilling.Late last year, Guyana granted REPSOL an extension in time to start its drilling.The company has already reportedly invested around US$50M and is committed to spend more than US$100M for the project.Guyana and REPSOL are highly optimistic that oil will be found, especially after a September 9th discovery in an area 150-kilometers offshore French Guiana,Cheap Jerseys From China, which is not far from the current area that REPSOL is to drill- which covers a net surface area of 1,260 kilometers square.Guyana is said to be one of the attractive under-explored basin in the world with a potential of 15.2 billion barrels of oil. Estimates place annual production targets at 50 million barrels.Under arrangement, government could expect a cash flow of 53%. With fuel purchases from overseas taking a major chunk of the country’s revenues, Guyana will be more than happy to find oil in commercial quantities. Gas prices have been hitting record highs in recent years.
