Disclaimer: All information presented here is in the

public domain. The accuracy of information

presented herein cannot be guaranteed.

J.Razack, Sep 2018

 Outline
• Brief geological overview of Suriname-Guyana Basin
• Early exploration history of Guyana
• Modern Concession Map
• Recent Seismic
• Recent Drilling
• Liza Phase 1 development
• Liza Phase 2 and beyond
• Potential Employment Opportunities
• Modern Suriname Concession Map and current activities
• Opportunities for Suriname
• Conclusions

J.Razack, Sep 2018

Regional Map

www.drillinginfo.com
J.Razack, Sep 2018
Geological overview

J.Razack, Sep 2018

 Tectonic Evolution

http://www.odec.ca/projects/2007/dunc7g2/pangea_history_text.htm
J.Razack, Sep 2018
 Atlantic Mirror Theory
• Petroleum Systems of Guianas believed to be mirror images of those in West
Africa
• Canje source rock believed to be same in West Africa and was deposited as
these plates drifted apart around 100ma.
• This has led companies with discoveries in West Africa to come to the GSB
(Tullow, Kosmos, Cairn, Total, and of course ExxonMobil).

J.Razack, Sep 2018

Atlantic Mirror Theory
 Basin Extent
• A sedimentary basin is a depression in the crust of the Earth formed by tectonic activity in which sediments accumulate.
• Hydrocarbons typically accumulate in sedimentary basins.
• Guyana-Suriname Basin spans Guyana and Suriname with small extensions in Venezuela and French Guiana (Stolte, 2013).
• The Guyana Basin (120,000 sq km) is part of the larger Guyana-Suriname Basin, and is bounded by Demerara Plateau to the South,
Pomeroon Arch to the North, coastal Guyana and extends approx. 400km offshore. Pomeroon Arch is the structural high separating EVB and
GSB.

J.Razack, Sep 2018

 Stratigraphy
• During the break-up commencing in the Jurassic
and progressing through the Cretaceous, Africa
and South America drifted along transform fault
boundaries resulting in the evolution of the
Guyana-Suriname basin.
• Initially, there was a thick deposition of Jurassic to
early Cretaceous sediments
• Subsequently, a thick succession of Jurassic to
Recent sedimentary rock in depositional
environments ranging from near coastal to deep-
marine in which there were intervals of
carbonates.
• It is generally referred to as a passive margin
basin.
(Dennison 2017)

J.Razack, Sep 2018

 Petroleum System
• Source - Cenomanian to Turonian aged Canje Formation (U. Cretaceous).
Equivalent of Naparima (Tdad), La Luna (Venezuela)
~500m thick, Type II Marine, TOC 4 – 7%,
• Traps – stratigraphic (turbidites pinching out, shale top seal, show up as bright
amplitudes). NB. Only 15% of X-wells in last 10 years globally have targeted strat
traps (Zanella, 2017)
• Reservoirs - main reservoir targets are Upper Cretaceous and Lower Tertiary
basin floor fans, shelf-margin deposits and turbidites directly overlying the source
rock. Mainly sandstone reservoirs (New Amsterdam and Georgetown Fm) but
now carbonate reservoirs of commercial volumes have been discovered (Ranger-
1)
• Seals – deep marine shales at multiple levels
• Migration Pathways – along stratigraphy; by fracturing of reservoir rock above
source; along faults.
• Timing – migration must occur after reservoir, trap and seal are in place.
J.Razack, Sep 2018
http://investors.kosmosenergy.com
 http://www.zetaware.com

https://www.spectrumgeo.com/
J.Razack, Sep 2018
Early Exploration History of Guyana

