Shell and Northern Petroleum begin drilling oil well in French Guiana

Shell and its partners have started drilling the second of four oil wells in the Guyane Maritime Permit in French Guiana.

Shell holds 45% in the Guyane Maritime offshore exploration licence along with Total (25%), Tullow Oil (27.5%), Northern Petroleum (1.25%) and Wessex Exploration (1.25%).

The GM-ES-3 well in the programme has been located to test the Priodontes Prospect and provide further geological data critical to gaining a better understanding of the potential of this area as a new offshore oil province.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The operation follows the exploration programme's GM-ES-1 well which encountered 72 metres of net oil pay in two turbidite sand systems.

The GM-ES-2 was the first exploration well in the programme but failed to encounter commercial hydrocarbons.

Derek Musgrove, Managing Director of Northern, said: "The joint venture with Shell, Total, Tullow and Wessex is continuing upon its vigorous follow up of the successful GM-ES-1 discovery in late 2011."

"This is the second well in the four well programme to assess the potential of the offshore of Guyane as a new oil province. I look forward to updating shareholders on progress in the coming months."

RD