ExxonMobil makes 3 more oil strikes offshore Guyana

…oil resources now near 11 billion barrels

Oil giant ExxonMobil has announced three oil finds in the Stabroek Block, which is being heralded by the People’s Progressive Party/Civic (PPP/C) as an opportunity to fast-track development and improve living standards for all Guyanese.

ExxonMobil Upstream Company President Liam Mallon

In a statement on the heels of the find, the Government of Guyana through the Ministry of Natural Resources lauded Exxon subsidiary Exxon Exploration and Production Guyana (EEPGL) and partners for finding oil at the Barreleye, Patwa-1, and Lukanani-1 wells offshore Guyana in the southeast portion of the Stabroek Block.
It was explained that the Barreleye-1 well encountered approximately 230 feet (70 metres) of hydrocarbon-bearing sandstone and was drilled in 3840 feet (1170 metres) of water. The second well, Patwa-1, encountered 108 feet (33 metres) of hydrocarbon-bearing sandstone and was drilled in 6315 feet (1925 metres) of water.
Meanwhile, the Lukanani-1 well encountered 115 feet (35 metres) of hydrocarbon-bearing sandstone and was drilled at a water depth of 4068 feet (1240 metres). Operations, it was explained, are ongoing at both Barreleye-1 and Lukanani-1.

Accelerates development
“The GoG welcomes the continued success of exploration and discovery work by EEPGL and its partners within the Stabroek Block which has now produced five discoveries in total offshore Guyana thus far in 2022.
Meanwhile, Natural Resources Minister Vickram Bharrat noted in the statement that the new discoveries add to Guyana’s growing legacy as an oil-producing and exporting nation with “medium sweet crude”.

Natural Resources Minister Vickram Bharrat

He said that these discoveries bring Guyana closer to and accelerates the Government’s “One Guyana” goal of enhanced infrastructure, world-class healthcare and education, realising a higher standard of living and better quality of life for all Guyanese.
“The Government of Guyana remains vigilant and committed to ensuring the benefits of Guyana’s petroleum resources benefit all Guyanese paving the way for a thriving future for generations ahead,” Minister Bharrat said.
The Ministry went on to highlight that currently, ExxonMobil has four projects developing the recoverable resource offshore Guyana. The Liza Phase 1 is currently producing approximately 130,000 barrels per day utilising the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel.
The Liza Phase 2 is meanwhile ramping up towards its capacity of 220,000 barrels per day using the Liza Unity FPSO. The third project, Payara, is scheduled to begin production at the end of 2023 with a capacity of 220,000 barrels per day from the Prosperity FPSO, which is currently under construction in Singapore. The fourth project, Yellowtail, is expected to produce 250,000 barrels per day when the One Guyana FPSO comes online in 2025.
“The Ministry of Natural Resources and the Government of Guyana welcome these three new discoveries offshore Guyana, totalling 31 discoveries within the Stabroek Block and 36 discoveries overall, which will strengthen Guyana as a petroleum-producing country, while at the same time be guided by good international oil field practices for effective and efficient governance,” the Ministry further outlined.

The Stena DrillMAX, one of the drill ships that was involved in the oil finds

The three discoveries are southeast of the Liza and Payara developments and bring to five the discoveries made by ExxonMobil in Guyana in 2022. It was explained to this publication that the Lukanani well was spud and completed by the Noble Tom Madden, while Barreleye was drilled by the Stena DrillMAX and Patwa by Noble Don Taylor.
ExxonMobil, in its statement announcing the three new discoveries offshore Guyana, said that the finds will increase its estimate of the recoverable resource for the Stabroek Block to nearly 11 billion oil-equivalent barrels.
According to President of ExxonMobil Upstream Company Liam Mallon, the oil finds will also provide valuable impetus to Exxon for its future plans to develop that portion of the Stabroek Block.
“These discoveries and the updated resource estimate increase the confidence we have in our ambitious exploration strategy for the Stabroek Block and will help to inform our future development plans for the southeast part of the block,” Mallon said.
“ExxonMobil remains committed to delivering value at an accelerated pace to the people of Guyana, our partners and shareholders and reliably supplying affordable energy to meet increasing demand around the world,” he added. (G3)