J.Razack, Sep 2018

 Offshore Drilling History
Year Well Operator TD (ft) Results
1967 Guyana Offshore-1 Tenneco 8930ft Gas shows
1967 Guyana Offshore-2 Tenneco 7600ft Minor Gas Shows
1971 Berbice-1 Shell 12,500ft Oil Shows
1971 Berbice-2 Shell 10,000ft Gas Shows
1974 Mahaica-1 Shell 8,000ft no shows
1974 Essequibo-1 Deminex 11,200ft Oil Shows
1975 Abary-1 Shell 13,000ft 37 API oil flowed
1976 Mahaica-2 Shell 7,500ft No Shows
1977 Essequibo-2 Deminex 13,000ft Oil and gas Shows
1992 Arapaima-1 Total 11,090ft Minor Gas Shows
2000 Horseshoe-1 CGX 12,750ft No Shows
2012 Eagle-1 CGX 13,500ft Oil and Gas Shows
2012 Jaguar-1 Repsol 15,600ft Light Oil recovered, HPHT Well
2015 Liza-1 ExxonMobil 17,825ft Major Oil Discovery
NB. 1st onshore well in 1916 Sources: various published reports J.Razack, Sep 2018
 All offshore wells
to date

Source: adapted from Apache

J.Razack, Sep 2018
Modern Concession Map

J.Razack, Sep 2018

 Operators
CGX
Anadarko Roraima Kaieteur
20,000km 13,500km
Exxon 2 2

Tullow
Repsol
Roraima: Stabroek
100% Anadarko 27,000km
2
Kaieteur: Canje
Demerara 6,000km
35% Exxon Demerara: 2
15% Hess 4,000km
100% CGX 2 Orinduik
25% Ratio Oil 1,800km
2
25% Cataleya Energy Ltd Orinduik:
60% Tullow Last Updated
Stabroek: 25% Total* April 2, 2018 Kanuku
45% Exxon 15% Eco Oil and Gas Ltd By Javed Razack 6,525km
30% Hess
2
25% Nexen Kanuku:
37.5% Repsol
Canje: 37.5% Tullow
35% Exxon Corentyne
25% Total 6,200km
35% Total 2
30% Mid Atlantic Oil and Corentyne:
Gas + JHI Associates Inc 100% CGX Source: adapted from Apache
 Fun Fact: was originally partnered with
Exxon in the Stabroek Block but pulled out around
2012. This forced Exxon and the government to
seek out other partners, paving the way for Hess
and Nexen.

J.Razack, Sep 2018

Recent Seismic

J.Razack, Sep 2018

Spectrum’s 4,600 km
Multi-Client 2D
seismic survey shot
in 2011 helped Exxon
identify stratigraphic
on-laps, ponded
turbidites, basin
floor fans and
Tertiary mass
transport complexes.

Source: Spectrum Seismic 2018 J.Razack, Sep 2018

 Recent 3D Seismic surveys in Roraima Kaieteur
Guyana
• CGX - Corentyne (PGS 2012 3D) – 1160 sq km
• Exxon – Stabroek (CGG 2013 3D) – 17,000 sq km*
Stabroek
• Exxon – Canje (Polarcus 2016 3D) – 7760 sq km
• Exxon – Stabroek (PGS 2017 4D) – 2200 sq km Canje
• Exxon – Kaieteur (Polarcus 2017 3D) – 5700 sq km
Demerara
• Repsol – Kanuku (WesternGeco 2017 3D) – 4000 sq km Orinduik
• Tullow – Orinduik (WesternGeco 2017 3D) – 2500 sq km

*Anadarko – In 2013, MV Teknik Perdana was conducting

Kanuku
a geotechnical survey in the Roraima Block and was
Impounded by the Venezuelan Navy. The crew of 36 was
detained and later released. Anadarko had a 2D survey
planned later in 2013. No activity since. Border dispute Corentyne
Referred to UN.
Source: adapted from Apache
J.Razack, Sep 2018
Source: ExxonMobil media release 2018
J.Razack, Sep 2018
Recent Drilling

J.Razack, Sep 2018

Source: Hess media release 2018
J.Razack, Sep 2018
Source: Hess media release 2018
J.Razack, Sep 2018
Stabroek E&A Wells (2015 to Aug 2018):

