CAP (Compañía Arubana de petróleo) together with Armstrong International, a renowned oil company from the United States, signed an MoU to collaborate on a study to evaluate the hydrocarbon potential in the maritime area of Aruba.
The aim of the MoU is for Armstrong International to conduct a comprehensive study using all available geological and geophysical data. The study will include an interpretation of the existing seismic data. Based on these data, a geological model will be produced and hydrocarbon prospects will be identified. After the disappointing results of the exploratory well (Bienvenido-1x) that was cut in 2018, the activity in hydrocarbon exploration lands in Aruba was very limited.
With the improvement of this MoU, it is expected that the existing data will be viewed with a fresh view that could result in a new perspective regarding the hydrocarbon potential in the maritime area of Aruba. According to the Minister of Energy, Mr. Glenbert Croes, “We are cautiously optimistic because these are important opportunities to explore, to be able to achieve energy stability, economic and financial bonanza for Aruba.”
Armstrong International is a subsidiary of Armstrong Oil and Gas, based in Denver, Colorado. Armstrong is an independent company with a background of success and substantial experience in hydrocarbon exploration in the United States, including some giant oil fields in Alaska. The most recent is the Pikka field with more than 2.5 billion barrels on the north slope of Alaska. Pikka is one of the biggest discoveries in the United States in the last decade. Armstrong’s team consists of some executives with a successful history in exploration, including some discoveries in countries around Aruba.
The transition from energy to renewable energy began, but renewable energy abel 100% of the demand cannot be supplied yet, so fossil fuels will remain indispensable for the coming decades. Global oil prices are on the rise, partly due to the conflicts in Ukraine and the continuously growing demand. At the same time, the geopolitical environment created a substantial lack of investment for the global energy sector, specifically in hydrocarbon exploration.
The improvement of the MoU represents a concrete step by the state-owned company CAP and the Government of Aruba to achieve energy independence by stimulating strategic collaboration that facilitates the investment of new technologies to accelerate the process. “In light of the global energy challenges that are continuously emerging, this marks an important step in our plan and efforts” thus the Minister of Energy Mr. “Glenber tCroes,” he said proudly.
