ExxonMobil finds more oil offshore Guyana

United States (US) oil giant ExxonMobil on Wednesday announced another oil discovery following drilling at the Longtail-1 exploration well in the Stabroek Block offshore Guyana.
This is ExxonMobil’s eighth oil discovery offshore Guyana. The company said in a statement that the well encountered has approximately 256 feet (78 metres) of high-quality, oil-bearing sandstone reservoir.
The well was drilled to 18,057 feet (5504 metres) depth in 6365 feet (1940 metres) of water. The Stena Carron drillship commenced drilling on May 25, 2018.
President of ExxonMobil Exploration Company, Steve Greenlee, explained that the Longtail discovery is in close proximity to the Turbot discovery South-east of the Liza field.
He said the Longtail drilling results are under evaluation. However, the combined

estimated recoverable resources of Turbot and Longtail will exceed 500 million barrels of oil equivalent, and will contribute to the evaluation of development options in this eastern portion of the block.
The company said it is currently making plans to add a second exploration vessel in addition to the Stena Carron drillship, bringing its total number of drillships on the Stabroek Block to three. “The new vessel will operate in parallel to the Stena Carron to explore the block’s numerous high-value prospects,” it stated.
At present, the Noble Bob Douglas is completing initial stages of development drilling for Liza Phase 1, for which ExxonMobil announced a funding decision in 2017.
The company said Phase 1 will consist of 17 wells connected to a floating production, storage and offloading (FPSO) vessel. This is designed to produce up to 120,000 barrels of oil per day.
Meanwhile, Phase 2 concepts are similar to Phase 1 and will involve a second FPSO with production capacity of 220,000 barrels per day. A third development, Payara, is planned to follow Liza Phase 2.
ExxonMobil noted that Guyanese businesses, contractors and employees will continue to play an important role in its operations in Guyana. It reminded that over $24 million was spent in partnership with project partners with more than 300 local suppliers in 2017.
Also, the company opened the Centre for Local Business Development in Georgetown to promote the establishment and growth of small- and medium-sized local businesses.
“ExxonMobil’s priorities in Guyana are focused on enabling local workforce and supplier development and collaborating with Government to support the growth and success of its economy,” it added.

Confidence
Following the announcement, Government issued a statement congratulating the company, stating that this other discovery is an “unmistakable demonstration” of it confidence in Guyana’s offshore reserves.
Natural Resources Minister Raphael Trotman said the 8th discovery at Longtail-1 is yet another verification and validation of Guyana’s massive offshore oil reserves.
“All Guyanese will be brimming with further excitement of this historic news which reinforces that in the near future, Guyana’s share of profit oil will allow for national infrastructural, economic and social transformation hitherto unimaginable,” he added.
Further to that, Trotman said Guyanese have the assurance that Government will ensure that the sector is managed responsibly, with their best interest and the interest of future generations in mind.
Only in late February, ExxonMobil had announced its seventh oil discovery at its Pacora-1 well. The company had said it encountered approximately 65 feet (20 metres) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 18,363 feet (5597 metres) depth in 6781 feet (2067 metres) of water. The Pacora-1 well is located approximately four miles West of the Payara-1 well.
ExxonMobil had announced project sanctioning for the Liza Phase 1 development in June 2017. Following Liza-5, the Stena Carron will conduct additional exploration and appraisal drilling on the block.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Esso Exploration and Production Guyana Limited holds a 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent interest.