Liza-1
Liza-2 9 Fields
Liza-3 discovered:
Liza-4 Liza
Liza-5
Payara-1 Liza Deep
Payara-2 Payara
Snoek-1
Snoek
Turbot-1
Ranger-1 Turbot
Pacora-1 Ranger
Longtail-1
Hammerhead-1 Pacora
Sorubim-1 Longtail
Skipjack-1
Hammerhead Source: ExxonMobil media release 2018
J.Razack, Sep 2018
 Well summaries May 2015 to Aug 2018
Order Well Name TD Date Reservoir Reservoir Age Fluid Gross Pay TD (ft) Water Depth (ft)

1 Liza-1 May-15 Sand U. Cretaceous OIL 295ft 17,825 ft 5719ft

2 Liza-2 Jun-16 Sand U. Cretaceous OIL 190ft 17,963ft 5465ft
3 Skipjack-1 Sep-16 NA NA DRY NA ? 7540ft
4 Liza-3 Oct-16 Sand U. Cretaceous OIL 200ft 18,100ft 6,000ft
5 Payara-1 Jan-17 Sand U. Cretaceous OIL 95ft 18,080ft 6,660ft
6 Liza-4 Mar-17 Sand U. Cretaceous OIL 197ft ? 5705ft
7 Snoek-1 Mar-17 Sand U. Cretaceous OIL 82ft 16,978ft 5,128ft
8 Payara-2 Jul-17 Sand U. Cretaceous OIL 59ft 19,068ft 7,000ft
9 Turbot-1 Oct-17 Sand U. Cretaceous OIL 75ft 18,445ft 5,912ft
10 Ranger-1 Jan-18 Carbonate U. Cretaceous OIL 230ft 21,161ft 8,973ft
11 Pacora-1 Feb-18 Sand U. Cretaceous OIL 65ft 18,363ft 6,781ft
12 Sorubim-1 Apr-18 NA NA DRY NA ? ?
13 Liza-5 Jun-18 Sand U. Cretaceous OIL ? ? 6282ft
14 Longtail-1 Jul-18 Sand U. Cretaceous OIL 256ft 18,057ft 6,365ft
15 Hammerhead-1 Aug-18 Sand U. Cretaceous OIL 197ft 13,862ft 3,373ft
Sources: various media reports
J.Razack, Sep 2018
Drilling Supply Chain

J.Razack, Sep 2018

 Rigs

Currently 2 drillships operating for Exxon – NBD and SC

J.Razack, Sep 2018
 Rigs

3rd Drillship en route as we speak! – Noble Tom Madden J.Razack, Sep 2018
Offshore Support Vessels

J.Razack, Sep 2018

 MV C-Installer Cat Island Horn Island

Liam J McCall
Paradise Island

Bourbon Orca
HOS Commander John G McCall
Sanibel Island

J.Razack, Sep 2018

 Typical OSV Specs

95m LOA x 20m beam, draft 6m, 2014 build

J.Razack, Sep 2018
 Shorebases
Chaguaramas, Trinidad

Georgetown, Guyana

J.Razack, Sep 2018

Liza Phase 1 Development

J.Razack, Sep 2018

Source: ExxonMobil media release 2018 J.Razack, Sep 2018
Video – Liza Phase 1

J.Razack, Sep 2018

Fact: Liza Phase 1 is expected to break even at US 35 / bbl!!

J.Razack, Sep 2018

 Operator
Main Contractors
Liza Phase 1

SSPS

FPSO

First Oil:
Drilling
March
Seismic
2020!!
SURF

J.Razack, Sep 2018

 Company Stats
• Technip and FMC merged in 2017 to create a massive EPCI company specializing
in Subsea Infrastructure, Petrochemical Plants, Platforms and Drilling Services.
14.8 billion Market Cap. 37,000 employees. HQ in London.
• Italian based EPCI, member of ENI Group. Operates in 66 countries, 35,000
employees. $4.4 billion Market Cap. Owns over 50 vessels. Projects include
subsea manufacturing.

• Market Cap of $3 billion. 8,300 employees. Specializes in floating platform

manufacture. Based in Netherlands.

• Owns 28 rigs including 8 drillships. 2000 employees. HQ Texas. Part of Noble

Corp. Market Cap 1.5 billion.

