Exxon makes another oil discovery offshore Guyana

U.S. oil giant ExxonMobil is again announcing “positive results” in its oil exploratory efforts in Guyana, this time confirming a new discovery in the Snoek well offshore Guyana in the Stabroek Block.
Drilling targeted similar-aged reservoirs as encountered in previous discoveries at Liza and Payara, Exxon said.

President David Granger meeting with ExxonMobil executives at State House on Wednesday

“The latest discovery at Snoek demonstrates the continued success we have achieved in this technically complex play, which is just part of the significant exploration province offshore Guyana”, President of ExxonMobil Exploration Company, Steve Greenlee, has said.
ExxonMobil began drilling of the Snoek well on February 22, 2017, and encountered some 82 feet (25 metres) of high-quality, oil-bearing sandstone reservoirs.
The well was drilled to a depth of 16,978 feet (5,175 metres) in 5,128 feet (1,563 metres) of water on March 18. The Snoek well is located in the southern portion of the Stabroek Block, approximately 5 miles (9 km) to the southeast of the 2015 Liza-1 discovery.
Following completion of the Snoek well, the Stena Carron drillship has moved back to the Liza area to drill the Liza-4 well.
“As we continue to evaluate the full potential of the broader Stabroek Block, we are also taking the necessary steps to ensure the safe, cost-efficient and responsible development of this world-class resource, which can provide long-term, sustainable benefits to the people of Guyana,” the company’s President said.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Esso Exploration and Production Guyana Limited is operator and holder of 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
As for the Liza discovery, ExxonMobil drilled three wells in there, and is now getting ready to drill the fourth. The Liza-1 well was drilled in March 2015, while the Liza-2 well was drilled in June 2016. ExxonMobil affiliate Esso Exploration and Production Guyana, responsible for all drilling activities on behalf of ExxonMobil in Guyana, drilled the Liza-3 well in October last year.
In December, ExxonMobil awarded a contract to SBM Offshore to supply an FPSO unit for the Liza development, which is estimated to hold in excess of 1 billion oil-equivalent barrels.
President David Granger has, on Wednesday, informed executives of the oil company of Government’s commitment to the development of Guyana’s oil and gas sector in an atmosphere of transparency and trust, so that the Parliamentary Opposition and the people of Guyana could be fully involved in the process.
The Head of State made the comments during a meeting with a visiting delegation of ExxonMobil Executives at State House. The meeting was to discuss matters related to the status of exploratory and appraisal work in the Stabroek Block. The President said it is important that there are regular and accurate announcements on matters pertaining to the development of the sector.
“We are committed to the norm of transparency…so that we can move forward at a domestic level, not only in an atmosphere of transparency, but trust; so that all Guyana would see this not as a short term bonanza; so that Guyanese will see this as a national industry… In this regard, we are walking step by step as the developments take place offshore and the developments in terms of our legislation within our regulatory framework — in terms of the passage of information to various stakeholders in Guyana and the diaspora — so that we can create an environment which is stable and secure,” the President said.
The company’s President, Steven Greenlee, said that the discussions with President Granger were very fruitful, and that they look forward to a strengthened productive and transparent relationship. “It was a very positive meeting. We are all very happy that we have such a cordial relationship with the Government; a very productive and transparent relationship,” he said.
Minister of Natural Resources, Raphael Trotman, who also attended the meeting, echoed the President’s sentiments in an invited comment, stating that the engagement was part of an ongoing dialogue which aims to strengthen the relationship between Guyana and ExxonMobil.
“As we progress together, we have to do so in an open and transparent way, being mindful that we are in a parliamentary democracy. We have to ensure that the Opposition and other stakeholders are made aware of what is happening,” Trotman said.