ExxonMobil announces new oil discoveries in Guyana

Guyana

ExxonMobil announced two new oil discoveries in the coast of Guyana, in the Tilapia-1 and Haimara-1 wells, which raises the total number of findings in the Stabroek block to twelve.

The discoveries build on the previously announced estimated recoverable resource of over 5 billion barrels at the Stabroek block. Some parts in this area belong to the coasts of the Esequibo territory claimed by Venezuela.

Tilapia-1 is the fourth discovery in the Turbot area, which includes the Longtail and Pluma discoveries.

The Noble Tom Madden drillship began drilling the well on January 7.

After that, it will drill the Yellowtail-1, approximately 10 kilometers west from Tilapia-1 in the area of Turbot. The acquisition of 4-D seismic data is already underway.

Huge oil potential in Guyana

“We see a lot of development potential in the Turbot area and continue to prioritize exploration of high-potential prospects here,” said Steve Greenlee, president of ExxonMobil Exploration Company.

The other discovery was the Haimara-1 well, which encountered approximately 207 feet (63 meters) of high-quality, gas-condensate bearing sandstone reservoir. It is located about 31 kilometers east of the Pluma-1 discovery. This is a new potential development area.

Exploration works underway

The Stena Carron drillship began drilling the well on January 3 and will next return to the Longtail discovery to complete a well test.

There is potential for at least five floating, production storage and offloading vessels (FPSO) on the Stabroek Block producing more than 750,000 barrels of oil per day by 2025.

The Liza Phase 1 development is progressing on schedule and is expected to begin producing up to 120,000 barrels of oil per day in early 2020, utilizing the Liza Destiny FPSO.

Area disputed with Venezuela

Early last year, the government of Guyana announced the discovery of a large high-quality oil deposit at the Ranger-1 well (Stabroek block). This site is located 120 miles (193 kilometers) from the maritime area disputed with Venezuela.

Venezuela and Guyana are still at odds over the Esequibo, an area of about 16,000 square kilometers that Caracas claims as part of its territory. This area accounts for two-thirds of Guyana’s surface.

ExxonMobil has offered to cover Guyana’s legal fees resulting from its border dispute with Venezuela.

Guyana and ExxonMobil working on the sector’s development

This is the sixth oil discovery made on this site since 2015. Furthermore, it is also the largest discovery since, according to the president of Guyana David Granger.

This latest discovery is the result of the collaboration between Esso Exploration, Production Guyana, CNOOC Nexen Petroleum Guyana, and Hess Guyana Exploration.

In 2017, Guyana announced it will work with ExxonMobil to develop the country’s oil sector. To this end, the U.S. oil company would make an investment of $5 billion.

The Stabroek block is between Guyana and Surinam. According to the U.S. Geological Service, it is the world’s second-largest oil area.

Waiting for government approval

Liza phase 2 is set to begin operations in mid-2022. Currently, the company is waiting for government and regulatory approval for this project. A second FPSO will be used for the operations, designed to produce up to 220,000 barrels per day.

A third development, Payara, is also pending for approval this year and is expected to begin operations in 2023.

The Stabroek Block is 6.6 million acres (26,800 square kilometers). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.

President Granger said that, prudently managed, the revenue obtained from this oil will enable to transform the lives of all citizens of Guyana over the coming years.

For more information, check Energía16

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