Company News

Tullow makes major oil discovery in Guyana

LONDON, Aug 12 (Reuters) - Tullow Oil announced on Monday a major oil discovery in the Orinduik block in Guyana, raising expectations it will move to develop a field in the oil-rich South American country.

The discovery in the closely watched Jethro-1 well follows a number of exploration successes by Exxon Mobil in the neighbouring Stabroek block in recent years.

Tullow Chief Executive Paul McDade said the well is expected to hold over 100 million barrels of oil, in excess of expectations. The company will start drilling a second well, Joe-1, later this month.

“It looks like we have something we would develop. It looks like we have a long-term business in Guyana,” McDade told Reuters in an interview.

Tullow operates the Orinduik block with a 60% stake, while Total and Eco Atlantic each holds a 15% stake and Qatar Petroleum the remaining 10%. (Reporting by Ron Bousso; Editing by Susan Fenton)