• Owns 7 rigs: 3 semisubs and 4 drillships. 650 employees. HQ Aberdeen. Part of

Stena Group.
J.Razack, Sep 2018
 Additional Contractors
Operator

Logistics & Shorebase

Helicopter Transport

Drilling Services:
Drill Bits, ROV, Drill Pipe,
Supply Vessels Cement, Mud, DD/MWD/LWD,
BHA, Tools, Inspection,
Wireline, Well Testing, Fishing,
Mud Logging, Machining,
Coring, Core Handling, Tubular
Handling, Cement Heads, etc

Waste Disposal CCU

J.Razack, Sep 2018
 Vessel Company Stats
• Louisiana based. Operates fleet of PSV, Construction Vessels, OSRV, Research
Vessels, Ice Breakers, Anchor Handlers. 8000 employees. Major ops in GoM.

• US based. Main markets US, Mexico, Brazil. Fleet of OSV and MPSV. 1000
employees.

• French based. Over 500 OSV and MPSV. 8400 employees.

• US based. 2500 employees. Fleet of PSV and AHTS.

• Norway based. 3000 employees. 56 vessels (PSV, AHTS, subsea).

J.Razack, Sep 2018

Liza Destiny FPSO
Source: ExxonMobil media release
2018

J.Razack, Sep 2018

Video – FPSO Fundamentals

J.Razack, Sep 2018

Liza Phase 2 and beyond

J.Razack, Sep 2018

J.Razack, Sep 2018
Production Forecast

J.Razack, Sep 2018

 Liza Phase 2 development

• Similar concept to Phase 1

• 35 to 40 wells from 2 drill
centres!!
• Estimated 19 producers, 6 gas
injectors, 15 water injectors!!
• 2nd FPSO ordered from SBM
• Saipem and Technip awarded
SSPS and SURF
• 190,000 to 220,000 bopd
Source: ExxonMobil media release 2018
J.Razack, Sep 2018
 Upcoming / Ongoing Activities
• Stena Carron to continue with exploration/appraisal drilling.
• SC currently well testing at Hammerhead-1 (6 weeks)
• SC to well test at Longtail-1
• SC to drill Ranger-2 by Q2 2019
• At least 25 prospects identified in Stabroek.
• Bob Douglas to continue with 17 Liza Phase 1 development wells.
• 3rd rig (Tom Madden) to arrive in September 2018 for additional exploration
• 4th rig during 2019. 5th rig rumoured.
• Exploration Drilling to occur in Kaieteur and Canje Blocks by Exxon
• Exploration Drilling from Repsol, Tullow and CGX in 2019 / 2020.
• Potential gas pipeline and 200MW power plant to be built onshore?
• Start of downstream industry?
J.Razack, Sep 2018
Upcoming / Ongoing Activities

J.Razack, Sep 2018

Upcoming / Ongoing Activities

J.Razack, Sep 2018

 Beyond
• Liza Phase 1 – 120,000 bopd from FPSO #1 – March 2020
• Liza Phase 2 – 220,000 bopd from FPSO #2 – mid 2022
• Payara and Pacora – 180,000 bopd from FPSO #3 – late 2023
• FPSO #4 for Ranger?
• FPSO #5 for Longtail and Turbot?
• Where does Hammerhead fit in?

NB. #4 and 5 are subject to new exploration and appraisal results.

• With these 8 fields, production may be >700,000 bopd by 2030.

• CAPEX of USD 15 billion to develop 8 fields
• Up to 100 wells to be drilled for these fields
• Carbonate play to be fleshed out. Significant upside potential here.
J.Razack, Sep 2018
Potential Employment Opportunities

J.Razack, Sep 2018

 Potential Employment
• Hundreds of companies currently in Exxon’s supply chain.
• Mainly companies based in Guyana, Trinidad, USA and Europe.
• Multinationals will set up operations in Guyana – eg. Schlumberger,
Chouest, Noble, Saipem, etc
• Trinidad companies (locals and multinationals) will continue to supply
significant services. Many of these will set up in Guyana. Suriname
companies can follow suit.
• Guyana local content legislation will drive hiring during this oil boom.
• Many specialized positions will come from Trinidad or abroad for the
foreseeable future. When capacity is built in Guyana, this may change.

