Stabroek Block projected to hold 20B barrels of oil – analyst

…says 10 of world’s leading oil companies in Guyana-Suriname basin

Guyana, which is already considered one of the world’s new oil hotspots, could well be sitting on 20 billion barrels of oil equivalent in just one oil block. At least, this is according to projections from analyst Americas Market Intelligence (AMI).
In a recent report titled “5 megatrends in Latin America’s energy sector for 2022 and beyond”, AMI delved into developments in the Guyana-Suriname basin, which it labelled as the most appealing oil frontier market in the world.
It noted that the total projected reserves in the Stabroek block is 20 billion barrels. Additionally, natural gas is also present. It was also estimated that the Stabroek Block would produce nearly 1 million barrels per day by 2027, from seven vessels.
The analysts further noted that the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel has a break even cost of US$35 per barrel and for the Liza Unity US$25 per barrel.
AMI also noted that Guyana’s neighbour Suriname, where oil has been discovered by Total and Apache in block 58, will have a smaller break even cost than Guyana. Production is expected to start by late 2025. It was also noted that 10 of the world’s leading oil companies are present in the Guyana-Suriname basin.
In Guyana, oil giant ExxonMobil has made more than 20 major discoveries as the operator in the Stabroek Block. In all, six ExxonMobil-operated Guyana producing projects are predicted by 2027, with plans for an eventual 10 in total.
While AMI is projecting up to 20 billion barrels of oil in the Stabroek Block, the current official estimated resource potential in the Stabroek Block, where all the discoveries are sited, is 10 billion barrels of oil.
Noble Corporation currently has four contracted deep-water drill ships active in Guyana. One, the Tom Madden, has a contract that runs until January 2027. In addition, Noble recently inked a deal for a drillship with APA Corp in Suriname for one firm well and two well options. In addition, Maersk is currently running one deep-water rig in Guyana.
Guyana, with 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 it is earning interest.
Developmental drilling has started on Exxon’s second development, the Liza Phase 2 project. Back in May 2019, Exxon was granted approval by the Environmental Protection Agency (EPA) to go ahead with its Liza Phase 2 Development offshore Guyana.
The oil company had said that the project will have the capacity to produce 220,000 barrels of oil per day. Exxon had also revealed that the Liza Phase 2 development was funded at the cost of some US$6 billion, including a lease capitalisation cost of approximately $1.6 billion, for the <<<Liza Unity>>> FPSO vessel. For the Phase 2 Development, six drill centres were planned, along with approximately 30 wells – 15 productions, nine water injection and six gas injection wells.
The US$9 billion Payara development, the third 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.
The Yellowtail development, which will be oil giant ExxonMobil’s fourth development in Guyana’s waters, will turn out to be the single largest development so far in terms of barrels per day (bpd) of oil, with a mammoth 250,000 bpd targeted. (G3)