Oil giant ExxonMobil has made its 19th oil discovery offshore Guyana at the Uaru-2 well in the Stabroek Block, a feat that has been lauded by the Government of Guyana even as it adds to the approximate nine billion barrels of oil estimate.
According to a statement from ExxonMobil on Tuesday, 120 feet of high-quality oil was discovered at the Uaru-2 well. It was explained that the well was drilled in 1725 metres of water, approximately 11 kilometres south of the first Uaru well.
Natural Resources Minister Vickram Bharrat
The statement also carried a quote from Exxon’s Senior Vice President of Exploration, Mike Cousins. He said that the find enhances their efforts to sequence the Stabroek Block developments. Additionally, Cousins pointed out that progressing investments and exploration plans to discoveries is vital for the continued development of Guyana’s oil potential.
“The Uaru-2 discovery enhances our work to optimally sequence development opportunities in the Stabroek Block. Progressing our industry-leading investments and well-executed exploration plans are vital in order to continue to develop Guyana’s offshore resources that unlock additional value for the people of Guyana and all stakeholders,” Cousins said.
Meanwhile, Natural Resources Minister Vickram Bharrat released a statement in which he praised the find. According to him, the find means that as many as 10 floating production storage and offloading vessels could be launched.
“The Uaru-2 discovery will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently estimated to be over 9 billion oil-equivalent barrels. Drilling at Uaru-2 encountered high-quality oil-bearing reservoirs including newly identified intervals below the original Uaru-1 discovery.”
“This new development in Guyana increases the potential to as many as 10 floating production storage and offloading vessels (FPSO) with an increase of the estimated recoverable resource given by operator, Esso Exploration and Production Guyana Limited (EEPGL),” Bharrat said in his statement.
The Minister also noted that the Government remains committed to the sustainable development of Guyana’s resources, in a way that will ensure the funds from the sectors transform the traditional productive sectors and the lives of all Guyanese.
Oil was found in the first Uaru well in January 2020, making it Exxon’s 16th discovery in Guyana’s waters. ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027.
In March 2021, ExxonMobil secured a sixth drillship, the Noble Sam Croft, for exploration and evaluation drilling activities offshore Guyana. A fourth project, Yellowtail, has been identified within the block with an anticipated start-up in late 2025 pending Government approvals and project sanctioning. This project will develop the Yellowtail and Redtail fields, which are located about 19 miles (30 kilometres) southeast of the Liza developments.
The start-up of Liza Phase 2 remains on target for 2022, as the Liza Unity FPSO prepares to sail away from Singapore to Guyana later this year. The Unity FPSO has a production capacity of 220,000 barrels of oil per day at peak rates. The hull for the Prosperity FPSO vessel, the third project at the Payara Field, is complete, and topsides construction activities have commenced in Singapore with a startup target of 2024.
These new projects continue to drive investment in the Guyanese economy. More than 2300 Guyanese are now supporting project activities on and offshore, which reflects a more than 20 per cent increase since the end of 2019. ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.
