NEWS - NORTH AMERICA
CGX Hires PGS for Corentyne Survey, Defers Rig
Contract
C
anadian oil and gas company CGX Energy has hired PGS to conduct
a 3D seismic survey over its Corentyne Block offshore Guyana.
CGX has also deferred all operational obligations under its drilling rig
contract for the Ralph Coffman jack-up due to the re-sequencing of
commitments in the Corentyne Block.
CGX Energy said on Monday that, through its subsidiary CGX
Resources (CRI), it had executed a contract with PGS Geophysical
to provide acquisition and processing of a full broadband marine 3D
seismic survey, to produce seismic data covering approximately 582
km2 of the northern portion of the Corentyne Block offshore in Guyana.
CGX Resources is the operator of the Corentyne Block under a joint
operating agreement with Frontera Energy Guyana Corp (FEGC). CRI
has a 66.667% participating interest in the block, with FEGC holding a
33.333% interest in the block.
well to any of the contractor’s rigs that are utilized to drill the Corentyne
and Demerara Blocks in 2020. Several of the more recent discoveries in
the basin continue to provide tangible endorsements of the company’s
exploration focus and I wish to thank our partners and shareholders for
their continued support of the company as we move towards realizing a
21-year vision and commitment to the Guyana basin.”
Dr. Narine further commented, “I am also delighted to announce
that in keeping with the increased operational focus of the company
following our successful rights offering and joint venture with FEGC
in the first quarter of 2019, Mr. Michael Stockinger has been appointed
Vice President Operations. Mr. Stockinger brings more than 40 years
of operational and drilling expertise to the helm of the company’s
operational efforts, including experience in successfully and safely
drilling the Guyana-Suriname Basin.” •
The survey is expected to start in mid-October 2019 and be completed
by November 27, 2019. This is in line with CRI’s re-sequenced work-
plan on the Corentyne Block, which requires CRI to complete a seismic
survey by November 27, 2019, and the drilling of an exploration well by
November 2020.
PGS plans to use an integrated acquisition and imaging approach for
fast turnaround of the seismic data. A Ramform Titan-class seismic
vessel will be used to complete the acquisition. GeoStreamer acquisition
technology will enable advanced imaging techniques to provide
structural imaging to support drilling decisions.
Rig contract deferred
CRI has also executed a letter of understanding (LOU) with Rowan
Rigs S.a.r.l. regarding the drilling rig contract entered into on December
14, 2018, which required the prepayment of certain costs for the use of
the Ralph Coffman offshore jack-up rig.
Under the terms of the LOU, CRI has agreed with the contractor
that all operational obligations under the drilling rig contract will be
deferred until the parties can enter into an amended agreement due
to the re-sequencing of the commitments in the Corentyne Block and
plans to drill in its Demerara Block back-to-back with its Corentyne
Block during 2020.
CRI will not be entitled to the reimbursement of the mobilization fee
under the terms of the LOU and, if an amended agreement is executed
by CRI and the contractor on or before July 1, 2020, CRI will receive a
credit towards payments due under the amended agreement.
CGX names VP, Operations
CGX also said on Monday it had appointed Michael Stockinger to the
position of Vice-President, Operations. Stockinger previously held the
position of Drilling Engineer Consultant with the company. Stockinger
has more than 40 years of drilling operations experience, including 18
years with Conoco and 12 years with Kerr-McGee. He held various
positions including drilling engineer, rig supervisor, GOM Drilling
Manager, and VP-Worldwide Drilling Operations. Stockinger currently
has 10 years’ experience in the Guyana Suriname basin.
Professor Suresh Narine, Executive Chairman, commented: “Recent
discoveries in close proximity to the northern region of the Corentyne
Block and in the shallow water east of the Demerara Block presents a
compelling endorsement of CRI’s re-sequenced plans to drill exploration
wells back-to-back on its Corentyne and Demerara Blocks in 2020,
following further forensic seismic investigation of the northern region
of the Corentyne Block. CRI’s arrangement with PGS will allow us to
take advantage of PGS’ previous experience in this region of the basin
to both acquire and process 3D seismic crucial to our understanding of
the northern region of the Corentyne Block. In the meantime CRI has
been streamlining its prospects in the Demerara Block based on the 3D
seismic campaign it conducted over the Demerara Block in 2014.
“The arrangement with the contractor will allow CRI to utilize funds
previously committed to the Ralph Coffman rig to drill the Utakwaaka
52
New Technology Presented for Small and Medium
Scale Liquefaction of Natural Gas
S
aipem’s latest technological solution for application to the LNG
market, known as LiqueflexTM, was presented the at the latest
GASTECH, the most important international conference dedicated to
the natural gas and LNG industry recently held in Houston, Texas. With
patent pending, LiqueflexTM is targeted at the small and medium scale
natural gas liquefaction market, such as the local distribution of LNG.
LiqueflexTM technology consists of a process of liquefaction of natural
gas applied to LNG plants conceived according to a standardised design
which can be installed on a modular basis with a productive capacity
ranging from 200,000 to 1,200,000 tonnes per year. These features
facilitate the curtailing of costs and assembly times. Since it does not
require the use of hydrocarbon liquid refrigerants, the new liquefaction
technology reduces the risks associated with safety problems. This
compact plant engineering solution is adaptable to variations in the
composition of natural gas and is particularly suitable for installation in
congested industrial areas and on floating and offshore facilities.
For onshore applications, LiqueflexTM has been designed for
application in ports which have a nearby natural gas pipeline from
which the pre-treated gas can be drawn. The system can also be used
as a small hub that both produces and distributes LNG through filling
stations for vessels and truck loading facilities for land transport.
Diffusion of such an integrated system would also allow for significant
reductions in investments in maritime infrastructures for the docking
of large-size LNG transport vessels and associated permit costs.
Eric Zielinski, Saipem’s Upstream&LNG Product Manager, explains:
“The design of LiqueflexTM emerged from the need to adopt strategies
that reduce the environmental impact associated with sea and road
transport and to enable the development of alternatives to traditional
liquid fuels. Indeed, the replacement of petrol and diesel with LNG is
a strategy promoted by the authorities and by energy companies the
world over, particularly in those areas where infrastructures have not
been developed, or have been developed only partially, and where the
lack of LNG supply is keenly felt”. •