– with new discoveries oil-equivalent barrels exceed 9 billion
With oil giant ExxonMobil making its 23rd discovery of oil offshore Guyana, this time in the Pinktail well, the Government of Guyana has said it welcomes this latest discovery and confirmation of the resource potential of the Stabroek block.
In a statement on Thursday, ExxonMobil announced that it found 220 feet (67 metres) of high-quality oil in the Pinktail well offshore Guyana. It was explained that the Pintail discovery, which was drilled by the Noble Sam Croft drill ship, is 21.7 miles southeast of the Liza Phase 1 project.
The Noble Sam Croft drill ship
Additionally, Exxon was able to successfully appraise the Turbot-1 and 2 wells, where oil was previously found. In the case of the Turbot-2 well, drilling encountered 43 feet (13 metres) of net pay, separate from the oil previously encountered in the Turbot-1 well.
The statement included quotes from Exxon Senior Vice President Mike Cousins, who said the discoveries were part of an extensive well programme. He also reaffirmed that these finds will increase the block’s resource potential and benefit both them and the Guyanese people.
“These discoveries are part of an extensive well programme in the Stabroek Block utilising six drill ships to test play extensions and new concepts, evaluate existing discoveries, and complete development wells for the Liza Phase 2 and Payara projects,” Cousins said.
Natural Resources Minister Vickram Bharrat
“Our exploration successes continue to increase the discovered resource, and will generate value for both the Guyanese people and our shareholders,” the Vice President further explained in the release.
Meanwhile, Natural Resources Minister Vickram Bharrat released a statement in which he lauded the new discovery. The Minister expressed confidence that these discoveries would aid Guyana in its transition to a world class oil producer.
Oversight
Bharrat therefore noted that the Government remains committed to effective oversight and management of the sector. The Minister further assured that the Government is committed to engaging all stakeholders towards the development of Guyana’s resources, in keeping with international best practices for compliance and transparency within the petroleum sector.
“The Ministry of Natural Resources and the Government of Guyana welcome these new discoveries offshore Guyana, and remain committed to the sustainable exploration and development of Guyana’s oil and gas resources,” the Minister said.
“The Government of Guyana has mandated the Ministry of Natural Resources and the Petroleum Sector regulatory agencies to enhance the oversight and management of the exploration programmes of all operators, as we seek to further expand the sector through advancing commercial discoveries,” the statement also said.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through subsidiary Esso Exploration Production Guyana Limited (EEPGL), is the operator and holds 45 per cent interest in the Block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019 in the Stabroek Block. Guyana’s oil revenues are being banked in the New York Federal Reserve Bank, where it is earning interest.
In March 2021, the Natural Resources Ministry had disclosed that, to date, a total of 5,009,797 barrels of oil worth US$246.5 million have been lifted. This sum, added to the royalties the country receives, took the total in the NRF account to US$267.6 million. And if one considers earnings from the sixth lift in April and royalty payments, this amount is expected to climb to over US$300 million.
Guyana received its first payment of US$54.9 million for an oil lift dated February 19, 2020. The second lift, on May 21, 2020, was valued at US$35 million; while the third lift, which occurred on August 9, 2020, was worth US$46 million.
The fourth lift of oil offshore Guyana occurred on December 9, 2020, and came in at US$49.4 million in value. And on February 5, 2021, some 997,420 barrels of oil were lifted from Liza Destiny. A sum of US$61 million was paid for that lift.
