Oil Exploration 1975
https://wikileaks.org/plusd/ca...75GEORGE01458_b.html
1. ARTICLE IN AUGUST 31 CHRONICLE NEWSPAPER REVEALS THAT TWO OFFICIALS (UNNAMED) OF U.S. - BASED KEWANEE OIL COMPANY SPENT THREE DAYS IN GUYANA DISCUSSING OIL EXPLORATION WITH GOG. ARTICLE STATES BOTH SIDES HOPE TO CONCLUDE AGREEMENT PERMITTING KEWANEE TO OPERATE IN GUYANA WITHIN TWO MONTHS.
2 SAME ARTICLE STATES THAT GOG WILL SET UP SPECIAL PETROLEUMUNIT TO WORK "IN CLOSE LIAISON WITH MINISTRY OF ENERGY AND NATURAL RESOURCES" TO DEAL WITH ALL OIL EXPLORATION OPERATIONS IN GUYANA. SENIOR MINISTRY ENERGY AND NATURAL RESOURCES OFFICIAL EXPECTED TO HEAD NEW UNIT.
3. EMBASSY WAS UNAWARE OF PRESENCE OF KEWANEE OFFICIALS, WHO DID NOT CHECK IN WITH ANY EMBOFFS. THERE IS NO DRILLING OR OIL EXPLORATION WORK CURRENTLY IN PROGRESS IN GUYANA. THE SHELL AND WEST GERMAN DEMINEX OFF-SHORE DRILLING DRILLING PROGRAMS ENDED WITH DRY HOLES A FEW MONTHS AGO.
https://wikileaks.org/plusd/ca...75GEORGE01490_b.html
FOLLOWING INFORMATION ON SUBJECT OBTAINED FROM MINISTER OF ENERGY AND NATURAL RESOURCES HUBERT JACK SEPTEMBER 3 DURING CALL MADE AT HIS OFFICE FOR ANOTHER REASON:
1. PURPOSE OF RECENT VISIT OF U.S. BASED KEWANEE OIL COMPANY REPRESENTATIVES (REF. A) WAS TO NEGOTIATE ASSUMPTION OF EXPLORATION AND DRILLING CONCESSION OFF EAST COAST OF GUYANA FORMERLY HELD BY HUSKY OIL CO. THIS CONCESSION IS LANDWARD OF PRESENT SHELL CONCESSION WHICH EXTENDS OUT TO CONTINENTAL SLOPE. ACCORDING JACK, KEWANEE WANTS TO DO SEISMIC STUDY AND DRILL ONE WELL WITHOUT SIGNATURE BONUS WHILE GOG HOLDING OUT FOR MINIMUM THREE WELLS AND SIGNATURE BONUS. JACK HOPES KEWANEE WILL RESPOND WITHIN TEN DAYS, ASSERTING HE FELT AGREEMENT COULD BE SIGNED SHORTLY THEREAFTER IF KEWANEE AGREED TO GOG TERMS. LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 02 GEORGE 01490 051851Z
2. JACK ADMITTED THERE WERE NO EARLY DRILLING PLANS BY OTHER COMPANIES ASIDE FROM LIKELIHOOD THAT DEMINEX WOULD DRILL FURTHER IN ITS OFFSHORE CONCESSION AROUND END OF YEAR (REF. B).
3. JACK EXPRSSED DISAPPOINTMENT WITH SHELL OFFSHORE DRILLING EARLIER THIS YEAR, STATING THAT SHELL HAD FOUND GOOD SIGNS OF OIL AT WELL NEAR SURINAM END OF ITS CONCESSION BUT HAD BROKEN OFF DRILLING THERE BEFORE REACHING PLANNED DEPTH BECAUSE OF PROBLEMS WITH STRUCT- URE. FINAL SHELL WELL FURTHER TO WEST, ACCORDING TO JACK, WAS SHALLOWER AND DRY HOLE. HE INDICATED GOG FELT SHELL SHOULD HAVE EITHER COMPLETED ORIGINAL DEPTH OF WELL THAT SHOWED PETROLEUM SIGNS OR SHOULD HAVE SUNK FINAL WELL IMMEDIATELY ADJACENT.
4. JACK SAID HE HOPES TO INSERT IN NEXT YDJR'S BUDGET ENOUGH FUNDS TO ENABLE GOG TO DO SEISMIC STUDY OF KANAKU BASIN OF NORTHERN RUPUNUNI PLAIN NEAR BRAZIL BORDER. HE INDICATED EARLIER CANADIAN SEISMIC STUDY THIS AREA WAS UNUSEABLE BECAUSE OF POOR QUALITY ASSOCIATED WITH LOW RIVER LVELS CAUSED BY BAD TIMING. JACK EM- PHATICALLY DENIED MY ASSERTION THAT I HAD HEARD GOG WAS NOT INTERESTED IN FOREIGN OIL EXPLORATION IN RUPUNUNI ARE FR POLI- TICAL REASONS. HE SAID THE GOG OULD WELCOME FOREIGN COMPANY INTERESTED IN SMALL CONCESSION THAT AREA FOR SEISMIC AND DRILLING, AND WOULD PROBABLY WAIVE SIGNATURE BONUS,BUT PROSPECTS APPARENTLY NOT BRIGHT ENOUGH TO INTEREST COMPANIES. HE ADDED GOG WOULD NOT RPT NOT WANT TO COMMIT ENTIRE KANAKU BASIN TO ONE CONCESSINAIRE, HOWEVER.
5. REGARDING FUTURE PLANS, JACK SAID HE HOPED TO SWITCH FROM PRESENT POLICY OF GRANTING LARGE CONCESSION AREA TO SMALLER BLOCK SYSTEM, BUT RALIZED BEFORE COMPANIES WOULD ACCEPT THIS GOG WOULD HAVE TO PRODUCE INTERESTING SEISMIC DATA. JACK REITERATED HIS CONVICTION AND GOG POLICY THAT PETROLEUM COMPANIES MUST REMAIN EXEMPT FROM GENERAL GOG POLICY OF MAJORITY GOG OWNERSHIP OF NATURAL RESOURCES-BASED ENTERPRISES UNTIL AND UNLESS SIGNIFICANT OIL DISCOVERED.