J.Razack, Sep 2018

J.Razack, Sep 2018
 Local Content Concerns

Source: Various Media, 2018 J.Razack, Sep 2018

Pay Attention to the Supply Chain – these are where job
opportunities will come from

Main Contractors
Operator Liza Phase 1

SSPS

FPSO

First Oil:
Drilling
March
Seismic
2020!!
SURF J.Razack, Sep 2018
 Additional Contractors
Operator

Logistics & Shorebase

Helicopter Transport

Drilling Services:
Drill Bits, ROV, Drill Pipe,
Cement, Mud, DD/MWD/LWD,
Supply Vessels BHA, Tools, Inspection,
Wireline, Well Testing, Fishing,
Mud Logging, Machining,
Coring, Core Handling, Tubular
Handling, Cement Heads, etc

Waste Disposal CCU

J.Razack, Sep 2018
 What Services will be in demand?
Services:
• Taxi Services
• Vehicles (lease, rentals, sales)
• Accommodations (Hotels, Guest
Houses, etc)
• Real Estate (Housing, Offices, etc)
• Catering for onshore and offshore
• Entertainment (restaurants, bars,
shopping, etc)
• Groceries (for offices, housing and
offshore)
• Flights (more staff for airport and
planes)
• Immigration Services (passports,
WP, Visas, etc)
• Legal
• Advertising (print, electronic)
• Recruitment
Education/Training
• Conference / meeting rooms
• University Lecturers in Petroleum
• Medicals for offshore
Engineering, Geology, Geophysics,
• Medical/Dental treatment
Petrophysics, Petroleum
• Emergency medical support
Economics, etc
• IT (computers, phones, data
• Technical training / certification –
backup, internet, etc)
rigging and lifting, TBOSIET,
• Security (personnel and security
welding, drilling, well control,
systems, cameras, etc)
fishing, etc
• Furniture
• Non Technical training –
• Printing, Graphic Design
communications, writing,
• Uniforms
presentation skills, ethics,
• PPE
emotional intelligence, etc
• Accounting and Auditing
• Culinary Arts
• Event Planning
• Training for government agencies
• Waste Management
• Heavy Equipment
• And many more…..
• Shorebase
J.Razack, Sep 2018
Examples of Services

J.Razack, Sep 2018

J.Razack, Sep 2018
 What positions?
• Some of the current and future jobs that will be in demand in short term are:
Onshore Positions Offshore Positions (vessels, rigs,
• HSSE Officers FPSOs, helicopters) Government Roles
• Quality Control Officers • Field Engineers • Economists
• Logistics (for Vessels, Freight, • Equipment Operators • Business Analysts
Customs, Shorebase, Trucking, etc) • Pilots • Geologists
• Riggers • Cooks • Geophysicists
• Banksmen • Galley Attendants • Engineers
• Welders • Roustabouts • Customs Officers
• Stevedores
• Field Engineers • Environmental Officers
• Crane and Forklift Operators
• AB Seamen • HSSEQ Officers
• Truck Drivers
• Warehouse attendants
• Painters • Local Content Management
• Stewards • Public Outreach
Office Positions • Radio Operators • Vessel Pilots
• Administrative • DMCs
• Accounting • Technicians
• Human Resource • Ordinary Sailors And many more……..
• Sales and Marketing • Mates
• IT Technicians • Oilers J.Razack, Sep 2018
Examples of Positions

