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Could Guyana Become The Next Oil Hot Spot?

U.S. oil supermajor, ExxonMobil, announced…

The Two Nations Racing To Host The Next Oil And Gas Rush

Rigs

Bit of a quiet week for major resource news. But several small items are suggesting some potentially explosive developments coming over the next several months.

One of those comes in a place I’ve been watching closely the past year: the tiny Mediterranean island of Cyprus. Which this past week announced the winning bidders for an offshore licensing round — handing out acreage that could be prospective for some of the world’s largest natural gas targets.

Cyprus’s Ministry of Energy, Commerce, Industry, and Tourism said it has awarded three offshore blocks — one to Italy’s Eni, one to an Eni/Total partnership, and the other to ExxonMobil and Qatar Petroleum.

That’s big news because these licenses lie just kilometers away from Egyptian waters where Eni discovered the 30 trillion-cubic feet Zohr natural gas field — one of the biggest petro-finds in recent history.

Eni and a slate of fellow majors are now on the job to find something similar in Cyprus. Watch this space for more potential mega-discoveries.

But there may be even bigger prizes to be had in a couple of other spots around the oil and gas world. Starting with the emerging exploration and development destination of Iran — where officials said they expect to offer their first international project tender during the first quarter of 2017.

Representatives from the National Iranian Oil Company said the South Azadegan oil field will be tendered by the end of March. Also, the representatives revealed some key details about the contracts — namely, that the project licenses will be offered on a 20-year term.

That will consist of a 5-year exploration and development period plus a 15-year production period. Which is relatively short by global standards — meaning it will be interesting to see how international E&Ps react when it comes time to bid on such a contract.

In the meantime, interest from E&Ps is also heating up in another corner of the global: Brazil. Where France’s Total this week announced a $2.2 billion deal to buy stakes in two offshore presalt oil fields from state major Petrobras. Related: Oil Price Roulette: Investors Bet On $100 Oil

A few days later, Total said it is now planning to spend $1 billion per year on Brazil oil and gas projects going forward. Showing that the major is very motivated on this part of the world.

At the same time, interest in Brazil is growing stronger from big investors like China. With Petrobras recently signing a $5 billion funding deal with China Development Bank.

That shows a bit of a rush emerging for oil projects in this part of the world. Watch to see if this becomes perhaps the world’s premier destination for new E&P investment — or if up-and-comers like Iran (or maybe even Cyprus) can challenge for hosting the next oil and gas rush.

Here’s to the next big thing,

By Dave Forest

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  • George on January 01 2017 said:
    Both Israel and Greece have identified large natural gas resources in the Mediterranean. The Israeli fields are under development. Israel has identified a ten billion barrel oil field in Golan. Mexico has oil without capital, technology, nor legal stability to attract development. Venezuela has more oil than Saudi Arabia and a more primitive society than Saudi Arabia. Canada has enough oil sand to supply USA and the world at $50/bbl. USA frackers capped enough wells to be the swing producer for years to come. Europe especially Ukraine has untapped frackable shale.

    The Earth's core is iron carbide. The carbon leaches off to provide an infinite supply. Cost of production is the issue. Investment in lawless dictatorships is not an option: Saudi Arabia, Russia, Venezuela, Mexico, China, Qatar, Libya, Iraq, Brazil, Persia. The balance of the world is lawless dictatorships.

    Overpopulated dictatorships are eager to bring their oil resource to market and feed their indigent fecund hordes. They fear the cost of solar power may undercut them before they can convert oil to value. Oil prices are under intense population pressure.

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