ExxonMobil on hunt for new wells that match Liza or Payara – Routledge

– says discovery must be capable of anchoring next project

In light of the success of the Liza Phase One and Two and Payara projects, all of which, combined, are producing over 600,000 barrels of oil per day, oil giant ExxonMobil is on the hunt for discoveries that can match these exploits.
During a recent press conference, President of Esso Exploration and Production Guyana Limited (EEPGL), Alistair Routledge, spoke of the company’s planned exploration programme for this year, and the seven wells it intends to drill. He also spoke of the planned ‘anchor hunting’ to seek out the next big resource in the Stabroek block.
“On exploration, and I would add appraisal in there too; because the exploration is trying to find the new reservoirs, but then we also have to go through an appraisal process to ensure that we understand those reservoirs” he explained.

“So, I would say we’re focused on two primary areas this year,” he said. “One is what we term anchor-hunting: Looking for those additional plays that we haven’t necessarily discovered yet, but (which) may provide a new anchor for a major development. You know, like a Liza; like a Payara,” Routledge informed the media.
According to Routledge, such prospective wells include Trumpetfish and the Redmouth.
He noted that while the company has already discovered a good number of resources, those resources are distributed among different reservoirs.
“So, we have a very active exploration and appraisal programme…trying to ensure that we fill in some gaps on where the resource is, and hopefully get some dynamic data on the reservoirs, to understand how productive.
Are those reservoirs as good as, say, the Liza reservoir? Will the fluids flow at the sort of volumes we need? How many wells are needed? So, all that sort of appraisal and exploration going on to really assess the resource,” Routledge explained.
With US oil giant ExxonMobil as the operator, Guyana began producing oil on December 20, 2019 in the Stabroek Block. Guyana’s oil revenues are being held in the Natural Resource Fund (NRF) at the New York Federal Reserve Bank, where it is earning interest.

EEPGL, Exxon’s local subsidiary, holds a 45 per cent interest in the Stabroek block, while Hess Guyana Exploration Ltd holds a 30 per cent interest; and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest. However, Hess Corporation has agreed to merge with Chevron, and this transaction is expected to be closed in the first half of this year.
ExxonMobil currently has three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore. The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are already underway and are each anticipated to contribute 250,000 barrels of oil following their respective start-ups.
An application for the sixth development, the Whiptail Project, has been submitted by ExxonMobil Guyana Limited (EMGL) and its co-venturers. This project is currently under review by Government, and once approved, will see Guyana producing just over 1.2 million barrels of oil per day by 2027.
In addition to at least six projects offshore Guyana that Exxon anticipates would be online by 2027, it is also eyeing the possibility of having 10 FPSOs operating by 2030. Production has already started on three projects, with the Liza Destiny and Unity and the Prosperity FPSO vessels in operation. The third project – the Payara development –targets 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 Exxon’s fourth development in Guyana’s waters, has an anticipated start-up of 2025. The Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells. Exxon had previously also made known that it anticipates the first oil from the Uaru development by late 2026 or early 2027. (G-7)