Total strikes provisional deal for offshore Guyana farm-in

Total has secured an option agreement to acquire a 25% interest from Eco (Atlantic) Oil & Gas in the Orinduik block offshore Guyana.

Currently Eco Guyana has a 40% share of the block, with operator Tullow holding the remaining 60%.

The concession offsets a line of discovery wells operated by ExxonMobil in its Stabroek block in the Guyana-Suriname basin, with combined estimated resources of 2.25-2.75 Bbbl of recoverable oil.

Total will make an immediate payment of US$1 million for the option to farm in to the block, at a total cost of US$13.5 million. It must exercise this option within 120 days of the completion of processing of recently acquired 3D seismic over Orinduik.

According to Eco, exploratory wells offshore Guyana cost around US$35 million to drill, so if the transaction goes ahead, its share of future costs will be around US$5.25 million per well.

The partners are considering drilling at least two wells on the block.