J.Razack, Sep 2018

J.Razack, Sep 2018
Bonus: Modern Suriname Concession Map

J.Razack, Sep 2018

 Operators
Apache
Exxon Block 59
11,500km2
Petronas
Tullow Block 47
2,400km2
Kosmos Block 48 Block 60
2
Equinor (Statoil) Block 42 3,200km 6,200km2
6,500km2
Cairn
Block 45 Block 54
Staatsolie Block 53 5,000km2 8,500km2
3,500km2
Block 59: Block 47: Block 60: Block 52:
33.3% Exxon 80% Tullow 100% 100% Block 58 Block 61
33.3% Hess 20% Ratio Oil Equinor Petronas 5,850km2 Block 52 13,000km2
4,750km2
33.3% Equinor
Block 45: Block 58: Block 61:
Block 42: 50% Kosmos 100% Apache 100%
33.3% Kosmos 50% Chevron Cairn
33.3% Hess Block 53:
33.3% Chevron Block 54: 45% Apache Blocks A – D: 11,250km2
30% Tullow 25% Cepsa A, B, C, D Block A Block B Block C Block D
Block 48: 50% Equinor 30% Petronas 100%
100% Petronas 20% Noble Staatsolie
 Recent Activities in Suriname
• Noble Energy: West Tapir-1 (Block 52, 2008) – dry hole
• Murphy Oil: Aracari-1 and Caracara-1 (near Block 61, 2011) – dry hole
• Inpex: Aitkanti-1 (near Block 58, 2011) and Spari-1 (Block 31, 2015) – dry holes
• Apache: Popokai-1 in Block 53 (2015) and Kolibrie-1 in Block 53 (2017) – dry holes.
• Petronas: Roselle-1 in Block 52 (2016) – dry hole.
• Tullow: Araku-1 in Block 54 (2017) – dry hole with shows of gas and condensate.
• Kosmos: Anapai-1 and Anapai-1A in Block 45 (2018) – dry hole.
• Tullow to drill in Block 47. 2019? 2020?
• Kosmos currently drilling Pontoenoe-1 in Block 42.
• Petronas and Equinor conducted 3D seismic in 2017/2018 in blocks 48 and 60. Drilling to occur
in late 2019 or 2020?
• Cairn signed Block 61 in 2018. 2D seismic to occur in 2019.
• Staatsolie to drill at least 10 nearshore wells in Blocks A, B, C, D in 2019 to 2020.
• Exxon to conduct 3D seismic in Block 59. Late 2018? 2019?
• Apache to drill in Block 58 in 2019. J.Razack, Sep 2018
What opportunities do the Guyana development
have for Suriname?

J.Razack, Sep 2018

http://investors.kosmosenergy.com
 Opportunities for Suriname
1. De-risking of plays and prospects in nearby blocks by Guyana discoveries.
2. Potential for cross-border field developments.
3. Marketing of Suriname acreage to E&P companies and major contractors who are
setting up in Guyana.
4. Guyana can soon provide services to Suriname E&P (cement, mud, waste disposal, pipe
inspections, etc).
5. Shared assets – shorebases close to border, heliports, medical facilities, etc
6. Shared rigs, support vessels, seismic vessels, helicopters (to reduce overall costs and
optimize efficiency).
7. Suriname can share expertise and learnings (establishing state oil company, managing
multinationals, conducting its own exploration, recruitment practices and even running
a refinery).
8. Increased opportunities for trade and export (agriculture, food products, fuel, etc).
9. Employment for Surinamese with experience in oil and gas.
10. University training for young Guyanese?
11. Surinamese service companies can expand to Guyana.
12. Source of oil for refinery? Source of gas for downstream? J.Razack, Sep 2018
To register to supply services to Exxon or one of their primary
subcontractors:
https://clbdportal.com/#/home
 Summary
• Liza is Exxon’s largest current deepwater development.
• One of the fastest in history.
• Over 4 billion boe of recoverable resources already discovered.
• Therefore, in place resources is over 12 billion boe.
• Drilling by other operators in Guyana to come in 2019/2020.
• Modern seismic unlocked the potential of this basin.
• 1st 4D seismic in region being done by Exxon.
• Production peak will be at least 700k bopd by 2030.
• Huge global subcontractor industry.
• Huge opportunities for locals and regional employment.
• Key for job seekers is to pay attention to supply chain.
• Suriname side yet to have major discovery offshore – will change soon.
• T&T and Suriname can play large role as supplier of goods, services and knowledge- both to
private sector and govt. J.Razack, Sep 2018
Thank you!
Questions?

J.Razack, Sep 2018