Tullow French Guiana oil find 'is significant'

The recent discovery by exploration firm Tullow off the coast of French Guiana could have significant implications for the global oil industry, it has been claimed.

Drilled in over 2,000 metres of water, the Zaedyus well taps rock formations laid before Africa and South America separated millions of years ago.

Tullow has yet to disclose the exact extent of the find but the company's share price rose by 12 per cent on the back of the announcement and it is though the discovery could lead to the opening of a major crude region in South America.

After making significant discoveries in Sierra Leone and Ghana in recent months, the company has now expanded its reach and is set to continue drilling the Zaedyus well.

Commenting on the find, Shell's executive vice president for exploration and commercial, Dave Lawrence, said: "We are early in the evaluation, but the initial results are encouraging for this new play. The joint venture will continue to drill ahead, evaluate the well results, and determine next steps."

Last month, Norwegian oil industry firm Statoil made the largest oil strike of the last 30 years in the North Sea, which it claimed could potentially contain between 500 million and 1.2 billion barrels of recoverable oil.