Published On: Wed, Dec 5th, 2012

Historic contract CAP and Repsol for exploration oil and gas

ORANJESTAD — At the Dr. Edward Cheung Center for Innovation, Compania Arubano di Petroleo (CAP) and the Spanish oil and gas company Repsol signed the contract on Tuesday December 4 for exploration of the Aruban seafloor for petroleum and natural gas. With this contract Repsol also has the exclusive right to exploit oil and gas found.

The contract was signed by Joseba Murrillas, director Exploration in Latin America for Repsol and CAP-director Armando Curet. Minister of Energy, Mike de Meza, and Premier Mike Eman (AVP) signed on behalf of the government. De Meza called the contract a ‘historic agreement’ that could mark a new future for our country.

The total costs for the exploration, which for that matter will be paid by Repsol, are estimated at 150 million dollars. This amount will be spent in phases and depending on the results of the previous phase, a decision will made on additional exploration. Expectations are that the first phase – two-dimensional seismic research – will start in the first half of next year. This phase will take several months. With a positive result further research will be done in certain selected areas. The costs, including analysis of the results, are approximately 10 million dollars. The initial research will be carried out in an area of 14,000 square kilometers, said Murrillas. The second phase with detailed three-dimensional seismic research will cost about 30 million dollars and could start in 2014. With a positive result the first exploratory drillings could start in 2016 or 2017, depending on the depth of the water on location. The costs for such will run up to 100 million dollars.

When oil or gas reserves are found during the exploration Repsol will start with the exploration and production phase in cooperation with and under supervision of CAP. This will start after 2020 at the earliest, according to the Spanish company. Although the discovery of oil or gas is far from certain, Repsol is very positive. “We’ve been successful in explorations the past five years”, said Murrillas. “We’ve discovered five gigantic reserves, which brought us to the top 10 of discoveries in the past years.” Moreover, the company is very active in the region with operations in Guyana, Trinidad, Venezuela and Columbia.

Of one’s own volition and to meet its own business standards, Repsol had had a study conducted in the past six months into possible environment and social effects of the exploration. The results will probably be presented early next year. The report of this study was presented to the premier after the contract was signed this morning.

By Alex Laclé

Click Tag(s) for Related Articles: