ExxonMobil makes 2 more discoveries offshore Guyana
Oil giant ExxonMobil has made two new discoveries in the Stabroek Block offshore Guyana, marking its sixth and seventh discoveries for the year and bringing its total discoveries in the Stabroek Block to 33.
In a statement on Tuesday, ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL) announced the discoveries of oil at its Seabob and Kiru-Kiru wells. The Seabob-1 well, drilled by the Stena Carron ship at a depth of 4660 feet, encountered 131 feet of oil.
On the other hand, the Kiru-Kiru-1 well, drilled by the Stena DrillMAX at a depth of 5760 feet, encountered 98 feet of oil. Drilling operations meanwhile continue at this well. With these discoveries, Exxon has now made a total of 38 discoveries overall in Guyana’s waters. According to ExxonMobil Upstream Company President Liam Mallon, Exxon and its partners will continue to accelerate exploration and production.
“ExxonMobil and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana. The resources we are investing in and discovering offshore Guyana will provide safe, secure energy for global markets for decades to come,” he said.
According to Exxon, their 2022 investment plans include further exploration drilling and resource development in Guyana, where it is already increasing production at an accelerated, industry-leading pace.
“Two Floating, Production, Storage and Offloading (FPSO) vessels operating offshore Guyana — Liza Destiny and Liza Unity — have exceeded their initial combined production target of 340,000 barrels of oil per day,” Exxon said in their statement.
Meanwhile, the Natural Resources Ministry in a statement following the announcement by ExxonMobil lauded the company for the oil finds. According to the Ministry, they will continue to closely monitor the exploration drilling.
According to Natural Resources Minister Vickram Bharrat, the new discoveries will continue Guyana’s ascendancy as an oil-producing and exporting nation with the internationally sought after medium sweet crude. He also noted that this will boost Government’s efforts to diversify away from oil and focus on world-class healthcare, infrastructure, and other social services to enhance the lives of all Guyanese.
“Government will continue to work with local stakeholders and international partners to ensure all petroleum activities are conducted in keeping with the best environmental and sustainability practices,” the statement said.
In April of this year, Exxon had announced three oil finds in the Stabroek Block. The three discoveries are southeast of the Liza and Payara developments and at the time had brought the tally of discoveries made by ExxonMobil in Guyana in 2022 to five. The Lukanani well was spud and completed the Noble Tom Madden, while Barreleye was drilled by the Stena DrillMAX and Patwa by Noble Don Taylor.
ExxonMobil, in its statement announcing those three new discoveries offshore Guyana, had said that the finds would increase its estimate of the recoverable resource for the Stabroek Block to nearly 11 billion oil-equivalent barrels.
The oil rich Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through subsidiary 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.
So far, Exxon’s total investments in Guyana total GY$1.3 trillion on its own and over GY$3 trillion with its partners. Additionally, the joint venturers’ exploration and production plans up to 2025 will likely increase their investments to more than GY$6 trillion.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027, with developmental drilling having been recently started on the second one, the Liza Phase 2 project. Production has already started in the second phase, with the Liza Unity Floating, Production, Storage and Offloading (FPSO) vessel in operation.
The third project – the Payara Development – will meanwhile target an estimated resource base of about 600 million oil-equivalent barrels, and was at one point considered to be the largest single planned investment in the history of Guyana.
Meanwhile, the Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will be the single largest development so far in terms of barrels per day of oil, with a mammoth 250,000 bpd targeted.