ExxonMobil’s oil-equivalent barrels now exceed 10 billion

– with new oil discovery in Cataback well offshore Guyana

Less than one month after ExxonMobil made its 23rd oil discovery offshore Guyana in its Pinktail well, the US oil giant has made yet another discovery, which will see Guyana reserves exceeding ten billion oil-equivalent barrels.
ExxonMobil, in a release on Thursday, stated that the new discovery was made in the Cataback-1 well, which brings the total significant discoveries to more than 20 within the Stabroek Block.

The Cataback-1 well, the oil company stated, encountered 243 feet (74 metres) of net pay in high quality hydrocarbon-bearing sandstone reservoirs. It is located approximately 3.7 miles (6 kilometres) east of Turbot-1 and was drilled in 5,928 feet (1,807 metres) of water by the Noble Tom Madden.
“This discovery adds to the resource in the Turbot/Tripletail area, enhancing the development project potential,” Senior Vice President of Exploration and New Ventures at ExxonMobil, Mike Cousins, stated. “Our proprietary technologies, global exploration experience and drilling capabilities continue to yield positive results in the Stabroek Block, which will generate additional value for Guyana,” he added.
The release further stated that ExxonMobil’s recent discoveries and ongoing projects continue to contribute to the advancement of the Guyanese economy, with more than 2,850 Guyanese now supporting the company’s project activities.
“ExxonMobil and its key contractors have spent over $480 million with more than 800 Guyanese vendors since 2015,” the oil company related.
President of ExxonMobil Guyana, Alistair Routledge, has stated that the recent discoveries and ongoing projects continue to contribute to the advancement of the Guyanese economy.
The Government, in a release, welcomed the new discovery and stated that it remains committed to enhancing the exploration and development of Guyana’s oil and gas resources.
“As Minister of Natural Resources with responsibility for Petroleum, I would like to once again remind all Guyanese and stakeholders that the oil and gas investments and activities will be undertaken in a manner that is in keeping with international best practices for compliance and transparency within the petroleum sector,” the subject minister has said.
The government, he added, is continually working through consultations to enhance local content with policies and legislation that would create a sustainable development pathway to ensure maximum economic benefits for all Guyanese.
The Minister further stated that the Government would like to restate that the Liza Unity FPSO is halfway on its journey to Guyana, and it is expected to arrive by mid-November 2021 with an anticipated startup of production in early 2022.
“The Liza Unity FPSO has a capacity of approximately 220,000 barrels of oil per day, which will complement the Liza Density FPSO which is currently producing approximately 120,000 barrels of oil per day, bringing Guyana to producing approximately 330,000 barrels of oil per day in 2022,” a statement from the Natural Resources Ministry detailed.
Back on September 9, ExxonMobil announced that it found 220 feet (67 metres) of high-quality oil in the Pinktail well offshore Guyana. It was stated 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.
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 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 they are earning interest.
In August, Guyana received payment for its seventh oil lift to the tune of US$79,617,561.87, the largest single oil payment the country has received to date.
The Natural Resources Ministry had stated that the aforementioned payment was for 1,047,820 barrels of oil, which was extracted from the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel on July 3, 2021.
The seventh oil lift brings the country’s oil extractions to a grand total of 7,056,262 barrels, and accumulative earnings of US$388,777,840.
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.
During the 31st Sitting of the National Assembly, subject Minister Vickram Bharrat had reported that this amount plus royalties put the total in Guyana’s Natural Resources Fund (NRF) at US$436 million, which remains untouched.