Asset A&D

Hess Acquires an Additional 5% Interest in the Kaieteur Block, Offshore Guyana

By Sakshi Jain
May 24, 2021
a minute read
Offshore Rig

NYSE-listed Hess Corp., through its wholly-owned subsidiary Hess Guyana (Block B) Exploration Ltd., has entered into an agreement with Cataleya Energy Ltd. (CEL), a wholly-owned subsidiary of Cataleya Energy Corp., to acquire an additional 5% working interest in the Kaieteur block, located offshore Guyana, for an undisclosed consideration.

Upon completion, Hess will hold an increased 20% interest in the block, with CEL holding a reduced 20% interest. Esso Exploration & Production Guyana Ltd., a wholly-owned subsidiary of Exxon Mobil Corp., will continue to hold a 35% operated interest, and Ratio Guyana Ltd., a wholly-owned subsidiary of Ratio Petroleum Energy LP, will retain the remaining 25%.

The Kaieteur block covers an area of approximately 13,535 sq. km in the Guyana-Suriname basin, located approximately 250 km off the coast of Guyana, in water depths of around 2,800-3,800 m. The block contains the Tanager-1 well which was spudded in August 2020, and encountered 16 m of net oil pay (20 API oil) in high-quality sandstone reservoirs of Maastrichtian age. Tanager-1 was reported as an oil discovery but was subsequently considered to be non-commercial as a standalone development. The block contains 2C contingent resources of approximately 42.7 million barrels (MMbbls) as of February 14, 2021.

Headquartered in New York, Hess is engaged in exploration, development, and production operations in the United States, Guyana, Suriname, Denmark, Libya, Thailand, and Malaysia, and with gathering, processing, storage, terminaling, and export of oil and natural gas through its subsidiary, Hess Midstream Partners GP LLC.

Toronto-based Cataleya Energy is focused on oil exploration opportunities in the Guyana-Suriname Basin.

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